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Draft the administrative burden on developers has been decreased

The Russian Government has taken steps to streamline administrative procedures in the construction field[1].

The amendments are being adopted within the scope of the powers granted to the Government for the purpose of supporting developers in the challenging economic situation.[2] The measures that are being implemented are designed to eliminate excessive red tape for developers and to reduce the timeframes for approval on the part of state authorities.

Let us consider the main measures.

Streamlining mandatory administrative procedures

The Government’s Decree No. 575 dated 2 April 2022 streamlines the mandatory administrative procedures. The amendments that are being introduced are presented in three tables below.

Table 1. Extending the timeframes

Expiring term The period during which the term expires Consequences
    1 The validity period of a construction permit

from 13 April 2022 to 1 August 2022

To be extended by one year
    2 The deadline for information to be used in the urban land use plan for the purposes of drafting design documentation

from 13 April 2022 to 1 January 2023

To be extended by one year
    3 18 months from the date when the urban land use plan was issued or the area planning design was approved based on which the design documents have been drafted

from 13 April 2022 to 1 January 2023

If the above deadline expires within the established period, then its compliance will be checked during the expert examination of design documents with regulatory requirements which were in effect on the date when the urban land use plan was approved or when the area planning design was approved.

Table 2. Reducing the timeframes

in the period from 13 April 2022 to 1 January 2023


No.

Action

General term

Reduced term

1)             

Approval of documents relating to area planning/amendments to such documents

15 business days

10 business days

2)             

Documents relating to area planning will be reviewed from the perspective of their compliance with mandatory requirements, and relevant documents will be either approved or sent back to be worked through further

20 business days

15 business days

Table 3. Other easing procedures

in the period from 13 April 2022 to 1 January 2023

No.

Action

Condition (exception)

Permitted/not required

1)             

A resolution will be adopted regarding the documents to be prepared which relate to area planning/amendments to such documents

Unless the adoption of a relevant decision requires the involvement of competent authorities

Not required

2)             

Area planning documents will be prepared and approved which provide for a linear facility to be placed. These documents relate to linear facilities of federal or regional significance.

Unless no such linear facility is provided for by regional planning documents

Permitted

3)             

A favourable expert’s opinion will be provided with respect to the design documents for the purposes of obtaining a construction permit

Unless information regarding a capital construction facility has been included in the unified register of expert opinions relating to design documentation

Not required

4)             

The following documents should be submitted for the purposes of obtaining a commissioning permit:

1)    An urban land use plan or a project for area planning/land surveying

2)    An acceptance certificate for a capital construction facility (if constructed under a building contract)

3)    A certificate of conformity of a capital construction facility to the design documentation

4)    A third-party liability insurance contract to which an owner of a hazardous facility is a party

Not required

Construction on adjacent land plots

The Government's Decree No. 603 dated 6 April 2022 establishes the Rules for obtaining an urban land use plan, construction and commissioning permits (except for linear facilities) on two or more adjacent land plots (the ‘Rules’).

this will enable developers to promptly embark on construction on adjacent land plots without having to comply with the procedure for uniting the land plots.



A construction permit for two or more land plots can be obtained provided that the following conditions have been met simultaneously (the ‘Conditions’):

1)    the land plots are adjacent land plots;

2)    the same person has ownership title to the land plots, a permanent (indefinite) right to use them, or lifetime possession of them with hereditary succession (the ‘Rightholder’);

3)    the land plots have the same type of permitted use which allows for capital construction facilities to be placed.

If the above Conditions are met, the Rightholder, in addition to the usual set of documents, must attach the following documents to the application for a construction permit:

1)    the documents of title to all adjacent land plots; and

2)    an integrated urban land use plan.

An integrated urban land use plan should be provided within 10 business days after the receipt of the application (which is 4 days faster than the Russian Town-Planning Code provides).

While a competent authority reviews an application for a construction permit to be issued, it will disregard minimal indentations from the borders of adjacent land plots. The applicant is not required to submit a permit to deviate from the parameter limits for permitted construction, and no construction permit can be denied on such ground. Whether design documents comply with the requirements for the maximum area of development will be determined based on the aggregate area of all adjacent land plots.

Commissioning permits for a capital construction facility located on two or more land plots will be issued subject to the specific aspects set out in the Rules. For instance, in addition to the ordinary set of documents, the Rightholder is obliged to submit documents of title to all adjacent land plots.

What to think about and what to do

Persons engaged or merely interested in construction projects are advised to take note of the streamlined procedures in the area of town-planning. The measures that are being adopted will help to reduce administrative costs and allow for released funds to be targeted at handling matters of priority.

Help from your adviser

Pepeliaev Group’s specialists are ready to provide integrated legal support to development companies in the process of construction, taking into account the specific aspects of how documents should be drafted in 2022.

Our range of services covers advising on changes in town-planning documentation, providing support during the construction of facilities, representing companies’ interests in their interactions with state authorities and their counterparties, and in court.


[1] The Russian Government’s Decrees No. 575 “On the specifics of how documents are to be drafted, approved and extended which relate to area planning and urban land use plans, and how permits are to be issued for capital construction facilities, as well as commissioning permits” and No. 603 “On the cases and procedure for issuing permits for the construction of capital facilities that are not linear facilities on two or more land plots, and permits for commissioning such facilities and for providing urban land use plans necessary for such purposes”, dated 2 April 2022 and 6 April 2022, respectively.

[2] Article 18 of Federal Law No. 46-FZ 8 March 2022 and article 7 of Federal Law No. 58-FZ dated 14 March 2022.

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