A section 106 agreement, also known as a planning obligation, is a legal agreement between a local planning authority and a developer that ensures that certain requirements are met as part of a planning application. These requirements typically relate to a range of issues, including affordable housing, infrastructure improvements, and environmental protections.
In the UK, section 106 agreements are commonly used by local authorities as a means of securing benefits for the community that would not otherwise be delivered by developers. This can include contributions towards improvements to local transport links, education, or health services, as well as the provision of affordable housing for those in need.
The content of a section 106 agreement will vary depending on the specific requirements of the local authority and the proposed development. However, typically, they will include a range of obligations that the developer must fulfill before the planning application can be approved. These obligations may include, but are not limited to:
– The provision of affordable housing units or payments in lieu of affordable housing
– Contributions towards the cost of infrastructure improvements, such as new roads or public transport links
– Provision of community facilities, such as playgrounds or community centres
– Payments towards education or health services
– Environmental protections, such as the provision of green spaces or measures to mitigate the impact of development on local habitats
Section 106 agreements are intended to ensure that developers contribute to the wider community as part of their planning application. They are negotiated between the local authority and the developer and can be complex documents that require legal expertise to draft and negotiate.
For developers, complying with the requirements set out in a section 106 agreement is often seen as an additional cost to the development process. However, it is essential to note that these agreements are a key means of ensuring that development delivers benefits for the wider community and that developers are accountable for the wider impact of their work.
In conclusion, a section 106 agreement is a legal agreement between a developer and local authority that ensures that certain requirements are met as part of a planning application. These agreements are intended to deliver benefits for the wider community, including affordable housing, infrastructure improvements, and environmental protections. While they may be seen as an additional cost for developers, they are a key means of ensuring that development delivers benefits for all.