A voluntary planning agreement (VPA) is a legal agreement between a developer and a local council to contribute or provide certain public benefits in exchange for permission to develop their land. VPAs are becoming increasingly popular as a way to fund or deliver community infrastructure and services that may not be fully provided by government agencies.

VPAs can apply to a range of developments, from large-scale residential, commercial, or industrial projects to smaller ones such as childcare centers, community facilities, or public open space. The contents of a VPA can vary depending on the nature and scale of the development, as well as the needs and priorities of the local community.

The purpose of a VPA is to enable developers to offset or mitigate the impacts of their development on the local area and contribute to the public good. The contributions or obligations that a developer may agree to under a VPA can include but are not limited to:

– Providing or upgrading local infrastructure such as roads, footpaths, drainage, or parks

– Contributing to affordable housing, social housing, or key worker housing

– Funding or providing community facilities such as libraries, schools, or public art

– Providing or preserving environmental or heritage assets

– Paying monetary contributions or levies to the local council or state government.

VPAs operate under the NSW Environmental Planning and Assessment Act 1979 and the associated Planning Agreements Policy. They involve a negotiation process between the developer, the local council, and sometimes other stakeholders such as state agencies or community groups. The terms and conditions of a VPA must be consistent with the relevant planning controls and strategic plans, and must be publicly exhibited and explained before being finalised and registered.

VPAs have some advantages and challenges for all parties involved. For developers, VPAs can provide certainty and clarity about what is expected of them and reduce the risk of future legal challenges or delays. For councils, VPAs can generate revenue and enhance the provision of public goods and services beyond what they can afford or justify from their own resources. For communities, VPAs can ensure that development benefits are shared fairly and that public interests are protected and enhanced.

However, VPAs also require careful scrutiny and oversight to ensure that they are fair, transparent, and effective. There are concerns that VPAs may lead to ad hoc or inconsistent planning outcomes, favoritism, or corruption. There are also debates about whether VPAs should be mandatory or discretionary, and how they should be monitored, reported, and enforced.

In conclusion, a voluntary planning agreement is a legally binding agreement between a developer and a local council that aims to provide public benefits in exchange for development permission. VPAs can be a valuable tool for balancing private interests and public interests, but they require rigorous regulation and evaluation to ensure that they serve their intended purposes and do not compromise planning integrity or community values.