02.09.2024

Legal Highlights for Real Estate – August 2024

The parliamentary bill to amend the Aviation Law.

The parliamentary draft law on amendments to the Aviation Law of 11 July 2024 (“Project”), aims to enable the issuance of zoning decisions around airports. It is currently at the first reading stage in the Infrastructure Committee.

The Project envisages the abolition of the obligation to adopt a local spatial development plan in areas covered by the airport’s master plan (“PGL”). PGL is an airport’s strategic document that defines its business and spatial conditions, including the area covered by the plan, the permissible dimensions of building and natural facilities, and the concept of spatial development with the development of zones around the airport.

According to a new line of rulings by the Supreme Administrative Court, PGL covers not only the immediate vicinity of the airport, but also wider areas related to restrictions arising from aviation safety requirements. As a result, the obligation to adopt local spatial development plans applies to a much larger area than before, complicating the implementation of investments in these areas. In cities, PGL now covers vast areas of significant economic importance where investments are underway, effectively inhibiting all investments in these areas and negatively affecting the development of agglomerations.

The draft introduces a fairly simple solution by eliminating the obligation to enact a local spatial development plan for areas covered by PGL, while at the same time increasing the powers of the President of the Civil Aviation Authority, by which he will play a significant role in agreeing with the city on the conditions for development in the area, guaranteeing the safety of the airport and eliminating the detrimental effect on applicants of indefinitely suspending proceedings.

The Project’s authors ensure in the explanatory memorandum that the bill will lead both to an improvement in the situation of citizens, who are currently deprived of the right to change land use, as well as business entities planning investments in the vicinity of the airport, and the airports themselves, whose attractiveness increases due to the development of their immediate business environment.

Amendment of the Ordinance on technical conditions to be met by buildings and their location.

On 15 August 2024, the Ordinance of the Minister of Development and Technology dated 9 May 2024, amending the Ordinance on technical conditions to be met by buildings and their location (“Ordinance“), came into force. This is another amendment to that ordinance that came into force this month – on 1 August the “Stop the Patodevelopment” package, which we detailed in the October edition of Legal Highlights, came into force. This time the changes are not as drastic as in the aforementioned amendment, but they are still significant.

The Ordinance is intended to allow greater use of wooden elements in the construction of buildings and also to clarify issues related to the location of a building on a building plot. This is a continuation of the process of organizing the rules of construction and bridging the discrepancies of interpretation in the current regulations.

It is the intention of the Ordinance’s authors that the decision to expand the use of wood in construction expands the choice of materials when bringing in new buildings, thus supporting entrepreneurs. Wood, being an ecological material, is expected to support sustainable development, contributing to the popularization of building solutions that are more environmentally friendly and often cheaper than their non-ecological substitutes.

 

31.07.2024

Legal Highlights for Real Estate – July 2024

Amendments to the Law on Real Estate Management with regard to the betterment fee

A committee draft bill on amendments to the Real Estate Management Act (“u.g.n.”) was referred to the Infrastructure Committee and the Local Government and Regional Policy Committee for first reading. It contains a key change concerning the regulation of the betterment levy determined under Articles 98a and 145 of the u.g.n.

According to Article 98a u.g.n., the betterment fee may not be set in an amount greater than 30%, calculated between the difference in value of the real estate before and after the division. At the same time, the municipality must first adopt a resolution on the determination of the betterment levy, since only on its basis can it then possibly impose an obligation on the person making the division of the property to pay the amount to the municipal council. A prerequisite for this is the indisputable demonstration that as a result of the division of the property made at the request of the owner or perpetual usufructuary, its value will increase, and the difference in value of the property is determined on the basis of an appraisal report, which is usually prepared by an expert, commissioned by the municipal council, which is confronted with the report of the person making the division.

Currently, the initiation of proceedings to determine the betterment levy may take place within 3 years from the date on which the decision approving the division of real estate became final or the ruling on the division became final. However, according to the wording of the proposed amendments, this period is to be shortened to 18 months.

In turn, according to Article 145 u.g.n., the mayor of a village, town or city may, by way of a decision, establish an ad valorem fee each time conditions are created for connecting the real estate to particular equipment and technical infrastructure, or conditions are created for using the constructed road. In the current wording, the time limit for initiating proceedings to determine such a fee was also 3 years, and here, too, the amendment envisages reducing the time limit to 18 months.

As results from the justification for the draft, the current deadline for initiating proceedings is too long. At the same time, it was pointed out that such a situation creates a great deal of uncertainty among property owners, restricts their freedom to shape their household budget and creates a sense of distrust in the State.

New Decree of the Minister of Development and Technology: key changes in spatial planning

The Journal of Laws published a decree of the Minister of Development and Technology dated 15 July 2024 on how to determine the requirements for new development and land use in the absence of a local zoning plan, which will significantly affect spatial planning in Poland.

The regulation specifies how to determine in the decision on development conditions the requirements for new development and land use in the absence of a local spatial development plan, including the requirements for determining:

  • building lines,
  • maximum development intensity,
  • minimum and maximum above-ground development intensity,
  • the share of development area,
  • width of the front elevation,
  • building height,
  • roof geometry (angle of inclination and roof slope arrangement),
  • the minimum proportion of biologically active area,
  • minimum number of parking spaces.

The decree entered into force on the day following its promulgation, i.e. 26 July 2024.

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