Section 106 funding

What is Section 106?

As set out by the Town and Country Planning Act 1990, a Section 106 Agreement is entered into between a local authority and a landowner and/or developer.

The agreement contains planning obligations which the local authority wish to secure and that the developer offers, in return for being granted planning permission.

The Section 106 financial contributions are paid by developers to the local planning authority (in this case Colchester City Council), or to third parties at the direction of the planning authority.

The funding is for community infrastructure projects which must be capital projects. Some examples include: play park equipment, sports facilities, and village hall improvements. It is the local planning authority’s responsibility to ensure that the expenditure is aligned with the purpose specified within the agreement and otherwise meets legal requirements.

Read more on section 106 funding:

Eligibility 

  • Section 106 funding is available to go towards capital funds for general community and leisure facilities. The funds are to be used for the provision, extension, adaptation or enhancement of the facilities.
  • Any projects the funding goes towards must be directly related to the development, and mitigate the impact of the development. The project must be reasonable in scale and in kind, with any other legal criteria set out in each S106 obligation. 
  • The project must also:
  • Not unfairly exclude individuals from participation.
  • Not be requested retrospectively for work already completed. 
  • Not promote specific political or religious views.
  • Be from an Organisation located in the City of Colchester or provide activities that benefit district residents.
  • Be a local Parish or Neighbourhood Council or a local voluntary, community or not-for-profit organisation that is properly constituted with its own bank account.
  • Organisations must have a safeguarding policy for children and vulnerable adults, equal opportunities, insurance and health and safety policies in place, where appropriate.
  • Applications for building works must be made by owners of the land or building or formal permission must be provided.
  • Applicants must establish if planning permission is required before applying for S106 funds.
  • Applicants should show a cash contribution from their own funds/fundraising. This should be around 10-20%

 

Page last reviewed: 13 September 2022