The Use of Commuted Sums from S106 Agreements for Affordable Housing (Agenda Item 11)
Report of the Executive Member for Planning and Housing.
The Principal Housing Officer (Strategy and Enabling) sought Members’ approval for the use of commuted sums which were received for affordable housing from Section 106 agreements attached to planning consents.
A Member queried whether the Local Ward Member was approached to consider where the monies could be best spent within the location.
Members were advised that a Section 106 Officer had been appointed by the Council and would be working with Ward Members and Town and Parish Councils.
With regard to ensuring that developers follow a building standard such as the Green Gauge Housing in Yaxham the Deputy Chief Executive advised that each Section 106 had to be negotiated with the developer and it would be difficult to enforce such standards.
The Leader advised that the standards and criteria for housing built within the District would be set out within the Local Development Framework.
The options available to Members were as follows:-
(1) To operate within the existing Finance Procedure Rules every scheme funded by a commuted sum be presented to Cabinet for approval.
(2) To allow the delegation of authority for the use of the resources to be made by the Executive Member in consultation with the Strategic Director.
(3) To allow the Section 106 funds to be spent within the terms of the legal agreement by the Strategic Housing Team without reference to Cabinet or the Executive Member.
(4) To operate within the existing Finance Procedure Rules every scheme funded by a commuted sum be presented to Cabinet for approval.
The reasons for the recommendation were as follows:-
(1) To allow the delegation of authority for the use of the resources to be made by the Executive Member in consultation with the Strategic Director.
(2) To allow the Section 106 funds to be spent within the terms of the legal agreement by the Strategic Housing Team without reference to Cabinet or the Executive Member.
(3) The use of the Section 106 monies had already been agreed through the signing of the legal agreement between the Council and the other parties involved. The Council were unable to use the monies for any other purpose.
(4) Allocating the resources through a delegated decision with the Executive Member, in consultation with the Strategic Director and Section 151 Officer, would retain the financial controls of proper management of the funds but allow the flexibility of use in terms of the timing of when the monies were used.
RESOLVED that the allocation of commuted sums from Section 106 agreements made under delegated authority by the Executive Member for Environment and Housing in consultation with the Strategic Director be approved subject to:
(a) schemes identified being appraised to support Breckland’s housing strategy;
(b) a funding agreement being put in place between the registered social landlord and Breckland Council detailing full requirements and conditions;
(c) payment of grant to be made once all conditions of the funding agreement had been met;
(d) grant payments being monitored by the grant funding team in Finance; and
(e) other funding being confirmed.
- Section 106 Monies, item 10. PDF 75 KB
- B 071122 Use of S106 commuted sums for affordable housing, item 10. PDF 65 KB