Changing the boundaries of premises in an apartment building

Types of permitted use

The Town Planning Code establishes three options for the types of permitted land use:

• basic;
• conditionally permitted;
• auxiliary.

Basic VRIs are not subject to additional approval from authorities, i.e. the owner has the right to use the land plot in accordance with the type indicated as the main one or one of the main ones, if several are indicated.

Conditionally permitted VRI provide the opportunity to choose the method of using the site, while the conditionally permitted type can be the main one or joint with it.

Auxiliary types of permitted use can only be used as additional to the main or conditionally permitted ones and only together with the main or conditionally permitted types on the territory of one land plot.

You can use a land plot, even if it is owned, only in accordance with the type of its permitted use. For example, if he has a temporary construction project for the construction and operation of warehouse buildings, then it is impossible to build a new one or reconstruct an existing one and then turn it into an office building or residential building, because the purpose will contradict the purposes of using the land plot specified in the GPZU and the Unified State Register of Real Estate.

Important! When changing the VRI, the functional purpose of the building must also be changed to a type that corresponds to the new purposes of using the land plot (in the event that the initial VRI of the land plot and the purpose of the building do not coincide).

Consequences of misuse of land

Payment of fines for misuse of land (in accordance with Part 1 of Article 8.8 of the Code of Administrative Offenses of the Russian Federation)

Requirement to restore the site to its original condition

Recovery of losses caused by misuse of a land plot (in case of damage to the plot as a natural object)

Termination of a land lease agreement or seizure of a land plot from the owner

Demolition of unauthorized construction objects (if there are any on the land plot)

Increase in land tax rate

Legislative regulation of changing the functional purpose of a building

The need to conduct an inspection of building structures is standardized by SP 13-102-2003

According to the joint venture, the inspection is carried out when “increasing operational loads and impacts on structures during redevelopment, modernization and increase in the number of storeys of the building; changing the functional purpose of buildings and structures"

In the case of repurposing an administrative or commercial building into an industrial building, work may be required to increase the load-bearing capacity of the structures so that they can cope with the increasing load or vibration when placing industrial equipment on the floors.

In the case of repurposing an industrial building into a commercial or administrative building, it is necessary to provide in the design documentation all the requirements of regulatory documentation for these buildings (entrances, passages, evacuation routes, etc.).

Procedure for changing the type of permitted use

Changing VRI or adding new ones, incl. conditionally permitted or auxiliary, possibly only from the list established by the town planning regulations and Land Use and Development Rules (PLZ) in force on the territory of the municipality.

The procedure for changing the VRI is as follows:

1. Submission of a Request (application) for the provision of a public service to change one type of permitted use of a site to another.
2. Based on the results of consideration of the applicant’s appeal, the authorized authority issues an administrative act on changing the VRI of the land plot or a reasoned refusal to provide the service.
3. If the decision is positive, changes will be made to the Unified State Register and to the Land Lease Agreement (in case of lease from the city).

The procedure for changing the functional purpose of a building:

In order for the new purpose of a building or structure to be timely legalized and correctly documented, it is necessary to obtain a “Construction Permit” and during construction to comply with all the requirements of the design documentation and the relevant SNiP.

To do this, firstly, you need to order a survey of the building's building structures (often called a “construction survey”). The survey will determine whether it is possible to change the functional purpose of the building.

Time frame for completing work to change the VRI

The period for consideration of the application is from 15 to 50 working days (depending on the need for public hearings and consideration of the issue by the Town Planning Council). The entire process of changing the VRI of a land plot, from submitting the corresponding application to the moment of making changes to the Unified State Register, takes on average from 1.5 to 4 months. If it is necessary to make changes to the PZP, the period is increased to 12 months.

