Section 106 Agreement Bond

This may be done through a planning agreement entered into in accordance with section 106 of the Town and Country Planning Act 1990 by a person interested in the country and the local planning authority; or by a unilateral commitment made by a person interested in the land, without the local planning authority. The planning obligations under section 106 of the Town and Country Planning Act 1990 (as amended), known to all as the s106 agreements, are a mechanism that makes a development proposal acceptable from a planning perspective that would otherwise not be acceptable. They focus on reducing the impact of development per site. S106 agreements are often referred to as « developer contributions » as well as Levy highway contributions and community infrastructure. Local planning authorities are encouraged to use and publish standard forms and templates to support the planning commitment agreement process. This could include model agreements and clauses (including those already published by other bodies) that could be made public to support the construction application procedure. Any other information requested by the local planning authority or any questions raised by the applicant concerning planning obligations should be dealt with at an early stage of the construction application procedure. The use of model agreements does not eliminate the obligation on local planning authorities to consider on a case-by-case basis whether a planning obligation is necessary for construction to be reasonable as intended. Section 106 agreements are currently being used to ensure affordable housing on site, but under the new proposals, affordable housing will be provided through the IL. The proposals indicate that registered suppliers (PR) will be able to purchase affordable housing from developers at a market price discount.

The difference between the price sold per CP and the market price is deducted from the IL`s final liability to the local planning authority. The authorities may, through the planning obligations laid down in Article 106, levy a surveillance fee to cover the costs of monitoring and reporting on the fulfilment of that obligation under Article 106. Monitoring fees may be used to monitor and report on any type of planning obligation for the duration of that obligation. Monitoring fees should not be charged retroactively for historic agreements. These new application and appeal procedures do not replace existing powers to renegotiate section 106 agreements on a voluntary basis. In addition, with respect to affordable housing, this provision does not replace provisions to amend an obligation established by the 1992 regulations and updated by the 2013 regulations (see above). A Section 106 agreement is also referred to as a planning benefit. Planning obligations are also generally referred to as « section 106 », « s106 » and « developer contributions » when they are taken into account in addition to contributions to motorways and the Community infrastructure tax. Local planning authorities should use all funds they receive under planning obligations, as defined in individual agreements, to make development planning acceptable.. .

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