Konstantin Boytsov assessed for DP the draft law on paid change of designation of land plots for building construction
A legislative initiative to amend Article 37 of the Town Planning Code (on types of permitted use of land plots and capital construction objects) has been proposed to the State Duma. It would give the regions the right to set a fee for changing the type of permitted use of a land plot (TPU) owned by an individual or legal entity to another type of permitted use (if it provides for construction or reconstruction).
Konstantin Boytsov, Counsel, Head of Real Estate and Construction Practice at Maxima Legal, noted that the draft law has not been fully thought through. According to the expert, it is obvious that the balance of private and public interests is changing. A public entity does not incur any additional costs when changing TPU (supposedly, they are calculated when determining the list of permissible TPU).
“This approach has been “successfully” used for more than 10 years in the capital city, where the application of TPU, which allows the placement or construction of an object, the functional purpose of which is different from the existing one, requires payment for changing the previously declared TPU. Such current regulation is rightly perceived by business as a necessary evil and obviously increases the cost of new construction, which ultimately has a negative impact on the implementation of the approved national programmes of the Russian Federation,” Konstantin explained to the Delovoy Petersburg newspaper.
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