There is currently one SRA in the Nelson Mandela Bay Metropolitan Municipality area – The Richmond Hill SRA.
A group of property owners in the Central, Port Elizabeth area are driving the formation of a second Special Rated Area within the Central District of the Nelson Mandela Bay municipal area.
SRA’s have most noticeably been successful in the Cape Town area with members of taxpayer and resident association driving the establishment of Special Rated Areas (SRA’s).
Previously known as City Improvement Districts, SRAs are specific geographic areas within which property owners agree to pay for supplementary services. Thanks to the Municipal Property Rates Act 2004, which makes provision for the formation of SRAs, property owners can implement additional services in areas. Also, municipalities are obligated to maintain existing service levels after an SRAs established.
SRAs provide a formal structure, through which owners pay additional monthly rates for improvements. This allows property values to be maintained and/or improved and occupants to be safeguarded.
Stringent measures are imposed on all application processes. Property owners and rate payers associations in co-operation with municipalities, oversee applications from the earliest stages through to implementation, administration and monitoring of projects.
Depending on the size of a geographical area, applications are based on the number as well as value of properties. A majority vote of 66 % of all the owners, or 51 % of total property value, determines municipal approval. Additional requirements include business plans and budgets, as well as the formation of Section 21 companies to facilitate administrative and project management functions. In some cases, annual budget review processes are implemented.
The majority of SRA applications are found across business and residential precincts in urban areas, where increased security, as well as cleaning and greening are the most sought-after improvements.
The establishment of an SRA will occur once 50% + One of all residents within the envisaged area consent.
