HGK on the Law on Management and Maintenance of Buildings: This is also a demographic measure

The Croatian Chamber of Economy strongly supports the proposal of the New Law on Management and Maintenance of Buildings as it will enable better management of residential units for the benefit of tenants, but also contribute to the development of sustainable tourism and a higher quality of tourist accommodation offerings, stated HGK.

Once the legal amendments come into effect, owners of apartments in multi-family buildings who wish to rent their property to tourists or foreign workers will have to obtain the consent of 80 percent of co-owners in the building, a provision of the law that represents the biggest novelty.

– The proposal of the new Law on Management and Maintenance of Buildings can also be viewed as part of the National Housing Policy Plan as it should enable more apartments on the market for long-term housing, consequently leading to lower rental prices. By implementing higher and stricter conditions for short-term rentals, it ensures that residential units serve their original purpose – housing. This is also a demographic measure as it will provide a greater number of residential units for young families, as well as for everyone else – emphasizes Mirjana Čagalj, Vice President of HGK for Construction and Transport.

The Law on Management and Maintenance of Buildings aims to systematically address all issues related to the management and maintenance of buildings, which are undoubtedly essential for achieving the goal of quality housing, as well as protecting the health and lives of citizens.

In the future, a unique identification number (OIB) will be assigned to the community of co-owners (the building) to expedite administrative and judicial procedures and facilitate applications for funds for facade renovations and energy renovations. The amendments to the law also foresee changes in determining the necessary majority of co-owners for making decisions on regular and extraordinary maintenance of the building. For urgent repairs, such as a burst pipe, consent will not be required, which is currently the case. For necessary repairs, such as roof repairs, the consent of 33 percent of co-owners will be required, for regular management, such as selecting a manager or installing an elevator, more than 50 percent, and for investment maintenance, such as repurposing an apartment, the signatures of 80 percent of co-owners will be needed.

The amendments to the law also foresee penalties for construction work that disrupts the building’s structure, closing balconies, and installing devices on the street facade. There will also be the possibility of installing elevators in buildings with three or more floors and co-financing the renovation of the building’s facade.

Additionally, with the aim of combating illegal construction, proposed and adopted amendments to the Law on Construction Inspection and the Law on Communal Economy will empower municipal inspectors of municipalities and cities to act immediately upon learning of projects that are not in accordance with the law.

Furthermore, the law aims to contribute to more efficient action against illegal builders by expanding the powers of municipal inspectors regarding the prevention of illegal construction, considering the problem faced by all local self-government units related to illegal construction, i.e., construction without the necessary permits and the relatively insufficient number of construction inspectors.

– It is of utmost importance to ensure better management of the housing stock and preservation of space, as our most valuable resource – concludes Mirjana Čagalj.