Package of bills on building, physical planning and energy efficiency in building construction to receive second reading

A package of three bills on construction, physical planning and energy efficiency in building construction will receive a second parliamentary reading, and, referring to numerous comments and criticisms, Prime Minister Andrej Plenković said that the Physical Planning Act is "well balanced".

"We have, on the one hand, in effect, demands from one part of the public claiming that this favours investors, while on the other hand we have some of those same representatives saying that it places too many restrictions on construction. This means that the bill is balanced, and therefore I would urge everyone to read it carefully, to understand its context and everything we wish to achieve in terms of protecting our space and enabling investment," Plenković said.

Minister Bačić - bill not drafted to suit lobby groups, restrictions on expanding building areas, and revised legal provisions

Deputy Prime Minister and Minister of Physical Planning, Construction and State Assets Branko Bačić rejected claims that the bill is drafted "to suit a particular professional guild, lobby group or vested interest." “The Physical Planning Act is drafted to establish balance between space preservation and economic development,” the Minister pointed out.

He highlighted that this reform package constitutes a single, digitally connected and aligned system that preserves space, which is, together with people, the most valuable national asset. “This is a systematic reform that interconnects space, construction and energy - three foundations of sustainable development, competitive economy and better lives of the citizens of the Republic of Croatia. In addition, this legislative package digitalises all construction and physical planning processes, simplifieS procedures, encourages affordable housing and, through measures of energy efficiency, builds a resilient and self-sufficient Croatia,” the Minister said.

Minister Bačić clarified that the basic intention of the new Physical Planning Act and the Building Act is faster construction of dwellings for affordable housing.

Following the Government's session, the Minister commented on a series of criticism regarding, above all, the Physical Planning Act in the first reading. He pointed out the Government’s goal is to ensure affordable housing, and to accomplish that, it is necessary for a public investor, being the state, counties and cities, to build ten and a half thousand housing units. This is why urban consolidation model is introduced.

There is no affordable housing without changes to acts, we want simpler procedure

“If we don’t make changes to the acts on physical planning and construction, if we don’t enable instruments of accelerated changes to spatial plans and accelerated issuance of building permits, we won’t be able to achieve that goal, while still claiming that affordable housing is not available to us. These were the reasons why we accepted this model of changing spatial plans through a simpler procedure in order to build affordable housing units,” Minister Bačić said.

He also commented on the criticism that it is possible to build on land which is not currently designated as building land. As he explained, for the purpose of quick realisation of new housing units for affordable housing, it is possible, through an urban development project, to start construction on such land which is equipped with necessary infrastructure in terms of utilities, transport and energy. He pointed out that it surely does not mean the act provides for building land expansion.

“It is not possible to expand building land anywhere in Croatia if the existing building land is not equipped with municipal infrastructure. This is my response to everyone saying that we contribute to space devastation and building land expansion, to new overbuilding and new apartmentification of Croatia. This is my response. Considering the importance of affordable housing, now it is possible to go beyond building land only for the purpose of affordable housing and only if the investor is a public investor,” Bačić stated.

The Minister also clarified why the act allows faster realisation of construction plans by other investors, which also sparked intense controversy.  As he said, if spatial plans designate building land, then this person, the owner of the land, has legitimate expectations to be able to build there. In order to build, he continued, he has to wait for the urban development plan as well.

For instance, in Zagreb, the Master Urban Development Plan was adopted in 2007, and it determined which land is designated as building land. Eighteen years have passed since then. That plan was not adopted according to the desired pace to enable our citizens to build, so its full implementation would only be achieved in 2053. This means that a resident in Zagreb would have to wait 48 years to build on land that was designated as building land back in 2007,” Minister Bačić explained.

If LSGU designated land as building land, it also has to equip it

In comparison to the first reading, the deadline for local self-government units to adopt an urban building plan, following an investor’s prior letter of intent requesting permission to build, has been increased from two to three years. If local self-government units do not adopt the urban plan within the specified deadline, the act allows the investor to “contact the ministry, which then carries out a traffic study, defines the route of the future roadway so the road can be built and the investor can obtain a building permit,” Minister Bačić said.

The Government is aware that local self-government units may not have the money to provide the infrastructure, which is why the investor who owns the land is allowed to do it on their own, if they have the financial capacity, but then utility charges paid to the local self-government unit should be reduced by that amount.

Minister Bačić also reminded the public on the current provision. If a city has not adopted a lower-level plan for the land the same city has designated as building land, then the land automatically ceases to be considered building land after seven years.

HAZU members invited to a meeting at the Ministry because of the open letter

“Now it is my turn to ask all those opposed to such a provision: how do you think our fellow citizens would feel if, according to a spatial plan - for instance the Zagreb Master Urban Plan - their land was designated as building land, but because a local self-government unit - in this case the City of Zagreb - did not adopt an urban development plan, the land ceased to be considered building land? With a single stroke of the pen - the land worth a hundred thousand, two hundred thousand, a million euro becomes land on which they cannot build, cannot realise their family house or any other project, just because the city or the municipality did not adopt the plan,” he stated.

Minister Bačić also responded to the open letter from HAZU that asks for the act to be withdrawn, arguing that due to a number of shortcomings, Croatia risks a long-term loss of spatial identity and territorial control. He said that this will be addressed at a joint meeting at the Ministry of Construction.

He reiterated the position that this act preserves space “because without its adoption, now it is possible to convert everything to condominiums and foster real estate business instead of tourism.” In this regard, he expected, he said, support from both the Chamber of Architects and member of HAZU, scholar Nikola Bašić, who sent the letter.

Regarding the Building Act and the Act on Energy Efficiency in Building Construction, the final proposal provisions have not been substantially changed in comparison to the first reading. The Building Act specifies that the procedure for grave professional misconduct by an authorised architect and authorised engineer or designer is to be conducted in accordance with regulations on chambers of architects and chambers of engineers in construction and physical planning, and that the contractor is required to certify the statement on completed works using a qualified electronic signature.
 
Source: HINA/MPGI

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