Planning Obligations and Affordable Housing SPD

1. Introduction Comment

1.1This section sets out how section 106 (s106) planning obligations (including affordable housing), CIL, planning conditions, and Highways Section 278 (s278) agreements work together as a set of tools to help achieve sustainable development. The council will consider the cumulativeimpact of these upon development when considering any planning application.

Planning Conditions

1.2Planning permission may be granted subject to conditions to secure matters that are needed in order to make a development acceptable in planning terms. They cannot be used to secure financial contributions but can be used to ensure that certain elements related to the development proposal enhance the quality of development, and enable many development proposals to proceed where it would otherwise have been necessary to refuse planning permission. In the Chichester plan area such conditions are likely to include, for example:

• Details about construction time limits;
• Landscaping;
• Heritage and archaeology;
• Ecology;
• Site related transport improvements;
• Site related flood risk measures and drainage;
• Details of materials to be used in the development; or
• Opening/operational hours of business/commercial uses.

Highway Improvements – Section 278 and Section 38 Agreements

1.3Where development requires work to be carried out on the existing adopted highway, an Agreement will need to be completed under section 278 of the Highways Act 1980 between the developer and either National Highways (for the strategic road network), or West Sussex County Council as the Local Highway Authority (for the local road network). Examples of such works could be theconstruction or improvement of a new access or junction, or safety related works such as traffic calming or improved facilities for pedestrians and cyclists. There may also be an agreement under section 38 of the Highways Act relating to the subsequent adoption of roads by West Sussex County Council.

Planning Obligations (s106)

1.4Paragraph 56 of the National Planning Policy Framework (NPPF) (December 2024) states that planning obligations should only be used where it is not possible to address unacceptable impacts of development through a planning condition.

1.5Planning obligations secured through section 106 of the Town and Country Planning Act 1990 (as amended) are entered into as legal agreements between local planning authorities, landowners, developers and any others with an interest in the land. In certain circumstances an applicant/developer may submit a unilateral undertaking in respect of a planning obligation. Planning obligations impose financial and /or non-financial obligations on those with an interest in the land and will become binding on that parcel of land.

1.6In the area covered by the Chichester Local Plan, planning obligations will be used to secure on-site infrastructure and affordable housing, compensate and/or mitigate the specific impacts of a development, without which the development would otherwise be unacceptable in planning terms. Paragraph 58 of the National Planning Policy Framework (December 2024) permits planning obligations to be used in the following ways:

• Prescribe the nature of a development e.g. by requiring a proportion of affordable housing within a development;
• Secure a contribution from a developer to compensate for loss or damage created by a development; and
• Mitigate the impact of a development.

1.7Contributions relating to affordable housing will not be sought within the Local Plan area from developments of 9 units or less and which have a maximum combined gross floorspace of no more than 1,000 sqm in the non-rural settlements. In the areas designated as rural areas under section 157(1) of the Housing Act 1985 (all other parts of the Local Plan area), the district council will apply a lower threshold of 5 units and under. Within the rural area, affordable housing can be provided through off-site provision facilitated by a cash payment to the council, paid before completion of the development.

Community Infrastructure Levy (CIL)

1.8Chichester District Council introduced a Community Infrastructure Levy (CIL) in February 2016. The Chichester CIL applies to most new development and charges are based on the size and type of the development. The basis for the CIL charge for each development type is detailed in the council’s CIL Charging Schedule^[1].

1.9CIL works alongside s106 Planning obligations. Unlike s106 Planning obligations, which are secured for a specific purpose, CIL receipts are pooled into one fund which can be used for any infrastructure project needed to support new development across Chichester’s Local Plan area. This SPD clarifies how the council intends to implement each mechanism.

1.10The CIL allows the council to work with infrastructure providers and communities to set priorities for what the funds collected under the levy should be spent on, and provides a funding stream so that the delivery of infrastructure projects can be planned more effectively.

1.11The CIL is designed to give developers and investors greater confidence to invest because there will be more certainty ‘up front’ about how much money they will be expected to contribute towards community infrastructure. Equally, the wider community and developers alike will be better able to understand how new development is contributing towardsinfrastructure provision within the area covered by the Chichester Local Plan.

Chichester Local Plan 2021 - 2039

1.12The Chichester Local Plan 2021 - 2039 was adopted by the council on 19 August 2025. Proposals which require planning obligations should be considered in accordance with the Chichester Local Plan 2021 - 2039. This SPD will support and supplement the Local Plan and so will be an important material consideration in the decision making process.

1.13The Local Plan outlines that planning obligations may be used to secure appropriate forms of development with the necessary on and off-site infrastructure requirements. These principles are set out in the following Local Plan Policies:

• NE1 - Stand Alone Renewable Energy
• NE4 - Strategic Wildlife Corridors
• NE5 - Biodiversity and Biodiversity Net Gain
• NE6 - Chichester’s Internationally and European Designated Habitats
• NE8 - Development and Disturbance of Birds in Chichester, Langstone and Pagham Harbour and Solent and Dorset Coast SPAs and Medmerry Compensatory Habitat
• NE16 - Flood Risk and Water Management
• NE20 - Nutrient Neutrality
• H4 - Affordable Housing
• H5 - Housing Mix
• H6 - Custom and/or Self Build Homes
• H7 - Rural and First Homes Exception Sites
• H10 - Accessible and Adaptable Homes
• P1 - Design Principles
• P4 - Layout and Access
• P14 - Green Infrastructure
• P15 - Open Space, Sport and Recreation
• T1 - Transport Infrastructure
• T2 - Transport and Development
• T3 - Active Travel - Walking and Cycling Provision
• I1 - Infrastructure Provision
• A1 - Chichester City Development Principles
• A2 - Chichester City - Strategic Housing location
• A3, A4 and A5 - Southern Gateway
• A6 - Land West of Chichester
• A7 - Land at Shopwyke (Oving Parish)
• A8 - Land East of Chichester
• A9 - Land at Westhampnett/North East Chichester
• A10 – Land at Maudlin Farm
• A11 - Highgrove Farm, Bosham
• A12 - Chidham and Hambrook Parish
• A13 - Southbourne BLD
• A14 - Land West of Tangmere
• A15 - Loxwood