Section 106 monitoring fees

What is a Section 106 Agreement?

Planning obligations, also known as Section 106 Agreements (based on the Town & Country Planning Act 1990 are legal agreements made between local authorities and developers and can be attached to planning permission to make acceptable development, which would otherwise be unacceptable in planning terms.

The Section 106 Agreement binds the land itself, rather than the person or organisation that develops the land. This is something any future owners will need to take into account.

Some examples of these types of planning obligations include, but are not limited to:

Financial

Off site Public Open Space/recreation contributions
Education contributions
Highways contributions
GP Healthcare contributions

Non-financial

Agricultural/Local occupancy ties
On site affordable units
Biodiversity Net Gain requirements
On site open space/recreation space

Why are Section 106 Agreements needed?

These types of legal agreements are designed to help alleviate extra pressures which can be created by the addition of new development on the local and surrounding areas.

They ensure that, wherever possible, any development has a positive impact on the local area and surrounding communities, which are protected under the conditions and obligations set in place so as not to negatively impact local people.

Section 106 Agreements are monitored and therefore incur monitoring fees as set out below.

These fees are calculated to recover the full cost of the monitoring officer’s involvement in the section 106 process. The charges reflect the time involved in reviewing, monitoring and reporting on various planning obligations. Some examples of the work involved include:

Importing data onto the ICT system and setting up specific financial contribution triggers and timeframes
Reviewing development progress, via a number of means, and assessing when various trigger points have been met.
Calculating contribution figures as per the specific indexation clauses within the agreement where applicable. Including any interest to be added for overdue payments.
Raising invoices as per the financial contribution calculations.
Development site visits to assess the work ‘on the ground’.
Monitoring non-financial obligations and ensuring they are in accordance with the various planning conditions and obligations set out in the legal agreement;
Assisting with the allocation of developer contribution funds in accordance with the terms of the legal agreement to ensure funds are being spent as intended;
Reporting of the Annual Infrastructure Funding Statement

The bands are based on the number and type of obligations necessary to make a development acceptable, in accordance with the North Devon and Torridge Local Plan 2011-2031. This considers the type and scale of the development proposed.

Monitoring fees will be secured under contractual conditions within the Section 106 agreement and will be in addition to the legal charge for drafting and checking the agreement. Fees will be payable at the same time as any legal costs or on the execution of the legal agreement.