Notice provided by the City of Cape Town to their ratepayers seeking Economic relief in these times

The City is aware that during these difficult times, property owners are finding it difficult to pay their municipal rates and services in full, as their monthly income has been impacted due to the announcement of a national lockdown and we recognise the massive impact this will have on our already fragile economy.

As a municipality, we have taken bold steps to reduce the economic impact on you as a Ratepayer.

The City will be able to accommodate you by taking the following actions:

  1. The Property Rates portion of your account be deferred and paid off via a payment plan in the future (first instalment payable July 2020).
  2. That you continue to pay for Services provided – Water, Sewerage, Electricity, Refuse
  3. The payment arrangement will be loaded on the account on 1 July 2020, until such time a lock will be placed on your account to prevent interest charges and any dunning action.

Please forward proof of loss of income/ reduction in income (Proof of income as at March and as at April 2020) in order to activate the above benefits.

Once the lockdown has ended, the City staff will interact with you to provide the necessary documentation required for the payment arrangement.

It must be noted that:

  • No property owner will be exempted from paying property rates; the payment arrangement merely postpones payment of rates in an effort to assist those property owners negatively affected by the COVID-19 lockdown.
  • If approved by the Municipal Manager or any delegated official, a written payment arrangement must be entered into and signed by both parties before the payment arrangement will become effective.
  • The payment arrangement only applies to the payment of property rates.  All other components of the municipal account such as electricity, water, sewerage and solid waste removal, etc. must still be kept paid to date.  This will form a standard part of the Arrangement.
  • Arrangements may not exceed 12 months, the first instalment being July 2020 and must be paid when the July 2020 account is due.
  • This arrangement will be for a maximum of three months as agreed in the signed arrangement.

Cut-off date for submission of applications is 31 May 2020.

  • Arrear rates will not attract any interest during the arrangement period. Should the arrangement not be honoured, the full outstanding amount will become due immediately and interest will become payable.  Furthermore, the account will be subjected to normal credit control and debt collection procedures.

The following documentation will be required as proof when entering into the payment arrangement or application for additional benefits
(or any other information that the municipality may require):

  • The municipal account number for which the relief is sought
  • Your contact details – email and cellphone number
  • Certified copies of proof of income (not older than three months) for the owner and spouse/partner and three months’ original, printed bank statements for all banking accounts from all banking institutions (not older than three months)
  • Letter /s from the employer/s state the reasons for the reduced “income” of both partners or provide any other information that the municipality may require
  • Affidavit from Business, Commercial and Agricultural property owners must prove loss of income and also provide any further information that may be required by the municipality
  • Certified copies of ID of owner and spouse/partner
  • Certified copy of lease agreement if your property or a portion of your property is being leased
  • Certified copies of proof of pension (private and state pension)
  • Certified copies of proof of investments or dividends
  • Certified copies of proof of usufruct/habitation/executor/administrator or curator
  • Certified copy of proof of trust document and income of all beneficiaries of the trust if applicable
  • A certified copy of the applicant’s ID and proof of income for all owners is required if the property is registered in the names of multiple owners; together with a certified power of attorney permitting the applicant to act on behalf of the other owners in respect of the specific property
  • A certified copy of the applicant’s (person residing) ID and certified proof of income for all other members if the property is registered as a close corporation (CC); in addition, a certified letter permitting the applicant to act on behalf of the other owners in respect of the specific property
  • A certified copy of death certificate or Will, if applicable

Kindly forward documentation to Covid19.Relief@capetown.gov.za

In addition, kindly find below a table of benefits provided by the City.

Commercial properties Help Applications assessed on merit
  • Payment arrangement options are available to commercial property owners who fall into arrears.
  • Payment arrangement plans will assist property owners to pay off rates over an agreed number of months.
  • No interest will be charged, or debt management actions taken for the duration of the arrangement, provided it is honoured.
  • Each application will be assessed on its own merits.
Apply for help via email (during lockdown): COVID19.Relief@capetown.gov.za or SMS to 48043 Please submit proof via email

*Applications will be assessed during the lockdown for those able to submit proof via email. Once the lockdown is over applicants may submit their proof at the City’s customer care offices and their applications will then be assessed and backdated where necessary

The additional measures are over and above the R3 billion in rates and service relief the City already offers. For instance, water at 350 litres per day is already provided free of charge to 40% of the metro’s population.

