This document outlines proposals for reforms to section 106 planning obligations and the introduction of a dispute resolution process. Key points include: - Giving the Secretary of State power to restrict section 106 obligations on affordable housing in certain situations. - Establishing a procedure where if section 106 terms are not agreed within a set time, any party can request appointment of a third party to help resolve outstanding issues. - The appointed person would have a limited time to issue a report with their process, any agreed terms, and recommendations on disputes. The local authority would then have a short time to either approve based on the report or refuse the application. - The document seeks feedback on several aspects of the proposed dispute resolution process

1. 1
Consultation running from 18th
February 2016 until 15th
April
Section 106 Planning Obligations: Dispute
Resolution

2. 2
What we’ve got coming up
•Section 106 Dispute
Resolution
•Restricting the use of
Section 106
•CIL Review

3. Restricting the use of
section 106 agreements
• Clause will provide the Secretary of State with a broad power to restrict the
enforcement of planning obligations in relation to affordable housing in
certain situations.
• Definition of affordable housing drawn from existing legislation, including
starter homes.
• Clause allows for a distinction to be made, depending on the size and
nature of the proposed development, and in relation to the types of
affordable housing that may be restricted.
• This would focus any restrictions where they would have the most likely
benefits in encouraging housing development more broadly.
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4. Dispute Resolution
Decision Making Stage
•All section 106 terms to be agreed within prescribed time - time period to be
set in regulations but likely to reflect existing statutory timeframes for
determining applications
Post-decision Stage
•After prescribed time - if any outstanding section 106 planning obligations –
LPA, applicant or other party prescribed in regulations, can write to the
Secretary of State requesting that a person be appointed to help resolve
outstanding issues.
•The Secretary of State must be satisfied that LPA likely to grant permission.
•Short “cooling-off” period during which other options could be pursued (e.g.
resolve outstanding issues, LPA refuse application, applicant could appeal for
non-determination.)
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5. Dispute Resolution
Dispute Resolution – Appointed Person
•Person appointed to deal with dispute - delivery body and qualifications of the
appointed person to be determined through regulations.
•LPA and applicant must engage in process – irrespective of who applied.
•Appointed person can award costs for not engaging in process.
•Appointed person to have a limited period to issue a report
•Appointed person to have reference to any section 106 template to be
published by the DCLG.
•Report to set out process undertaken, any agreed planning obligations, and
recommendations for any matters that were still in dispute.
•Report published by Local Planning Authority.
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6. Dispute Resolution
Post-Dispute Resolution
•Short additional period for completing any section 106 obligations - time period
to be set out in regulations. Then:
– Where no obligations are entered into with a specified period – to be set
out in regulations - the application must be refused.
– Where planning obligations are entered into in line with the report – or
alternative terms are agreed - then the LPA must not refuse permission
for reasons relating to the appropriateness of the planning obligations.
Must be done within a specific period of time – to be set out in
regulations.
– Regulations will set out restrictions on the LPAs ability to ask for
additional obligations after the report is issued.
– Regulations will set out circumstances where the above will not apply
e.g. extending the specified period to enable planning obligations to be
agreed.
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7. Clause 142 of the Housing and
Planning Act:
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142 Resolution of disputes about planning obligations
(1) After section 106 of the Town and Country Planning Act 1990 (planning
obligations) insert—
“106ZA Resolution of disputes about planning obligations
Schedule 9A (resolution of disputes about planning obligations) has
effect.”
(2) After Schedule 9 to that Act insert, as Schedule 9A, the Schedule set out in
Schedule 13 to this Act.
(3) In section 106 of that Act, in subsection (1), for “and sections 106A to 106C”
substitute “, sections 106A to 106C and Schedule 9A.

8. Regulations
The Secretary of State can make regulations setting out:
•who, other than the local planning authority and applicant, could make a request for
the appointment of a person;
•the timing and form of requests;
•that a person can be appointed if outstanding issues have not been resolved within
set timeframes (regardless of whether there is a request);
•further detail about appointments, including about when a request cannot be made
and about when a request could be refused;
•what qualifications or experience the appointed person must have; and
•any fees payable.
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9. 9
•Do you agree that the dispute resolution procedure should be able to apply to
any planning application?
•Do you agree with the proposals about when a request for dispute resolution
can be made?
•Do you agree with the proposals about what should be contained in a request?
•Do you consider that another party to the section 106 agreement should be able
to refer the matter for dispute resolution? If yes, should this be with the
agreement of both the main parties?
•Do you agree that two weeks would be sufficient for the cooling off period?
Questions – Triggering
dispute resolution

10. Questions - Fees and
Appointed Person’s Report
• What qualifications and experience do you consider the appointed person
should have to enable them to be credible?
• Do you agree with the proposals for sharing fees? If not, what alternative
arrangement would you support?
• Do you have any comments on how long the appointed person should have
to produce their report?
• What matters do you think should and should not be taken into account by
the appointed person?
• Do you agree that the appointed person’s report should be published on the
local authority’s website? Do you agree that there should be a mechanism
for errors in the appointed person’s report to be corrected by request?
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11. Questions – Post
Dispute Resolution
• Do you have any comments about how long there should be following the
dispute resolution process for a) completing any section 106 obligations and
b) determining the planning application?
• Are there any cases or circumstances where the consequences of the
report, as set out in the Bill, should not apply?
• What limitations do you consider appropriate, following the publication of the
appointed person’s report, to restrict the use of other obligations?
• Are there any other steps that you consider that parties should be required
to take in connection with the appointed person’s report and are there any
other matters that we should consider when preparing regulations to
implement the dispute resolution process?
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