Local planning authorities are required to use all funds received under planning obligations in accordance with the terms of the Individual Planning Commitment Agreement. This will ensure that new developments in terms of planning are acceptable; benefit local communities and support the provision of local infrastructure. The legal criteria for knowing when you can use an s106 agreement are set out in Rules 122 and 123 of the Community Infrastructure Charge Regulations, 2010, as amended. On November 28, 2014, MP Eric Pickles, then Secretary of State for Municipalities and Local Government, announced his intention to clarify that section 106 agreements should generally not be requested by smaller homebuilders in locations with 10 or fewer homes, including home construction, extensions and annexes. In very rural areas, places with 5 houses or less should not be faced with the fee. See Article 106 Exemption for more information. Discussions on planning obligations should take place as early as possible in the planning process. The plans should establish strategies for the expected contributions of development to allow for a fair and open review of the policies to be reviewed. Local authorities, landowners, developers, suppliers and operators of local (and, where appropriate, national) infrastructure and affordable housing should be involved in defining strategies for the expected contributions of development. Pre-application discussions can avoid delays in the completion of construction applications, which are granted subject to the conclusion of planning commitment agreements. Development obligations are also commonly referred to as „section 106“, „s106“ and „developer contributions“ when taken into account in conjunction with road contributions and the community infrastructure charge. The costs may represent a fixed percentage of the total value of the agreement under section 106 or the individual obligation; or could be a fixed amount of money by conventional obligation (e.B.
for benefits in kind). The authorities may decide to set the fees by other methods. However, in all cases, the monitoring fees shall be proportionate and proportionate and shall reflect the actual costs of supervision. Authorities could consider setting a cap to ensure that fees are not excessive. In some cases, it may be appropriate to consider cooperative arrangements to use the expertise of officials from other local planning authorities, or contractual arrangements to engage external third-party experts so that planning obligations can be agreed quickly and efficiently. Local planning authorities and developers may wish to discuss the provision of additional resources to enable a rapid definition of planning obligations, for example when processing important and possibly detailed planning requests. In designated rural areas, local planning authorities may instead choose to set their own lower threshold in the plans and require affordable housing contributions from developments above that threshold. Designated rural areas apply to rural areas described in section 157(1) of the Housing Act 1985, which include national parks and areas of outstanding natural beauty.
In November 2015, then-Planning Minister Brandon Lewis wrote to local authorities reminding them that they should be flexible in their section 106 agreement requirements, taking into account the particular circumstances of the site and changing circumstances. (Impact of social rent changes on the provision of affordable housing, November 9, 2015.) MHCLG launched a consultation in September 2017 on planning the right homes in the right places. In the consultation paper, MHCLG argued that a simpler, faster and more transparent cost-effectiveness assessment could lead to better use of Section 106 agreements. Obligations may be modified or fulfilled by agreement between the parties, either after a period prescribed in the undertaking or after five years. The Government in response to its consultations on measures to expedite negotiations and the Article 106 agreement; and on contributions to affordable housing and student residences made significant changes to the Planning Policy Guidelines (PPG), in particular Section S106, but also to related areas, including the Sustainability Guidelines. For the 2019/2020 financial year, each municipality that has received development contributions (§ 106 urban planning obligations or municipal infrastructure charge) must publish an online infrastructure financing declaration by 31 December 2020 at the latest and by 31 December of each year at the latest. Infrastructure funding statements must cover the previous fiscal year from April 1 to April 31. Cover the month of March (this is different from the tax year which runs from April 6 to 5). . . . .