Further relief steps are being considered for implementation in the 2020/21 Financial Year and will be announced at a later stage.

The City helps where it can but can’t risk a breakdown in essential basic service provision by offering blanket relief for all.

  • Rates and service charges comprise an amount equal to 72% of the City’s income per month. Take this away for some months and the City ceases to be able to deliver its services.
  • All local governments are in this position. Even though the City is perhaps stronger for its sound financial management over the years, it cannot afford to have months of no income from rates and services.
  • COVID-19 costs are set to rise over the weeks and months ahead and cash flow could reduce by between R1 billion to R3 billion per month, depending on how it is managed. A reprioritisation of budgets and programmes is under way.
  • The City does not have funds sitting in bank accounts that don’t have a specific purpose. We ensure that we have enough cash to cover working capital needs and the rest is used to fund budget needs. This ensures that rates and tariff increases are kept as low as possible.
Dear Members,

Government has amended the regulations pertaining to the movement of persons and goods o, 7 May 2020, to a limited extent.  The regulations now allow people who have to move house, either due to a new lease having being concluded, or due to a property having been bought, to move from one residence to another, during the limited period from 7 May to 7 June 2020.  The movement of goods is limited to household furniture and effects.  Movement throughout the country is permitted, but not yet across national borders – persons about to emigrate remain bound to stay in South Africa.

It is important to note that this relaxation of the regulations extend to residential property only, and is not available for retail, commercial or industrial tenants who must move from one premises to another.

A person who wishes to make use of this relaxation must have the following documents in his/her possession:

1. A permit issued by a station commander of the SAPS, in the prescribed format.

2. A list of the persons forming part of the household who are also required to move; and

3. Copies of old and new lease agreements, or the deed of transport

As an example, a person whose residential lease expired on 31 March 2020, and who has signed a new lease on a different premises, will now be granted until 7 June 2020 to move from their old residence to a new residence.

Save for the limited extent above, people are still not allowed to relocate their homes or businesses during alert level 4.

Regards,
Neil Gopal
CEO, SAPOA

“SPLUMA” is ‘n akroniem vir die Engelse benaming van die “Wet op Ruimtelike Beplanning en Grondgebruik 16 van 2013” (die Wet), oftewel, die “Spatial Planning and Land Use Management Act”. SPLUMA het reeds op 1 Julie 2015 in werking getree en behoort die rol van die plaaslike regering in munisipale beplanning, soos bedoel in die Grondwet, beter te verskans. Dit gee uitvoering aan ‘n aantal uitsprake van die Konstitusionele Hof wat handel oor die rol van munisipaliteite en ander regeringsfere in munisipale beplanningsprosesse.

Ingevolge artikel 53 van die wet mag geen registrasie van enige eiendom voortspruitend uit ‘n grondontwikkelingsaansoek gedoen word nie, tensy die munisipaliteit gesertifiseer het dat daar aan al die vereistes en voorwaardes vir die goedkeuring voldoen is.

The Act requires Municipalities to adopt Municipal Planning By-laws to give effect to the provisions of SPLUMA and for processing land use applications; to establish Municipal Planning Tribunals and Appeal Authorities to deal with appeals against land use decisions and to establish systems and processes to receive and process land use applications, because municipalities are authorities of first instance in the processing of land development applications.

Each Municipality is to adopt a land use scheme for its entire area within a period of 5 years of the Act coming into operation. The expiry date for SPLUMA compliance is July 2020. While many Municipalities have adopted By-laws to ensure SPLUMA compliance, there is a concern that some Municipalities mat not be SPLUMA-compliant by the cut off date. How non-compliance will affect property transfers falling within their jurisdiction in the future is unclear at this stage.

SPLUMA – Verkopers en ontwikkelaars

SPLUMA beheer alle aansoeke vir die hersonering van grond, dorpstigting, onderverdeling van grond, konsolidasie van grond, die opheffing, wysiging of opskorting van beperkende voorwaardes. Aangesien munisipale verordeninge nou die prosesse en prosedures vir hierdie aansoeke bepaal, is dit belangrik om daarop te let dat hierdie munisipale verordeninge nie dieselfde is vir alle munisipaliteite nie, selfs nie in dieselfde provinsie nie.

