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CIL and Affordable Housing Contributions
Mole Valley District Council (MVDC) introduced the Community Infrastructure Levy (CIL) on 1st January 2017. If your planning application includes additional housing, an element of on-site affordable housing, or contributions to off-site affordable housing provision, may also be required.
What is CIL?
The Community Infrastructure Levy (CIL) is a charge that local authorities can set on new developments. Its purpose is to raise funds for infrastructure needs in the area to support growth. The infrastructure list - Regulation 123 List, (see 'Downloads') details the types of infrastructure that CIL will be used to help fund.
In the majority of cases, CIL replaces the existing Section 106 (S106) agreements, which the planning system previously used. However, S106 agreements continue to operate alongside CIL for certain developments such as the Council's Affordable Housing Supplementary Planning Document.
Mole Valley District Council's (MVDC) approved charging schedule (see 'Downloads') took effect on 1st January 2017. The document sets out the types of development that are liable for CIL and the rates at which it will be charged. All planning applications granted after this date are liable to pay a CIL charge.
What is a CIL liable development?
The charging schedule includes charges for both retail and residential uses. A development is likely to be CIL liable if:
Development commenced under 'general consent' is liable to pay CIL, as well as developments that require Planning Permission. 'General Consent' includes permitted development rights granted under The Town and Country Planning (General Permitted Development) (England) Order 2015 (See 'Internet Links').
If a development comes under general consent, a Notice of Chargeable Development Form 5: Notice of Chargeable Development must be submitted to the local planning authority prior to the commencement of works. Examples of CIL can be found in the 'Downloads' section below.
What do I need to do?
A CIL Process flowchart can be found in the 'Downloads' section below.
How much will I have to pay?
The amount of CIL payable (the chargeable amount) will be calculated in accordance with the Community Infrastructure Levy Regulation 2010 (as amended). The chargeable amount will equal the net additional area created (measured using the gross internal floorspace), and can depend on the type and location of the development. The chargeable amount may be modified according to exemption, relief and defaults of commencement. For further information, please refer to the CIL Charging Schedule (see 'Downloads').
How do I pay CIL?
For most small schemes, CIL charges are expected to be paid within 60 days from commencement. MVDC has adopted an instalments policy for larger schemes where CIL liability can be phased:
Payment can be made by BACS or cheque. When making payment, the payment reference number on the Demand Notice must be quoted so that the remittance can be linked to the correct application.
Surcharges and Interest
If the liable party/parties fail to submit the necessary forms, notify MVDC of changes, comply with the terms of the notices, or make late payments, surcharges will be applied and instalments will not be offered. Surcharges range from £50 - £2,500, and are set out in Regulations 80-86 of the CIL Regulations 2010 (as amended). (See 'Downloads').
If an applicant persistently fails to comply with MVDC, a CIL Stop Notice can be issued. This notice prohibits ANY further development on site until the CIL payment is made in full. Failure to comply with a stop notice can lead to a fine of up to £20,000. MVDC also has the power to apply to the Magistrates Court allowing them to seize and sell all assets of the liable party, and in a small number of cases the liable person could be sent to prison for up to three months. Therefore, if you feel that enforcement action is not warranted, or you think it may have been taken in error, please contact the MVDC as soon as possible.
Right of Appeal
There are a number of specific circumstances whereby applicants and liable parties can appeal the decision of the Council in relation to CIL. All appeals must be made by the applicant or liable party within the relevant timescales set out in the CIL regulations 2010 (as amended).
If development has already commenced before you receive the notification from the Council, the appeal review will lapse and the original amount will become due for payment as set out in the original Demand Notice.
If MVDC's decision is not satisfactory, a further appeal can be made through the Valuations Office Agency (see 'Internet Links').
IMPORTANT - It is an offence for a person who knowingly or recklessly supplies information which is false or misleading in a material respect to a charging authority in response to a requirement under the CIL Regulations 2010 (as amended).
Further information about CIL can be located on the Planning Portal.
Forms and guidance for submission with a planning application:
If you have any further queries relating to CIL, please email CIL@molevalley.gov.uk or call 01306 879392.
Guidance as to when on-site affordable housing, or a financial contribution towards affordable housing, is required is contained in the 'Affordable Housing SPD Addendum - Thresholds and Vacant Building Credit' (see 'Downloads'). This guidance incorporates changes to the use of planning obligations originally introduced by a Written Ministerial Statement in November 2014, and reinstated following an Appeal Court Judgement in May 2016.
If you believe that your development is exempt from providing affordable housing contributions because it is less than 1000sqm gross floor space, please provide details of the external floor area with the application.
Details of how to calculate contributions for affordable housing are set out in 'Affordable Housing SPD - updated January 2018' (see 'Downloads'). A vacant building credit can be used to offset affordable housing contributions where a vacant building is brought back into use, or is demolished to be replaced by a new building. Details of how to calculate a vacant building credit are set out in 'Affordable Housing SPD Addendum - Thresholds and Vacant Building Credit' (see 'Downloads').
Applications for development requiring affordable housing must be accompanied by a Unilateral Undertaking (Section 106 undertaking) as a means of securing it.
© 2019 Mole Valley, Pippbrook, Dorking, Surrey, RH4 1SJ.
Tel: +44 (0)1306 885001 Fax: +44 (0)1306 876821, 2019.