The affordable housing should be provided on the site of the development scheme and should be dispersed throughout the development. It should be similar visually to the open market houses.
In a very few cases the affordable housing can be provided on a different site, where we agree that this is more appropriate.
In rural areas a commuted sum towards affordable housing will be sought on sites which provide between 6 and 10 dwellings. This is in-line with Government Planning Policy Guidance.
Where the Council agrees that an affordable housing contribution does not have to be provided on-site, as an alternative, the Council will accept a cash payment in lieu. Such a payment is known as a commuted sum and will only be accepted by the Council in exceptional circumstances and after all options for on-site delivery have been fully explored.
To calculate the commuted sum in a consistent and transparent way we will be using a Commuted Sum Calculator, designed by Three Dragons.
The principles of the calculator is that the developer of a scheme should be no better or worse off financially, whether they provide the affordable housing on site or as a commuted sum. Secondly, the scheme being considered is viable for the percentage of affordable housing being tested.
The 'contribution' made by the developer as a commuted sum is the assessed difference in residual value of a 100% market housing scheme and a scheme with the policy requirement for affordable housing (or a lesser percentage where this is justified by viability considerations).