Endowments and conditions in terms of the land use planning ordinance

Abstract

The Land Use Planning Ordinance has abolished improvement levies imposed in terms of section 35 of the Old Township Ordinance. Article 42 of the new Ordinance provides for rezoning and subdivisions to be sharpened in respect of levies and conditions. This article briefly looks at the origin of improvement charges, and thereafter discusses the guidance given by the Provincial Administration through notices in this regard as well as recommendations from the Venter Commission. The discussion focuses specifically on the distribution of engineering services in large-scale developments, and concludes that capital costs can not be borne by the local government, as it will make the tax burden too big. Capital costs for internal services should be borne by the developer, which will then let it down on the prospective buyer. On the other hand, the cost of external services in the case of new towns is so high that it can not be borne by the developer or also by the inheritors.