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CIL regulations published
On Wednesday 10th February 2010 the Government published its revised Community Infrastructure (CIL) Regulations and associated documents.
CIL is a new power that allows councils to raise funds from developers alongside new building projects to help build infrastructure such as new schools, hospitals, leisure centres, roads and transport schemes.
CIL is intended to give developers certainty over the contributions they have to make to support local communities when they plan projects, ensuring that developers pay a fair share towards new local services that are needed. CIL should bring improved transparencies for communities who will know what infrastructure is needed, and improtantly, how it will be funded.
CIL is intended to replace the existing planning obligation arrangements based on s106 agreements, and subject to some parliamentary administration procedures, the regulations are due to come into force on 6th April 2010. From April, Section 106 agreements will only be permitted if they are directly related to new developments, and by 2014 Section 106 agreements will be scaled back further to ensure they operate alongside CIL
The new system has been the subject of discussions with stakeholders over the last 18 months. Key features of CIL include:
•allowing up to 100 per cent CIL relief in exceptional circumstances for developments that would otherwise not proceed
•allowing payments of CIL to be made in-kind in the form of land provided that land is transferred with the intention of providing infrastructure
•doubling the standard payment period to 60 days to ease cash flow for developers; and allowing payment by installments in many cases
•introducing the potential for local authorities to borrow against future CIL receipts to allow infrastructure provision to be unlocked earlier in development, subject to the overall fiscal position of the country
•providing additional reliefs for developing charities in line with the Government’s commitment to the voluntary and community sector
•providing 100 per cent exemption from CIL for most types of affordable housing
•enabling authorities to draw the administrative costs of CIL from CIL receipts.
15/02/2010
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