Newport Chronicle: Developers to pay over £13,000 for affordable housing provision

A payment exceeding £13,000 for affordable housing has been secured through a legal agreement linked to an approved mixed-use development comprising four apartments. This arrangement forms part of a planning obligation for a new residential project in Newport, which grants permission for a long-empty plot on Commercial Road. The Section 106 contract, signed by Newport City Council and developer RBM Management Limited, facilitates the regeneration of 153 Commercial Road. The proposals encompass a ground-floor commercial space with four studio apartments situated above it. The sum, referred to as the “Affordable Housing Sum,” must be settled prior to the second dwelling being taken up. These funds are designated for use specifically within Newport West to assist in delivering affordable housing. The arrangement guarantees that should no suitable project be found in Newport West within three years of payment, the council may allocate the money to other locations throughout the city. Alongside this housing contribution, RBM Management Limited will also reimburse the council’s legal fees of £900 together with a planning administration charge of £368. All amounts are subject to index-linking and incur interest penalties for late payment. Read more Plan for ground-floor flat in high-risk flood area rejected over safety worries Here's how Newport residents fared with their latest planning applications Loss making business park would be 'good investment' on Dragon's Den says councillor Section 106 agreements, named after the relevant section of the Town and Country Planning Act 1990, constitute legally binding planning obligations. They obtain contributions or works necessary to render a development acceptable. RBM’s planning application, reference 25/0530, represents a revised iteration of an earlier proposal for the site, which has remained unused for some period. The council confirmed that it had only decided to approve planning permission contingent upon the Section 106 agreement being finalised. Permission must be issued within five working days of the agreement being executed. The legal document also incorporates safeguards concerning fund management and expenditure. Should the money remain unspent or unallocated after five years, the council must reimburse it with interest added. The agreement registers as a land charge, guaranteeing it surfaces during property searches. It becomes void if planning permission is withdrawn, cancelled, or lapses without implementation, or if it is quashed following legal proceedings. This does not preclude the site from being developed subsequently under alternative planning permission, should a fresh application prove successful.