Granny flats cost an arm and a leg
2009-03-26
Anne Kruger
THE Drakenstein Municipality has instituted a Bulk Infrastructure Contribution Levy (BICL) on all properties which are subdivided or extended, to fund the increased burden on the infrastructure of the urban area. This pro rata levy is payable by developers on new property developments, as well as on any existing property (valued at more than R120 000 or where the footprint is larger than 120 square metres), which is extended or subdivided for a second dwelling or granny flat. The minimum levy is R3 676 (including VAT), increasing on a sliding scale and amounting to as much as R36 000 for an average middle-class property. The levy is used to fund the infrastructure for additional water, sewerage and electricity to the property, as this places an additional burden on services. This is in addition to the total cost of any external link services paid for by developers. Levies on new projects are payable on the date the building plans are approved, and for existing properties being subdivided, on the date of transfer. There is no levy on un-enclosed additions like verandahs. According to a Paarl architect, this levy is unheard of in other municipal areas. “When I submitted plans for the construction of a door connecting a maid’s room and bathroom with the rest of the house to form a granny flat, the Municipality wanted to force the owner to pay the bulk infrastructure levy. “When I pointed out that there was no additional burden on services, as it was an existing structure, the levy was waived. “What I don’t understand is that, on the one hand, the Municipality is in favour of densification, yet at the same time they wish to institute a punitive levy on people who wish to densify their properties. “This is unheard of in other municipal areas, and indicates a serious shortage of funding for infrastructure maintenance. But there is always money for parties and other unnecessary expenditure by Council.” The Municipality has confirmed that the bulk services levy for second dwellings on an erf is only payable if the existing building foot print and or floor area is extended, it is not payable for internal adjustments “To implement the council’s policy for densification, additional funding is required to replace or upgrade existing infrastructure that is inadequate for the increased demand. “The proceeds of the levy are placed in a special fund which is utilised for infrastructure services only,” a spokesperson said.
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