In today's article from the series "Tuesday Mornings for Construction," we present an article about the legal changes that came into effect in August and that we will be facing in September. Below, we have selected changes that may be important for both individuals involved in the real estate market and investors working professionally in this industry.
1. Amendment to the Act on Spatial Planning and Development
The Act of July 7, 2023, amending the Spatial Planning and Development and certain other acts is the largest amendment to the Spatial Planning and Development Act. This amendment will, in principle, enter into force on September 23, 2023. We have been trying to present the changes awaiting the market since March. Therefore, those of you interested in learning more about the changes are invited to read our articles from recent months.
Among the most important changes, we point out that:
i. by December 31, 2025, the general plans of the commune are to replace the study of conditions and directions of spatial development of the commune - and we write about what they are and what their effects are in #148 and #149,
ii. the principles of social participation in the procedure for adopting planning acts are changing – as we wrote in #150,
iii. the rules for issuing and applying WZ decisions will change – more in #156,
iv. new instruments will appear: ZPI ( #157 ) and investment agreements with municipalities ( #158 ).
In turn, we described how the transitional and final provisions were shaped in #164 and #165 .
Next week – also in the context of this amendment – we will analyze for you the changes in the so-called Lex developer act.
2. 2 percent loan
At its last August session, the Sejm made changes to the rules for granting 2% loans, introducing them in the Act on the principles of granting guarantees by the State Treasury for the liabilities of the National Energy Security Agency.
According to the adopted changes, the Family Housing Loan and the 2% Secured Loan may be granted only to borrowers who, among others, on the date of submitting the application for the above loan are not and have not been a party to another mortgage loan agreement that was concluded within three years before submitting the application for the purpose of purchasing a residential premises or a single-family house or a cooperative right to them.
A person who has taken out another mortgage loan to build a house will also not be eligible for the loan. However, this amendment allows for the possibility of obtaining a loan if the other agreement is terminated before the funds are released (this also applies to loans for building a house, as well as for the purchase of a house or a residential property).
Another major change is the possibility of obtaining the above-mentioned loan to a person who acquires part of the shares in the ownership right, but on the condition that he or she already has a share in this right through inheritance.
3. Changes in the Construction Law – construction without a permit
The Act on the Principles of Granting Guarantees by the State Treasury for the Obligations of the National Energy Security Agency also proposes changes to the Construction Law. The bill is awaiting consideration by the Senate.
The proposed changes concern the possibility of building " detached houses, no more than two-story single-family residential buildings with a building area exceeding 70 m² , whose impact area falls entirely within the plot or plots on which they were designed, and the construction is carried out to meet the investor's own housing needs." Construction of such a building will not require a building permit, only a notification. Previously, this option existed for single-family houses with a usable area of up to 70 m² .
In practice, this means that the construction of single-family homes will be possible after submitting a notification to the office and notifying the building supervision authority of the commencement date. The exemption from the requirement to obtain a building permit excludes the possibility of an objection being filed by the architectural and construction authority. It is important to remember that such a house must be built for the owner's own residential needs . This excludes construction for sale or rental purposes. However, the obligation to appoint a construction manager and maintain a construction log remains.
In connection with the amendment, the project authors announce that they will make available free house designs of various sizes for download to anyone interested.
Home shelters up to 35 m2 and kiosks with a built-up area of no more than 15 m2 will also be able to be built without a permit .
In turn, it will be possible to build swimming pools and ponds with an area of no more than 50 m2 next to residential buildings and individual recreation buildings without a building permit and without notification .
4. Environmental decisions
On August 29, 2023, the Council of Ministers published a regulation of August 10, 2023, amending the regulation on projects that may have a significant impact on the environment. According to the drafters, it is intended to reduce the burden and streamline the investment process related to environmental decision requirements for parking lots and garages. It increases the requirement to obtain an environmental decision for 1 hectare of parking lot (garage) area from the current 0.5 hectare, and in nature conservation areas from 0.5 hectare to the current 0.2 hectare. This means simplifications for the construction of large parking lots.
The regulation will enter into force 14 days after its announcement, i.e. on September 13, 2023.
We would like to draw your attention to the transitional provision which indicates that projects which were initiated on the date of entry into force of the regulation and in which the procedure for issuing an environmental decision has not been completed will be proceeded under the old rules.
There's no doubt that obtaining an environmental permit is one of the most time-consuming stages of investment preparation. Therefore, those currently applying for environmental permits due to parking and garage space constraints, who would not be required to obtain such permits after the change in regulations, can consider options for further processing or amending their applications. We are, of course, ready to provide individual support to investors in this regard.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of August 29, 2023
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