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Open group | Started - July 2012 | Last activity - Yesterday

Topping up Section 106 pot with CIL

Charlene Jones, modified 10 Years ago.

Topping up Section 106 pot with CIL

New Member Posts: 22 Join Date: 30/08/13 Recent Posts

Hi,

I understand that the CIL Regulations and guidance as updated seek to prevent CAs from 'double-dipping' into S106 and CIL for the same infrastructure projects.

The Regulations, however, apply once CIL is being charged. Therefore if a Section 106 pot for a particular infrastructure project, e.g. a school, has been pooled (from up to 5 contributions commencing April 2010), and then CIL is charged for school places, can the S106 pot can be topped up with CIL, when new planning applications are granted?

Convoluted I know, but the basic question is: Is it considered correct that a Section 106 pot collected before CIL was in place, can be topped up with CIL after it's in place?

I would be especially interested to hear from those who have started charging CIL.

Many thanks,

Charlene Jones, Solihull MBC

Simon Pickstone, modified 10 Years ago.

Topping up Section 106 pot with CIL

Advocate Posts: 104 Join Date: 22/04/13 Recent Posts

Hi Charlene

I may not be understanding your question correctly but the basic principle is you can't collect  S106 and CIL for the same item or project from the same development, and you can't ask for a S106 Obligation for something which is on your R123 List (i.e. you have already committed to spending CIL on it). You can also collect, using up to a maximum of 5 separate S106 Obligations, contributions towards any single item or project and then use CIL (after having placed it on the R123 List) to meet any additional shortfall in the funding of the project subject to your requirements meeting the 'policy tests' etc.

Hope this helps?

Simon  

 

Simon Pickstone, modified 10 Years ago.

Topping up Section 106 pot with CIL

Advocate Posts: 104 Join Date: 22/04/13 Recent Posts

In addition to my previous post, depending on the wording of your R123 List i.e. whether you are specific in terms of the items you intend to spend CIL on as opposed to generic e.g. "x school" as opposed to "schools" in general, you will either be able to continue to use S106 (if specific) or not (if generic). If I understand your question, you have collected S106 for 'school places' and now you want to switch to using CIL for 'school places'? My take on that is you can use the S106's (no more than 5 since April 2010) you have collected but seek no further S106 Obligations for that item/project going forwards because it is on your R123 List.

Charlene Jones, modified 10 Years ago.

Topping up Section 106 pot with CIL

New Member Posts: 22 Join Date: 30/08/13 Recent Posts

The question relates to a Section 106 pot that has accumulated BEFORE a Council starts charging CIL. After CIL is being charged (ie items on the Regulation 123 list), can the CIL revenue top up a pre-existing S106 pot?

It is implied that you will no longer be collecting S106 for this particular infrastructure type/item, as you're collecting CIL for it once you've got a charging schedule in place.

 

Thanks!

Former Member, modified 10 Years ago.

Topping up Section 106 pot with CIL

Charlene,

It is correct that there is no conflict in using s106 funds secured before adopting a Charging Schedule together with CIL funding.  In my LA we will asking our Members to agree the release of 'historic' s106 funds alongside CIL funding for a number of years until the old s106 are spent out - some projects will be funded with a combination of the two