Urban redevelopment as an instrument of urban renewal
Urban renewal bemeans the preservation, improvement, transformation and further development of building structures while at the same time improving their functionality. A distinction is made between urban renewal in defined areas and the property-related modernisation or repair of buildings. Urban renewal in connection with the instrument of an urban redevelopment measure in accordance with § 136 of the Building Code (BauGB) always takes place in a clearly defined area - the redevelopment area. The designation of redevelopment areas is usually applied to the redevelopment of historic city centres (e.g. "Old Town"), structurally special quarters (e.g. "Karl-Liebknecht-Strasse") or areas of urban monument protection (e.g. "Sophienstrasse").
The redevelopment objectives of urban redevelopment differ according to the type of redevelopment area.
Focal points of the redevelopment goals
- Elimination of urban planning deficiencies (e.g. unrenovated streets)
- Preservation and redevelopment of building structures
- Improvement of living and working conditions (e.g. creation of green spaces)
- Improvement of the functionality of an area (e.g. construction of playgrounds)
Existence of urban deplorable conditions as a prerequisite
A prerequisite for the implementation of an urban redevelopment measure is the existence of urban deplorable conditions in the area concerned, which are recorded and assessed in the course of the preparatory investigations. The need for redevelopment is derived on this basis. The formal definition of a redevelopment area and the associated redevelopment goals are determined by resolution (redevelopment statutes). For information purposes, all owners receive a redevelopment note in the land register, which is automatically deleted after the redevelopment area has been cancelled. The redevelopment note indicates that the special redevelopment approval regulations of §§ 144, 145 BauGB apply. The owner does not incur any costs as a result of the redevelopment notice.
Resolution of the redevelopment goals
The first redevelopment goals are decided with the redevelopment statute and can be further specified later in a framework plan.
With the formal designation of redevelopment areas, inclusion in an urban development funding programme in accordance with the Thuringian urban development funding guidelines (ThStBauFR) and thus the use of funding for the implementation of urban development redevelopment is possible.
Use of urban development funds
In order to carry out the urban redevelopment measure and to achieve the redevelopment goals, the use of urban development funds in accordance with § 164 a BauGB is necessary. If the subsidies are provided by federal and state funds, the city of Jena must provide the corresponding municipal share (co-performance share) within the framework of the municipal budget.
Information for owners
Duty to provide information (§ 138 BauGB)
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.
Projects and legal transactions requiring approval (§§ 144, 145 BauGB)
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.
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 (Section 153 (2) BauGB)
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.
Compensatory amounts (§ 154 BauGB)
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 and increased tax depreciation (§§ 7h, 10f and 11a EStG)
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.