Section 106 Agreement Definition

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). A Section 106 agreement is an agreement between a developer and a local planning authority on the steps the developer must take to reduce their impact on the community. An agreement in § 106 must allow an evolution that would not otherwise be possible by requesting concessions and contributions from the developer. This is a section of the Town And Country Planning Act 1990. The content of the S106 agreement is agreed with the parties concerned and the planning manager during the consultation phase of the construction application. The S106 Legal Agreement can be prepared by counsel for the Board and claimants must pay attorneys` fees without VAT. Intermediate housing is houses for sale and rent that are provided at costs above social rent, but below market level, which are subject to the criteria set out in the above definition for affordable housing. This may include shared equity (condominium and equity loans), other discounted homes for sale, and intermediate rents, but not affordable rental housing. 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. This page contains standard answers to frequently asked questions about Section 106 agreements and the Community Infrastructure Tax (for local authorities for which there is a Community infrastructure charging policy). Question 4 also contains a link to a set of standard definitions as a guide for the development of agreements under Section 106. For more information and details on specific requests, please contact the planning department of your local planning authority.