<trans-title>Self-governments: The amendment to the construction law may once again bring uncertainty to the construction industry</trans-title>

Prague – The prepared amendment to the building law, which among other things introduces a central building administration, may once again plunge Czech construction into uncertainty, according to local governments. The cancellation of more than 700 building offices in municipalities could pose a problem, as it may threaten the availability of building procedures for the public. The Association of Local Governments announced this in a press release after a meeting with Prime Minister Andrej Babiš (ANO).

The association pointed out that the amendment to the building law did not undergo a standard comment procedure and that organizations representing municipalities and cities, as well as significant professional organizations, unions, or employers were not invited to prepare its current form. Additionally, the positions of other ministries remain publicly unknown to this day.

According to the association, the potential closure of building offices in municipalities must be preceded by effective digitalization of the building procedure. "Unprepared centralization must not restrict residents of rural areas, which make up two-thirds of the country, and complicate their access to building procedures. The state is today clearly lacking officials, and a collapse of the building process could realistically occur,” said the chairman of the association and mayor of Kamýk nad Vltavou, Petr Halada.

The changes could also create problems according to local governments, such as the shift of urban planning exclusively to the separate responsibility of municipalities, which weakens the role of the relevant authorities and allows for buildings to be permitted even in contradiction to the urban plan. Today, part of the procedures is ensured by municipalities with extended powers, but the local governments pointed out that 70 percent of smaller municipalities do not have enough money and personnel to handle this agenda. "The change suits the largest cities but ignores the reality of about 6200 smaller towns and municipalities," Halada added.

The association also discussed support for affordable housing construction with Babiš. They stated that the government has not earmarked funds for the Affordable Rental Housing program in the proposed state budget, which aims to support municipal construction of affordable rental apartments. Municipalities have submitted applications to this program and have been waiting for a year for the completion of evaluations while starting construction housing projects. According to the latest information, the State Fund for Support of Investments records municipal projects with building permits worth 48.5 billion crowns.

Representatives of the association also discussed the future of the New Green Savings program with Babiš. They were particularly interested in whether the subsidy for the renovation of older houses from the House Repair after Grandma program will continue. Babiš confirmed at the meeting that this support will be available at least to some extent in the future. He also wants to convene a joint meeting of representatives of municipalities together with Minister for Regional Development Zuzana Mrázová (ANO) and Minister of Industry and Trade Karel Havlíček (ANO) based on the suggestions of the association of local governments.

On January 30 of this year, the Chamber of Deputies supported in the initial round the proposal of the governing coalition for the establishment of a central building administration under the state office. The amendment to the building law primarily establishes the Office of Territorial Development of the Czech Republic. The building officials who currently perform building administration under regions and municipalities will transition to this office. The amendment also declares mass housing constructions as a public interest, which may facilitate land expropriation. Overall, the proposal aims to speed up and simplify the permitting of constructions.

The new building law from 2021 has been prepared for several years. Its current form will come into effect on July 1, 2024.