Website helps developers to avoid affordable housing obligations
Published by Jon Land for 24dash.com in Housing
Company helping builders to avoid affordable housing obligations
A company is offering builders the opportunity to circumvent their Section 106 obligations – including the supply of new affordable housing within their developments.
Section 106 Management’s website proudly boasts: “Affordable Housing and Section 106 payments aren't always inevitable, we can advise on how to avoid or significantly reduce them.”
The site invites developers to contact the firm for a free phone consultation.
The company has produced a simple graphic which explains the apparent ease it takes in disposing of Section 106s:
• Builder explains development by telephone or email.
• The firm analyses the project and explains how much can be saved (often over £1,000 per sq metre).
• A fee is agreed and developer appoints S106 Management to prepare a Section 106 viability report and negotiate a settlement with the planning authority.
• The company concludes negotiations and "saves £1,000s on Section 106 contributions.
• Builder starts development.
The website boasts of the firm's triumphs in a number of case studies.
In March this year, Section 106 Management acted on behalf of developers in connection with a planning application to the London Borough of Hillingdon for the conversion of purpose built mixed use, education and office premises to form 12 self-contained flats.
The firm "prepared a viability report to prove that the request for the provision of four affordable housing units or a contribution towards the provision of affordable housing under Hillingdon Core Policy H2 was not viable. The viability report was accepted without a planning appeal and permission was granted without any contribution towards affordable housing. Saving £400,000."
Meanwhile, a planning application to South Hams District Council for the conversion of agricultural barns into four houses saw the firm’s viability study lead to planning being granted with no affordable housing requirement, saving £200,000.