Applications will soon be invited for community recreational and open-space projects paid for by the pot of money from levies on the new housing developments around Monmouth.

Known as section 106 monies, (from the Town and Country Planning Act) a levy of around £3,000 per dwelling is paid by developers towards a provision for affordable housing, highway improvements and for off-site play and/ or recreation areas.

The idea is to offset the costs of the external effects of development. For example, if a developer were to build 100 new houses, there would be effects on local schools, roads, parks and play areas, although not all 106 agreements make provision for education.

The three main developments in Monmouth contributing towards the 'community pot' are the Almshouse site in St James Street, Wyesham Infants School site and the land at Croft y Bwla, where 84 dwellings have been built by Charles Church Developments.

This last site has an agreement to pay £2,534 per dwelling, amounting to a total of £212,856, which is to be used for adult recreation within three miles of the site and spent within five years of receipt.

Not all the money is paid at once; the first tranche is triggered when the amount of occupation reaches 50 per cent.

The Wyesham Infants School site has a charge of £3,639 per unit, creating a contribution of £189,228, for recreational sites within three miles and the Almshouse site has already paid £37,490 for the provision off site of new or improved open spaces or recreation facilities.

The total amount that will be paid will total £439,574 and adding the prospective Wimpey phase one and two sites and the Wonastow Road site, the pot of cash could rise to £900,000.

An assessment panel will look at applications and submit a report to Monmouthshire County Council's cabinet, who will then authorise the payments.

Any unspent funds remaining after the agreed 'spending' time has lapsed will be returned to the developer.

The application process will take place before Christmas, so the recommendation can be drawn up in the new year and submitted to cabinet by March 2014.