In today's edition of the article from the series entitled "Tuesday Mornings for the Construction Industry", we will summarize for you the most important changes that took place in July and August 2024 for the real estate industry.
Changes to the regulation on technical conditions
On August 1, 2024, the Regulation of the Minister of Development and Technology of October 27, 2023, amending the Regulation on the Technical Conditions to be Met by Buildings and Their Locations, entered into force. These changes are being introduced as the so-called "Stop Patodeveloperce" package. We encourage you to read a detailed discussion of the changes in our law firm's earlier article on this topic. #170.
Moreover, another amendment to the regulation of the Minister of Development and Technology on the technical requirements for buildings and their location will come into force on August 15, 2024. The latest amendment once again addresses the use of wood in buildings.
After the changes come into force, it will be possible to use beams and columns with specific parameters, made of glued laminated timber, in low-rise (N) ZL buildings, and structural roof elements, also made of glued laminated timber, in low-rise (N) or medium-rise (SW) sports halls and indoor swimming pools, with a fire resistance class of at least R 30.
Moreover, in low-rise buildings (N) ZL III or ZL IV it will be possible to use solid wood planed on four sides with bevelled corners or glued laminated wood with specific parameters as a construction material, provided that additional requirements specified in the regulation are met.
The same material can be used in flights or landings of stairs or ramps in a low-rise building (N) ZL III or ZL IV constructed to a fire resistance class of at least "C".
The decision to expand the use of wood in construction expands the material choices available for new buildings. Wood, considered an ecological material, is intended to support sustainable development by contributing to the promotion of more environmentally friendly building solutions.
The draft bill "Housing loan #naStart"
In January, we informed you ( #187 ) about a new government loan program – "Mieszkanie na Start," which is the direct successor to the "Bezpieczny kredyt dwa procent" (Safe Credit Two Percent) program. However, it wasn't until July that the draft bill with a slightly changed name, "Mortgage Loan #naStart," was submitted to the Standing Committee of the Council of Ministers.
The new draft bill specifies a specific effective date of January 15, 2025 (previously, it was autumn 2024). The income threshold for a borrower's household to be granted a mortgage loan has been lowered, and for households of five or more, it has been removed entirely. This reduction will apply to loan applications submitted by December 31, 2025. Furthermore, the number of applications has been increased (25,000 in the first quarter of 2025, 20,000 in the second quarter), a down payment limit has been established (up to 50% of the investment value), and the borrower is exempt from having to earn income solely in Polish currency (the loan currency remains the Polish złoty). Another important change is the removal of provisions regarding the DOM Portal.
The draft act and its current status can be found on the website of the Government Legislation Centre ( https://legislacja.rcl.gov.pl/projekt/12383851/katalog/13050682#13050682 ).
Draft amendments to the Aviation Law
At the beginning of July, the Sejm received a draft bill amending the Aviation Law, which provides for the complete repeal of Article 55, Section 9, which stipulates that for areas covered by the airport master plan, the preparation of a local spatial development plan that is consistent with the approved master plan is mandatory.
The purpose of the amendment is to unblock the possibility of issuing decisions on development conditions and land use, as in many cases, areas covered by the airport's general plan do not have a local development plan, which typically takes several years to prepare. This is currently the case in Warsaw, where the Mayor of Warsaw has suspended the issuance of decisions on development conditions in the area covered by the Chopin Airport general plan.
Regulation on the method of determining requirements for new development and land development in the absence of a local development plan
On Friday, July 26, 2024, the Regulation of the Minister of Development and Technology of July 15, 2024, on the procedure for determining requirements for new development and land development in the absence of a local development plan, entered into force. This Regulation is crucial for all investors seeking a decision on development conditions, particularly those whose proceedings have not yet been initiated.
It introduces new parameters that will be applied in decisions on development conditions, including maximum development intensity and height, minimum share of biologically active area, and minimum number of parking spaces. Additionally, the authority will be able to establish building lines for underground levels, which will influence the area of underground garages in planned investments.
As is typical in such cases, a crucial transitional provision stipulates that the previously applicable rules for determining development conditions will apply to cases initiated and not concluded with a final decision before July 26, 2024. The amended regulations will apply to all other cases.
End of the period for reporting the acquisition of perpetual usufruct rights
On August 31, 2024, the 12-month deadline for filing a claim for the acquisition of the right of perpetual usufruct will expire in accordance with the Act of May 26, 2023, amending the Act on local government, the Act on social forms of housing development, the Act on real estate management, the Act on tax on civil law transactions and certain other acts.
While this is not a transformation of perpetual usufruct into ownership and is subject to payment, it may prove to be a very useful provision for those perpetual usufructuaries who would like to acquire ownership of land but have been refused by the State Treasury or local government units so far. For details, please contact us in the morning. #177.
Therefore, if anyone is interested in a buyout, we would like to remind you that there are only 25 days left to submit such a claim.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of August 6, 2024
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