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Introduction

This work category provides for the purchase of land by Approved Organisations for local road improvements. The application for funding approval is made at the same time the application is made for implementation funding.

Qualifying activities

The work category includes a range of qualifying activities.

  • Examples of qualifying activities

    Examples of qualifying activities

    Examples of qualifying activities include, but may not be limited to:

    • valuation
    • legalisation 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.

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Applying principles and conditions 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 (work category 531), walking and cycling improvements (work categories 451 and 452).

 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

A range of exclusions applies to the work category.

  • Exclusions

    Exclusions

    The work category excludes:

    • property purchase costs of less than $500,000 – these are to be included in the project costs conducted under the appropriate work category and phase, i.e. a separate Property phase is not required
    • 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.
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Conditions of funding

Conditions include:

  • funding assistance is considered only at the time of the application for construction/ implementation funding assistance and the cash-flow for property purchase set out in Transport Investment online is expected to coincide with the initial cash-flows for construction/implementation
  • funding assistance is based on the greater of the purchase price or current market value of the net property required for the land transport project and is to exclude any property held for other purposes or property surplus to the project that is being on-sold
  • unless otherwise agreed by the Transport Agency, the net property for road improvement projects will be that legalised as road reserve
  • the basis for establishing current market value will be agreed with the Transport Agency prior to submission of the funding application. The default methodology will be an independent valuation. However, experienced Transport Agency property acquisition staff may advise an alternative methodology is appropriate based on the scale involved and property market movements since the property was purchased by the Approved Organisation
  • 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
  • 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

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).  The application will be for the Property phase of a project

Claiming

Claiming for property purchase may be made once funding approval is confirmed in Transport Investment Online(external link) (TIO), subject to any conditions precedent.

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