"Save Sofia" proposes that the building permit be doubled to reflect the inflation index accumulated over the years. The update is happening for the first time since 2006. “After almost two decades of frozen rates, despite the significant economic and infrastructural changes that Sofia has experienced during this period, "Save Sofia" is taking steps towards solving the problem”, the party said.
“The fee for issuing a building permit is currently calculated based on levels from 18 years ago.” said arch. Rositsa Nikolova, municipal councilor from "Save Sofia" and added “For this period, the inflation reported by the National Statistical Institute is nearly 98.60%. In other words, the real value of these fees is half of what it was in 2006, and the administrative burden on the municipality has increased significantly. The result is: undervalued labor, understated budget revenues and a lack of financial instruments for active management of the construction process.”
With the proposed update, "Save Sofia" introduces new levels of fees that:
Reflect real economic conditions;
Provide the necessary expenses for the administration's work, including salaries, expertise and overhead costs;
Provide additional resources for the Sofia Municipality, which should be used as a priority for the expropriation of land and the construction of technical and educational infrastructure – streets, kindergartens, schools.
Why is this important for Sofia?
“These changes will ensure that builders will reinvest in the environment”, said Boris Bonev and added that fair fees will stimulate more responsible planning by investors, create a more sustainable growth model and return resources to where they are most lacking – in the neighborhoods of Sofia.
The new prices will apply only to future applications – that is, not a single old permit will be affected. This is a correct and predictable decision that respects investor security, explain from "Save Sofia".
What's next?
“We believe that with such reforms the municipality should be not only an administrator, but an active city manager. The funds collected from construction activities should be reinvested where new construction creates a need: in new sidewalks, streets, sewage, public buildings and green spaces.” concluded Boris Bonev, leader of the "Save Sofia" party.