12 Apr Section 106 Agreement Social Housing
Section 106 contributions (also known as planning obligations or unilateral obligations) are required by law to mitigate the impact of your development on a local community and infrastructure. These are sought by local planning authorities (LPAs) during the building permit process and are guaranteed by a legal agreement S106 of the Town -Country Planning Act 1990. Despite the pre-2000 building permit, the site was developed on five sites at the end of 2005. These sites account for 576 of the 2,174 (27%) affordable housing in the research database that had issued a building permit before the year 2000, but were still incomplete at the end of 2005. This indicates that, while long delays between approvals and completion work can only affect a small portion of the sites, they often involve very large sites that produce a significant portion of the total number of affordable housing units received. Recent government statements indicate that the section 106 (S106) approach to the provision of affordable housing is increasingly important. Studies conducted by the Universities of Cambridge and Sheffield, led by Sarah Monk, have studied the effectiveness of the deployment phase of S106 sites – that is, what happens when the S106 agreement was signed. Based on a detailed analysis of a number of evidence and a sample of sites, the government has also published, in addition to the White Paper, a series of immediate reforms that it intends to implement under the current system. These include projects to increase the threshold for a section 106 residential complex from 10 to 40 or 50, which would exempt several thousand residential construction projects from developer contributions. While the ILC only deals with financial payments, Section 106 frequently uses agreements in Section 106 to require developers to provide the necessary infrastructure on the ground for development or to provide land for their availability, and it is unclear who will be responsible for making these much-needed facilities available under the new proposals.
If all the infrastructure is made available off-site, how will local authorities secure the land? The IL seems to rely on RPs who buy affordable housing from the developer, as is currently the case. However, the removal of the use of s106 agreements can have an impact on RPs and their funders, and the ability of RPs to purchase units in general may affect them. In particular, there are industry formulations and a process that RPs, their funders, LPAs and developers can follow to assist RPs in the funding programs covered by the s106 agreement. In the absence of the s106 agreement, it can create evaluation problems for RPs, making it more difficult to obtain funding and ultimately provide affordable housing. Moreover, once affordable housing is made available, the proposals do not specify how this will be guaranteed in a sustainable way without the s106 agreement to bind the country. The traditional methods used by PPS and PPPs to protect existing stocks appear to be mitigated in these proposals. The content of the S106 agreement is agreed by the consultation period of the planning request with the parties involved and the planner. The S106 legal agreement can be established by the Council`s lawyers and the applicants must pay the vat-free legal fees. The possibilities for the common use of planning obligations are the guarantee of affordable housing and the definition of the nature and date of that dwelling; to make financial contributions to the provision of infrastructure or affordable housing.