In New South Wales, a Voluntary Planning Agreement (VPA) is a legal agreement between a developer and a local council or state government agency, setting out the contributions or benefits that the developer agrees to provide in return for development approval. VPAs are often used to secure benefits for the community, such as public infrastructure, affordable housing, or open space.
Once a VPA has been negotiated, it must be publicly exhibited for a minimum of 28 days to allow for public comment. The VPA is then considered by the local council or relevant state government agency and, if approved, is considered a legally binding agreement between the developer and the council or agency.
What Legislation Regulates a VPA?
The use of VPAs in NSW is governed by the Environmental Planning and Assessment Act 1979 and the Environmental Planning and Assessment Regulation 2000. Under Section 7.4 of the Act, a VPA must be a voluntary agreement, meaning that the developer cannot be compelled to enter into the agreement.
The Act also requires that a VPA must be consistent with any relevant planning instruments, such as local environmental plans and development control plans. The agreement must also be in the public interest, and the benefits or contributions required under the agreement must be reasonable in the circumstances.
Under the Act, a VPA can be varied or revoked by agreement between the parties, or by application to the Land and Environment Court. This Court will vary or revoke a VPA if it is satisfied that the agreement is no longer appropriate or that it is in the public interest to do so.
Who are the parties to a VPA?
The parties to a VPA are typically the developer of a proposed development and the local council or state government agency responsible for assessing and approving the development application. However, in some cases, other parties may also be involved in negotiating a VPA, such as community groups or other stakeholders who may be affected by the proposed development.
What is included in a VPA?
A VPA can include a wide range of contributions or benefits, depending on the particular development proposal and the needs of the local community. Some of the common contributions or benefits that may be included in a VPA in NSW are:
Public infrastructure: Developers may be required to contribute funding towards the construction of public infrastructure such as roads, footpaths, and community facilities that are required as a result of the development.
Affordable housing: Developers may be required to provide a certain percentage of affordable housing within the development or contribute funding towards the construction of affordable housing in the local area.
Open space and environmental improvements: Developers may be required to provide new public open space or contribute funding towards the improvement of existing open space in the local area. They may also be required to fund environmental improvements such as the rehabilitation of degraded land or the planting of trees.
Transport and traffic management: Developers may be required to contribute funding towards the construction of new transport infrastructure, or towards the improvement of existing transport infrastructure, to manage the traffic impacts of the development.
Community facilities: Developers may be required to provide new community facilities such as parks, community centres, or libraries as part of the development, or contribute funding towards the construction of these facilities in the local area.
Conclusion
VPAs form an integral part of the development approval process. It is important for developers to carefully consider the terms of a VPA before entering into an agreement, as the contributions or benefits required under the agreement can be significant. Developers should seek professional advice to ensure that they understand the requirements of the VPA and how they can be met.
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