Amendment of the Building Act

On 3 October 2016, the Government submitted a draft amendment amending Act No. 183/2006 Coll., on urban planning and the building code (Building Act) to the Chamber of Deputies. The amendment largely aims to accelerate the urban planning process and the possibility of combining planning and building permit proceedings into a single, joint procedure, within which it would be possible to determine both the location and realisation of construction.

1. Urban planning

The amendment firstly introduces the possibility of accelerated proceedings for updating urban planning documentation (UPD), i.e. the principles of urban development (PUD) at regional level and urban plans (UP) at municipal level.

Existing legislation required the regional authority (municipal authority) to first obtain a draft update UPD, which was then sent to the authorities concerned for comments within 30 days. The authority subsequently posted the proposal by public notice, on which everyone could send comments within 15 days. The proposal was then approved by the regional (municipal) council within its sphere of competence.

The amendment, however, also introduces the possibility of accelerated proceedings for updating PUD or changing UP. Under the amendment, accelerated proceedings for updating UPD would be used when making updates that don’t require processing alternative solutions.

The regional council decides on updates of the PUD on its own initiative or on request. A proposal to update PUD may also be submitted by, among others, the investor, in which case the proposal must be accompanied by the opinion of the environmental protection authority and Ministry of the Environment. If the proposal meets all stipulated requirements, the regional authority will submit it, together with its opinion, to the regional council for decision, without delay.

If the council decides on an update of PUD, the regional authority will deliver the proposal to the authorities concerned for opinions and objections to the proposal. On the expiry of the set period, the regional authority will deliver an update of PUD by public notice, by which the update comes into force.

A similar procedure to updates of PUD will apply to a change of the urban plan. The tasks of the regional authority and regional council are taken over in this case by the municipal authority and municipal council; the competence of the Ministry of the Environment by the regional authority. The amendment also allows a similarly accelerated process for drafting amendments to the regulatory plan.

    1.1 Advantages for investors

As mentioned above, the amendment of the Building Act offers investors an opportunity to submit a direct proposal for the amendment of urban planning documentation. In this case, the investor must attach a justification for the amendment of UPD to the proposal, the proposed content of the update, as well as the opinion of the environmental protection authority and Ministry of the Environment.

According to the explanatory memorandum, the introduction of accelerated proceedings for updating PUD and changing UP will shorten the time required for making these changes by 8 months.

For comprehensive plans that require, for example, a search for suitable areas and corridors for public infrastructure, an urban study is required. According to the explanatory memorandum, however, the competent authority does not always have sufficient funds to acquire all necessary studies. Section 30 of the amendment gives investors the opportunity to prepare urban studies directly, at their own expense

Specification and approval of the use of this study for decision-making is still, however, left to the authority, and according to the explanatory memorandum, so that the proposed solution is not at the expense of public interests.

2. Location and realisation of construction

The amendment brings other significant changes in planning proceedings on the location of construction according to Section 84 et seq. and building permit proceedings in accordance with § 108 et seq. of the Building Act. These significant changes include the possibility of combining building permit and planning proceedings into a joint procedure, resulting in a decision on the location and realisation of construction, as well as other changes.

      2.1.Joint planning and building permit proceedings

According to current legislation, joint planning and building permit proceedings are only possible in cases where the building authority has the power to conduct both proceedings. Urban planning decisions are mainly entrusted to municipal building authorities – local government authorities, while the issue of building permits is entrusted to both municipal building authorities and special and other building authorities (for construction on railways, construction of roads, etc.)

With the introduction of joint planning and building permit proceedings this situation changes, as it also allows one procedure for construction projects currently in the competence of several independent decision-making building authorities, in particular those in the competence of municipal building authorities, construction of railways and on railways, construction of highways and roads, electricity transmission facilities, etc.

The joint procedure integrates planning and building permit proceedings, which corresponds to other stipulated procedural requirements. With regard to participation in proceedings, the provisions of Section 94k of the new Building Act combine the provisions on participation in building permit and planning proceedings.

Notification of the commencement of joint proceedings corresponds to the provisions on notification of the commencement of building permit proceedings. However, the amendment newly regulates a situation where building plans affect several municipalities. In such a case, notice of the commencement of proceedings and other acts in proceedings are posted on the official notice boards of the relevant municipal authorities.

Although the joint procedure is a combination of two distinct proceedings, the deadline for the issue of the decision is regulated identically to planning and building permit proceedings, this means 60 days in simple cases, 90 days in complex cases.

      2.2 Joint procedure with environmental impact assessment

The amendment also introduces the possibility of combining planning or building permit proceedings with the process of environmental impact assessment (EIA) pursuant to Act No. 100/2001 Coll., on environmental impact assessment.

The whole process of joint proceedings combined with environmental impact assessment is based on cooperation between the building authority and the competent authority responsible for environmental impact assessment proceedings. The building authority also communicates with the applicant, calls for the remedy of deficiencies in submissions and suspends proceedings.

The basic principle for the consideration of building plans is based on the fact the building authority does not impose a mandatory public hearing, but sets a deadline within which participants may raise objections and public comments on the plan from the perspective of environmental impact; authorities may also corroborate their binding opinions during this period.

In case of joint permits, integrated with the EIA process, the statutory deadline for issuing permits is longer, i.e. 90 days from the commencement of proceedings; in complex cases, especially groups of buildings, the building authority must decide within 120 days, at the latest.

3. Conclusion

As mentioned above, the amendment of the Building Act is planned in the spirit of facilitating and accelerating the processes of urban planning, as well as building permit and planning proceedings.

In the area of urban planning, it introduces the institutes of accelerated proceedings for updating the principles of urban development and changes to urban plans that present the opportunity for initiative by investors and accelerate the processes of changing urban planning documentation. Investors are also given the opportunity to conduct urban studies at their own expense, though based on the specifications and approval of the building authority.

The most significant change is the introduction of joint planning and building permit proceedings together with the process of environmental impact assessment. The combination of these individual proceedings into a single process conducted by the building authority can certainly be considered a significant step towards accelerating building permit proceedings and facilitating the location and realisation of construction.

The amendment also contributes to an acceleration of these processes in that, although it combines several proceedings with their own deadlines, the deadline for issuing a decision in joint proceedings remains, with few exceptions, unchanged (60 days) and proceedings are left in the competence of a single building authority.

Joint proceedings are nevertheless optional for investors; according to the explanatory memorandum, investors can choose whether to go the way of separate or joint proceedings, especially with regard to the current availability of required documents for the proposal, etc.

As the amendment was only submitted to the Chamber of Deputies by the government on 3 October 2016, the expected acceleration of building permit proceedings and facilitation of the position of investors must still undergo the entire legislative process.

For more information, please contact our office’s partner, Mgr. Jiří Kučera, e-mail: jkucera@kuceralegal.cz ; tel.: +420604242241.

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