Common use of Irrecoverable VAT on the above Clause in Contracts

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: • works to any roads which do not exclusively serve the housing development; • landscaping to areas of land which lie outside the boundaries of the Site; • district heating systems; • trunk sewers and sewage disposal works; • special refuse treatment buildings; • public conveniences; • community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient is common both to the development of the AHP Dwellings within any Named Project and to any other activity, asset or property of the Grant Recipient, only such part of that cost as is attributable to the development of the AHP Dwellings may be treated as a cost in respect of which grant under this Agreement may be paid. Part 2 Costs which are not Development Costs Capital costs incurred:

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: • works to any roads which do not exclusively serve the housing development; • landscaping to areas of land which lie outside the boundaries of the Site; • district heating systems; • trunk sewers and sewage disposal works; • special refuse treatment buildings; • public conveniences; • community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient is common both to the development of the AHP Dwellings within any Named Project and to any other activity, asset or property of the Grant Recipient, only such part of that cost as is attributable to the development of the AHP Dwellings may be treated as a cost in respect of which grant under this Agreement may be paid. Capital costs incurred: Part 2 Costs which are not Development Costs Capital costs incurred:Costs

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s 's design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: • works to any roads which do not exclusively serve the housing development; • landscaping to areas of land which lie outside the boundaries of the Site; • district heating systems; • trunk sewers and sewage disposal works; • special refuse treatment buildings; • public conveniences; • community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient is common both to the development of the AHP Dwellings within any Named Project and to any other activity, asset or property of the Grant Recipient, only such part of that cost as is attributable to the development of the AHP Dwellings may be treated as a cost in respect of which grant under this Agreement may be paid. Part 2 Costs which are not Development Costs Capital costs incurred:

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s 's design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient Relevant Consortium Member can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: • works to any roads which do not exclusively serve the housing development; • landscaping to areas of land which lie outside the boundaries of the Site; • district heating systems; • trunk sewers and sewage disposal works; • special refuse treatment buildings; • public conveniences; • community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient Relevant Consortium Member is common both to the development of the AHP Dwellings within any Named Project and to any other activity, asset or property of the Grant RecipientRelevant Consortium Member, only such part of that cost as is attributable to the development of the AHP Dwellings may be treated as a cost in respect of which grant under this Agreement may be paid. Capital costs incurred: Part 2 Costs which are not Development Costs Capital costs incurred:Costs

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permissionplanning permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: • works to any roads which do not exclusively serve the housing development; • landscaping to areas of land which lie outside the boundaries of the Site; • district heating systems; • trunk sewers and sewage disposal works; • special refuse treatment buildings; • public conveniences; • community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient is common both to the development of the AHP Affordable Dwellings within any Named Project Firm Scheme and to any other activity, asset or property of the Grant Recipient, only such part of that cost as is attributable to the development of the AHP Affordable Dwellings may be treated as a cost in respect of which grant under this Agreement may be paid. Annex 1 Part 2 Costs which are not Development Costs Capital costs incurred:

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s 's design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: • works to any roads which do not exclusively serve the housing development; • landscaping to areas of land which lie outside the boundaries of the Site; • district heating systems; • trunk sewers and sewage disposal works; • special refuse treatment buildings; • public conveniences; and • community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient is common both to the development of the AHP Dwellings Traveller Pitches within any Named Project Firm Scheme and to any other activity, asset or property of the Grant Recipient, only such part of that cost as is attributable to the development of the AHP Dwellings Traveller Pitches may be treated as a cost in respect of which grant under this Agreement may be paid. Part 2 Costs which are not Development Costs 1 Capital costs incurred:

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permissionplanning permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient Relevant Consortium Member can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: • works to any roads which do not exclusively serve the housing development; • landscaping to areas of land which lie outside the boundaries of the Site; • district heating systems; • trunk sewers and sewage disposal works; • special refuse treatment buildings; • public conveniences; • community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient Relevant Consortium Member is common both to the development of the AHP Affordable Dwellings within any Named Project Firm Scheme and to any other activity, asset or property of the Grant RecipientRelevant Consortium Member, only such part of that cost as is attributable to the development of the AHP Affordable Dwellings may be treated as a cost in respect of which grant under this Agreement may be paid. Annex 1 Part 2 Costs which are not Development Costs Capital costs incurred:

