Planning Obligations and Affordable Housing SPD
7. Complying with Planning Obligations - the Developer's role Comment
Complying with Financial Obligations
7.1Where a s106 agreement contains a financial obligation, the council will provide details of how to make payment and will send an invoice when a trigger point is reached. Once received, the payment will be logged onto the council’s systems. Data on s106 obligations, including received financial obligations, is published via the council’s CIL and s106 Public Facing Module (PFM) on the council’s website[6]. A breakdown of received financial contributions is published on an annual basis as a part of the CIL and s106 annual monitoring report, known as the Infrastructure Funding Statement[7].
Enforcement of Obligations
7.2If it is evident that a Planning Obligation is not being complied with, officers will consider instigating enforcement action if other measures fail. Planning contributions are enforceable by Chichester District Council:
- In the courts by applications for an injunction or recovering contributions payable;
- By carrying out any operations required by the Planning Obligation and recovering the cost from the person(s) against whom the obligation is enforceable.
Index-Linking Payments
7.3Financial contributions will be index-linked in order to allow for the fluctuation of prices between the date the agreement is signed and the date the payment is made. This is calculated based on the indexation adjustment of the relevant index, from the date the s106 agreement is signed to the expected date of payment. The additional amount paid on top of the financial contribution adjusts the contribution in accordance with inflation.
7.4The method of indexation should be specified within the planning obligation and will usually be the Retail Price Index (RPI) or Consumer Price Index (CPI) published by the Office for National Statistics (ONS), or the ROADCON Index published Building Cost Information Service Index (BCIS), depending on the nature of the contribution. In the event that the index decreases, the contribution shall not fall below the figure set out in the s106 agreement.
