These new appeal 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 is not a substitute for provisions to amend a requirement established by the 1992 regulations and updated by the 2013 regulations (see above). Section 106 Agreements are currently being used to ensure the provision of affordable housing on site, but under the new proposals, the IL will provide affordable housing. The proposals provide that registered suppliers (RPs) will be able to purchase affordable housing from real estate developers at a discount on market prices. The difference between the price sold on the PC and the market price is offset by the IL`s final responsibility to the local planning authority. 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? Planning obligations, also known as Section 106 of the agreements, are taken between us and the developers. Contributions s106 remain the main way for municipalities to ensure that development is paid for the infrastructure they support. However, only 7% of developments are in favour of an S106 agreement and the agreements are inherently uncertain as to what they can provide.
The planning obligations under Section 106 of the Planning and City Planning Act 1990 (as amended), commonly known as s106 agreements, constitute a mechanism that makes a development proposal acceptable in planning that would otherwise not be acceptable. They focus on mitigating the impact of site-specific development. S106 agreements are often referred to as “developer contributions,” as well as highway contributions and the Community Infrastructure Tax. The use of planning obligations (section 106/S106 agreements – legally binding agreements under Section 106 of the Planning and City Act 1990) has been reduced since the implementation of the CIL. However, new developments often have a direct impact on the environment, creating a need for additional infrastructure or improved municipal services/equipment. As a result, affordable housing and site-specific infrastructure, such as highway works, necessary to mitigate or enable the impact of construction, will continue to be secured by S106 agreements or specific planning conditions. They can also be used in cases where a development proposal results in the loss of an existing facility or location feature, and we require that the facility/function be replaced either directly by the developer or by a financial contribution defined in an S106 agreement. Contributions to the S106 programme remain the main means of ensuring that development is cost-effective for the infrastructure it supports. However, S106 agreements are naturally uncertain as to what they can provide.
Contributions S106 are negotiated between the municipality and the developer and can pay for everything from new schools or clinics to roads and affordable housing. 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.