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Section 106

What is it?

A Section 106 is a legal document which places specific conditions on a property or land.

In terms of affordable housing there are two important clauses contained in a Section 106, which govern who can buy the property.

Local Occupancy Clause

The purpose of this clause is to make sure that it is only people with a local connection can buy a property. There are some variations but generally most Section 106's will now say that a person must have lived in the area for at least 3 years. People who work in the area or have a permanent job offer may also be considered.

Housing Need

An applicant for affordable housing must be in "Housing Need". This means they cannot afford to buy on the open market. We work out whether an applicant qualifies by looking at their income, savings, equity, and wages. We then compare them to a table of values we have carefully compiled, to see if they qualify.

Variations

The section 106 document has evolved over time and because of this there are some variations for certain properties. We assess applications case by case and apply the specific 106 to a persons application. The section 106 is a legal document and we have to abide by the terms in document.