The Urban Improvement Fund (UIF) works on the parallel lines of the successful Environment Initiatives Partnership Programme (EIPP), which the Malta Environment and Planning Authority (Mepa) has been running since 2001. This fund will mainly cater for the improvements in urban areas, such as landscaping, traffic management and other embellishment works. Sixty-six local councils will be benefiting from these funds.

The Development Planning Act (article 40) provides for the levy of a community gain in particular development. This provision was refined in other legal instruments and the development manual DC 2005 explains further. This states that where the Commuted Payment Parking Scheme is not in force, a fee of Lm500 is requested from applicants in lieu of parking spaces which cannot be provided on site. The money is to be used for urban improvement. The Development Control Commissions started applying the Lm500 rule where parking cannot be accommodated on site and in localities where a Commuted Parking Payment Scheme has not been established.

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