Daar word gesê dat die aktekantoor van Mpumalanga reeds ‘n SPLUMA-sertifikaat (nakoming) vereis vir alle oordragte van eiendom wat deur die transportbesorger wat die oordrag hanteer, tesame met die oordragdokumente, by die Aktekantoor ingedien moet word.

Failure by a Seller to timeously obtain such a Certificate (when required) may become problematic as it might delay transfer and this delay might even cause a Purchaser to cancel a transaction.

The process can be described as follows:

An application must be made to the relevant Municipality for the issue of the Certificate accompanied by an Affidavit signed by the Seller stating that the relevant plans pertaining to the property are in order, accurate and have been filed with the local Municipality. Furthermore all rates and taxes and any other funds or penalties relating to the property must have been paid, building and swimming pool plans need to be submitted and approved, the use of the property must be in accordance with the municipal zoning; andthere should be no encroachments over the building lines and property boundaries.

Affected Sellers should therefore ensure that these things are in order in advance to avoid any unnecessary delays in the property transfer process. Usually the Conveyancer appointed to attend to the transfer will file such an application with the respective Municipality on the Seller’s behalf.

Properties situated within the City Of Cape Town

The City Of Cape Town has a Land Use Scheme called the Developmental Management Scheme which is incorporated as schedule 3 into the City of Cape Town’s Municipal Planning By-Law 2015 (MPBL). The processes and procedures for the development management scheme are incorporated into the MPBL which is said to be SPLUMA compliant.

Gelukkig vereis die Stad Kaapstad (en die Aktekantoor) (nog) nie ‘n SPLUMA-sertifikaat vir oordragte van eiendom nie. Dit vereis tans slegs ‘n Artikel 137-goedkeuring (oordragsertifikaat) vir die onderverdeling van eiendom. Waar ‘n gebou of terrein in die toepaslike sone geleë is, is die aansoek vir grondgebruik redelik eenvoudig, maar as dit nie die geval is nie, sal u moontlik verdere aansoeke en selfs appèlle moet indien.

Take note however – the clock is ticking: The SPLUMA – act was gazetted in October 2015, and decreed that “All municipalities had to establish a SPLUMA compliant land use scheme plan within 5 years of the gazette date”.

SPLUMA therefor comes into play after July 2020 and WILL affect you when you decide to sell your property in future, especially if you don’t have approved and accurate building plans. In short, the National Deeds Office may require a SPLUMA certificate from the local municipality in which a property is located before any property transfer can be concluded.

Meer hieroor en die presiese vereistes waaraan jy as huiseienaar sal moet voldoen om jou SPLUMA-sertifikaat te bekom, in verdere uitgawes van ons nuusbrief.

Maak intussen baie seker dat jou eiendom vir die huidige, voldoen aan Munisipale wetgewing, veral gedagtig aan jou toekomstige handelinge daarmee.

SPLUMA ARTICLE BY VZK.CO.ZA

 

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8HA PRIME INDUSTRIAL LAND SOLD TO INTERNATIONAL PROPERTY FUND

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The new owner will develop an A-Grade Industrial Park further uplifting Blackheath Industria which has experienced a boom phase during the past 10 years.

For further information contact:

Johan Foster

083 581 8944

johan@capeindustrialproperty.co.za | www.capeindustrialproperty.co.za

proplawTHE PROPERTY PRACTITIONERS BILL IS ABOUT TO BECOME LAW !

On Friday 28 March 2019 the National Council of Provinces passed the Property Practitioners Bill. This means that the Bill will now be placed upon President Ramaphosa’s desk for signature. As soon as he signs, the Bill will become law. We don’t know yet if the Bill was passed with any amendments .

The Property Practitioners Act will replace the current Estate Agency Affairs Act. The new law will be accompanied by a set of Regulations that have yet to be published.

Credit:

Prop Academy

Disappointingly, there is material fiscal slippage relative to the Budget initially read in February 2018. A main budget deficit of -4.4% of GDP is projected for 2018/19, compared with the initial estimate of -3.8% of GDP. The deficit increases to -4.7% of GDP in 2019/20. This compares with an estimated deficit of -3.8% of GDP for 2019/20 projected in February last year.

