A 106 agreement, also known as a Section 106 agreement, is a legally binding agreement between a developer and a local planning authority. It is designed to ensure that a development project meets certain conditions that are necessary for local planning objectives to be met. These agreements are typically used in the United Kingdom to address issues such as affordable housing or public infrastructure that may arise from a proposed development project.
The purpose of a 106 agreement is to mitigate the negative impact of a development on the local community and environment by requiring the developer to contribute to local infrastructure and amenities. This can include providing affordable housing units or contributing to the cost of a new school or hospital.
To ensure compliance with the agreement, the local authority has the power to impose penalties if the developer fails to meet the agreed upon conditions. Typically, penalties for non-compliance are financial in nature and can range from fines to the loss of planning permission.
106 agreements are set out in the Town and Country Planning Act 1990 and the Planning and Compulsory Purchase Act 2004. They are typically negotiated between the developer and the planning authority during the planning process.
It is important to note that a 106 agreement is separate from a planning permission and must be in place before any development can proceed. In addition, 106 agreements are publicly available documents and can be reviewed by interested parties, including local residents and community groups.
In summary, a 106 agreement is a legally binding agreement between a developer and local planning authority that outlines conditions that must be met in order for a development project to be approved. These agreements are designed to mitigate the negative impact of development on the local community and environment and ensure that developers contribute to local infrastructure and amenities.