The changes that the new building code brings look to open new opportunities particularly for residential project developers. The emergence of these new opportunities can be attributed to the new building code’s introduction of a more efficient process for obtaining building, planning and use permits and does not require lengthy building permitting processes for smaller buildings with footprints less than 150 square metres.
The new building code also allows developers to change zoning plans more easily and provides for a simplified building process, essentially by allowing the merger of environmental impact assessments with the adoption of changes to zoning plans. The new building code also permits the simultaneous approval of changes to zoning plans and land use regulation plans. Under the new building code, a regulation plan serves as both a detailed regulation of allowed land use and the necessary planning permits. As a result, many large, residential development projects which have houses of up to 150 square metres can now be approved almost entirely within one procedure, depending on the specifics of the project. As a consequence, the timeframe for completing a project can be shortened significantly.
Developers can also take advantage of another aspect of the new building code which allows for ‘public law agreements’. These public law agreements are agreements with the municipalities allowing for the approval of a general regulation plan covering multiple buildings and uses instead of the previous system of issuing planning permits for individual project buildings. The public law agreements also allow municipalities and developers to agree on cooperation in the development of land and buildings, to provide for project specifics, the construction of new infrastructure, to change zoning or to establish an agreed regulation plan. Public law agreements can also replace planning permits for a specific project.
The new building code also allows developers to contest zoning rules adopted by the municipality through a judicial review process. Additionally the centralisation of comments and objections to the planning permit process for a single concentrated comment and objection system for the general public, public authorities, neighbours and environmental organisations. Such shift in emphasis also illustrates why many buildings no longer need building permits. If a building permit is required, the proceedings for obtaining the permit are now significantly shorter. Building permit proceedings (if necessary) are only intended to deal with technical matters and do not account for objections which were, or could have been, raised in the previous planning stages (i.e. the planning permit proceeding or adoption of the regulation plan or zoning changes).
The planning permit proceeding now allows two specific simplifications: planning consent and a simplified planning proceeding. Such simplifications are especially helpful for non-controversial development projects as they may help developers speed up the project’s realisation.
Residential project developers will also appreciate the new building code’s concept of an ‘authorised engineer’. An authorised engineer is a licensed individual who can act as a substitute for the building authority in issuing building permits. Based on a private contract between the authorised engineer and the developer, the authorised engineer can review and approve the design documentation. Save for specific situations spelled out by the law, the engineer’s approval of the design documentation coupled with a simple announcement to the relevant building authority allows the developer and his contractor to commence construction.
Also, in a change from the old building code, the new code eliminates the requirement to obtain a use permit in a lengthy administrative proceeding for all buildings after construction has been completed. Family and recreational houses are only required to provide a 30-day simplified announcement (prior to use) to the relevant building authority. After the 30-day period has passed, the houses may be used unless the building authority objects. Larger buildings, such as apartment complexes, only require a ‘use consent’. A use consent is issued under much simpler proceedings than the old building code. As is the case for building permits, an authorised engineer may be substituted for the respective building authority and issue the certificate confirming the building’s proper completion to expedite the process for obtaining the use consent.
The common theme in all of the modifications and simplifications instituted under the new building code should result in a significant improvement in the time necessary to prepare projects and allow for a less administratively burdensome project completion process. The new building code should save time, effort and money, which will certainly be welcome to real estate developers and their investors.
Josef Hlavicka is a senior associate at Havel& Holasek in
