In more detail
Planning obligations are legally-binding commitments that the owners of land make to the local council in order to win planning permission for development that would otherwise not be acceptable. They are frequently called section 106 agreements (section 106 of the Town and Country Planning Act 1990 which sets out the basis for them in law). The purpose of section 106 agreements is to mitigate the impact of development of the site.
What form do they take
Planning obligations may: restrict the way the land can be developed or used; require the developer to take certain actions in relation to the land or to use the land in a specified way; or require the developer to pay money or in-kind (by transferring the ownership of land etc.) to the authority. A developer may also enter into planning obligations under the terms of section 278 of the Highways Act 1980 which provides for payments to councils in respect of increased spending on highways as a result of new development.
Developer Contributions
Together with Community Infrastructure Levy, planning obligations under section 106 and section 278 are sometimes also called ‘developer contributions’. Unlike the Community Infrastructure Levy, which is charged across classes of development according to a tariff set by the local council, planning obligations entered into through section 106 agreements and section 278 agreements are site-specific and the subject of individual assessment and agreement.
Sometimes the developer contribution arising from a smaller development is dealt with by a unilateral undertaking by the developer (made under the terms of section 106) rather than a full section 106 agreement.
When are they used and what for and how communities benefit
The tests for a section 106 agreement are that it must be:
- be necessary to make the development acceptable in planning terms
- relate directly to the development
- be fair and reasonable in scale and kind given the details of the development.
Councils commonly use planning obligations to make housing developers provide a proportion of affordable housing or financial contributions towards the cost of infrastructure or affordable housing. But, so long as the tests above are met, agreements can be used flexibly to mitigate the effects of development. This could be, for example, by providing new community facilities or open space to replace those lost or damaged by development; by providing funding for a school or for public transport improvements; or carrying out town centre improvements.
It would be misleading to think that community groups can ‘bid in’ for section 106 funding, but if your neighbourhood is affected by development, it is right that your neighbourhood benefits from any planning obligations that are entered into. Community groups can help the council to develop appropriate policies for an area which will form the basis of deciding whether any planning obligations are needed and help to indicate the form they might take. Section 106 agreements are put out for consultation in the same way and to the same timescale as planning applications.
| Key Facts:
Planning obligations – commonly known as section 106 agreements – are payments and duties agreed by developers to councils to make development acceptable. Unlike Community Infarstructure Levy (CIL), which is charged at a flat rate, planning obligations are specific to a particular development proposal. Together with CIL, planning obligations are called 'developer contributions'. Community groups can influence the policies which determine how 'section 106 money' is spent. |
Page Links from here
DCLG's Planning Practice Guidance on Planning Obligations
and in this toolkit:
OR you can use the navigation menu above right to look at other parts of the toolkit.
BIRMINGHAM COMMUNITY PLANNING TOOLKIT DEFINITION SHEET This sheet may be reproduced in paper or electromic or any other form but please mention it was made by Chamberlain Forum Limited for Birmingham City Council supported by Department for Communities and Local Government.
| created: 2016-07-01 22:35:13 | by: admin | status: f published |