New building law will abolish building moratoriums older than 15 years

Prague – The new construction law will abolish all construction bans the day after its publication in the Collection of Laws, said ČTK deputy mayor of Prague Petr Hlaváček (TOP 09). Landowners would thus be able to apply for zoning decisions for buildings regardless of the city, as long as their plans do not contradict the zoning plan. Construction bans issued under the now-previous version of the construction law before 2007 aimed to protect land from development until an agreement is reached on its use. Minister for Regional Development Klára Dostálová (for ANO) stated in response to criticism from the Prague City Hall that the law would only abolish bans older than 15 years. According to the Minister, construction bans are not intended to be a permanent solution. The Association of Developers agrees with Dostálová's opinion.

This week on Tuesday, MPs approved the new amendment to construction law despite a veto from the Senate. Two days later, President Miloš Zeman signed the bill. The law shifts construction offices under the state and anticipates the establishment of the Supreme Construction Office. Individual construction offices will be organized similarly to the current setup of the financial administration. The wording of the law has many critics, including, for example, the Union of Towns and Municipalities of the Czech Republic.

The law will take effect in mid-2023, with some changes starting from January 1 of next year. However, several paragraphs of the law will take effect on the second day after being announced in the Collection of Laws. This includes provisions on construction bans issued under older construction legislation. These bans have been in effect for more than 13 years. "Such a long restriction on ownership is unacceptable. Therefore, these old construction bans lose their validity on the day this provision comes into effect," states the explanatory memorandum to the law proposal.

According to Minister Dostálová, however, the new construction law does not abolish all construction bans, only those older than 15 years. "A construction ban is not intended to be a permanent solution; that should be the zoning plan," the Minister stated today on Twitter. According to her, the Legislative Council of the Government also agreed with the amendment, as construction bans represent a significant restriction on ownership.

The Association of Developers also states that the law will only end unresolved construction bans older than 15 years. "Which is fine – because a construction ban should be an exceptional and time-limited tool," said Zdeněk Soudný, the Association's general secretary, to ČTK.

In the new construction law, the government decided that bans under the law from 1976 will end the day after the new construction law is published in the collection. The mentioned construction law from the 70s ceased to be effective at the end of 2006. Construction bans issued under the current 2006 law will be reviewed by the relevant urban planning authority or the Supreme Construction Office, within two years from the effective date of the new law. If they do not, they will lose validity.

The cancellation of bans may, according to the Prague City Hall, threaten the future development of so-called brownfields or large transport constructions. "Prague needs to open its brownfields; for example, Bubny has been blocked for decades, but this must happen through agreement and under social control. This shows how the state ignores the problems of cities. With poor planning powers, we finally reached an agreement in the area after years, and now just before the finish, such a cut comes," Hlaváček said.

Construction bans are declared in about twenty locations in the capital, including the Bubny-Zátory area in Prague 7, the site of the former Žižkov freight station, near Ruzyně airport, or on land in Letňany, where the government is advocating the establishment of a government quarter. Bans are also in areas along major transportation routes.

Due to the cancellation of bans, owners will be able to apply for zoning decisions. However, according to Hlaváček, the key problem is that the city will lose influence over the development of the area, as it will only be a participant in the proceedings, lacking the legal authority to enforce its requirements. As a result, all territorial studies that have been developed by the city, such as for the area of Bubny-Zátory, may be in vain.

The city can declare construction bans again, but there must be a legal reason for this. Moreover, their declaration in some cases may take one to two years.

The Ministry for Regional Development emphasizes that the new law will ensure, for example, the observance of deadlines and strengthen the role of municipalities in urban development. The law introduces a deadline of 30 days for the opinions of the relevant authorities, which can be extended by another 30 days in particularly complex cases or when an on-site inspection is ordered.