Remediation measures
Upgrading the cityscape
Redevelopment measures are used to remedy urban planning deficiencies in an area. They consist of numerous individual structural measures which, in the form of a uniform concept, can enhance the area as a whole.
The city enters a redevelopment note in the land register if the property is located in a redevelopment area. It points out that urban redevelopment is being carried out and that the provisions of the German Building Code, in particular the special urban development law pursuant to Sections 136 et seq. BauGB must be observed.
The City of Hof has appointed Stadterneuerung Hof GmbH as the redevelopment agency to carry out the urban redevelopment measures. You can find out exactly what tasks are being undertaken on the Stadterneuerung website.
Approval requirement under redevelopment law
General principles
Measures requiring approval in formally defined redevelopment areas pursuant to Section 144 (1) BauGB are:
- Construction, alteration, change of use or demolition of buildings; large-scale fillings and excavations as well as excavations and deposits.
- significant or substantial changes to the value of land and buildings,
- Agreements by which a contractual relationship under the law of obligations is entered into or extended for a definite period of more than one year for the use or occupation of a plot of land, building or part of a building.
Projects requiring approval pursuant to Section 144 (2) BauGB are:
- the legal sale of a plot of land and the creation and sale of a heritable building right
- the encumbrance of real property (so-called rights in rem), insofar as they are not connected with the implementation of construction measures within the meaning of the objectives of redevelopment (Section 148 (2) BauGB)
- a contract under the law of obligations, by which an obligation to one of the aforementioned two legal transactions is established; if the contract under the law of obligations has been approved, the legal transaction in rem carried out in execution of this contract shall also be deemed to have been approved;
- the creation, modification or cancellation of a building encumbrance
- the division of a plot of land
Tax benefits
Guidelines of the Income Tax Act
The owner has the option of claiming increased tax deductions or special expenses from the relevant tax office in a formally defined redevelopment area (§ 142 BauGB), an urban development area (§ 169 BauGB) or in the case of a listed building, if he makes investments in his building. The Income Tax Act must be observed here.
- § 7h Income Tax Act (EStG) - Increased deductions for buildings in redevelopment areas and urban development areas -
- § Section 10 f of the German Income Tax Act (EStG) - Tax allowances for listed buildings used for residential purposes and for buildings in redevelopment areas and urban development areas.
- § Section 11 a of the Income Tax Act (EStG) - special treatment of maintenance expenses for buildings in redevelopment areas and urban development areas.
Compensation amount - early redemption
Cost sharing for the property owner
Pursuant to Section 154 (1) of the German Building Code (BauGB), the owner of a property in a formally defined redevelopment area is obliged to pay the City of Hof a monetary compensation amount to finance the redevelopment.
With the compensation amount, the owner of property in a formally defined redevelopment area participates in the costs of the redevelopment measure. The compensation amount corresponds to the difference (increase) in the land value of the properties. The difference is calculated from the land value before the start of the redevelopment measures and the higher land value caused by the redevelopment measures in the entire redevelopment area. The assessment of the compensation amount is based on an exact valuation by the appraisal committee for the area of the city of Hof.
