Section 106 Agreement Cost

If you need specific advice on the above issues, please send an email to with the address and proposal of the website, and we will provide you with an accurate calculation and the corresponding template for unilateral commitments. Many LPAs now require that a declaration of affordable housing be filed with a construction application. This is not the same as a profitability report. It is simply a calculation of the largest contribution to affordable housing, which may be required by adopted planning policies. We can make a low-cost statement while advising on whether it is worth establishing a subsequent profitability report in order to reduce or eliminate the amount of affordable housing you need to provide. The planning obligation is a formal document, a document indicating that it is a planning obligation, the relevant land, the person giving the commitment and his or her interest, and the competent local authority that would enforce the commitment. The obligation may be a single obligation or a multi-party agreement. 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 is a legal agreement between an applicant applying for a building permit and the local planning authority that is used to mitigate the impact of your new home on the local community and infrastructure.

In other words, a new home means another car on the streets and maybe your kids will attend nearby schools, which weighs a little more on local services. Unless the net profit is more than 20% based on interest, fees and all other costs. If it is less than 20%, you should work with us to reframe the program to the benefit and not to a certain number of units. 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). The unilateral commitments are almost identical to those concluded under section 106, so our responses apply to both. We can help you review commitments and agree on the wording of the S106 agreement or unilateral commitment, even if you don`t need a profitability report. Section 106 of the Town and Country Planning Act 1990, as amended, gives the local planning authority the power to enter into an S106 agreement. This means that charges vary considerably from place to place and that some self-builders have had to face Section 106 charges, which represent a large part of their total cost. The exception for self-builders was introduced in November 2014, but some councils quickly tried to challenge this decision.

The legal tests for when you can use an s106 agreement are set out in Regulations 122 and 123 of the Community Infrastructure Levy Regulations 2010, as amended. DCLG has published a guide to support changes to the Growth and Infrastructure Act 2013, which contains more detailed information on what is needed to change the provision of affordable housing in a Section 106 commitment and assess change requests. . . .