Section 106 agreement meaning
Section 106 agreements, otherwise known as planning obligations, are legal agreements made between a developer and a local planning authority as part of the planning process. The purpose of these agreements is to mitigate the impact of development on the surrounding community and infrastructure.
Section 106 agreements can cover a wide range of issues, including affordable housing provision, transport infrastructure improvements, education and healthcare contributions, and environmental protection measures. These agreements are legally binding and can be enforced by the local planning authority.
The obligation to enter into a section 106 agreement arises from Section 106 of the Town and Country Planning Act 1990. It enables local planning authorities to seek contributions from developers to help offset the impact of a development on the community. The agreement is agreed between the developer and the local authority, with the agreement entered into before planning permission is granted.
The section 106 agreement is typically structured as a legal agreement between the developer and the local planning authority in which the developer agrees to undertake certain obligations. These obligations will vary depending on the nature of the development and the local authority`s requirements. Once the agreement is signed, the developer is legally bound to adhere to the requirements set out in the agreement.
One of the key components of a section 106 agreement is the provision for affordable housing. This can take the form of either a requirement to provide affordable housing as part of the development or a financial contribution towards affordable housing. The aim of this provision is to ensure that the development does not have an adverse impact on the supply of affordable housing in the local area.
Another important aspect of a section 106 agreement is the provision for transport infrastructure. This can include contributions to road improvements, pedestrian and cycle routes, and public transport networks. The aim of this provision is to ensure that the development does not place an unsustainable burden on local transport infrastructure.
Section 106 agreements can also include provisions for education and healthcare contributions, providing funding for the expansion or improvement of local schools and medical facilities. Environmental protection measures may also be included, such as contributions to local wildlife habitat creation or carbon offsetting schemes.
In summary, a section 106 agreement is a legally binding agreement between a developer and a local planning authority. Its purpose is to mitigate the impact of development on the surrounding community and infrastructure. The agreement can cover a range of issues, including affordable housing, transport, education and healthcare contributions, and environmental protection measures. The agreement is entered into before planning permission is granted and is legally enforceable.