Babiš demands the adoption of the construction law by 2021, pushing MMR

Prague - Prime Minister Andrej Babiš (ANO) considers it a priority that the new building law, which is supposed to significantly shorten the approval process for constructions, is approved by the end of the government's term in 2021. The schedule from the Ministry for Regional Development (MMR) currently anticipates that the new building law will take effect in the spring of 2022, and until then, the construction approval process will be streamlined, among other things, by the so-called fiction of consent in building proceedings. Its introduction will be discussed by the government in January, even against the resistance of some ministries, regions, and the Supreme Administrative Court. MMR will also launch a grant program for cities and municipalities in the spring to support the construction of social housing.

At today's Golden Crown Forum, Babiš criticized the MMR, led by Minister Klára Dostálová (for ANO), for the slow progress in preparing the building law. He said, among other things, that he "expected better performance" from the MMR. Dostálová stated in October that the new building law should be in effect in the second quarter of 2022, and it should come into effect a year later. It is supposed to significantly shorten the approval time for constructions, which is currently criticized by developers, investors, politicians, and local government. The ambition of MMR is one office, one stamp, one permit.

The Prime Minister mentioned that he will pressure the MMR to expedite the law and not to excuse itself by saying there are numerous changes within various laws across different sectors. "Because they came up again with some material intent for recodification. But there is no need for any material intent there," Babiš stated. Roman Vodný, the director of the Department of Urban Planning at MMR, responded that the material intent of the law arises from legislative rules. Dostálová had earlier stated that due to the new building law, it will be necessary to amend 89 related laws.

According to Babiš, the change to the building law is also necessary because, for example, in Prague, it takes ten years to build an apartment. There is a lack of affordable housing, and rents are high. A survey conducted by Ipsos for the Golden Crown Forum revealed that only one in ten people planning a housing change has saved over half a million crowns. Among those who want to move into their own housing, there are 16 percent. Among those interested in rental apartments, there are five percent.

MMR aims to accelerate the approval of constructions by already introducing the fiction of consent in building proceedings. Dostálová said today at the Žofín Forum conference that this principle could ideally be in effect from September 2019. The fiction of consent states that if officials do not respond during the building proceedings within 60 days, a positive opinion will be automatically assumed. MMR will try to push through the new regulation despite opposition from some institutions, stated MMR Deputy Minister Marcela Pavlová at today's round table of the Žofín Forum. According to the deputy minister, the proposal for the new building law should enter internal comment procedures within MMR by Christmas and then go into inter-ministerial comments in March.

The program for cities and municipalities to support the construction of social housing will be launched by MMR in March 2019, Dostálová stated at the Žofín Forum. The state will provide municipalities with a 100% grant for social housing construction, but it applies to a maximum of one-fifth of the apartments in a specific building. For the remaining apartments, municipalities may take either a subsidized loan from the housing fund or a standard commercial loan. According to her, the program is not intended for privately owned housing, but for rental housing.

Babiš also discussed subsidies for municipalities for social apartments today during a meeting with Central Bohemian mayors and regional leadership in Prague. If a municipality builds, for example, 100 apartments, and 20 of them are for social purposes, the state will provide them with a 100% grant. "So actually those 20 apartments will be free," said the Prime Minister. However, not all municipalities, according to representatives contacted by ČTK, will use the program. According to trade unions and non-profit organizations, the grant program also does not address the problem of people in housing distress. At the end of October, they called on the Prime Minister in an open letter to have the government instead prepare the promised social housing law.