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Law on postponement of prohibition of land allotment for purposes of urban construction was adopted

24 July, 2013 Newsletters

We would like to inform that it was adopted the law on amending (draft law No. 2363-1 dated 22.02.2013) the Law of Ukraine “On Regulation of Town Development” (hereinafter the “Law on Town Development”). The law on amending envisages postponement till 01.01.2015 of prohibition of land allotment for purposes of urban construction, in case of absence of approved zoning plans or detailed development plans. The law comes into force subject to President signing, starting from the date of its publishing in the official paper sources.

In accordance with para. 3 and 4 of Article 24 of the Law on Town Development (adopted as of 17.03.2011):

“In the absence of zoning plan or detailed development plan, approved pursuant to this Law, the allotment (transfer) of land from state or municipal property into ownership or use of individuals or legal entities for purposes of urban construction is prohibited”;
“Change the designed purpose of a land plot, which does not corresponds with a zoning plan and/ or a detailed development plan is prohibited”.

These restrictions were imposed to stop uncontrolled development of towns and put urban development into the civilized frameworks, limited by town planning acts. Restrictions were supposed to come into force as of 01.01.2012 (the relevant time was granted for the development and approval of zoning plans and/ or detailed development plans). However, the amendments as of 17.11.2011, postponed coming into force of the provisions of paras. 3 and 4 of Article 24 of the Law on Town Development till 01.01.2013.

Since 01.01.2013 the mentioned restrictions have come into effect and they have paralyzed land allotment procedures in majority of towns (according to information of the Ministry of Regional Development and Construction, as of 01.12.2012 there were 33 approved zoning plans in Ukraine, and in 12 oblasts (regions) there is not a single zoning plan was developed).

We are concerned about the fact that the adopted draft law No. 2363-1 establishes a destructive practice of postponement of important guarantee of legitimate town development. Today there is no certainty that the restrictions from Law on Town Development will come into force 01.01.2015, instead of being postponed again for a more remote period.

In most developed countries construction, which is not prescribed by local development (zoning) plans, is prohibited. The provision of Law on Town Development regarding prohibition of land allotment should have accelerated development and approval of zoning plans and/ or detailed development plans of Ukrainian towns.

Adopted postponement of prohibition of land allotment will cause further delaying of elaboration and approval of town development documents. Chaotic construction (including in conservation areas) will continue, which will cause disproportionate load of utilities and transport infrastructure. In the long run it means collapse of municipal economies of the large cities.

Please be informed that on 19.09.2013 the Verkhovna Rada of Ukraine adopted the Law № 2363-1 with proposals of the President of Ukraine. The new version implies that postponement of prohibition of land allotment shall be in effect in any city of Ukraine, including Kyiv. In the previous version Kiev was intentionally excluded from the effect of postponement, just before the adoption of the bill, according to initiative of people’s deputy Mr. Y.Odarchenko. He pointed out that

“in Kyiv city planning documents are already developed, and there is a chance to work within the framework of zoning plan and detailed development plan“.

However, these arguments did not convince the President, and the postponement of prohibition of land allotment will be in effect at the whole territory of Ukraine (provided the new law is signed by the President and published).

The above commentary presents the general statement for information purposes only and as such may not be practically used in specific cases without professional advice.

Kind regards,

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