Urban redevelopment measures under special urban development law

All owners in the redevelopment area are obligated pursuant to § 138 BauGB (German Building Code) to provide the City of Jena or its agents with information about the facts, knowledge of which is necessary for the implementation of the redevelopment measure. The personal data will only be used for the purposes of the redevelopment and will be automatically deleted once the redevelopment area has been abolished.

Approval requirement

In a formally defined redevelopment area, the following processes and procedures require the written approval of the City of Jena (redevelopment approval):

• Sale of a property as well as the creation and sale of a hereditary building right,
• Construction measures, i.e. erection, alteration and demolition of buildings,
• changes in the use of the building or property and advertising installations,
• value-enhancing measures (modernisation) and other essential measures, even if they are not are not subject to approval, consent or notification under building regulations,
• contractual relationships under the law of obligations concerning the use of the property, building land, building, part of a building for a fixed period of time for more than one year, e.g. Commercial tenancy agreements; however, no residential tenancy agreements for an indefinite period of time,
• encumbrance of the land with mortgages, land charges, easements, limited personal easements, usufructuary rights or rights of first refusal,
• creation, modification or cancellation of a building charge,
• division of the land.

Application requirement

For approval, a separate applicationmust be submittedto the Urban Redevelopment Team for the issuance of a redevelopment permit (RedevelopmentPermit ). Within the framework of this approval procedure, it is examined whether the project applied forimpedes the implementation of the redevelopment measureor contradicts the redevelopment goals and planned measures (§ 145 Para. 2 BauGB).

As a rule, approval is granted within one month if the project does not make the implementation of the redevelopment impossible, substantially more difficult or contradict the objectives and purposes of the redevelopment goals (§ 145 BauGB). If, in addition, a building permit is required for the project in accordance with §§ 59 ff. Thuringian Building Code (ThürBO), the approval period under redevelopment law is extended to 2 months. The processing period does not begin until all documents required for the examination have been received and can also be extended by up to 3 months in justified cases.

Purchase price review as protection against land speculation

In the case of the legal sale of a plot of land as well as in the case of the creation or sale of a heritable building right, no higher purchase price may be agreed than would result for the plot of land in accordance with § 153 (1) and (2) BauGB (i.e. excluding a redevelopment-related increase in value). In the event of the sale of a plot of land or a condominium, the contractually agreed purchase price is therefore also reviewed as part of the approval procedure under redevelopment law.

The purchase price check serves to avoid land speculation due to the redevelopment-related appreciation and to protect the buyer from excessive land prices. The basis for this is the official standard land value.

Obligations of owners in the redevelopment area

Owners of a property or condominium within a formally defined redevelopment area are obligated to pay a compensation amount to the City of Jena after completion of the redevelopment to finance the redevelopment proportionally. The compensation amount is calculated from the size of the property and the value of the redevelopment-related increase in land value. It thus corresponds to the difference between the "initial value" and the "final value". The initial value is the land value that would have developed without the redevelopment of the area. The final value, on the other hand, contains the land value increase that resulted from the redevelopment measure. The amount of the increase in land value due to redevelopment is determined by the independent expert committee for land values.

Payment of the settlement amount

As a rule, the compensation amount is only payable after completion of the redevelopment and is due one month after receipt of the notice. However, an early redemption of the compensation amount is also possible upon application. You can find further information on the subject of compensation amountsin the service portal.

After completion of the redevelopment measure, the redevelopment statutes are formally cancelled in accordance with § 162 BauGB and the redevelopment note is deleted from the land register. Owners can apply for early release of their property from the redevelopment area in accordance with § 163 BauGB. This application is granted when the goals and purposes of the redevelopment for the property and the building have been achieved.

Grants for various projects are possible

Owners can apply for subsidies from the city of Jena for certain projects. In addition, in a redevelopment area, certain production and acquisition costs as well as maintenance expenses for buildings are tax deductible.

Prerequisite for the granting of subsidies and for the claiming of tax benefits by property owners is the conclusion of a modernisation and repair contract between the city of Jena and the owner before the start of construction.

Comprehensive information on thetax certificate according to redevelopment law can be found in the service portal.