Today is a special day for us, as it marks the 200th article in our "Tuesday Mornings for Construction" series. We'd like to thank you for subscribing to our newsletter and for the inspiration you provide. We hope the topics discussed address your concerns and practical concerns.
Moving on to the substantive issues, as announced last week, this morning we will discuss pre-emption related to revitalization or degraded areas.
The commune has the right of pre-emption in the case of the sale of real estate located within the revitalization area , if this is provided for in the resolution referred to in Art. 8 of the Act of 9 October 2015 on revitalization or real estate located within the Special Revitalization Zone , referred to in Chapter 5 of the Act on Revitalization (Art. 109 paragraph 1 points 4a and 4b of the Act of 21 August 1997 on real estate management).
In order to explain this concept, it should be pointed out that revitalization is a process of removing degraded areas from a state of crisis, carried out in a comprehensive manner, through integrated actions for the benefit of the local community, space and economy, focused on a territorial basis, carried out by revitalization stakeholders on the basis of a municipal revitalization program (Article 2, Section 1 of the Revitalization Act).
If a municipality intends to carry out its own tasks of preparing, coordinating, and creating conditions for revitalization, as well as its implementation, the municipal council designates, by resolution, on its own initiative or at the request of the head of the commune (mayor, city president), a degraded area and a revitalization area (Article 8, Section 1 of the Revitalization Act). Pursuant to Article 25 of the Revitalization Act, at the request of the head of the commune (mayor, city president), a resolution is adopted to establish a Special Revitalization Zone within the revitalization area. This zone is established to ensure the efficient implementation of revitalization projects, for a period of no longer than 10 years, without the possibility of extension.
In a resolution designating a degraded area and a revitalization area, the municipal council may establish a right of pre-emption for the municipality to purchase all real estate, specific types of real estate, or specific real estate located within the revitalization area or designated sub-areas (Article 11, Section 5, Item 1 of the Revitalization Act). If, within two years of the date of entry into force of the resolution designating a degraded area and a revitalization area, the resolution designating a Special Revitalization Zone has not entered into force, the right of pre-emption shall cease to apply.
In Warsaw, on February 17, 2022, the Warsaw City Council adopted Resolution No. LX/1967/2022 on designating a degraded area and a revitalization area for the Capital City of Warsaw. The revitalization area was designated within the Praga-Północ and Targówek districts. In this resolution, the Warsaw City Council introduced the right of first refusal for all properties within the revitalization area. However, within two years of the entry into force of the resolution designating the degraded area and the revitalization area, the Warsaw City Council did not adopt a resolution regarding the Special Revitalization Zone. Therefore, as of March 16, 2024, the right of first refusal does not apply in the area covered by the Warsaw revitalization zone (information from the city website can be found at this link ).
The situation is different in Łódź, for example. The Łódź City Council adopted Resolution No. XXV/589/16 of February 10, 2016, on the designation of a degraded area and a revitalization area for the city of Łódź, which established the city's right of first refusal to purchase all properties located within the revitalization area. Simultaneously, the Łódź City Council, by Resolution No. XLII/1095/17 of February 22, 2017, established a Special Revitalization Zone. The Special Revitalization Zone is identical to the degraded area and the revitalization area. Therefore, the city's right of first refusal to purchase real estate related to revitalization remains in effect in Łódź.
As the examples above demonstrate, the validity of pre-emptive rights to properties in revitalization or degraded areas depends on resolutions passed by the relevant authorities. Therefore, when planning a transaction, it is advisable to request a certificate confirming whether the property is located within a revitalization or Special Revitalization Zone.
Next week we will summarize for you the changes in the law that have occurred over the last month – we cordially invite you to read it.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of April 30, 2024
author:
