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Ukraine > Legal Developments > Law firm and leading lawyer rankings


New Law Regulating City Development Became Effective Today

Law of Ukraine No. 3038-VI "On Regulation of City Development Activity", came into force today, 12 March 2011 (henceforth the "Law").

The Government declared that the main aim of the new law is to deregulate the construction sphere and to establish clear rules and procedures for developers.


The Law replaces the Law of Ukraine "On Territorial Planning and Development" and introduces amendments into a number of other laws. The Law is a framework law, which should be supported by a number of by-laws to be adopted by the Cabinet of Ministers in the coming months. The main amendments introduced by the Law address the following issues:


Construction Permits


(a)     No design documentation is now required for individual construction


According to the Law, the construction of a 2-storey (excluding the attic floor) residential building with an area not exceeding 300 square meters may be performed based on a construction passport and without design documentation.


(b)     Reduced number of approvals for design documentation


The Law provides that a new classification for construction projects should be approved by the Cabinet of Ministers of Ukraine.  This new classification will provide for five categories of construction projects depending on their complexity. The state expert examination of the design documentation for categories I - III will be optional, while for categories IV and V it is mandatory.  An archeological expert examination is no longer required.


A conclusion from a city development council will no longer be mandatory for approval of the design documentation.  The state expert examination of the design documentation will be the only stage at which the design documentation will need approval by the state authorities.


(c)     Clear terms for the issuance of outcome data and permits


The Law clearly defines the terms for the issuance of construction terms and conditions, technical conditions, building permits etc. and provides that the issuance of such documents should be subject to the so-called "tacit consent principle", whereby a document is considered issued in case of delay in its issuance.


The law also establishes an exhaustive list of grounds under which the local or state authority may refuse to issue the relevant permits.


Moratorium on Allocation of State and Municipal Land for Construction Purposes


The Law requires that land should be used and developed in compliance with city development documentation, such as detailed territory and zoning plans.  To force local councils to adopt the relevant city development documentation, the Law establishes a moratorium on the sale and lease of state owned and municipal land for construction purposes where such documentation is still absent one year after the adoption of the Law.


The law also prohibits rezoning of land if the new zoning does not comply with the city development documentation.


Construction Commencement


According to the Law, depending on the type and category of construction, the right to commence construction may arise from (a) written notification by the developer, (b) registered declaration on commencement of the construction works, or (c) building permit.


The developer may commence construction based on a written notice sent to the State Architectural and Construction Inspectorate when the construction is performed based on the construction passport of the land plot.  For construction of categories I - III a building permit will not be required and the developer may commence construction based on a declaration registered by the State Architectural and Construction Inspectorate. Categories IV and V may be started only based on a building permit.


According to the Law, regardless of the document giving the right to commence construction, such right should be valid until completion of the construction works.


Facilitation of State Commissioning


The Law provides that construction performed based on a construction passport and category I - III projects may be put into operation based on a developer's declaration of the readiness of an object for operation registered by the State Architectural and Construction Inspectorate. The state commissioning of such projects is no longer required.


Possibility to use foreign construction standards in Ukraine


The law provides that European and foreign national and regional construction standards may be used in Ukraine based on international treaties and according to the procedure to be approved by the Cabinet of Ministers of Ukraine.

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