The Council proposes to divide the Borough into four different charging zones for residential developments, with levy rates ranging from £0 per square metre to £190 per sq m.
Zone A, which covers Shoreditch, Haggerston, Stoke Newington, Hackney Central and Dalston, has been set the highest proposed rate of £190 per sq m. In Zone B, which covers Hackney Wick, Clapton and Stamford Hill, the proposed rate is £25 per sq m.
Zone C comprises Finsbury Park and Woodberry Down, excluding the regeneration area, and is proposed to be subject to a rate of £55 per sq m. A nil rate levy is proposed to apply to Zone D, which covers the Woodberry Down regeneration area.
The Council said that its viability assessment had shown that developments within the Woodberry Down regeneration area were unviable. It said that these developments had been originally predicated on the availability of a social housing grant, which had since been "considerably" reduced. The developments would therefore be unlikely to be able to "absorb any additional burden in the form of CIL," it said.
For offices located in the City Fringe, the Council has proposed that a CIL rate of £74 per sq m should apply. Retail developments in the City Fringe are subject to a proposed rate of £65. A proposed nil rate levy will apply to offices and retail developments across the rest of the Borough, with the exception of large format retail which will be levied a proposed £65 per sq m.
The Council has set a proposed rate of £65 per sq m for hotel developments and a rate of £373 per sq m for student housing.
In addition to CIL charged by the Council, any developments in the Borough will also be subject to Mayoral CIL. The Mayoral CIL charge in Hackney is £35 per sq m on all uses except for health and education purposes, which are exempt.
The consultation will be open until 17 June.
