Section 106 obligations
Section 106 (S106) of the Town and Country Planning Act 1990 allows a local planning authority (LPA) to enter into a legally-binding agreement or planning obligation with a landowner in association with the granting of planning permission. The obligation is termed a Section 106 Agreement.
These agreements are a way of dealing with issues that are necessary to make a development acceptable in planning terms. They are used to support the provision of services and infrastructure, such as highways, recreational facilities, education, health and affordable housing.
The scope of such agreements is laid out in the National Planning Policy Framework. Matters agreed as part of a S106 must be:
•necessary to make the proposed development acceptable in planning terms
•directly related to the development
•fairly and reasonably related in scale and kind to the development