Planning obligations are also commonly referred to as „section 106,“ „s106“ and „contributions to developers,“ in addition to road contributions and the community infrastructure tax. The government`s 2018 planning guide provides a concise answer to this question: Performance auditing is a process for assessing a site`s financial profitability by verifying whether the value generated by a development is greater than the reference value. It examines key elements of gross development value, costs, existing land value, landowner premium and developer performance. S106 Management`s profitability reports use industry-specific tools such as The Housing Corporation Economic Appearing Tool (HCEAT), the Three Dragons Development Appraisal Tool Kit and the Greater London Authority Housing Affordable Toolkit (GLA Toolkit) to accurately visualize the viability of a system and assess whether S106 contributions reduce profit margins below the generally accepted 15-20%. Our reports are welcomed by planners at each stage of a planning request and expedite the planning process. In many cases, a profitability report is required to support your planning request before it is even validated and registered. Local planning authorities are required to keep a copy of each planning obligation, along with details of any changes or executions of the planning obligation, and to make them available to the public in their planning log. The infrastructure funding plan must indicate the amount of allocation or planning commitment expenditures when appropriations have been allocated. This means that the local authority has decided to allocate funds to a specific infrastructure or project position.
Local planning authorities are expected to use all funds they receive under planning obligations, in accordance with the provisions of the Individual Planning Commitment Contract. This will ensure that new developments are acceptable from a planning point of view; local authorities and helping to make local infrastructure available. Local planning authorities are encouraged to use and publish standard forms and documents to support the planning obligations agreement process. This could include standard agreements and clauses (including those already published by other agencies) that could be made public to support the planning process.