Stages of work

STAGE

Preparation of documents

Title documents for the land plot

STAGE

Submitting an application

• addressed to the Head of the municipality (if territorial planning documents are missing or not approved)
• through the State Land Committee (if the land plot is located in Moscow or territorial planning documents are approved)

STAGE

Passing public hearings

When making changes to the PZZ (if the land plot is located in Moscow or territorial planning documents are approved)

STAGE

Making changes to title documents

• if the land plot is leased - submit an application to the DGI of Moscow
• if the land plot is owned - submit an application to Rosreestr

STAGE

Receiving an Extract from the Unified State Register of Real Estate with amended VRI

Through the portal of state and municipal services or through the MFC

Conditions for reconstruction, redevelopment and redevelopment

Re-equipment and redevelopment of residential premises is a very complex and painstaking procedure that requires compliance with certain rules, including the legalization of changes. In particular, re-equipment and reconstruction of the building is impossible without approval from local authorities. In other cases, the reconstruction is uncoordinated, which requires the owner to legalize the redevelopment of the apartment as soon as possible.

In order for the illegal redevelopment of an apartment to be approved, it is necessary to provide a whole package of documents:

• an application from a person for re-equipment, redevelopment or reconstruction of a residential premises, in which case it is necessary to indicate their types: individual or joint;
• documents that confirm the fact of ownership of the property in which the redevelopment of residential premises is planned;
• an apartment redevelopment project, which will be drawn up and executed in accordance with the procedure established by Russian legislation;
• technical passport of the residential premises, which will be amended to indicate that re-equipment or reconstruction has taken place;
• consent from all owners and family members of the premises within the framework of which the refurbishment or reconstruction will take place, fixed in writing;
• act received from the authority for the protection of architectural, historical and cultural monuments. This act contains information about whether the apartment building is a protected object in which redevelopment of the premises is planned.

According to Art. 26 of the Housing Code of the Russian Federation, the body that issues an agreed upon act or permission to redevelop an apartment does not have the right to demand a different package of documents from the owner of the premises. In other words, the owner only needs to provide the specified list of papers, which will allow the redevelopment of the premises to be legalized. The local government body issues a receipt to the person for receiving the documentation and must make a decision within 5 days - to approve the redevelopment of the premises or to refuse.

After the act or permission to redevelop the apartment is issued by a decision of the local self-government body, the document is sent to the applicant within 3 days. In this case, the act can be sent by mail, which does not contradict the law. Only by observing this procedure can the owner begin to reconstruct the premises, regardless of its types. Otherwise, an uncoordinated, illegal redevelopment of the apartment will be carried out.

Changing the functional purpose of the building

The functional purpose of a building is the permitted ways of using the building, in particular, possible ways of using it to carry out specific types of business and other economic activities.

Important! The functional purpose of a capital construction project must correspond to the VRI of the land plot on which it is located. For example, if on a land plot with the type of permitted use “for the placement of transport service facilities and roadside services” there is a building that, according to the BTI or Unified State Register documents, is a car service center, but is actually used as a warehouse, then in order to put all the title documents in order, it is necessary to change the functional purpose object. Changing the purpose of a building is the re-equipment of an object for another type of activity, different from what was originally provided for by the title documents. In this case, the change must occur simultaneously with a change in the type of permitted use of the land plot or coincide in purpose with the existing VRI.

The main reasons for changing the functional purpose of an object:

• the building is not used for the purposes for which it was built, and its repurposing is required;
• it is necessary to change the purpose of part of the building or only its individual premises.

Changing the functional purpose of the building

Where does it make sense to change the functional purpose of a building?

It should be noted that changing the functional purpose of a building has its own problems. However, under the right circumstances, the economics of this approach work better. To make the numbers work, you need to start by finding the possible value of one or more components of the existing structure that will make the project worth the cost. Often they try to define benefit in terms of “how much would it cost to replace this with that?”

For example, retrofitting a building to code may require seismic surveys, which usually means a significant investment. They may appear excessively high and may prompt the developer to demolish and rebuild the existing building. At the same time, this building may have an elaborate exterior glazing system or some new or updated mechanical system.

