Improving infrastructure
– Childcare grant
(Section 106 Funds for Childcare)
Procedure for application and distribution of funds
Background
Housing development work can often lead to a need for the existing infrastructure to be improved (schools, libraries, roads and street lights for example). The Local Planning Authority can ask the developer to enter a legally binding agreement to make a contribution towards the cost of such improvements. This is covered by Section 106 of the Town and Country
Planning Act 1990. Please click on the following link for further information. www.legislation.gov.uk/ukpga Contributions are also received for the development of additional childcare facilities
Negotiations for S106 contributions from developers are conducted through the Development Services Team in HCC Corporate Services. Legal agreements are made and details of the financial contributions for each service are held by the HCC Property Team.
Funds secured are capital contributions for new childcare and each agreement has its own separate amount, time frame for use and criteria for use. The criteria for use are broad, for example: childcare facilities for children in the vicinity for the development.
This document will help to define criteria with regard to:

p roximity to a development to be classed as ‘in the vicinity’

childcare that is eligible for inclusion

definition of capital expenditure.
As well as explaining the criteria for applying for funding.
Procedure
Section 106 must be used to develop new childcare places or increase the places of existing childcare to support the growing communities need for increased provision. The childcare places must be registered with Ofsted. The applicant must demonstrate how their project will increase the amount of childcare in order to benefit the community. Projects could come from organisations from the private, voluntary, independent or maintained sector.
New childcare that is created must be for children in the age range 0 – 14 (19 for children with a disability). A need for places must be demonstrated or highlighted as a local priority by the Childhood Support Services Team.
Places will not be funded in areas where there is no identified need.
Applicants may be asked to provide market research in order to support a potential need in the area.

Geographic location
New projects requesting funds must link in to the criteria of being within the vicinity of the new development. In most cases a new project should be located within the same children’s centre community area as the new housing development, thus satisfying the requirement of the S106 funding being used for the locality. The 82 children’s centre communities have been agreed as individual communities serving a number of children and families who are within easy access to facilities within that community. The location of the housing development can be identified from the S106 agreement and applicants can check their projects are eligible.
Projects in an other children’s centre area can apply for money allocated to other children’s centre areas which are geographically close to the development the money attains to, should that money not be earmarked for another project in the near future. The final decision as to whether this can happen will come from the Childcare Sufficiency team.
The Childcare Sufficiency Team will then measure if the application meets the aims of the S106 funding. The application would require details of:

description of childcare scheme, including total cost and amount requested

details of which Section 106 agreement the request is against

how the childcare development relates to the housing development
 links to children’s centre services.
Project costs
S106 funding is for capital development. This is defined as large build items such as buying land, new build and refurbishment including external spaces.
The amount of S106 funds available vary from agreement to agreement
(range: £2000 to £45000, sometimes larger). It is therefore unlikely that there will be sufficient funds to fund an entire capital build project. Projects could therefore be for smaller capital works such as refurbishment or minor alterations that will lead to an increase in available childcare. The funding can also fund large pieces of equipment and furniture.
It cannot be used for any revenue costs such as stationery or craft materials, rent, staff salaries or to pay for marketing or training.
Alternatively funding requested could part fund a project where funds have also been identified from other sources. Where there is more than one housing development in one children’s centre community, S106 funds could be pooled together to fund a project.

Conversely a project does not have to request or use all funds from a S106 agreement if it does not require them. Any interest on the amount of money applied for is also added to the final amount. This is calculated by Herts
Property Services.
Once the funding has been agreed the funding must be spent within one year.
HCC Owned Buildings
Any works carried out on HCC owned properties have to go through the
Building Management Team (BMT) who are part of Herts Property, who will project manage the works, and have to be approved by the Strategic Asset
Team (SAT). There may be a cost involved for any project design which will be paid for from Section 106 monies, once approved.
Once an application is approved by CSS, BMT visit the proposed site to draw up plans for the project and begin to estimate costs. They will liaise with SAT and the applicant until approval for the project and the approval of the funding is received. They will then tender the work to a contractor who will complete it.
Payment for this work goes through the internal accounting system and no money is paid directly to the applicant.
Non HCC Owned Buildings
Any funded works to premises not owned by HCC must have full landlord consent and this must be demonstrated as part of the application. Applicants will need to submit a copy of their lease/ rental agreement and depending on the cost of the works either a license for alterations, or for small projects, full written consent from the landlord permitting the work to be carried out.
Application process
Step 1
Read application guidance fully to make sure your project complies with guidance.
Step 2
Demonstrate the need for additional places in the local community.
Step 3
Complete an application form.
Step 4
CSS prefers Section 106 applications and enclosures to be sent electronically where possible to css@hertsdirect.org.uk
Where this is not possible please send your application with enclosures to:
Childcare Sufficiency Managers
Children's Services, Hertfordshire County Council
Postal point CH0133, County Hall, Hertford, SG13 8DF

Step 5
CSS sign off your application and notify you of the next steps in the process.
This could be arranging a visit from BMT or to inform you your application is being considered by Herts Property.
Once CSS has approved your application it is approved at a higher level by
Herts Property, this can take up to five weeks.
Payment of funds
Any BMT managed projects will not require an invoice from the applicant as funds are transferred internally to cover costs.
Any non BMT managed projects (mainly non HCC buildings), must submit an invoice to HCC along with copies of invoices the applicant needs to pay before funding is released. This can be done in stages to allow the applicant to meet their costs as they receive them, but must be done immediately once an invoice is received. Payments will be made as quickly as possible so applicants can meet their costs within the payment terms of the invoice. HCC will not be able to turn around invoices which have not been sent to them until the last minute quickly, it is therefore essential invoices are submitted immediately.
Monitoring
Applicants will be required to return a 12 month monitoring form to allow CSS to assess the impact of the funding on the local community.