How community organisations can bid for section 106 funding
How community organisations can bid for section 106 funding

The following Planning guidance note provides comprehensive and up to date legal information covering:

  • How community organisations can bid for section 106 funding
  • The context of grant funding in the section 106 process
  • Eligibility for section 106 grant funding
  • Application process
  • Types of projects section 106 monies can and cannot support
  • How grant funding can affect affordable housing requirements in section 106 agreements/for individual development schemes

This Practice Note is not based on statute or official guidance or policy, but gives an overview of how local planning authorities might deal with applications for section 106 monies in practice.

The context of grant funding in the section 106 process

Under section 106 of the Town and Country Planning Act 1990, financial contributions can be sought from developers towards the costs of providing community and social infrastructure, the need for which has arisen as a result of a new development taking place. This funding is commonly known as 'section 106 monies'.

Section 106 monies can be spent on facilities where new developments have, at least in part, contributed to the need for the facilities.

Eligibility for section 106 grant funding

The section 106 grant scheme is open to all community-based organisations that operate on a not-for-profit basis, including charities, community interest companies, industrial or provident societies, companies limited by guarantee and parish councils. The facilities provided must be open to the general public with no membership restrictions in relation to the Equality Act 2010, and have wide public and community benefit.

To be eligible for funding, applicant organisations must:

  1. have a constitution or set of rules

  2. demonstrate that they have consulted facility users/the local community

  3. provide any other evidence of need for the project, and

  4. have the written support of