This week we interrupt our series on lex developer to provide information that is particularly important for investors in Warsaw, namely that the Council of the Capital City of Warsaw adopted on February 17, 2022, resolution no. LX/1967/2022 on the designation of a degraded area and a revitalization area of the Capital City of Warsaw ("Resolution") .
The revitalization area has been designated in Praga-Północ and part of Targówek , which you can read in detail at this link .
First of all, we point out that the Resolution introduces the right of pre-emption for all real estate located in the revitalization area for the benefit of the Capital City of Warsaw .
Moreover, in the revitalisation area on lands marked in the land and building register as (i) agricultural land marked with the symbols R, Ł, Ps, S, Br, Lzr, Wsr, W, (ii) industrial areas marked with the symbol Ba, (iii) other built-up areas marked with the symbol Bi, (iv) recreational and leisure areas marked with the symbol Bz and (vi) railway areas marked with the symbol Tk, a ban was established on issuing decisions on development conditions for changes in the method of development consisting in the construction of residential buildings and other buildings with a residential function and the conversion of buildings or parts thereof into residential ones, as well as changes in the use of buildings or parts thereof into residential ones.
However, if within 2 years from the date of entry into force of the Resolution, the resolution on the establishment of a Special Revitalisation Zone in the revitalisation area does not come into force, (as per Art. 11, Section 6 of the Revitalisation Act).
We would also like to remind you that, in accordance with Article 62, Section 1a of the Spatial Planning and Development Act, if the municipal council adopts a resolution establishing a revitalization zone, which prohibits the issuance of decisions on development conditions for all or any changes in the manner of land development specified in this resolution, the body :
- in the event of submitting an application for a decision on development conditions, if the proposed investment is covered by the prohibition specified in the resolution, the authority will refuse to initiate the proceedings for determining the development conditions ;
- in a situation where the proceedings for issuing a decision on development conditions were initiated before the resolution on the revitalisation zone came into force and the proposed investment is covered by the prohibition indicated in the resolution, the proceedings will be suspended ;
- in the event of the lapse of the prohibitions specified in the revitalisation resolution, unless a local spatial development plan has become applicable for the given area by that time, the suspended proceedings for issuing or amending the decision on development conditions are resumed.
The resolution will come into force 14 days after its publication in the Official Journal of the Mazowieckie Voivodeship, with the exception of the provisions establishing a ban on issuing decisions on development conditions, which will come into force 30 days after the publication.
The resolution has not yet been published in the Official Journal of the Mazowieckie Voivodeship.
In summary, for the next two years, the purchase of real estate in Praga-Północ and Targówek, which are included in the revitalization area, will be subject to the capital city of Warsaw's pre-emptive right. Furthermore, investors who planned residential investments in the areas indicated in the Resolution based on development decisions will not be able to implement them unless they already have such a decision or obtain it before the resolution comes into effect, or a local plan is adopted for the area.
Next week we will return to the issue of lex developer and the instructions of the Mayor of Warsaw of July 15, 2020, regarding negotiations with private investors regarding meeting the educational standard in accordance with the Act on facilitating the preparation and implementation of housing investments and accompanying investments (version no. 2).
This article is for informational purposes only and does not constitute legal advice.
Legal status as of February 25, 2022
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