Section 106 Agreement Precedent

The planning obligations under section 106 of the Town and Country Planning Act 1990 (as amended), known to all as the s106 agreements, are a mechanism that makes a development proposal acceptable from a planning perspective that would otherwise not be acceptable. They focus on reducing the impact of development per site. S106 agreements are often referred to as „developer contributions“ as well as Levy highway contributions and community infrastructure. In addition, the guidelines specify that, following the Ministerial Declaration on Start Houses, NPPs should not strive to contribute to affordable housing under Section 106 of the Start-up House Development (but may still aim for s106, which mitigates the development impact). These new application and appeal procedures do not replace existing powers to renegotiate section 106 agreements on a voluntary basis. In addition, with respect to affordable housing, this provision does not replace provisions to amend an obligation established by the 1992 regulations and updated by the 2013 regulations (see above). the Government in response to its consultation on measures to expedite negotiations and the S106 agreement; and contribution to affordable and student housing has made substantial changes to the Planning Policy Guidelines (PPG), particularly section S106, but also to related areas, including the Sustainability Guidelines. The legal tests for when you can use an s106 agreement are set out in Regulations 122 and 123 of the Community Infrastructure Levy Regulations 2010, as amended. DCLG has published a guide to support changes to the Growth and Infrastructure Act 2013, which contains more detailed information on what is needed to change the provision of affordable housing in a Section 106 commitment and assess change requests. It is a guide to the format of the application, complaint and evidence; in particular the necessary evidence of viability and how it should be assessed. The planning obligation is a formal document, a document indicating that it is a planning obligation, the relevant land, the person giving the commitment and his or her interest, and the competent local authority that would enforce the commitment.

The obligation may be a single obligation or a multi-party agreement. In terms of developer contributions, Community Infrastructure Levy (CIL) has not replaced the Section 106 agreements and the introduction of CIL has resulted in a strengthening of the 106 tests. With regard to developer contributions, S106 agreements should focus on the specific risk reduction needed for further development. CIL was designed to deal with the broader effects of development. There should be no circumstances in which a developer pays CIL and S106 for the same infrastructure with respect to the same development….