Department of Planning Voluntary Planning Agreement: Understanding its Importance

The Department of Planning Voluntary Planning Agreement (VPA) is a tool used in urban planning in New South Wales, Australia. It is a legal agreement between a developer and a council that dictates the terms and conditions of a development project. This agreement is voluntary, which means that the developer is not legally obligated to enter into one, but it is beneficial for both parties.

The VPA is entered into after a development proposal has been submitted to the council, but before it is approved. The agreement outlines the contributions that the developer will make to the community in exchange for the council’s approval of the project. This can include things like community facilities, public open spaces, affordable housing, and infrastructure upgrades.

The VPA is an important tool in urban planning because it ensures that developers are contributing to the wider community beyond their immediate development. It also helps to ensure that new developments receive the necessary infrastructure and services to support them.

What are the benefits of a VPA?

For the council, the benefits of a VPA are numerous. It allows them to secure contributions from developers that they may not have otherwise received. These contributions can be used to fund community facilities and infrastructure upgrades that benefit the wider community. The VPA also ensures that the development is in line with the council’s strategic objectives and meets the needs of the local community.

For the developer, the benefits of a VPA are also clear. It provides them with certainty around what is required for their development to be approved, reducing the risk of delays or changes to the project. It also allows them to demonstrate their commitment to the local community, which can be beneficial for their reputation.

How does a VPA work in practice?

In practice, the VPA process begins with the developer submitting a development proposal to the council. The council then assesses the proposal and determines whether a VPA is required. If it is, negotiations between the developer and the council begin. These negotiations can be complex and involve a range of stakeholders, including the local community.

Once an agreement has been reached, the VPA is formalized and becomes a legally binding document. The developer then pays the contributions outlined in the agreement as the development progresses.

Overall, the Department of Planning Voluntary Planning Agreement is an essential tool for ensuring that new developments contribute to the wider community and receive the necessary infrastructure and services to support them. While it is a voluntary agreement, it is highly beneficial for both councils and developers, and is an important part of the urban planning process in New South Wales.