CIL UPDATE – social housing exemption

The Community Infrastructure Levy is fast approaching as the Mayor of London’s CIL will come into effect on 1 April 2012 and many other local authorities are preparing to introduce it in their areas.

There are a number of reliefs and exemptions available under CIL including exemptions for social housing where the development comprises “qualifying dwellings” (either in whole or in part). In brief, these are dwellings which satisfy at least one of two conditions relating to  Registered Providers letting dwellings and to disposal of homes on shared ownership terms.

In order to claim social housing relief a claim must be made in writing on a form published by the Secretary of State and the claim with supporting evidence and a relief assessment must be received by the collecting authority before the commencement of the chargeable development. The claim will lapse if development is commenced before the collecting authority has notified the claimant of its decision on the claim.

Social Housing relief can be withdrawn under claw back provisions where there is a change in circumstances within 7 years from commencement of development resulting in the eligibility criteria no longer being met.