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s 's design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: • works to any roads which do not exclusively serve the housing development; • landscaping to areas of land which lie outside the boundaries of the Site; • district heating systems; • trunk sewers and sewage disposal works; • special refuse treatment buildings; • public conveniences; • community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient is common both to the development of the AHP Dwellings within any Named Project Firm Scheme and to any other activity, asset or property of the Grant Recipient, only such part of that cost as is attributable to the development of the AHP Dwellings may be treated as a cost in respect of which grant under this Agreement may be paid. Part 2 Costs which are not Development Costs 1 Capital costs incurred:

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s 's design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permissionplanning permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Project Costs unless the Grant Recipient can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: • works to any roads which do not exclusively serve the housing development; • landscaping to areas of land which lie outside the boundaries of the Site; • district heating systems; • trunk sewers and sewage disposal works; • special refuse treatment buildings; • public conveniences; • community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient is common both to the development of the AHP Dwellings RSAP Dwelling within any Named Project and to any other activity, asset or property of the Grant Recipient, only such part of that cost as is attributable to the development of the AHP Dwellings RSAP Dwelling may be treated as a cost in respect of which grant under this Agreement may be paid. Part 2 Costs which are not Development Costs Capital costs incurred:.

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: • works to any roads which do not exclusively serve the housing development; • landscaping to areas of land which lie outside the boundaries of the Site; • district heating systems; • trunk sewers and sewage disposal works; • special refuse treatment buildings; • public conveniences; • community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient is common both to the development of the AHP Dwellings within any Named Project Firm Scheme and to any other activity, asset or property of the Grant Recipient, only such part of that cost as is attributable to the development of the AHP Dwellings may be treated as a cost in respect of which grant under this Agreement may be paid. Part 2 Costs which are not Development Costs Capital costs incurred:

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: •  works to any roads which do not exclusively serve the housing development; •  landscaping to areas of land which lie outside the boundaries of the Site; •  district heating systems; •  trunk sewers and sewage disposal works; •  special refuse treatment buildings; •  public conveniences; •  community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient is common both to the development of the AHP Dwellings within any Named Project Firm Scheme and to any other activity, asset or property of the Grant Recipient, only such part of that cost as is attributable to the development of the AHP Dwellings may be treated as a cost in respect of which grant under this Agreement may be paid. Part 2 Costs which are not Development Costs Capital costs incurred:

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permissionplanning permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient Relevant Consortium Member can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: •  works to any roads which do not exclusively serve the housing development; •  landscaping to areas of land which lie outside the boundaries of the Site; •  district heating systems; •  trunk sewers and sewage disposal works; •  special refuse treatment buildings; •  public conveniences; •  community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient Relevant Consortium Member is common both to the development of the AHP Affordable Dwellings within any Named Project Firm Scheme and to any other activity, asset or property of the Grant RecipientRelevant Consortium Member, only such part of that cost as is attributable to the development of the AHP Affordable Dwellings may be treated as a cost in respect of which grant under this Agreement may be paid. Annex 1 Part 2 Costs which are not Development Costs Capital costs incurred:

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: •  works to any roads which do not exclusively serve the housing development; •  landscaping to areas of land which lie outside the boundaries of the Site; •  district heating systems; •  trunk sewers and sewage disposal works; •  special refuse treatment buildings; •  public conveniences; •  community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient is common both to the development of the AHP Dwellings within any Named Project and to any other activity, asset or property of the Grant Recipient, only such part of that cost as is attributable to the development of the AHP Dwellings may be treated as a cost in respect of which grant under this Agreement may be paid. Capital costs incurred: Part 2 Costs which are not Development Costs Capital costs incurred:Costs

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s 's design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: • works to any roads which do not exclusively serve the housing development; • landscaping to areas of land which lie outside the boundaries of the Site; • district heating systems; • trunk sewers and sewage disposal works; • special refuse treatment buildings; • public conveniences; • community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient is common both to the development of the AHP Dwellings within any Named Project and to any other activity, asset or property of the Grant Recipient, only such part of that cost as is attributable to the development of the AHP Dwellings may be treated as a cost in respect of which grant under this Agreement may be paid. Part 2 Costs which are not Development Costs 1 Capital costs incurred:

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permissionplanning permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient Provider can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: • works to any roads which do not exclusively serve the housing development; • landscaping to areas of land which lie outside the boundaries of the Site; • district heating systems; • trunk sewers and sewage disposal works; • special refuse treatment buildings; • public conveniences; • community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient Provider is common both to the development of the AHP Affordable Dwellings within any Named Project Firm Scheme and to any other activity, asset or property of the Grant RecipientProvider, only such part of that cost as is attributable to the development of the AHP Affordable Dwellings may be treated as a cost in respect of which grant under this Agreement may be paid. Schedule 1 Part 2 Costs which are not Development Costs Capital costs incurred:

