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Extension of Security of Tenure Act, 1997 (Act No. 62 of 1997)

Chapter II : Measures to Facilitate Long-Term Security of Tenure for Occupiers

4. Subsidies

 

(1) The Minister shall, from moneys appropriated by Parliament for that purpose and subject to the conditions the Minister may prescribe in general or determine in a particular case, grant subsides—
(a) to facilitate the planning and implementation of on-site and off-site developments;
(b) to enable occupiers, former occupiers and other persons who need long-term security of tenure to acquire land or rights in land; and
(c) for the development of land occupied or to be occupied in terms of on-site or off-site developments.

 

(2) In deciding whether to approve an application for a subsidy, and if so, the priority to be given to that application, the Minister shall have regard to the extent to which an application complies with the following criteria:
(a) The development entails a mutual accommodation of the interests of occupiers and owners;
(b) the development is cost-effective;
(c) in the case of an off-site development under circumstances where the occupiers have indicated that they would prefer an on-site development, satisfactory reasons have been provided why an on-site development would not be a more appropriate solution;
(d) owners and occupiers have made a reasonable attempt to devise a development which complies with the criteria contemplated in paragraphs (a) and (b);
(e) the occupiers are the spouses or dependants of persons contemplated in section 8(4)(a); and
(f) there is an urgent need for the development because occupiers have been evicted or are about to be evicted:

Provided that where an application is made by or on behalf of occupiers for an off-site development, such an application shall not be prejudiced by reason only of the absence of support from an owner who is not the owner of the land on which the development is to take place.

 

(3) Where the persons who are intended to benefit from a development have been identified, a subsidy shall not be granted unless the Minister has been satisfied that the development is acceptable to a majority of the adults concerned.

 

(4) The Minister may, for the purposes of this section, grant subsidies through an agreement with a provincial government or a municipality, or a person or body which he or she has recognised for that purpose, where—
(a) a provincial government or a municipality or such person or body will facilitate, implement or undertake or contract with a third party for the facilitation, implementation or undertaking of a development; or
(b) the subsidy is paid to the provincial government or a municipality or such person or body to enable it to facilitate, implement or undertake or contract with a third party for the facilitation, implementation or undertaking of a development.

[Section 4(4)(b) substituted by section 21(c) of Act No. 61 of 1998]

 

(5) No transfer duty shall be payable in respect of any transaction for the acquisition of land in terms of this section or in respect of any transaction for the acquisition of land which is financed by a subsidy in terms of this section.

 

(6) A potential beneficiary of a development may apply for a housing subsidy as provided for in terms of sections 10A, 10B, 10C and 10D of the Housing Act, 1966 (Act No.4 of 1966).

 

(7) The provisions of any law regulating the subdivision of land shall not apply to land on which a development is undertaken in terms of this Act.

[Section 4(7) substituted by section 21(d) of Act No. 61 of 1998]