Prime Minister Moustafa Madbouly has issued the executive regulations for a temporary bill to settle building code violations, aiming to take into account the social dimension and public interest, while reconciling with violators and legalizing the status of their properties, Invest-Gate reports.
The statute warrants fines of 5-100% of the land plot’s value to be imposed in case of building code violations. The fine breakdown includes a 5% fine levied if the building does not follow the stipulated architectural plan, a 20% penalty if it does not conform to the construction plan, or a 25% forfeit if neither plans are followed, but the building still abides by regulations limiting plot size and number of stories, Minister of Housing, Utilities, and Urban Communities Assem El Gazzar said in an official statement on July 9.
However, a 50% fine will be charged if the property follows the building code but has been built without a permit. Another 100% penalty can be applied if the house violates the building code, is constructed without a permit, and is built in an unsuitable area, El Gazzar further revealed.
The minister noted that fees for requesting settlement are capped at EGP 5,000. Fines, however, can be paid over quarterly installments over a maximum of three years after paying a minimum of 25% of the fine upfront.
Additionally, First Deputy to Minister of Housing Nafisa Hashem explained that a committee, consisting of two accredited real estate experts from the Financial Regulatory Authority’s registry, two delegates from the competent administrative body, alongside a representative of the finance ministry, will value the impeached land parcels.
El Gazzar will mandate forming a committee, represented by the housing ministry, to respond to the queries of the administrative bodies and committees, formed in accordance with the provisions of the law, endeavoring to overcome any obstacles or problems that may be endured in the process, Hashem indicated.
On January 25, Egyptian parliament’s General Committee gave a preliminary approval for the draft law on reconciliation in building violations, which is expected to provide the government with roughly EGP 150 bn when issued, according to a previous statement.
Under the new act, proceeds of the reconciliation shall be allocated to the public treasury as follows: 15% of the value of settlement will be allocated for the Social Housing Fund and development projects, 30% for infrastructure projects, 7% for the establishment of parking spaces, 10% for the administrative bodies to be directed to removal of occupancy and violating buildings, and 3% to reward members of state committees and employees in the competent administrative authority.