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: • works to any roads which do not exclusively serve the housing development; • landscaping to areas of land which lie outside the boundaries of the Site; • district heating systems; • trunk sewers and sewage disposal works; • special refuse treatment buildings; • public conveniences; and • community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient is common both to the development of the AHP Dwellings within any Named Project and to any other activity, asset or property of the Grant Recipient, only such part of that cost as is attributable to the development of the AHP Dwellings may be treated as a cost in respect of which grant under this Agreement may be paid. Capital costs incurred: Part 2 Costs which are not Development Costs Capital costs incurred1 which are not eligible for social housing assistance as defined in Section 32(13) of the HRA 2008; 2 on land (forming part of the total site acquired) which will not be used exclusively for housing provision purposes directly related to the Named Project; 3 on estate offices, factories, letting offices; 4 on stores; 5 on medical or dental surgeries, clinics; 6 on police stations, public libraries, bus shelters; 7 on shops, restaurants, public houses, offices; 8 on transformer and other related buildings; 9 on maintenance depots, tools, plant and vehicles; 10 on garages (other than integral garages on market purchase scheme types) and greenhouses; and 11 on separate commercial laundry blocks and related equipment. Schedule 3 Legal Opinion [TO BE TYPED ON COUNCIL NOTEPAPER] Our ref Your ref Date Email address Greater London Authority City Hall The Queen's Walk More London SE1 2AA To: Greater London Authority (the GLA) Dear Sirs Legal Opinion Approved Provider re Grant Agreement and related matters I refer to the proposed Approved Provider Grant Agreement to be entered into between [ ] (the Council) and the GLA (the Agreement) for the purposes of, inter alia, providing affordable housing which is dated on or about the date hereof. In connection with the giving of this opinion, I have examined: 1 the Agreement in its final form prior to execution and delivery thereof by the Council; 2 the Council's Standing Orders for approving entry into and the execution and delivery of deeds by the Council and for the delegation of its authority and the powers of the Council's Executive; and 3 such other documents I consider appropriate for the purposes of giving this opinion. I do not express any opinion as to, nor have I investigated the law of any jurisdiction other than England. I am of the opinion that, as at the date hereof, as a matter of English law, the Council has the power and authority to enter into, observe and perform the terms and obligations on its part to be observed and performed by it under the Agreement and has taken all necessary action and has obtained all relevant consents and approvals (statutory or otherwise) to authorise the execution and delivery of the Agreement and the performance and validity of the obligations under it. Neither the execution and the delivery of, nor the performance by the Council of its obligations under the Agreement will violate any provisions of any existing application law, rule, regulation or agreement binding on the Council, and the Agreement constitutes a valid and legally binding obligation on the Council enforceable in accordance with its terms. I have given this opinion, taking into account the common law and statutory duties applicable to the exercise of power by the Council. The above opinions are subject to the reservation that under English law, the power of the court to order or pursue performance of an obligation and any other equitable remedies is discretionary and, accordingly, an English court might make an award of damages where specific performance of an obligation at work or remedy is sought. This opinion is given by virtue of my position as Solicitor to the Council and is only given as the holder of that office. I am not giving this opinion in a personal capacity, nor do I accept any private or personal liability for any error or omission in it or which may arise therefrom and the recipient, in seeking to place reliance on the contents of this letter, must duly acknowledge the same if any error or omission is later to be found. This opinion is addressed to the GLA and is solely for its benefit. It may not be disclosed to or relied upon by any other person or made public in any way without my prior consent. This opinion is limited to matters addressed herein and is not to be read as an opinion with respect to any other matter. Yours faithfully Council Solicitor There follows the specimen signatures and titles of those who will or may attest the execution as a deed of the Agreement referred to above. Name Title Specimen Signature Annexure 1‌ Part 1 Affordable Starts [Certificate to be provided on the Grant Recipient's letterhead] Greater London Authority [(Attention: [ ])] Dear Sirs We refer to a Grant Agreement dated [insert date] made between (1) the Greater London Authority and (2) [insert name of the Grant Recipient] (the Agreement). Capitalised terms used in this certificate shall, unless otherwise defined herein, have the same meaning as given to them in the Agreement. Pursuant to Condition 19.8.1 of the Agreement, we hereby confirm that so far as we are aware (having made all reasonable enquiries) at least fifty per centum (50%) of our Housing Starts in London for the period from 1 April 2015 to 31 March 2021 will be for Affordable Housing dwellings (the Condition) and no material facts or circumstances exist which threaten the satisfaction of fulfilling this Condition. Dated:

