As part of the planning process, a local planning authority and a developer may enter into a legal agreement to provide infrastructure and services on or off the development site where this is not possible to achieve through planning conditions. This agreement is known as a Section 106 Agreement (or Planning Obligation) and is a delivery mechanism for the matters that are necessary to make the development acceptable in planning terms.
Such agreements can cover almost any relevant issue, acting as a main instrument for placing restrictions on developers, often requiring them to minimise the impact on the local community and to carry out tasks which will provide community benefits, and can include the payment of sums of money.
They are commonly used to bring developments in line with the objectives of sustainable development. Examples of types of infrastructure or services that Section 106 Agreements can include are:
Highway Improvements
Provision of Affordable Housing
Improved community facilities – e.g. Public open space/ play areas, educational facilities
Specific measures to mitigate impact on a local area – e.g. parking restrictions, landscaping or noise insulation.
Restrictions and obligations on the use of land.
This list is not exhaustive. Each planning application and Section 106 Agreement is dealt with individually on its merits and restrictions and requirements not on this list may also be needed.
The Planning Obligations Supplementary Planning Document was adopted by the Council in December 2007. This document provides guidance on the principles and policy basis that guide the Council’s approach to planning obligations, and sets out a scale of standard formulae and charges that may be generated by a development. The SPD provides transparency which should help to inform developers about the costs of contributions when considering purchasing land, and help simplify and speed up the negotiation and agreement of obligations.
Planning Obligations Supplementary Planning Document (December 2007) is available at the bottom of this page.
Dudley Council has a dedicated Principal Planning Obligations Officer working in the Development Control team who is involved in negotiating infrastructure and services from development schemes and monitoring their implementation.
Quick Guide to planning obligations required on residential developments up to 10 dwellings is available at the bottom of this page.
Pre-Application Discussions
For both developers and the Council it is beneficial for planning obligations to be covered in pre-application discussions where these take place. It provides an early opportunity to clarify the Council’s planning obligations policies in relation to the proposed development and for the applicant to raise any questions.
Investing time and resources at the pre-application stage can save time and resources and help speed up the delivery of planning obligations.