Following fiscal year 2019/20, the deficit does decline a little, but remains wide at -4.55 of GDP in 2020/21 and -4.3% of GDP in 2021/22.

The consolidated budget deficit also remains wide, increasing to 4.5% of GDP in 2019/20 from 4.2% of GDP in 2018/19, before easing to 4.0% of GDP by 2021/22.

Also, after accounting for the borrowing requirement of SOCs and municipalities the total public sector borrowing requirement is 6.5% of GDP in 2018/19, which declines in 2021/22, but remains elevated at 5.5% of GDP.

Worryingly, the main budget primary deficit (revenue less non-interest spending) increases to -1.0% of GDP in 2019/20 from -0,8% in 2018/19 and remains in deficit over the medium term. Accordingly, the government’s debt ratio continues to increase.

Specifically, the gross loan debt is projected to increase to 56.2% of GDP at end 2019/20 from 55.6% of GDP at end 2018/19. Note that the government’s borrowing requirement in 2019/20 is partially funded by running down its cash balances by R71.6 billion. Hence, its net debt ratio (gross loan debt less cash balances) increases faster than the gross loan debt ratio – from 49.9% of GDP at end 2018/19 to 52.3% of GDP at end 2019/20.

Ultimately, the gross loan debt ratio only stabilises in 2023/24 at a projected level of close to 60% of GDP.

Government gross loan debt

budget19-B

Source: SA Reserve Bank, SA National Treasury

The debt level, in itself is not especially high relative to GDP. However, given persistent sovereign debt rating downgrades the real interest rate government pays on new debt is high relative to GDP. Hence, in the absence of a substantial improvement in the primary budget balance, the debt level can only be stabilised over time should the real interest rate on debt decline relative to the real GDP growth rate.

But, at present, the ratio of debt servicing cost to main budget revenue continues to increase – from an already high 14.2% of revenue in 2018/19 to 15.2% of revenue in 2021/22.

The clearest path to changing this unsustainable path would be to improve South Africa’s sovereign debt ratings or to lift real GDP growth. The former is hardly likely under current conditions, while the latter is difficult given high real interest rates and a situation in which the government is absorbing a large share of available savings to fund itself.

It should be noted that the support for state owned companies is (almost) deficit neutral. But, the point is this support is preventing expenditure saving measures elsewhere from lowering the budget deficit and constraining the level of borrowing. The build-up in off-balance sheet contingent liabilities and the accompanying deterioration in the public sector’s balance sheet are now preventing the National Treasury from sticking to its fiscal consolidation path.

Government guarantees to public institutions amount to R483.1 billion of which current exposure amounts to R372.4 billion. Eskom’s guarantees amount to R350 billion (with an exposure of R294.7 billion).

Other contingent liabilities include post-retirement medical assistance to government employees (an estimated present value of R69.9 billion), legal claims against government departments (R28.7 billion) and obligations for the Road Accident Fund (which increased by R76.9 billion to R216.1 billion in 2018/19).

Credit:
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New revenue raising measures amount to R15 billion in 2019/20, mainly by not compensating for bracket creep, which effectively raises personal income tax and produces an additional R12.8 billion. Meanwhile, medical tax credits are not increased, which nets an additional R1 billion in tax revenue. Changes in the general fuel levy, the road accident fund levy and the introduction of a carbon tax on fuel result in a net increase of 29c per litre in the total fuel levy. Apart from increases in excise duties (which raise revenue by R1 billion) and the “sugar” tax, additional zero rating of VAT items reduces revenue by R1.1 billion. An additional R10 billion in revenue raising measures will be announced in the 2020/21 budget.

Overall, main budget revenue increases from 25.4% of GDP in 2018/19 to 25.9% in 2019/20. Consolidated revenue increases from 28.8% of GDP to 29.3% of GDP over the same period.

Main budget balances

budget19-A

Source: SA National Treasury

Note, in tandem with improvements in tax administration the revenue raising measures announced result in an increase in tax buoyancy (growth in tax revenue relative to GDP growth) from 0.98 in 2018/19 to 1.31 in 2019/20. But, tax buoyancy has surprised on the low side in recent years, suggesting an element of risk, especially if tax administration does not improve.

 Credit:
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