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s 's design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: •  works to any roads which do not exclusively serve the housing development; •  landscaping to areas of land which lie outside the boundaries of the Site; •  district heating systems; •  trunk sewers and sewage disposal works; •  special refuse treatment buildings; •  public conveniences; •  community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient is common both to the development of the AHP Dwellings within any Named Project Firm Scheme and to any other activity, asset or property of the Grant Recipient, only such part of that cost as is attributable to the development of the AHP Dwellings may be treated as a cost in respect of which grant under this Agreement may be paid. Part 2 Costs which are not Development Costs 1 Capital costs incurred:

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: • works to any roads which do not exclusively serve the housing development; • landscaping to areas of land which lie outside the boundaries of the Site; • district heating systems; • trunk sewers and sewage disposal works; • special refuse treatment buildings; • public conveniences; • community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient is common both to the development of the AHP Dwellings within any Named Project and to any other activity, asset or property of the Grant Recipient, only such part of that cost as is attributable to the development of the AHP Dwellings may be treated as a cost in respect of which grant under this Agreement may be paid. Capital costs incurred:‌ Part 2 Costs which are not Development Costs Capital costs incurred:Costs

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permissionplanning permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: •  works to any roads which do not exclusively serve the housing development; •  landscaping to areas of land which lie outside the boundaries of the Site; •  district heating systems; •  trunk sewers and sewage disposal works; •  special refuse treatment buildings; •  public conveniences; •  community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient is common both to the development of the AHP Affordable Dwellings within any Named Project Firm Scheme and to any other activity, asset or property of the Grant Recipient, only such part of that cost as is attributable to the development of the AHP Affordable Dwellings may be treated as a cost in respect of which grant under this Agreement may be paid. Part 2 Costs which are not Development Costs Capital costs incurred:

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient Relevant Consortium Member can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: • works to any roads which do not exclusively serve the housing development; • landscaping to areas of land which lie outside the boundaries of the Site; • district heating systems; • trunk sewers and sewage disposal works; • special refuse treatment buildings; • public conveniences; • community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient a Relevant Consortium Member is common both to the development of the AHP SOAHP Dwellings within any Named Project Firm Scheme and to any other activity, asset or property of the Grant RecipientRelevant Consortium Member, only such part of that cost as is attributable to the development of the AHP SOAHP Dwellings may be treated as a cost in respect of which grant under this Agreement may be paid. Part 2 Costs which are not Development Costs Capital costs incurred:

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permissionplanning permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient Developer can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: •  works to any roads which do not exclusively serve the housing development; •  landscaping to areas of land which lie outside the boundaries of the Site; •  district heating systems; •  trunk sewers and sewage disposal works; •  special refuse treatment buildings; •  public conveniences; •  community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient Developer is common both to the development of the AHP Dwellings within any Named Project Firm Scheme and to any other activity, asset or property of the Grant RecipientDeveloper, only such part of that cost as is attributable to the development of the AHP Dwellings may be treated as a cost in respect of which grant under this Agreement may be paid. Annex 1 Part 2 Costs which are not Development Costs Capital costs incurred:

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s 's design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permissionplanning permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient Relevant Consortium Member can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: •  works to any roads which do not exclusively serve the housing development; •  landscaping to areas of land which lie outside the boundaries of the Site; •  district heating systems; •  trunk sewers and sewage disposal works; •  special refuse treatment buildings; •  public conveniences; •  community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient Relevant Consortium Member is common both to the development of the AHP Move On Dwellings within any Named Project the Firm Scheme and to any other activity, asset or property of the Grant RecipientRelevant Consortium Member, only such part of that cost as is attributable to the development of the AHP Move On Dwellings may be treated as a cost in respect of which grant under this Agreement may be paid. Part 2 Costs which are not Development Costs Capital costs incurred:

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permissionplanning permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: • works to any roads which do not exclusively serve the housing development; • landscaping to areas of land which lie outside the boundaries of the Site; • district heating systems; • trunk sewers and sewage disposal works; • special refuse treatment buildings; • public conveniences; • community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient is common both to the development of the AHP Affordable Dwellings within any Named Project Firm Scheme and to any other activity, asset or property of the Grant Recipient, only such part of that cost as is attributable to the development of the AHP Affordable Dwellings may be treated as a cost in respect of which grant under this Agreement may be paid. Part 2 Costs which are not Development Costs Capital costs incurred:

