In today's article from the series "Tuesday Mornings for the Construction Industry," we would like to present selected assumptions for amendments to the Act of March 27, 2003, on Spatial Planning and Development. The draft amendments of December 31, 2021, were made available on the website of the Ministry of Development and Technology and are currently undergoing pre-consultation (the " Draft "). Comments can be submitted via an online survey until January 17, 2022.
Let's start with the definitions themselves. First, the draft amends the definition of the city center development area as an area within a city of dense, intensive residential and service development, particularly commercial and administrative development . Previously, this definition was contained in the Regulation of the Minister of Infrastructure of April 12, 2002, regarding the requirements for buildings and their location, so if it were to come into force, the regulation would also have to be amended.
Secondly, the Draft includes new definitions, such as: public green areas, real estate with unregulated legal status, biologically active areas , large-scale retail and housing balance.
The biggest change, however, concerns the study of conditions and directions of spatial development . If the amendment comes into force, they will be replaced by general municipal plans adopted by the municipal council. The general plan will be an act of local law and prepared for the area within the administrative boundaries of the municipality, excluding closed areas other than those established by the minister responsible for transport. Importantly, the general plan, including municipal urban planning standards and the boundaries of the downtown development area, will have to be taken into account in decisions on development and land development conditions ("WZ decision"). It is worth noting that the entry into force of the general plan will not affect existing local spatial development plans.
The changes will also affect local development plans. According to the new wording of Article 20, Section 1, the local development plan would be adopted by the municipal council after determining compliance with the provisions of the general plan and would determine the manner of implementing the technical infrastructure investments specified in the local development plan. The local development plan could be prepared during the preparation of the general plan or its amendment. In such a case, the adoption of the local development plan or its amendment could occur no sooner than after the deadline for the voivode to issue a supervisory decision regarding the resolution on the general plan or its amendment. If it is necessary to repeat the planning procedure, this would only occur within the scope specified by law.
The legislator also indicates that the Draft is intended to facilitate public participation in the local plan adoption procedure, including by streamlining and systematizing the provisions in the new Chapter 1a. In this regard, the scope of public consultations is to be expanded.
planning fees are being changed . According to this provision, if the value of a property increases due to the adoption or amendment of a local plan, the head of the municipality (mayor or city president) will collect a fee equal to 30% of the increase in property value, constituting the municipality's own revenue. Previously, the fee was only collected upon the sale of property within five years of the plan's entry into force, and only when a specified fee rate was specified. The Draft removes these conditions, so the fee will always be charged at 30% . Additionally, the planning fee would also be charged on the increase in value resulting from the issuance of a zoning decision, if a final building permit is issued based on that decision . As the legislator indicates, "this solution is intended to lead to the widespread collection of fees for zoning decisions that have been consumed by the implementation of investments."
The amendment will also have a significant impact on development decisions. In addition to existing regulations, the Draft stipulates that development decisions must be consistent with the general plan , in terms of building function and urban planning parameters and indicators, subject to more lenient conditions for shaping biologically active surfaces in downtown areas.
The method for defining the boundaries of the analyzed area for residential buildings , service buildings (excluding retail), and residential buildings that incorporate any of the functions specified above will also change. It will be defined as three times the width of the development's frontage, but no less than 50 meters and no more than 200 meters.
A three-year validity period for development decisions would also be introduced counting from the date the decision becomes final. After this period, development conditions would expire by operation of law.
The legislature also envisages changes affecting investors. It will be possible to adopt integrated investment plans , which are local spatial development plans adopted at the investor's request and preceded by the conclusion of an urban planning agreement. These plans will not be able to cover areas designated for public investment projects of supra-local significance.
The project also envisages the introduction of an Urban Planning Register maintained in an IT system. It is intended to be a universal source of spatial data and information for spatial planning and development.
In summary, we've outlined the main assumptions of the Project above, which are still in the pre-consultation phase and subject to change. We'll be sure to monitor its developments and keep you updated on the development of the spatial planning reform.
The spatial planning reform is also expected to introduce changes to the so-called developer law, a topic we'll be discussing next week. In this first article, we'll recap the basic principles of this law, and we'll explore the proposed changes in a separate article.
This article is for informational purposes only and does not constitute legal advice.
Draft as of January 10, 2021.
