In December 2014, two sets of amendments to the Planning and
Construction Act were published in nos. 132/2014 and 145/2014 of
the Official Gazette of the Republic of Serbia (collectively
"New PCA").
The main changes the New PCA introduces to the existing Planning
and Construction Act are as follows:
1. INTRODUCTION OF CONSOLIDATED PROCEDURE
The New PCA provides for a consolidated procedure, which will
enter into force on 1 March 2015. This procedure
is meant to encompass the entire process, from the issuance of
location conditions to the registration of title to the constructed
facility in the Cadastre of Real Estate.
The consolidated procedure is envisaged to be conducted by a new
department to be established within each of the competent
authorities, e.g. the Ministry of Construction, Traffic and
Infrastructure, the authority competent for local self-government,
etc.
The New PCA envisages the establishment of both a register of
consolidated procedures ("Register") and
a central record of consolidated procedures ("Central
Record") as of 1 January 2016. The
purpose of these will be to enable (i) up-to-date public monitoring
of the status and progress of the application process for the
relevant permits, and (ii) up-to-date insight in the documents
submitted and issued in the relevant procedures. In addition, the
application and supporting documents will be submitted
electronically. The general intent of the New PCA is to facilitate
the procedure for obtaining all relevant permits/documents and to
make the process as brief as possible.
2. LOCATION CONDITIONS
The New PCA envisages location conditions as a
replacement for location permits; location conditions contain
information on the possibilities and limitations for construction
on a land plot that meets the requirements of a construction
parcel. The location conditions will contain all the necessary
requirements for the preparation of technical documentation. The
issuance of the location conditions is not conditional on the title
to the construction land concerned. The pre-condition for obtaining
the location conditions is to submit a concept design along with
the relevant application.
The location conditions are valid either for 12 months as of the
issuance date, or until the expiration of the construction permit
issued on the basis of the location conditions.
3. CONVERSION
The New PCA does not regulate the conversion of the right of use
to ownership right against compensation. It is proposed that a
separate statute be adopted to regulate the matter of
conversion.
However, the New PCA allows for the issuance of a construction
permit on the basis of the right of use until the regulations
governing conversion have been adopted.
4. INFRASTRUCTURE FEE
The provisions that regulate the land development fee
(infrastructure fee) will enter into force on 1 March 2015.
The New PCA incorporates the infrastructure fee in the
construction permit and sets the maximum amount of such fee. The
fee must be paid no later than the issuance date of the
notification of commencement of construction works.
Those investors who provide a collateral warranty for the payment
of the fee are entitled to make the payment in 36 or more monthly
instalments. On the other hand, those investor who pay the entire
fee amount as a lump sum are entitled to a reduction of at least
30%, in accordance with the decision of the local government
unit.
5. TECHNICAL DOCUMENTS
The New PCA introduces new design documents that replace the
previously used main design: design for the construction permit and
design for the execution of works.
The design for the construction permit must be submitted with the
request for the issuance of the construction permit. It contains
the head engineer's statement confirming that the technical
documentation has been prepared in accordance with the location
conditions, and the regulations and rules of profession.
The design for the execution of works serves as confirmation that
the design has been prepared in accordance with the location
conditions, the construction permit, the design for the
construction permit, and the regulations and rules of
profession.
6. REDEDICATION OF FOREST LAND AS CONSTRUCTION LAND
The New PCA regulates the rededication of forest land as construction land against payment of a fee and defines it as being in the public interest. The amount of the fee is to be determined in accordance with the applicable act governing forestry. The payment of the fee is a pre-requisite for obtaining the location conditions/construction permit.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.