Section 106 Agreement Discharge
Section 106 Agreement Discharge: What It Is and How It Works
If you`re involved in property development, you may have come across the term “Section 106 Agreement” or “S106” and wondered what it means. Simply put, it`s a legal agreement between a local planning authority and a developer that sets out certain conditions that must be met as part of the planning permission. These conditions typically relate to things like affordable housing, community facilities, and transport infrastructure.
However, what if circumstances change and the developer is no longer able or willing to comply with the conditions set out in the Section 106 Agreement? This is where Section 106 Agreement discharge comes in.
What is Section 106 Agreement Discharge?
Section 106 Agreement discharge is the process by which a developer can apply to have some or all of the conditions in a Section 106 Agreement removed or modified. This can happen if the conditions are no longer deemed necessary, achievable, or reasonable, or if there are extenuating circumstances that make compliance impossible or unreasonably burdensome.
The process involves submitting an application to the local planning authority, along with evidence to support the request for discharge. The planning authority will then consider the application and any objections or comments from interested parties before making a decision.
Why Might a Developer Apply for Section 106 Agreement Discharge?
There are a number of reasons why a developer might want to apply for Section 106 Agreement discharge. Some of the most common include:
1. Financial Hardship: If complying with the Section 106 conditions would cause the developer to suffer financial hardship, they may be able to apply for discharge. This could be due to changes in market conditions, unexpected costs, or other factors that make compliance unfeasible.
2. Impossibility or Unreasonableness: If the conditions set out in the Section 106 Agreement are impossible or unreasonable to achieve, the developer may be able to apply for discharge. This may be due to changes in circumstances that were unforeseeable at the time the agreement was made.
3. Change in Circumstances: If there has been a significant change in circumstances since the Section 106 Agreement was made, the developer may be able to apply for discharge. This could be due to changes in planning policy, changes in economic conditions, or other relevant factors.
How Does the Section 106 Agreement Discharge Process Work?
The process for Section 106 Agreement discharge can vary depending on the local planning authority. However, generally speaking, it will involve the following steps:
1. Application: The developer submits an application to the local planning authority, including evidence to support the request for discharge.
2. Consultation: The planning authority will consult with interested parties, such as residents, local community groups, and other stakeholders. They may also seek input from other statutory bodies, such as the Environment Agency or Highways Authority.
3. Assessment: The planning authority will assess the application and any comments or objections received. They will consider factors such as the reasons for the request, the impact on the local community, and any other relevant considerations.
4. Decision: The planning authority will make a decision on the application. They may grant full or partial discharge, or they may reject the application.
It`s worth noting that the process for Section 106 Agreement discharge can be complex, and it`s important to seek professional advice before making an application. A failure to comply with the conditions set out in a Section 106 Agreement can result in enforcement action, so it`s important to ensure that any discharge application is made in a timely and appropriate manner.
In conclusion, Section 106 Agreement discharge is an important process for property developers who are faced with changing circumstances or onerous conditions as part of a planning permission. While it can be complex and time-consuming, it can also provide a valuable opportunity to modify or remove conditions that are no longer appropriate or feasible. By working with experienced professionals, developers can ensure that they make the most of this process and protect their interests.