Archive - this information is for reference only and no longer maintained.
Introduction
This work category provides for the purchase of land by Approved Organisations for local road improvements.
Examples of qualifying activities
Examples of qualifying activities include, but may not be limited to:
- valuation
- legal surveys
- acquisitions
- compensation.
Other potential activities not shown above should be discussed with the Transport Agency for eligibility.
Funding is subject to the conditions set out below.
Principles and conditions, where relevant, may be applied to other activity classes
The principles and conditions of property purchase for local roads set out below may be applied to other activities classes, e.g. public transport improvements, walking and cycling improvements, where the Transport Agency has agreed that it will assist the funding for property purchased for land transport purposes prior to it approving funding for the construction/implementation of a project.
Property purchase for other activity classes will be funded under the same work category that will be applied to construction/ implementation of the project, e.g. work category 531 for public transport infrastructure projects.
Exclusions
Exclusions include:
- property purchase costs of less than $50,000 – these are to be included in the project costs conducted under the appropriate work category, and
- 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.
Conditions
Conditions include:
- assistance is considered only at the time of the application for construction/ implementation funding assistance, and is based on the greater of the purchase price or current market value
- legalisation surveys, including plan fees payable to Terralink, 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
- all costs must be identified by project and available for audit, and
- 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
Funding assistance rate (FAR)
The usual funding assistance rate is:
Applying for funding approval
Applications for funding approval of property purchase should be made through the 'Improvement activity' module in Transport Investment Online(external link) (TIO). In most cases, the application will be for the Property phase of an existing project.
