Affordable Housing Supplementary Planning Document

Chapter 9: Implementation and Section 106

9.1 Coventry City Council recognises the complexity and difficulty that the Section 106 negotiation and agreement process entails. The Section 106 Agreement is the preferred legal mechanism that ensures the lawful transfer of affordable rental properties to a Registered Provider on a perpetually affordable basis.

9.2 In cases where exceptional circumstances have been demonstrated, the Council may consider securing affordable housing through planning condition or the submission of a Unilateral Undertaking by an applicant in respect of planning obligations. A Section 106 Agreement remains the preferred delivery mechanism for affordable housing in the City.

9.3 This agreement will also establish that rental levels, services charges and other costs associated with shared ownership are, and remain, affordable. These costs should reflect a material discount from the general market rate, of at least 20% as a minimum discounted rate.

9.4 To provide some easement to the production of an acceptable Section 106 Agreement, the Council has provided the precedent template at Appendix 2. It is considered that this will provide the basis in developing a mutually satisfactory Section 106 Agreement which is able to deliver achievable affordable housing, across a variety of tenures and facilitatory mechanisms. This will also include timings for payments to be made to the Council, where applicable and occupational requirements for affordable units delivered.