Friday, 25 May 2012

Provsion of Affordable Housing Through Section 106 Agreements

Posted in: Need to Know | Ask the Experts

03/02/2012 1:59 pm

Warren Williams

Warren Williams

Posts: 1

We have a development site which is subject to a section 106 Agreement  for the provsion of affordable housing (site A). 

The developer proposes that rather than provide the afforadable  housing on site A that affordable units are provided on another site they are currently developing (site B).   Site B  already has a Section 106 Agreement for the provision of affordable housing.  Site A is approx 3 miles from site B.  The questions are:

(a) can a section 106 Agreement be completed on site A requiring the affordable housing to be provided on site B.  Or

(b) would it need to be a Deed of Variation on site B requiring additional units.  

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Expert post

Will Nixon

Will Nixon

Posts: 30

21/02/2012 1:44 pm

S106's are not my area of expertise........but
 
Off site provision for the affordable element is a perfectly reasonable option but would expect the need prior agreement from the local authority by way of the S106 agreement on Site A and a deed of variation on Site B.
 
It may be that the distance between sites would cause an issue with the local authority it depends on local needs and whether the developments are related through settlements and or services.
 
I am unsure they would necessarily be supportive of doubling the affordable element of Site B as this does not fit within the ethos of mixed communities and you also need to take account of the increased density of the affordable housing element with regard to management and impact on shared ownership sales.
 
If you did wish to take it forward there may be opportunities to change the affordable tenure types such as shared equity.
 
Hope this gives a steer.

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