When weighing the cost of a glazing or mechanical system against the cost of a seismic survey, the economic benefit may lean toward remodeling or renovation. Each construction site or building is a unique asset, and the first step for those considering a change of function is to identify the element of the existing asset that has monetary value. Often the structures or appearance of a building are preserved because of their good condition. That was the case during a recent renovation project that turned a featureless concrete office building built in the 1960s near LAX into a hotel. The exterior wall structure had ribbed concrete and fiberglass overhangs that gave it a harsh, unattractive appearance.

However, the building's supporting structures were in excellent condition and the utility systems were still operational. After dismantling almost every element of the building and spending approximately $60 million to update the building to modern aesthetic standards, construction of the 260,000 square feet of luxury hotel space was completed in just 16 months, compared to a projected 20 months. 21 months of rebuilding the building from scratch.

The value of the building must work

The location and area of ​​the building in the plan play a key role in whether it is worth considering a change of functional purpose or reconstruction. Sometimes the frame or shell of a building contains the core value, but the structure is oddly shaped or the wrong size. In such cases, the developer should definitely ask whether the building will work from the point of view of the new technological scheme. If not, it may be more cost effective to consider new construction.

In the refurbishment project described above, the building in question had a large amount of square footage that had zero value in terms of the new process or the return on investment of the new hotel function. But the existing frame and glazing were too important. Despite the dead spots, there was enough square footage left to add the necessary number of key elements to make the project economically viable. Conditions for the operation of elements of the facility that carry a certain value were favorable. After a thorough economic assessment, the project was approved.

When does it make sense to change the functional purpose of a building?

There are certain market conditions under which a project is more prone to change of use than to new construction, and vice versa. Secondary and tertiary real estate markets with inconvenient locations or properties located in areas with lower population densities gravitate more towards new construction. Savings from changing the use of a building become more obvious when two interrelated conditions exist: obvious supply and demand for the type of fixed asset in question and a shortage of available real estate in the area.

Changing the functional purpose provides reasoned advantages in saving time and budget compared to new construction under certain conditions: the correct geography in which there is supply and demand for the type of fixed assets in question; there is a major element (or elements) on the site or building that is valuable enough to warrant preservation; suitable location of the building in the plan, on the basis of which a technological diagram is created for the new purpose of the building. If these conditions are met, then changing the functional purpose of the building is a much more attractive option for quickly completing the project than new construction.

Bill Wilhelm is president of RDOlson Construction, an Irvine, California-based general contracting company founded in 1979.

Procedure for changing the purpose of a building

The change of purpose of the building is carried out on the basis of an administrative document (order) issued by the authorized body. If the building or part of it belongs to the city, then you must contact the Moscow City Property Department. If the owner is not the city, then the change of purpose of the building will occur through the BTI.

To change the purpose of a building, you must contact the Moscow City Property Department or BTI, respectively, with a written application and the following package of documents:

• title documents for the object;
• technical certificate;
• a project for the reconstruction and (or) redevelopment of the transferred premises prepared and executed in the prescribed manner (if the reconstruction and (or) redevelopment are required to ensure the use of such premises.

Additionally, approval of the reconstruction and (or) redevelopment project may be required from the supervisory authorities.

Based on the results of consideration of the application, an order will be issued on the possibility of changing the purpose of the building or part of it, or a reasoned refusal will be issued, and the refusal can be appealed in court.

Restrictions on repurposing premises

The premises of preschool institutions cannot be used for other purposes. Each category of real estate and each type of use has its own restrictions on changing their intended purpose.

The repurposing of non-residential premises during purchase and sale or privatization transactions may be prohibited for several years, and changing its purpose during this period is impossible. If this period has expired, you can submit an application to the prefecture, having first collected a package of documents:

• title documents (certificate of ownership, lease agreement);
• for legal entities – copies of constituent documents, charter, extract from the Unified State Register of Legal Entities;
• documents confirming the authority of the manager;
• TIN certificate;
• Bank details;
• a document confirming the absence of debts on utility bills;
• certificate from the State Statistics Committee about OKVED codes;
• current BTI documents - explication, floor plan, certificates of inventory value and technical condition of the premises, extract from the technical passport.