What can developer contributions be used for?

Asked by: Guy Kihn  |  Last update: March 20, 2026
Score: 4.1/5 (41 votes)

Developer contributions, also known as planning obligations, fund essential local infrastructure and services needed to support new developments, mitigating their impact by providing public facilities like schools, parks, roads, and affordable housing, either through direct provision ("in-kind") or financial payments to local authorities. These funds ensure new communities have necessary amenities, covering costs for green spaces, transport, healthcare, community centers, and sometimes childcare, making developments acceptable in planning terms.

What is a developer contribution?

1.1 Developer contributions are provided in order to mitigate the impact of new development. Typical examples include the provision of green space, school places and transport improvements. Such contributions are also sometimes referred to as planning obligations.

What are development contributions?

​Development contributions are fees charged to developers to recover a share of the cost of infrastructure for a new development. Revenue from these charges is used for new or upgraded infrastructure for: transport, footpaths, roads and intersections. parks and sportsgrounds. drainage and stormwater systems.

What are Section 106 developer contributions?

Developer contributions is a collective term mainly used to refer to the Community Infrastructure Levy (CIL) and Planning Obligations (commonly referred to as 'Section 106' or 'S106' obligations after Section 106 of the Planning Act).

What are unspent developer contributions?

Unspent developer contributions are funds collected from developers for infrastructure that remain unused in council accounts.

Contributing to Open Source Can Change Your Life - Here’s How to Do It

39 related questions found

What's the maximum you can build without planning permission?

The extensions roof & ridges must not exceed the height of the original house and the eaves must not exceed 2m in height of the boundary of 3m. Single-storey extensions must not exceed 4m in height. Single storey extension width must not exceed half of the original size of the house.

How to get 100% development finance?

Does development finance allow you to borrow 100%? The general answer is yes. However, in order to ensure you can borrow 100% of the property value , you'll need to provide extra security—typically in the form of another property or land.

What can you spend S106 money on?

Spending section 106 funds

  • affordable housing.
  • green space provision.
  • providing educational facilities.
  • traffic calming measures or road improvements.
  • public transport contributions.
  • NHS contributions.
  • local employment initiatives.

How to pay development contributions?

Pay online, by EFT, by credit transfer, by post, in person or over the phone. If you have received an invoice you can pay online using the link below: https://ip.e-paycapita.com/AIP/itemSelectionPage.do?link=showItemSelect…

What triggers Section 106 review?

Section 106 is triggered when a Federal agency determines that it has a type of undertaking that has the potential to affect historic properties. These are typically the same actions that trigger project review under the National Environmental Policy Act (NEPA).

What is an example of contributions?

Contribution examples vary by context, including donating money or time (volunteering at a nursing home, helping neighbors), providing services or goods (in-kind political donations like paying for printing), making financial payments (to retirement plans or charities), or specific actions in professional settings like research (author contributions) or leadership (implementing strategies). They represent any valuable input, whether monetary, physical, or effort-based, given to a cause, organization, or team. 

What are the 7 elements of community development?

It then outlines seven major concerns in community development work: relationships, structure, power, shared meaning, communication for change, motivations for decision making, and integrating disparate concerns. Each of these seven concerns is linked to a specific theory that can provide guidance for practitioners.

What is a contribution in accounting?

Contribution is the amount of earnings remaining after all direct costs have been subtracted from revenue. This remainder is the amount available to pay for any fixed costs that a business incurs during a reporting period. Any excess of contribution over fixed costs equals the profit earned.

What is a development contribution?

A development contribution is payable for each additional 'unit of demand' created for the services provided in the area or 'catchment' in which it falls.

How important is DA in a redevelopment project?

Everyone talks about redevelopment benefits But nobody talks about the Development Agreement (DA) DA decides: • How much area you get • Rent & corpus amount • Builder's construction obligations • Extra FSI distribution • Bank guarantees & taxes This ONE document controls the entire project.

What is a developer responsible for?

A developer is responsible for identifying opportunities, managing resources, and overseeing every stage of the development process from concept to completion. Their goal is to transform land into viable housing or mixed-use projects that meet community needs and market demands.

Can I do my own drawings for planning permission?

Anyone can prepare and submit plans, but hiring an experienced architect can boost your chances of approval, especially for extensions or loft conversions, by navigating rules and working with local authorities. Their expertise can save you time and money, making the process smoother and more likely to succeed.

What is the Section 48 scheme?

Sub-section (1) of Section 48 of the Planning and Development Act 2000 as amended, enables a planning authority, when granting a planning permission under Section 34 of the Act, to include conditions for requiring the payment of a contribution in respect of public infrastructure and facilities benefiting development in ...

What is the 7 year rule in Ireland?

IRISH JUDICIAL STUDIES JOURNAL

The foregoing is commonly known as the seven-year rule. It is the statutory time limitation period within which enforcement action, whether civil or criminal, can be taken pursuant to Part VIII of the Planning and Development Act 2000 as amended.

What is Section 106 for dummies?

Section 106 agreements are legal agreements between a planning authority and a developer, or undertakings offered unilaterally by a developer, that ensure that certain extra works related to a development are undertaken.

What is Section 106 money from developers?

Section 106 agreements, negotiated between developers and local authorities, ensure that new developments contribute to essential infrastructure, services, and community facilities, including schools, nurseries, community buildings, and green spaces.

How does Section 106 affect property value?

The Section 106 review process gives you the opportunity to alert the federal government to the historic properties you value and influence decisions about projects that affect them.

What is the 3 3 3 rule in real estate?

The "3-3-3 Rule" in real estate refers to different guidelines, but commonly means a buyer should spend no more than 30% of their gross monthly income on housing, have a down payment/emergency fund of at least 30% of the home's value, and the home's price shouldn't exceed 3 times their annual income, ensuring financial stability. Other variations focus on marketing for agents (3 calls, notes, resources) or property evaluation (past 3 years, future 3 years, 3 nearby comps). 

Do you need 20% down for a construction loan?

While 20% is a common requirement for construction loans due to higher lender risk, it's not a universal rule, with down payments often ranging from 5% to 20% (or sometimes more), depending on the lender, your finances, and the loan type (like FHA, which allows less). You might need to contribute 20% to avoid Private Mortgage Insurance (PMI) or if you have less equity in your land.