(1) Should any house, shop, wall or other building or part of a building project beyond the regular line of a street, either as existing or as determined for the future, or beyond the front of the building on either side thereof, the municipality may, whenever such house, shop, wall or other building or part thereof, has been either entirely or in greater part taken down or burned down, or has fallen down, by notice require such building or part when being rebuilt to be set back to or towards the said regular line or the front of the adjoining buildings ; and the portion of the land added to the street by such setting back or removal shall become a part of the street and shall vest in the municipality :
Provided that the municipality shall make full compensation to the owner of the building, or of the land thus vacated, for any damage he may sustain in consequence of his building or any part thereof being set back.
(2) The municipality may, on such terms as it may think fit, allow any building to be set forward for the improvement of the line of the street.