Section 106 Agreement Cil

Section 106 Agreement and CIL: Understanding the Importance of Planning Requirements

As a property owner or developer, it’s important to understand the planning requirements necessary for the construction or renovation of a property. One of these requirements is the Section 106 Agreement and Community Infrastructure Levy (CIL), which can have a significant impact on your project.

What is a Section 106 Agreement?

A Section 106 Agreement is a legal agreement between the local planning authority and a developer. It is also known as a planning obligation that sets out specific planning requirements that the developer must meet before or during the construction or renovation of a property.

The planning authority may require additional contributions from the developer, such as affordable housing, highway improvements, or education facilities. This agreement is legally binding and must be enforced by the developer.

What is Community Infrastructure Levy?

The Community infrastructure Levy (CIL) is a charge that local authorities can impose on new developments in their area. It is a way of collecting funds from developers for the provision of infrastructure, such as roads, schools, hospitals, and other public services.

The amount of CIL a developer needs to pay depends on the size and type of development. This money is used to improve the infrastructure in the area and support the local community.

How do Section 106 Agreement and CIL work together?

Section 106 Agreement and CIL are two separate processes, but they can be connected in a few ways. In certain cases, the local planning authority may require the developer to pay both CIL and contribute to a Section 106 Agreement.

For example, if the local authority requires the developer to provide affordable housing, the developer may have to pay an amount of money as part of their CIL payment, and also agree to provide the affordable housing as part of the Section 106 Agreement.

It’s important to note that the funds collected through CIL cannot be used for the same purposes as those outlined in the Section 106 Agreement. Therefore, any additional contributions required by the Section 106 Agreement must be made by the developer.

Why are Section 106 Agreements and CIL important?

Section 106 Agreements and CIL are essential planning requirements that ensure developers are held accountable for their contribution to the community. They are also necessary to support the growth and development of the local area, ensuring that infrastructure and public services are available to support new developments.

Section 106 Agreements and CIL can also be essential considerations for property owners who are looking to buy or invest in a particular area. These requirements can have a significant impact on the value and viability of a property development project, and should be factored into any investment decision.

In summary, Section 106 Agreement and CIL are critical elements of the planning process for any property development project. As a developer or property owner, it’s essential to understand these requirements, their implications, and how they can affect your investment decisions. By doing so, you can ensure that your project is compliant with all relevant planning regulations and that it can contribute positively to the local community.