Section 106 Agreements and “Unilateral Undertakings” are types of planning obligations that were approved under Section 106 of the Town and Country Planning Act of 1990 (as amended by the Planning and Compensation Act 1991, Section 12). A planning obligation is a legal agreement between the planning authority and the applicant/developer and anyone who may be interested in the land. An obligation requires either the developer to do something or limit what can be done with the land after obtaining the building permit. The bonds are registered as basic local taxes and are generally applicable to those who are under the obligation and to any subsequent owner of the site. All planning obligations are legal instruments that are executed in the form of documents. As a result, you may need to hire a planning officer and/or lawyer to act on your behalf. There are two types of bonds. It is a bilateral agreement commonly referred to as the “Section 106 Agreement” or “unilateral enterprise.” Both are registered under Section 106 of the Planning Act. For the 2019/2020 financial year, any municipality that has received contributions to property developers (section 106 planning obligations or municipal infrastructure tax) must publish online, by 31 December 2020 and until 31 December, an online infrastructure financing plan. Infrastructure funding returns must cover the previous fiscal year from April 1 to March 31 (note that this differs from the fiscal year that runs from April 6 to April 5). The terms of contributions to the shuttle should be part of discussions between a developer and a local planning authority and reflected in any planning commitment agreement. Agreements should include clauses indicating when the local planning authority should be informed of the completion of units as part of development and when funds should be disbursed. Both parties can use the issuance of a planning certificate (a certificate of completion when issued by a local authority and a certificate of approval issued by a certified inspector) as a trigger for payment.
Under the Community Infrastructure Tax Regulations, any authority that receives a development contribution through the Section 106 levy or planning obligations must prepare an infrastructure funding statement. County councils are part of it. Section 106 of the agreements are developed when it is considered that a development will have a significant impact on the territory, which cannot be mitigated by conditions related to a decision to approve the plan. Discussions on planning obligations should take place as early as possible in the planning process. The plans should set out policy measures for expected development contributions, to allow for a fair and open review of policies during the review. Local communities, landowners, developers, local (and, if applicable, national) infrastructure and affordable housing providers and operators should be involved in the definition of measures for expected development contributions. Pre-application discussions may prevent delays in the completion of planning applications, which are granted subject to the conclusion of planning commitment agreements. Planning obligations can be renegotiated at any time if the local planning authority and the developer wish.
In the absence of a voluntary renegotiation agreement and if the planning obligation is prior to April 2010 or is more than 5 years old, an application to amend the obligation may be made to the local planning authority if it “no longer serves a useful purpose” or if it continues to be used in a modified manner for a useful purpose (see Section 106A of the Planning Act 1990). Local planning authorities may consider including in their local list of obligations or planning conditions for Section 106 agreements.