Chilmington Green update

An Ashford Borough Council spokesperson said:

“We are aware that administrators have been appointed to Hodson Developments (Ashford) Ltd and five of its associated companies involved with the Chilmington Green development.

“Along with Kent County Council, we are taking legal advice on any impact this may have on the developers’ obligations under the section 106 agreement with both councils, and on the ongoing legal action relating to those commitments.

“In January, the Planning Inspector dismissed an appeal by Hodson which sought over 100 changes to its section 106 agreement, following a lengthy public inquiry last year. The Inspector supported the Council’s position on nearly all matters, including the important point that the developers’ obligations to improve the A28 should not be lifted.

“We will continue to do all we can, alongside Kent County Council, to ensure these obligations are delivered, subject to the effects of the administration.”

A Kent County Council (KCC) spokesperson said:

“KCC is aware several Hodson Developments companies for Chilmington Green have been placed into administration.

“While this is an evolving situation and the full implications of this process are currently unknown, the county council’s priority is ensuring the developer provides the necessary infrastructure to support the Chilmington Green Development and its community.“We will continue to ensure the development delivers the necessary measures to mitigate the needs of its residents and minimise any risks to the public purse.”

Note: this does not affect the other developers involved with the Chilmington Green scheme (BDW & Jarvis Homes)

Could the administration process affect my property sale or purchase at Chilmington Green?

We are aware that the administration process may cause concern to people who are buying or selling their homes at Chilmington Green.

Through the conveyancing process, questions may be asked by legal advisers about who is now responsible for delivering the infrastructure that is required to be delivered under the Section106 legal agreement that is attached to the planning permission, and, specifically, whether any responsibility for this infrastructure would now fall to homeowners and/or their mortgage lenders.

We can point your legal advisers to the following clauses in the s.106 agreement that should help to answer any such questions:-

Clauses 2.4, 2.5 & 2.7 state, in effect, that the Council can take no action against existing and future private individual homeowners or their mortgagees or chargees (if relevant) for any breaches of the s.106 agreement, except in the following circumstances:

• If the correct and complete Rentcharge Deed known as RCD1, for the rentcharge that is payable to the CMO, is not in place for a property.
• If a property that is required to be occupied only as affordable housing is not owned by one of the correct Registered Providers of Social Housing, was not marketed correctly by them, or is occupied in an incorrect form of tenure of affordable housing or on inappropriate terms and conditions and rents etc, or is occupied by persons who are ineligible for the relevant tenure of affordable housing.

Therefore, the Council’s view is that any other alleged or confirmed breaches of the s.106 agreement would not be the responsibility of private individual homeowners or their lenders to rectify and so should not prevent property sales from progressing.

Should you need to provide your legal representatives with the relevant section of the s.106 Agreement that deals with this issue, this can be found on our website here [PDF 119kb].