Ministry of Environment Weighs Legislative Intervention After Landmark NOC Decision

The Ministry of Environment and Energy is deliberating its next steps following the recent decision on the New Building Regulation (NOC). This decision confirmed “prohibitive” provisions, highlighting their lack of alignment with urban planning measures.

To address these concerns, the Ministry aims to reintroduce incentives through local urban planning frameworks, which are currently being developed in partnership with the Technical Chamber of Greece. These plans, expected to be ready within two years, aim to align building regulations with structured urban development.

Supreme Court Decision and Implications

The Supreme Court softened earlier stringent rulings by its Fifth Chamber, referring the matter to plenary judgment. This paves the way for legislative intervention by the Ministry of Environment, with a proposal expected within one to two months.

The Council of State clarified that the issue with the NOC lies not in the increased building factor but in its horizontal application by Building Services. Legal experts note that the decision provides broader protection for building permits and greater flexibility in defining the commencement of construction activities, such as excavation work or notifications to relevant authorities.

The decision also underscores the legislator’s recognition of the economic and social impact of ruling on law after 12 years of application. This acknowledgment appears to guide a more lenient approach to ensure legal certainty.

Legislative Response and Mitigating Economic Impact

Environment and Energy Minister Theodoros Skylakakis emphasized the importance of minimizing the social and economic costs of the ruling. He warned of potential claims and large compensation payments, which could have significant fiscal consequences.

For instance, altering building plans for entire apartment complexes would cause costly delays for property owners. A surge in permit revocations could also negatively affect construction activity, GDP, and tax revenues. The Ministry aims to evaluate these factors thoroughly to craft a balanced response.

The decision affects over 14,000 building permits issued under the NOC’s bonuses, prompting the Ministry to explore ways to safeguard these permits and avoid widespread cancellations.

What’s Safe and What’s at Risk

According to the Council of State’s decision:

• Permits issued before December 11, or for buildings where construction (defined as excavation work) has already started, are considered safe. Evidence such as notifications to authorities and employer declarations to EFKA will serve as proof of commencement.
• Permits that have not initiated construction activities or fail to meet these criteria risk annulment.

Provisions ruled unconstitutional include exemptions for lofts, structures up to 35 square meters on roofs, and equating swimming pools with planted surfaces. However, the non-counting of bay windows in building calculations was upheld as constitutional.

Municipal Reactions

Municipalities are beginning to implement measures in response to the ruling:

• Kifissia: Temporarily suspended permits with unconstitutional provisions. Citizens must now obtain a certificate of continuation from the YDOM to resume work and prove the stage of construction. New permits for basement extensions beyond building contours remain suspended, pending a final decision.
• Alimos: Awaiting the decision to be enacted into law before finalizing its stance. For 43 permits previously suspended, the municipality plans to conduct detailed reviews within the next ten days.

This landmark decision underscores the delicate balance between urban development and legal compliance, as authorities work to mitigate its impact on property owners and the construction industry.