Institute for Real Estate, Construction and Housing, Vienna WPLA Workshop, Vienna, 16 October 2014...

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WPLA Workshop, Vienna, 16 October 2014 1

Institute for Real Estate, Construction and Housing Ltd.PB 2, A 1020 Vienna+43 1 968 [email protected]

Wolfgang Amann

A new strategy to regularize informal settlements Case Study Montenegro

WPLA Workshop “Real Estate Infrastructure – Fit for Use?”Vienna, 16 October 2014



Informal settlements Pobrdje – Rutke:Close neighbourhood of high and low quality



Insufficient infrastructure



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Plenty of touristic facilities



Targets of regularisation

Montenegro Strategy on Informal Settlements:

•Meeting requirements of the Vienna Declaration by 2015

•Reduce earthquake vulnerability

•Touristic development

•Ecological development

•Enforcement of rule of law

•Setting up communal services

•Improvement of individual business opportunities

•Development of a regular real estate market

= a very comprehensive set of targets



A catch 22 has petrified informality

• Parcelling, sale and registration of land, even though it was agricultural land = no DUP

• No DUP – no building permit

• Housing pressure has wiped off rule of law

• Today customary rights vs rule of law

• Incomplete and unprecise cadastre

• Planning standards oriented on green field developments, which cannot be implemented to existing settlements

• Non-registered buildings not possible to consider in the DUP

• Legal requirement to compensate land with market prices

• Compensation with DUP standards unaffordable for the public



Approaches of regularisation

• All over Europe over 2 million people in informal settlements

• Assessment of regularisation approaches in Albania, Croatia, Greece, Macedonia, Portugal, Republic of Srpska, Serbia

• Solutions: regularization, upgrading, resettlement, demolition

• None of the previous approaches provides efficient and streamlined solutions



Current legal action

• Housing Policy Action Plan (2004)

• National Spatial Plan of Montenegro until 2020 (2008)

• Law on Spatial Development and Construction of Structures (2008), reform in preparation

• Change of criminal law to treat informal construction as criminal act

• Few demolition of informal construction in coastal areas and national parks

• Donor assistance of GIZ, UNDP, WB



Pilot projects with new approach on regularisation

1) Support of existing strengths of the settlements: high level of self-organisation, social integration, non-motorised access, efficient grid of footpaths

2) Make sure that all settlers pay communal fees = payment obligation before legalisation

3) Regularisation with least possible interventions to the existing ownership structure

4) Efficient but lean traffic infrastructure

5) Alternative planning standards

6) Immediate investments by the municipality



Need for an updated site plan

• ≠ cadastre mapdocumentation of buildings does not mean registration

• = technical basis for a Spatial Urban Plan

• Including precise plot boundaries, volume and use of buildings, estimates of gross floor space, existing public and private roads and footpaths

• Basis for levy of communal fees



Spatial Urbanistic Plan

• On the basis of an updated site plan

• Including technical infrastructure plan, trafic plan, hydrotechnical plan etc.

• Definition of buildings to be removed

• Definition of alternative planning standards

• Basis for regularisation



Traffic plan

• Improved access to the Project areas

• Infrastructure corridors: existing roads, minimum new roads

• Grid of small roads and footpaths

• Legal access to each parcel even on private footpaths (with a right of way)

• No parking on public space, beside of payable lots at the outskirts

• Design of public space to create identification



Technical infrastructure

• Hydrotechnical plan

• Water, electricity, streetlights etc. is available but requires renewal – infrastructure corridors

• Sewerage: main collectors in infrastructure corridors, obligation to connect individual houses within e.g. 10 years

• Public transport



Steps of regularisation

• Spatial Urbanistic Plan

• Raising communal fees on the basis of real use and registration of land (regardless building permit or registration of the building in cadastre)

• Communal fees for accepted buildings on public land on the basis of heritable building rights

• Non-registered building land will be changed to agricultural land

• Cadastral registration with retroactive occupancy permit on the basis of alternative planning standards (urbanistic and constructive minimum standards)

• Financial and fiscal incentives



Retroactive occupancy permits

• Concordance with the Spatial Urbanistic Plan

• Minimum access to the plot: at least with a footpath with a right of way, maximum distance to an evacuation road

• Right of way with clear rules, no compensation

• Structural safety and seismic stability

• Access to technical infrastructure

• Finishing of construction works

• Sufficient parking lots on private land

• Maximum density

• Streamlined procedure

• Communal fee payment with different models

Institute for Real Estate, Construction and Housing, Vienna WPLA Workshop, Vienna, 16 October 2014...

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