We would like to present the overview of the most important St. Petersburg legislation changes in real estate for 2016.

New St. Petersburg Land Use and Development Rules New combined protection zones of cultural heritage sites in St. Petersburg Decision to draft changes to the St. Petersburg General Plan Approval of the architectural-planning appearance of a residential property LPUDP issuance procedure New category of strategic investment projects Integrated System of the St. Petersburg Construction Complex Real Estate. Major Russian legislation changes for 2016

New St. Petersburg Land Use and Development Rules

On June 30, 2016 new St. Petersburg Land Use and Development Rules (“LUDR”) entered into force, including, among other things, the new town-planning zoning map, height regulation and updated town-planning regulations.

According to Clause 4.6 of the LUDR, territorial planning designs (“TPD”) and territorial site designs (“TSD”) approved prior to the entry into force of the LUDR must be brought into compliance with the LUDR prior to expiration of the target deadline for the St. Petersburg General Plan (by 2018). The LUDR envision that until such time as compliance is achieved, the TPD and TSD shall be applied in the event of a discrepancy between the respective acts. The LUDR also establish that the land plot urban-development plans (the “LPUDP”) must indicate development parameters pursuant to the TPD and TSD approved prior to the entry into force of the LUDR.

It should be noted that according to publicly available information, there are plans in 2017 to make the first changes to the LUDR, including with respect to town-planning regulations in combined protection zones of cultural heritage sites in St. Petersburg.

New combined protection zones of cultural heritage sites in St. Petersburg

St. Petersburg Law No. 437-83 on Amendments to the St. Petersburg Law on the Boundaries of Protection Zones for Cultural Heritage Sites in St. Petersburg and Regulations for Using Land Within the Boundaries of Said Zones and on Amendments to the St. Petersburg Law on the General Plan of St. Petersburg and the Boundaries of Protection Zones for Cultural Heritage Sites in St. Petersburg of July 7, 2016

The law entered into force on January 15, 2017. The law affirms new categories of combined protection zones for cultural heritage sites in St. Petersburg.

The law contains a map of the boundaries of such protection zones, a map of height regulations, and the general requirements governing the town-planning regulations for the respective protection zones. The specific requirements to town-planning regulations are subject to elaboration and approval as part of the LUDR.

With respect to the requirements governing town-planning activity on land plots within the boundaries of protection zones, the law prevails over the LUDR.

Pursuant to the Law, its restrictions will not be applicable to land plots for which building permits were obtained before January 15, 2017.

Decision to draft changes to the St. Petersburg General Plan

St. Petersburg Government Resolution No. 795 on the Drafting of the St. Petersburg Draft Law on Amendments to the St. Petersburg Law on the St. Petersburg General Plan of September 14, 2016

Pursuant to the resolution, which entered into force on September 14, 2016, the draft law on amendment of the General Plan must be drafted by the Committee for City Planning and Architecture (KGA) by September 1, 2018.

Approval of the architectural-planning appearance of a residential property

St. Petersburg Law No. 692-147 on the Procedure for the Rendering of Decisions on Approval of the Architectural-Planning Appearance of a Residential Property of December 2, 2015

On January 18, 2016 a St. Petersburg Law entered into force that makes it necessary to obtain a decision on approval of the architectural-planning appearance of a residential property before the approval of the LPUDP.

The following were adopted in furtherance of the provisions of the St. Petersburg Law:

Instruction of the Committee for City Planning and Architecture No. 209-1 on the Set and Form of Materials of the Architectural-Planning Appearance of a Residential Property of February 5, 2016

The Instruction approved the set of textual and graphic parts of the materials to be submitted for approval, as well as the requirements to their form.

Developers have criticized these requirements, including because the requirements provided for the submission of information that can only be obtained at the design stage, not at the stage of getting the LPUDP.

Thus, the requirements to the textual and graphic parts of the materials were already adjusted by way of adoption in November:

Instruction of the Committee for City Planning and Architecture No. 209-25 of November 10, 2016, on Amendments to Instruction of the Committee for City Planning and Architecture No. 209-1 of February 5, 2016

Among other things, the Instruction eliminated from the textual part of the materials: the description of the compositional techniques and facade concepts of the facility and the architectural objects surrounding it; other information about the land plot and the facility (area of the land plot, building footprint, information about planned greenery, parking spaces, premises area, total area of apartments, integrated premises and their types).

Also, in September the KGA approved the Administrative Regulation for Provision of State Services for the Rendering of Decisions on Approval of the Architectural-Planning Appearance of a Residential Property:

Instruction of the Committee for City Planning and Architecture No. 9-n on Affirmation of the Administrative Regulation of the Committee for City Planning and Architecture for Provision of State Services for the Rendering of Decisions on Approval of the Architectural-Planning Appearance of a Residential Property of September 27, 2016

The instruction, which entered into force on October 8, 2016, affirmed the form of the approval statement, the forms of conclusions on the approval of deviations, and a list of materials to be submitted for approval.

LPUDP issuance procedure

Instruction of the Committee for City Planning and Architecture No. 11-n on Affirmation of the Administrative Regulation of the Committee for City Planning and Architecture for Provision of State Services to Draft, Approve and Issue Urban Development Plans of Land Plots of November 15, 2016

A new Administrative Regulation has been in effect since November 15, 2016 for providing the state service to draft, approve and issue LPUDP.

Among new developments it is worth noting that the time for drafting an LPUDP has been cut from eight to seven days, and a new procedure has also appeared: correction of technical errors in LPUDP. The procedure for correcting errors in previously issued LPUDP is initiated by the relevant interested party. The maximum time for correction is five days. The result is either a refusal by sending a notice that there are no grounds to correct the error, or issuance of a new, corrected LPUDP.

The KGA has a separate obligation if it receives information from the St. Petersburg executive authorities that there is a technical error in an LPUDP to send a notice of this to the applicant who obtained the LPUDP.

New category of strategic investment projects

The list of projects eligible for the assignment of strategic-investment status1 now includes hotel projects with investments of at least RUB 1.5 billion.

The law entered into force on March 1, 2016.

1 Among other things, this status confers the right to receive a land plot without the need for tender, and also constitutes grounds for the application of preferential lease fees and reduced buy-out prices for the plot upon completion of construction.

Integrated System of the St. Petersburg Construction Complex

The Integrated System of the St. Petersburg Construction Complex (the “System”) is intended to lower administrative barriers in construction and will contain information about all processes related to construction, and will allow developers to get building permits in electronic form.

The main subdivisions of the System will be: a construction portal, a registry of construction procedures, a registry of capital constructions planned for St. Petersburg, document flow, generation of and compliance with regulations, integration and other necessary resources.

According to the publicly available information, the System is currently being actively developed. It is anticipated that the System will begin to work in the first quarter of 2017.