Coronavirus (Covid-19): Section 106 Agreements (S106)
In response to the spread of coronavirus (COVID-19), the Ministry of Housing, Communities and Local Government (MHCLG) has published guidance for local authorities on Community Infrastructure Levy and Section 106 matters.
We are keen to work with developers to minimise the stalling of development sites as far as possible.
Do I still need to make my Section 106 payments?
Yes, planning obligations completed pursuant to Section 106 of the Town and Country Planning Act 1990 (as amended) are formal deeds that are enforceable against the person(s) that entered into the obligation and any subsequent owner(s). Section 106 agreements can be enforced by injunction. However, in response to the spread of coronavirus (COVID-19) and the guidance published by MHCLG, Southend-on-Sea City Council will be taking a pragmatic and proportionate approach to the enforcement of Section 106 planning obligations during this time.
If developers are experiencing financial difficulties as a consequence of COVID-19, which affect their ability to meet planning obligation requirements, then they are invited to contact the S106 and CIL Team as soon as possible to discuss possible variations to the terms of the Section 106 agreement e.g. deferred payment. A Deed of Variation is likely to be required as will back-stop dates for any agreed deferment.
S106 payment deferral requests will be considered on a case by case basis.