The Chamber today approved the construction amendment regarding the establishment of state building authorities

Prague – A comprehensive and closely watched amendment to the building law, aimed at speeding up and simplifying the approval of construction projects, was adopted by the Chamber of Deputies today. It was presented last December by representatives of the governing coalition led by Prime Minister Andrej Babiš (ANO). Building authorities will now operate under the state, and an Office for Land Development and its regional branches will be established. Some officials from the current offices are set to transfer to these new authorities. To obtain a construction permit, only one combined construction process led by a single authority and finalized with one stamp will be sufficient. The proposal must now be assessed by the Senate.

Eighty-nine members of the governing coalition voted in favor of the amendment. At least 86 votes were required for approval. Opposition parties voted against it, with several opposition MPs abstaining.

The approval of the amendment was welcomed by Minister for Regional Development Zuzana Mrázová (ANO). "Today, we decided in the Chamber of Deputies that we will shorten the path to housing for people, to kindergartens and schools for municipalities, and to greater competitiveness for this country. By approving this law, we have taken a key step towards allowing normal construction to finally happen in the Czech Republic," she stated in a press release.

The opposition criticized the amendment. They pointed out that such an extensive change involving hundreds of pages was presented by the coalition as a parliamentary proposal without proper consultation and did not listen to the views of opponents. A comprehensive amendment was introduced only after the debate. The opposition also expresses concerns about a potential collapse of the construction process if current officials are unwilling to transition from municipal offices to state administration.

Criticism also arose immediately after the law's approval. "The law favors developers and does not bring improvements to the construction process for our citizens," said Michaela Šebelová, chairwoman of the STAN club, after the vote. According to Christian Democrat Petr Hladík, many of the amendments go against the people's interests. "You have simplified the process for those with strong backs and plenty of money in their pockets," he believes. Olga Richterová, chairwoman of the Pirate MPs, called the coalition's decision irresponsible and pro-corruption. "You will slow down the processes for ordinary people. You will not provide affordable housing; you are just catering to someone," she stated.

The new building law was approved by the Chamber in 2021. Its preparation took several years. Among the primary objectives of its amended form will now be to create conditions for housing, work, business, and people's lives. All regional cities will now have the right to issue their own building regulations. Previously, only Prague, Brno, and Ostrava had their own regulations. In case of an appeal, the superior authority must make a decision and cannot return the matter for further consideration. This will eliminate the process sometimes referred to as "ping-pong." The amendment transfers spatial planning to the independent competencies of municipalities and regions.

The law now stipulates that planning, preparation, construction, and operation of public infrastructure and designated buildings are in the public interest. This could play a role in potential considerations regarding expropriation. Designated buildings will include those for mass housing. It will involve a building or a group of buildings with a predominant housing function and a total floor area of at least 10,000 square meters.

The original 2021 building law included a state building administration. However, the former government of Petr Fiala (ODS) abolished this and promoted the retention of the existing offices. Only a Transport and Energy Building Authority (DESÚ) was established, which was supposed to oversee strategic constructions such as highways or power plants. The current governing coalition presented its amendment after last year's elections, including the state building administration in it.

The state building administration will be represented by the Office for Land Development, which is set to start functioning on January 1 of next year. By 2028, additional subordinate offices are expected to operate across the regions. Its chairman will be appointed by the government. The DESÚ will cease to exist at the end of this year. Currently, according to earlier data from the Ministry of Regional Development, there are 638 building authorities in the Czech Republic. After the adoption of the amendment, 205 territorial workstations are expected to function, with officials transitioning from the current building offices retaining at least the same salary tariff and personal allowances.

Overall costs to the state budget for the new system of building administration are expected, according to Finance Minister Alena Schillerová (ANO), to depend on the final form of the approved law and the manner of implementing the reform of building law.

Minister for Regional Development Zuzana Mrázová (ANO) stated in early July in the Chamber that about half of the current number of officials should suffice under the new system. She also noted that she is planning an intensive campaign for recruiting new officials. The costs associated with the establishment of the state building administration are projected by the minister to reach approximately 3.5 billion crowns for next year, and the entire structure would cost about 7.1 billion crowns in subsequent years. On the other hand, she noted that there is a calculated benefit to the economy and state budget amounting to 7.6 billion crowns.

The law also introduces an exception that will allow for the retention of illegal constructions. "The removal of an illegal construction will not be ordered, and the construction will be authorized even if all conditions for the subsequent approval are not met, if its removal would clearly represent an unreasonable interference for the responsible party, other persons, or the public interest, and at the same time, leaving the construction does not affect public interests or the rights of third parties," states the law. The Ministry of Regional Development has previously indicated that owners of properties who had a structure on their land without knowing it was in violation of the law could be punished by demolition.