In today's article in the series "Tuesday Mornings for the Construction Industry", we will present to you the changes in the law related to the real estate market that came into force at the beginning of this month, as well as highlight the changes that will be in force soon.
1. Freezing of heat prices – the President signed the amendment to the act
The President signed an amendment to the Act of September 15, 2022, on special solutions for certain heat sources in connection with the situation on the fuel market and certain other acts , which introduces a mechanism limiting price increases for heat consumers to a maximum of 40% compared to prices in effect on September 30, 2022. The amendment to the Act is intended to address the issue of coverage under the support system also in the event of an increase in heat supply prices. If heat supply prices (which should be understood as all fees and rates imposed on heat consumers) increase by more than 40% compared to prices as of September 30, 2022, energy companies will receive compensation, thereby avoiding the burden of price increases on consumers (including households, hospitals, educational institutions, and housing communities). The maximum price mechanism is to apply from February 1 to December 31, 2023.
2. Entry into force of the Act on Housing Cooperatives
On March 1, 2023, the Act of November 4, 2022, on Housing Cooperatives, entered into force, which is intended to facilitate investments under such formulas. As a reminder, housing cooperatives are a method of implementing a residential building investment by a group of future residents who jointly manage the entire process, i.e., purchase a plot of land and build a multi-family residential building on it. Housing cooperatives are intended to be an alternative to investments carried out by developers. Using this construction formula is intended to reduce costs for members of a housing cooperative, as such an investment generally does not include a margin charged by the developer. Furthermore, this act introduces specific rules for the disposal of properties belonging to municipal real estate resources, as the purpose of these changes is to support the implementation of housing investments in the form of cooperatives or newly established housing cooperatives.
3. Changes to the Apartment without Down Payment Program
Changes have also been made to the "Apartment without a Down Payment" program, which allows for obtaining a mortgage. At the beginning of this month, the price limits for apartments subject to a state guarantee were increased . The minimum guaranteed down payment for a mortgage was also abolished. In the initial version of the program, only those with a down payment of no more than 10% were eligible, excluding those with a larger down payment. Following the amendment, the scope of eligible individuals will expand to include those without the funds for a down payment, as well as those with a down payment greater than 10%, or even up to 20%, but not exceeding PLN 200,000.
4. Request of the Commissioner for Human Rights to submit a legal question regarding entities entitled to submit an application for the establishment of perpetual usufruct in accordance with Article 7 of the Bierut Decree
The Commissioner for Human Rights has submitted a legal question to the Supreme Administrative Court regarding the eligibility of purchasers of decree claims to file an application for the establishment of perpetual usufruct on real estate subject to decree proceedings. This issue is of crucial importance for assessing the scope of entities authorized to file an application for the establishment of perpetual usufruct on land acquired under the Bierut Decree, pursuant to Article 7 of the decree. A line of administrative court case law has developed to date, according to which the right to file an application for the granting of perpetual usufruct is a property right, and therefore a transferable right that can be traded, for example, through sale. In such a situation, the purchaser of the aforementioned right becomes a party to the administrative proceedings for the establishment of perpetual usufruct. However, the Supreme Administrative Court has recently issued rulings that challenge this line of case law and indicate that this right passes only to the heirs or purchasers of the estate (i.e., based on general succession). Therefore, we will eagerly await the NSA's position on this issue.
5. Energy certificates for all buildings from April 28, 2023.
On April 28, 2023, the Act of October 7, 2022, amending the Act on the Energy Performance of Buildings and the Building Law, will require every building to have an energy certificate. Such a certificate will be required not only for newly constructed buildings or apartments in multi-family buildings, but also for those already built. An energy certificate will be required if the owner of the property or premises wishes to sell or rent the property or premises to another entity. Importantly, possession of such a document will require energy audits of buildings every 10 years. If changes are made during this period, such as replacing windows or the heating system, a new energy certificate will be required. Failure to obtain an energy certificate may result in a fine of up to PLN 5,000.
In just a week we will move on to a detailed analysis of further proposed changes to the Spatial Planning and Development Act.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of March 6, 2023.
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