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permissionplanning permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: •  works to any roads which do not exclusively serve the housing development; •  landscaping to areas of land which lie outside the boundaries of the Site; •  district heating systems; •  trunk sewers and sewage disposal works; •  special refuse treatment buildings; •  public conveniences; •  community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient is common both to the development of the AHP Affordable Dwellings within any Named Project Firm Scheme and to any other activity, asset or property of the Grant Recipient, only such part of that cost as is attributable to the development of the AHP Affordable Dwellings may be treated as a cost in respect of which grant under this Agreement may be paid. Schedule 2 Part 2 Costs which are not Development Costs Capital costs incurred:

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s 's design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: •  works to any roads which do not exclusively serve the housing development; •  landscaping to areas of land which lie outside the boundaries of the Site; •  district heating systems; •  trunk sewers and sewage disposal works; •  special refuse treatment buildings; •  public conveniences; •  community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient is common both to the development of the AHP Dwellings within any Named Project and to any other activity, asset or property of the Grant Recipient, only such part of that cost as is attributable to the development of the AHP Dwellings may be treated as a cost in respect of which grant under this Agreement may be paid. Part 2 Costs which are not Development Costs 1 Capital costs incurred:

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permissionplanning permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient Provider can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: •  works to any roads which do not exclusively serve the housing development; •  landscaping to areas of land which lie outside the boundaries of the Site; •  district heating systems; •  trunk sewers and sewage disposal works; •  special refuse treatment buildings; •  public conveniences; •  community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient Provider is common both to the development of the AHP Affordable Dwellings within any Named Project Firm Scheme and to any other activity, asset or property of the Grant RecipientProvider, only such part of that cost as is attributable to the development of the AHP Affordable Dwellings may be treated as a cost in respect of which grant under this Agreement may be paid. Schedule 1 Part 2 Costs which are not Development Costs Capital costs incurred:

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient Relevant Consortium Member can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: •  works to any roads which do not exclusively serve the housing development; •  landscaping to areas of land which lie outside the boundaries of the Site; •  district heating systems; •  trunk sewers and sewage disposal works; •  special refuse treatment buildings; •  public conveniences; •  community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient a Relevant Consortium Member is common both to the development of the AHP SOAHP Dwellings within any Named Project Firm Scheme and to any other activity, asset or property of the Grant RecipientRelevant Consortium Member, only such part of that cost as is attributable to the development of the AHP SOAHP Dwellings may be treated as a cost in respect of which grant under this Agreement may be paid. Part 2 Costs which are not Development Costs Capital costs incurred:

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permissionplanning permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: • works to any roads which do not exclusively serve the housing development; • landscaping to areas of land which lie outside the boundaries of the Site; • district heating systems; • trunk sewers and sewage disposal works; • special refuse treatment buildings; • public conveniences; • community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient is common both to the development of the AHP CSSH Dwellings within any Named Project Firm Scheme and to any other activity, asset or property of the Grant Recipient, only such part of that cost as is attributable to the development of the AHP CSSH Dwellings may be treated as a cost in respect of which grant under this Agreement may be paid. Part 2 Costs which are not Development Costs Capital costs incurred:

Irrecoverable VAT on the above. Note 1 Where the development contract is a design and build contract, the on-costs are deemed to include the builder’s design fee element of the contract sum. The amount included by the builder for design fees should be deducted from the Works works cost element referred to above, as should other non-works costs that may be submitted by the builder such as fees for building and Planning Permissionplanning permission, building warranty, defects liability insurance, contract performance bond and energy rating of dwellings. Note 2 Some items will not qualify as Development Costs unless the Grant Recipient Developer can clearly demonstrate that such costs are properly chargeable to the housing development, i.e. for the sole use of the residents or to comply with any statutory obligations that may have been imposed. Examples of these are as follows: • works to any roads which do not exclusively serve the housing development; • landscaping to areas of land which lie outside the boundaries of the Site; • district heating systems; • trunk sewers and sewage disposal works; • special refuse treatment buildings; • public conveniences; • community halls, club rooms, recreation rooms. Note 3 Subject to the above, where any cost incurred or to be incurred by the Grant Recipient Developer is common both to the development of the AHP Affordable Dwellings within any Named Project Firm Scheme and to any other activity, asset or property of the Grant RecipientDeveloper, only such part of that cost as is attributable to the development of the AHP Affordable Dwellings may be treated as a cost in respect of which grant under this Agreement may be paid. Annex 1 Part 2 Costs which are not Development Costs Capital costs incurred: