Planning & Investment Knowledge Base

Betterment for local road improvements

 

Introduction

Section 326 of the Local Government Act 1974 requires Territorial Authorities (TAs), under certain circumstances, to collect betterment from landowners receiving value from improvement works.

 

This page relates to the 2012-15 NLTP A National Land Transport Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. adopted by the NZTA under section 19 of the LTMA, as from time to time amended or varied only.

 

For the latest information, please see the betterment guidance for the 2015-18 NLTP A National Land Transport Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. adopted by the NZTA under section 19 of the LTMA, as from time to time amended or varied .

 

Where betterment applies

Betterment The increased value of land arising from improved access in terms of s.326 of the Local Government Act. applies where:

  • a council acquires property to construct or widen all or part of a road, and
  • the owners of the remaining property that adjoins the improved road gain an increase in property value that exceeds the compensation due to be paid to them for the property by the council.

 

Then the council shall be paid the amount that exceeds the compensation.

 

Betterment The increased value of land arising from improved access in terms of s.326 of the Local Government Act. also applies where:

  • a council acquires property on one side of an existing road to widen it
  • the owners of the property on the other side of the road gain an increase in their property value, and
  • then the owners of the property on the other side of the road that adjoins the improved road may be required to pay betterment to the council.

 

Sharing of betterment

Where relevant, the proceeds shall be apportioned between the NZTA and the Approved Organisation at the rate of funding assistance applying to the work in question and will be applied as supplementary funding against the cost of the road improvement work.

 

Exclusions

Exclusion include:

  • legal and valuation costs incurred in establishing the financial value of betterment are not eligible for funding assistance.
 

Last Updated: 21/02/2017 4:50pm