Section 106 Local Occupancy Agreement

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When it comes to affordable housing, local occupancy agreements play a crucial role in ensuring that eligible individuals or families have access to these homes. The Section 106 Local Occupancy Agreement is one such agreement that provides a legal framework for affordable housing in the UK.

What is Section 106?

Section 106 is a planning obligation in the UK that requires developers to contribute to the cost of providing affordable housing as part of the planning permission for their development. Section 106 agreements are legally binding, and they set out the terms and conditions of the contributions that developers must make to the community as part of their development process.

What is a Local Occupancy Agreement?

A Local Occupancy Agreement is a legal agreement between the property owner, the landlord, and the local council. The agreement sets out the terms and conditions for renting or purchasing a property, including the eligibility criteria, rent or purchase price, and any restrictions on the use of the property.

The occupancy agreement is designed to ensure that affordable homes are targeted at those in need, and that they are not occupied by individuals who do not meet the eligibility criteria. Local occupancy agreements are commonly used for shared ownership properties, where the tenant purchases a percentage of the property and rents the remaining percentage from the landlord.

How Does the Section 106 Local Occupancy Agreement Work?

The Section 106 Local Occupancy Agreement is a type of local occupancy agreement that is used in conjunction with Section 106 planning obligations. The agreement sets out the eligibility criteria for affordable homes, which are typically based on the applicant`s income, employment status, and local connections.

For example, a local occupancy agreement may require that the tenant has lived in the area for a certain amount of time, or that they work in the local area. The agreement also sets out the rent or purchase price of the property, which is typically below market rates.

The Section 106 Local Occupancy Agreement is beneficial for both tenants and developers. It ensures that eligible individuals have access to affordable homes, while also providing developers with a mechanism to meet their planning obligations. By contributing to affordable housing, developers can demonstrate their commitment to the local community and improve their reputation in the area.

In conclusion, the Section 106 Local Occupancy Agreement is a crucial mechanism for ensuring that eligible individuals have access to affordable housing. It provides a legal framework that sets out the terms and conditions for renting or purchasing a property, and helps to ensure that affordable homes are targeted at those in need. For developers, the agreement provides a mechanism to meet their planning obligations and improve their standing in the local community.