A Section 106 agreement, is an agreement between the Local Planning Authority (LPA) and the Contractor for provision of additional works in the vicinity of the development but not part of its proposals, to provide the infrastructure required to directly mitigate the impact of a proposal. Section 106 agreements are negotiated between the Local Authority and the developer, and can pay for anything from new schools or clinics to roads and affordable housing. Funding comes from Developers and is secured by Local Authorities as part of the planning process for new developments.
The also play an important role in positively contributing to the planning application outcome, in cases where without a Section 106 agreement the proposal would otherwise not be acceptable.
A Section 106 agreement is also referred to as Planning Gain.
