The sun is setting on section 106 BA of the Town & Country Planning Act

20 April 2016

The deadline of 30 April 2016 for applications under section 106 BA of the Town & Country Planning Act is fast approaching. In her latest blog post, Rachael Perry, partner, provides an update for landowners and developers.

The deadline of 30 April 2016 is fast approaching for applications under Section 106 BA of the Town and Country Planning Act 1990 (“TCPA 1990”). The deadline follows government ministers’ confirmation that there will be no extensions to Section 106 BA, Section 106 BB and Section 106 BC of the TCPA 1990.

Section 106 BA

Section 106 BA provides a mechanism for land owners and developers to request modification or discharge of affordable housing obligations within Section 106 Agreements regardless of when the Section 106 Agreement was signed and dated. Any modification must only be to the affordable housing requirements and must be based on the grounds of economic viability.

These provisions, originally instigated by the Growth and Infrastructure Act 2013, were always intended to be a “sunset clause”, ceasing to exist on the 30th April 2016. The Government had previously suggested that this date could be extended to 2018, however, this is no longer the case.

Although many landowners and developers choose to re-negotiate Section 106 Agreements with local authorities by way of Deed of Variation, the statutory procedure can provide a useful alternative with the ability to appeal if a more formal route is desired. This can be particularly useful when original Section 106 terms were negotiated in a different economic climate.

Applications must be submitted to the local authority by 30 April 2016 to be able to utilise this statutory procedure. Any subsequent appeal to the Secretary of State would generally still be considered if this deadline is met.

If you'd like specialist planning or development advice or wish to discuss this in more detail please contact any member of our commercial property team, and they will be happy to help.

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