Developers to be given more time to settle planning related dues

Through the introduction of a new permitting system, applicants will be in a position to settle any planning dues only a few weeks before they intend to start works.

Formerly, developers had to pay fees like charges for the Urban Improvement Fund and the Community Parking Scheme and bank guarantees within six months or else face the prospect of having their permit revoked.

Minister Mario de Marco describes this measure as one which  "accommodates the clients as it does not impose the immediate payment of dues". He described this measure as beneficial to owners who do not intend to commence works immediately.

Through the new system of 'non-executable permits', although works cannot start until all due planning fees and bank guarantees are paid, the permit will still have legal validity for the purpose of securing bank loans.

But developers who had built illegally before the permit was issued and were fined for doing so  will still have to pay pending fines before being issued with a non-executable permit.

A Malta Environment and Planning Authority permit is usually valid for five years and works can start at any point within that timeframe. Now developers will have the chance of paying their fees in the period between being issued with a permit and actually commencing works. Yet they will still not be able to commence works before all dues are paid.

So far, MEPA has issued 170 notifications for non-executable permits.

The new legal framework also benefits objectors to developments as they can now immediately exercise their rights in front of the Environment and Planning Review Tribunal on all approved planning application decisions.

A statutory objector, until recently, was not in a position to lodge an appeal against a decision until the decision notice was issued. This led to a delay of six months between MEPA's decision and the chance to appeal.

Most cases relate to planning applications, which get approved subject to the payment of a planning gain contribution or a bank guarantee. A decision notice was only published once the authority received full payment of the planning gain or a bank guarantee.

To address this issue, the authority has started to allow the applicant 30 days to comply with the decision requirements, following which Non-Executable Permission is issued, and the decision will be published in the press.

This new procedure will also ensure that the five-year validity of the permission commences immediately once the decision has been taken and gets published.