We use legal provisions known as Section 106s to ensure that homes remain affordable not only for the resident, but also for future residents or forever. These legal agreements restrict affordable housing. They are drafted in accordance with the provisions of section 106 of the Town and Country Planning Act 1990. You can use sample chords as templates. They show the kind of restrictions that can be placed on affordable real estate. The exact wording depends on the location of the property and the participation of a housing company. With respect to developer contributions, the Community Infrastructure Tax (CIL) did not replace the Section 106 agreements, which strengthened the s 106 tests. S106 agreements on developer contributions should focus on correcting the specific weakening required for a new development. CIL was designed to address the broader effects of development. There should be no circumstances in which a developer pays CIL and S106 for the same infrastructure for the same development. Section 106 Agreement refers to Section 106 of the Town and Country Planning Act 1990. It is a legally binding contract that allows the local planning authority to create a restriction or obligation related to the granting of the building permit. If you are unsure of the impact of the s106 agreement on you or what the various clauses mean, you should seek the advice of your own lawyer to obtain a draft from the Council.
Some Section 106 agreements require you to obtain a certificate on the need for affordable housing on site before occupying a property or when a property is sold. You should send our lawyer a certificate application form for local and affordable housing needs (PDF opens in a new window) or a certificate application form for affordable local housing needs (Word opens in a new window). Section 106 is a legal agreement between an applicant applying for a building permit and the local planning authority, which is used to mitigate the impact of your new home on the local community and infrastructure. In other words, a new house means a different car on the streets and maybe your kids will visit nearby schools, which will weigh a little more heavily on local services.