Urban planning is in a deep crisis, which has several manifestations.
Crisis of confidence
Over the past 15 years, there have been at least 4 particularly high-profile construction scandals. First, “Elita-Center”, then the developments of Anatoly Voitsekhovsky, and more recently, “Ukrbud” and “Arkada”. According to the Ministry of Internal Affairs, an approximate estimate of the number of defrauded investors is more than 100,000 people.
At the same time, the situation is not always from the category of “the investor is to blame, because he did not check” – some of the unfinished buildings at the time of investment had properly executed documents. Under such conditions, it is increasingly difficult for developers to attract investors, because they understand that in Ukrainian realities they are practically deprived of legal protection.
Crisis of state institutions
The construction industry is in a state of permanent reform — both the legislation and the system of regulatory bodies and their powers are changing. This year, urban development reform has even been included in the Program of Activities of the Cabinet of Ministers of Ukraine, but this does not seem to change the speed of its implementation.
Traditionally, there are many complaints about DABI due to inefficiency and corruption. The government decided to act radically — on March 13, it liquidated DABI and began creating three new bodies in its place. The powers regarding inspections are to be transferred to the State Urban Planning Inspectorate (SUI), and before its work begins, it was decided not to conduct inspections at all.
As is often the case, the transition period has been very long. Since March, inspections have not been conducted, and there are no clear deadlines for the start of the full-fledged work of the SUI. As a result, the number of illegal buildings has increased.
The People’s Deputies see the solution to the problem, in particular, in the adoption of new laws registered in the Verkhovna Rada — No. 3336 of April 14, 2020, No. 3875 of July 16, 2020, No. 3876 of July 16, 2020.
Urban Planning Code – a step towards a solution?
The urban planning crisis is so deep that it requires profound changes. One of the directions is the updating and systematization of legislation, for example, by adopting the Urban Planning Code. This code would be the main regulatory legal act in the field of urban planning instead of almost a dozen currently existing laws.
Talks about creating the Urban Planning Code have been going on for a long time – at least 13 years. The Cabinet of Ministers approved the concept of the Urban Planning Code back in 2007. In 2010, the code was even adopted by the Verkhovna Rada in the first reading (draft law No. 6400 of 05/18/2010). However, the code was never prepared for the second reading.
In 2017, the authorities returned to the issue of the Urban Planning Code: a working group was created under the Ministry of Regional Development to develop a draft code, “within the framework of which the expediency of preliminary consideration of the specified issue at the level of conceptual proposals was determined.” The development of the Urban Planning Code was one of the main tasks of the Ministry of Regional Development for 2018, to which the German Government was even involved.
In 2020, the Ministry of Regional Development still plans to develop a draft Urban Planning Code – this was included in the Concept of Public Administration in the Field of Urban Planning. The current deadline is 2024. The Code should unite and synchronize the following laws:
- “On the Fundamentals of Urban Planning”
- “On Architectural Activities”
- “On the Regulation of Urban Planning Activities”
- “On the General Plan for the Territory of Ukraine”
- “On Building Standards”
- “On the Complex Reconstruction of Quarters (Microdistricts) of the Outdated Housing Stock”
- “On Financial and Credit Mechanisms and Property Management in Housing Construction and Real Estate Transactions”.
The foundation for rapid change is a high-quality legal framework.
The professional environment and the legal community are ready to join the development of the draft Urban Planning Code. All that is needed from the state is political will and a sincere desire for change.
Oleg Kachmar, partner at Vasyl Kisit & Partners Law Firm
Bogdan Shabarovsky, lawyer at Vasyl Kisit & Partners Law Firm
