The assumptions of the bill to increase the availability of land for housing construction could be a real step towards unlocking the potential of the housing market in Poland. The proposed solutions should be considered a comprehensive approach to many existing problems. They concern both solutions aimed at increasing land availability, as well as those that aim to simplify procedures or eliminate legal barriers in the investment process. Importantly, these proposals take into account both the needs of investors and local governments, although for local governments, some proposals might reduce their assets and should be further analyzed. It’s also worth emphasizing that currently, we are speaking about the assumptions of the bill. A full evaluation of the solutions will require acquaintance with the content of the projected regulations.
One significant change is the proposed abolition of restrictions on trade in agricultural properties located within city administrative boundaries. This solution is consistent with modern urban trends and could hinder the spillover of cities into suburban areas. Today, in many Polish cities, agricultural land still makes up a significant share, although it is difficult to justify agricultural production on such lands.
An interesting proposal is also the concept of activating properties owned by the State Treasury companies and the National Agriculture Support Centre for housing purposes. According to the project, the minister responsible for construction will have the competence to take over properties of the State Treasury companies and the National Agriculture Support Centre free of charge and transfer them to the property resources of the State Treasury managed by the district head. The district head, in turn, will be authorized to distribute these lands at the local level. As rightly noted, there is great potential in lands belonging to the State Treasury, and these areas are often not used at all.
From the point of view of investors, a solution that may increase access to plots is the introduction of a moratorium on the collection of planning fee. The bill assumes the introduction of a two-year moratorium on collecting planning fees in relation to properties that are the subject of transactions made during this period.
In the opinion of the Polish Association of Development Companies, there is no deeper justification for reinstating the right to establish perpetual usufruct of lands for housing purposes. This solution will also not be beneficial for local governments.
The proposed amendments to the so-called housing special act, whose purpose is to re-grant local governments the right to decide on parking ratios, is a welcome change. This will maintain consistency with the standard planning procedures. However, assuming that the supply-demand law comes into force in mid-2025, investors will get six months to start investments under the special housing act, which – given the time of investment execution in Poland – is very little time.
The proposed point changes in the procedure for adopting Integrated Investment Plans can be viewed as a response to the voices of both investors and local governments. The elimination of the requirement to obtain preliminary consent of the municipal council to initiate the preparation of Integrated Investment Plans, the introduction of maximum deadlines for adopting plans, and the determination of investor participation rules, will make this institution more accessible and efficient.
Current regulations on appeals against administrative decisions allow for their submission without substantive justification. In practice, it is enough to simply state “I disagree” to start the procedure, which is often used to deliberately delay housing investments, sometimes for many years. The proposed changes can realistically eliminate them.
It is worth noting that the proposed solutions do not limit citizens’ right to appeal. They aim to maintain full protection of social interests, while eliminating cases of deliberate delay of decisions. As a result, investment processes will be able to run more smoothly, while maintaining a balance between the interests of investors, administration and local communities.
Przemysław Dziąg, legal counsel, deputy director general of the Polish Association of Development Companies.
Source: https://managerplus.pl/ustawa-o-gruntach-pod-budownictwo-mieszkaniowe-kompleksowe-zmiany-na-horyzoncie-rynku-nieruchomosci-36767
