The purpose of this programme is to utilise Section 106 monies to enable and maximise the delivery of much needed affordable housing in the borough.
What are Section 106 monies?
Section 106 (s106) of the Town and Country Planning Act 1990 allows the council to enter into a planning agreement with an applicant which sets out certain enforceable obligations related to the carrying out of a development. One of these obligations can be the payment of a financial contribution in lieu of the on-site delivery of affordable housing if there is robust justification for not delivering this on site.
In this circumstance, the contribution paid by the developer is ring-fenced for the sole purpose of contributing to the delivery of affordable housing. The sum is retained for a period and if it remains unspent it must be returned to the developer with added interest.