What is the Section 106 agreement process?
Asked by: Kasey Marquardt | Last update: March 23, 2026Score: 4.9/5 (14 votes)
The Section 106 process, under the National Historic Preservation Act (NHPA), is a required federal review to assess if a project (an "undertaking") affects historic properties, involving initiation, identification, assessment, and resolution; the goal is to find ways to avoid, minimize, or mitigate adverse effects through consultation with interested parties like SHPOs, tribes, and the public, often resulting in a formal Memorandum of Agreement (MOA) outlining mitigation measures.
What is the section 106 process?
The section 106 process seeks to accommodate historic preservation concerns with the needs of Federal undertakings through consultation among the agency official and other parties with an interest in the effects of the undertaking on historic properties, commencing at the early stages of project planning.
How long does a section 106 agreement take?
The maximum recorded timescale was 2,679 days, or more than seven years, for a single S106 agreement to complete the agreement process. The shortest average timescale reported by any of the respondent councils was 192 days. Additionally, 35% of all S106 agreements took longer than 12 months to finalise.
What does a section 106 agreement cover?
A section 106 agreement is a legal agreement between a developer and a local planning authority containing measures that the developer must take to reduce their impact on the community.
How is a Section 106 agreement enforced?
Section 106 Agreements are Legally Binding
When the Section 106 process concludes with an executed MOA or PA (either a project or program PA), such an agreement is legally binding on the agency per Section 110(l) of the NHPA (54 U.S.C. § 306114).
Planning Obligations: What is Section 106?
Is there a time limit for enforcement of Section 106 agreement?
It is also suggested that if a development contains social housing this should be notified to the purchaser. S. 106 agreements have no limitation period in relation to enforcement.
Who benefits from section 106 agreements?
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.
Can a 106 agreement be removed?
These legal undertakings are often referred to as 'Section 106 agreements', after the relevant part of planning legislation. You can apply to change or remove a legal agreement.
Who needs to be a party to a section 106 agreement?
Who Needs to be a Party to the Section 106 Agreement? Anyone with an interest in the development land must enter into the Section 106 Agreement. This means that the landowner as well as their lender (if there is a mortgage secured against the property) must be a party to the Section 106 Agreement.
Do I need a retrospective after 10 years?
Starting from April 25, 2024, the building regulations 10-year rule allows unauthorised changes to buildings without needing retrospective planning permission if they've been there for a decade (10 years). This change from the previous 4-year rule affects how property developers handle planning and compliance.
What happens if a planning application is not decided in 8 weeks?
You can appeal your planning application if it is not decided within eight weeks. 13 weeks for major developments, and 28 days for non-material amendments.
How long does a section 106 review take?
The Section 106 regulations give the SHPO 30 calendar days to provide its comment on the project's effect on historic properties, provided the initiation letter includes sufficient information.
What qualifies a house to be historic?
A house becomes historic if it's typically at least 50 years old, retains its original character (integrity), and possesses significant historical, architectural, or cultural value, often tied to important events, significant people, or embodying a distinctive style or method of construction. Official designation (like the National Register of Historic Places) requires meeting specific criteria beyond just age, ensuring the property tells a vital story about the past.
What is the difference between a planning condition and a section 106 agreement?
Planning conditions are time limited but Section 106 Agreements may last in perpetuity and include an obligation on a site owner to manage areas of their land in a particular way.
What is the burden of proof in Section 106?
When any fact is especially within the knowledge of any person, the burden of proving that fact is upon him. (a) When a person does an act with some intention other than that which the character and circumstances of the act suggest, the burden of proving that intention is upon him.
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 qualifies something as historic?
"Historical" refers to anything connected to the past, encompassing all past events, people, and objects, significant or not, while "historic" (often confused with it) usually means something important or famous. An event becomes "historical" simply by having happened, but it's considered historically significant if it had a major impact or embodies distinct characteristics of a time, place, or culture, often requiring time and distance for proper evaluation of its consequences and context.
How long does a 106 agreement last?
How long do Section 106 agreements last for general practices? A Section 106 agreement is usually time-sensitive. The funds outlined must be spent within a specific period, often five to 10 years. If the money is not used within the timeframe, it may be returned to the developer.
What is the punishment for Section 106?
106(1) – Causing death by negligence: Imprisonment for 5 years and fine. 106(1) – Causing death by negligence by registered medical practitioner: Imprisonment for 2 years and fine.
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.
Why is section 106 important?
Section 106 requires Federal agencies to take into account the effects of their undertakings on historic properties and to provide the Advisory Council on Historic Preservation (ACHP) with a reasonable opportunity to comment.
What can section 106 money be spent 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 is section 106 calculated?
How is the amount of the Section 106 contribution determined? The amount a developer is required to pay is usually specified by the LPA based on the policy governing the area. This is calculated taking into account factors like the size of the development, its impact on local services, and the community's needs.