This page relates to the 2021-24 National Land Transport Programme.
Introduction
Work category 333 provides for property acquisition for local roading purposes, prior to our (Waka Kotahi NZ Transport Agency as investor) approval of funding for the construction/implementation of a project.
Principles and conditions, where relevant, may be applied to other activity classes
You may apply the principles and conditions of advance property purchase for local roads to other activity classes as well, including:
This will require our prior agreement to assist the funding for property purchased for land transport purposes prior to approving funding for the construction/implementation of a project.
We will waive specific conditions (see below) where we decide these are not relevant to other activity classes. We may require additional conditions to apply to specific cases involving other activity classes.
Advance property purchase for other activity classes will be funded under the same work category applied to the construction/implementation of the project, for example advanced property purchased for work category 561 should be funded under this work category.
Qualifying activities
Work category 333 is available to the following activity classes:
- local road improvements
- state highway improvements.
Local road and state highway improvements
Examples of qualifying activities
Examples of qualifying activities include, but may not be limited to:
- valuation
- legalisation surveys
- acquisitions
- compensation
- additional compensation and disturbance payments in accordance with the Public Works Act 1981.
You can discuss with us whether other potential activities not listed above might also be eligible for inclusion in this work category.
Funding is subject to the conditions set out below.
Exclusions
Work category 333 excludes:
- property purchase costs of less than $500,000 – these are to be included in the project costs conducted under the appropriate work category
- where an exchange of land occurs between a private landowner and an approved organisation, or where land is vested in an approved organisation by a private owner required to do so without monetary payment for the land, the transaction does not qualify for funding assistance. However, where these involve payment of land transfer fees or stamp duty, these costs can be included as acquisition costs.
Eligibility for funding property purchases
Conditions for funding assistance include:
- Funding assistance will be based on the greater of the purchase price or current market value.
- The basis for establishing current market value will be agreed with us (Waka Kotahi as investor) prior to the funding application. The default methodology will be an independent valuation. However, our property acquisition staff may advise an alternative methodology is appropriate, based on the scale of the application and movements in the property market since the property was purchased or last valued.
- The land must be designated in the district plan for road purposes or its land transport purpose described sufficiently in other local authority planning documents to the satisfaction of our legal representative.
- The preferred option for the programme, package or project must be endorsed by us and should be a major element in the improvement of the road system.
- Our financial interest will be registered on the property title by way of a caveat registered by us. If any property deemed surplus to transport needs is sold or transferred, we will withdraw any registered caveat on settlement provided its share is to be reimbursed to us within five working days from the settlement date of the sale or transfer. Our share will be in the same proportion as our contribution was to the total purchase price or market value of the property when assisted with funding from the National Land Transport Fund (NLTF).
- Additionally, we will, at the end of each financial year receive our share of all net income received from the property (eg any rental income) between the date funding was advanced from the NLTF in respect of the property and:
- for land needed for transport purposes, the start of construction
- for land not required for transport purposes, its sale or transfer.
- We are to be given the opportunity to express a view on the proposed disposal of or alteration to the property.
- The property purchase is required for hardship reasons or for other situations as specifically approved by us.
- Legalisation surveys, including plan fees payable to Land Information New Zealand, are to be treated as part of the land acquisition cost. No other expenses involved in the legalisation process are eligible for funding assistance.
- Any payment for betterment recovered in terms of section 326 of the Local Government Act 1974 shall be a credit to the cost of the project.
Betterment for local road improvements
- All costs must be identified by project and available for audit.
- A land plan must be available for audit purposes and must indicate the area of land to be purchased and the part that is to be converted to road reserve, with each individual property to be identified on the plan.
While the approved organisation holds the land, prior to using it in a transport activity and/or disposal, they must submit a property report on Transport Investment Online (TIO) each year.
Property reports
Transport Investment Online(external link)
Funding assistance rate
The usual funding assistance rate (FAR) is:
or
Submitting activities for NLTP consideration and funding approval
Approved organisations submit these activities using the improvement activity module in TIO. The application will be for the property phase of a local road improvement project.
Transport Investment Online(external link)
User guides for TIO are available in TIO.
The activity owner updating into TIO should not automatically assume that the activity class is a road improvement. Instead they (in consultation with our investment advisor) will need to select which activity class will be funding the property acquisition.
Registration of caveat by the Waka Kotahi legal team
The Waka Kotahi legal team will assist our staff in registering caveats as required under the conditions of funding.
