Section 106 Funding and how to apply
Section 106 (S106) Agreements or Unilateral Undertakings (UU’s) are legally binding agreements between Local Authorities and a developer and/or landowner, made under Section 106 of the Town and Country Planning Act 1990.
These agreements are linked to planning permissions and can also be known as planning obligations.
Who can apply?
Applications are normally invited from the following not-for-profit organisations whose activities benefit residents of the district:
- Local Authority (District, Town, Parish Council, County Council)
- Educational Establishment
- Company Limited by Guarantee with Charitable Status
- Registered Charitable organisations
- Unincorporated not for profit organisations
Capital and revenue - what's the difference?
Capital - Section 106 funds may only be spent on new facilities or improvements to facilities where the new development has, at least in part, contributed to the need for that facility or will have an impact on the existing facilities, these costs can also include project management costs. Please see Eligible projects for further information.
Revenue - Section 106 funding for revenue costs (also known as commuted sums) is for expenditure or costs, which primarily relate to the maintenance of existing facilities such as minor repairs, replacement or redecoration and cannot be used towards Capital projects. Commuted sums will be paid after completion of the project.
In both cases retrospective funding is not permitted.
How do I know my project is eligible?
Section 106 funding can only be awarded to Capital projects that are in accordance with the contents of the relevant S106 Agreement or Unilateral Undertaking.
Typically S106 funding will be required to be spent at a specific location and on specific ‘Type of Provision’. The ‘Types of Provision’ are listed below.
Types of Provision
To create new equipped play areas or to improve existing play area. These areas are designed primarily for play and social interaction involving children and young people.
To construct facilities designed primarily for young people, such as ball courts, skateboard areas and teenage shelters
Sports Playing Pitches
To create new playing pitches or improve existing pitches.
To create new changing rooms or improve/expand existing.
Public Open Spaces
Accessible, high quality opportunities for informal recreation and community events close to home or work or enhancement of appearance of residential or other areas.
Artificial Grass Pitches
Man-made pitches designed for all weather use, typically floodlit and construction can be tailored to suit one specific sport, or cater to several e.g. hockey and football.
Provision of new or enhancement of village and community hall space
Indoor sports halls designed for use by multiple types of sports.
Destination facilities that usually serve a wide catchment area and can include for example Swimming Pools, Theatres, Indoor Sports Centres.
If you have a project and wish to check it’s eligibility, please contact the Locality Team at Locality@southsomerset.gov.uk
How do I apply?
The following steps to S106 funding have been provided to help applicants understand the process they will be required to follow, both prior to submitting a S106 Funding Application and as they proceed through the planning and delivery of their project.
Before submitting a S106 Funding Application form you must contact the Locality team at Locality@southsomerset.gov.uk to:
- check you and your project is eligible for a grant
- confirm the available S106 funding available by contacting us
- have made all pre-application contacts necessary
- have gathered and collated all required information
- request a S106 application form
Please note: At this stage we may ask to work with you further to ensure your project can be as successful as possible. S106 Funding Applications that are submitted by non-eligible organisations or have not provided all the information required, cannot be assessed.
If you are happy that you and your project is eligible and you have all the necessary information, you can complete our S106 funding application form and return to Locality@southsomerset.gov.uk
Once submitted your application will be validated. Incomplete applications will be returned as part of the validation process so please ensure these are completed correctly. Once validated we can assess your application.
Once fully approved you will receive a S106 funding award offer and Acceptance of Award declaration, which sets out the details of the project being funded, the amount of S106 funding being offered and the conditions attached to the S106 funding award.
If, however, your application is declined we will provide a summary of the reasons why.
Once we have received your Acceptance of Award you may proceed with ordering goods and services to deliver your project, in accordance with the agreed proposals contained in your S106 funding award offer.
Important: S106 funding is not secured until we have received the signed Acceptance of Award and therefore you should not start your project.
Funding is released once the project is complete and details of how to submit requests for payment will be set out in your S106 funding offer.
Depending on the size and value of your project you may be able to submit interim claims for part payment of the S106 funding and details of this will again be in your funding offer.
Monitoring evidence will be required on how the project has performed.
Congratulations your project is finished.
You can view our Section 106 FAQs here.
Who to contact
Please contact the Locality Team at firstname.lastname@example.org to enquire on details of funding available for your project, what they may be used towards, and for other advice and support for your project.