PLANNING AND ENVIRONMENT
Planning Obligation Agreement: Modification Agreement
Field 40, Rue du Maupertuis, St Clement
Purpose of the Report
The purpose of this report is for the Minister for Planning and Environment to consider the potential addition of an Approved Funder clause, in the form of a Modification Agreement, to the Planning Obligation Agreement (POA) for the development of Field 40, Rue du Maupertuis, St Clement.
Background
Field 40, St Clement was rezoned for the purposes of providing Category A homes in the Island Plan 2002 under the auspices of Policy H2(9). A scheme, for the development of 25 three-bedroom homes was subsequently approved on 14 September 2006 subject to the entering into of a POA within three months of the date of the permission. The POA, which was formalised and registered on 31 January 2007, guarantees inter alia the provision, of a 45/55 split of homes for social rent/ first-time buyers (which, for the 23 homes, equates to a 10/13 split).
The social rented homes are to be purchased by Les Vaux Housing Trust which is funded by the Royal Bank of Scotland International Limited (RBSI). RBSI have expressed some concerns that the POA does not contain a provision that would enable the removal of the social rent covenant should it have to enforce its security; this is presently holding up the acquisition of the social rent homes.
Discussion
Legal advice indicates that clauses have previously been used in planning obligations to provide a mechanism for the funders of housing trusts to have confidence in their ability to enforce their security and to sell homes without a social rent covenant, where there has also been included an option for the Public to take over the homes and the responsibility for discharge of the debt. This allows the social rental housing obligation to remain in force and for the States to be able to use the homes for social rent, where it is considered appropriate to do so.
On this basis, it is considered appropriate for the POA for Field 40 to be modified in a similar way and accordingly the advice of the Law Officers Department (LOD) has been sought in this respect. A draft Modification Agreement has been produced and is attached, together with the advice of the LOD at appendix 1, to give effect to this.
Legal implications
The Minister is able to modify a POA with the agreement against whom the obligation is enforceable under Article 25 (12) of the Planning and Building (Jersey) Law 2002.
Consultation
On the basis of the above, consultation on the draft Modification Agreement is required with the relevant parties the final Modification is signed.
Recommendation
On the basis of the above, the proposed Modification Agreement is considered appropriate and beneficial to enable the sale of social rented homes at Field 40 to a social landlord. It is accordingly recommended that the Minister for Planning and Environment endorses it content to enable it to be referred to other interested parties for consideration and signature, before finally being signed by the Minister or his delegated representative.
Reason(s) for Decision
The draft Modification Agreement to the POA for Field 40 enables the objective, of providing social rent homes on this site, to be achieved.
Action Required
Advise the LOD of the Minister’s decision to enable the draft Modification to be forwarded to other parties for consideration and signature, before being brought back to the Minister or his delegated representative, for signature.
Written by: | Kevin Pilley Assistant Director |
Attachments:
Letter dated 10 July from LOD: exempt 3.2.1(a)(v)
Modification of POA for Field 40
P/2005/1754 and 8/37/9
26 July 2007
gov.je