Ukrainian lawmakers propose extending transition period for zoning reform for 2025 and beyond

In a bid to return more flexibility to Ukraine’s land-use regulations for reconstruction during martial law, the Ukrainian parliament is proposing measures that would allow urban planning functional zones to be established and modified by the “detailed plan of territory” (DPT), the lowest level of urban planning documentation. 

In 2021, Ukrainian lawmakers introduced the Law of Ukraine “on Regulation of Urban Development Activities” (Urban Development Law) and other land-use improvements, which created a transitional period for legislative reform in urban planning, during which the DPT could be used to determine functional zones. 

Lawmakers set a deadline of 1 January 2025 as the deadline for this transition. Because of the importance of maintaining flexibility in urban planning during this crucial juncture, the Ukrainian parliament has drafted legislation to extend the transition period and renewing the DPT as a temporary and flexible tool for developers while addressing zoning issues.

Functional zones and designated use

Two important concepts regulate land use in Ukraine: functional zone and designated use.
Functional zoning refers to a planning method that designates specific functional zones within a territory, such as territories of residential multi-apartment buildings, public development areas, territories of industrial enterprises, etc. Each zone sets limits on permissible land uses to ensure orderly, safe, and sustainable urban development. 

Designated use, in turn, designates a more specific type of use that is narrower than functional zone. The designated use of a land plot, regardless of ownership, must generally comply with the functional zone, with limited exceptions.

Changing the designated use of a land plot is generally allowed, provided that the new use aligns with the functional zoning specified in the relevant urban planning documents.

Special rules during martial law

During martial law in Ukraine, however, there are certain special rules regarding functional zones and designated use, which override the general provisions of the Urban Development Law mentioned above.

Thus, during the legal regime of martial law, the designated use of a land plot can be established or changed without complying with the functional zone of the territory for the placement of certain objects, such as: 

• buildings for temporary residence of internally displaced persons;
• production facilities of enterprises moved (i.e. evacuated) from the combat zone;
• river ports (i.e. terminals) on the Danube River;
• road transport infrastructure facilities (except for road service facilities), power supply networks, gas distribution, water supply, heating, sewerage networks, electronic communication networks, and main gas pipeline facilities;
• temporary storage sites for waste from destruction caused by hostilities, terrorist acts, sabotage or work to eliminate their consequences;
• multimodal terminals and production and transshipment complexes.

Establishment of the functional zone

Functional zones are established by one of the following types of urban planning documents:

• the comprehensive spatial development plan of a territorial community;
• the master plan of a settlement;
• the zoning plan of a territory.

Until 1 January 2025, under the transitional provisions of the Urban Development Law, a DPT can also define a functional zone. This has been widely used in practice because DPTs are narrower in scope, often covering only a portion of a settlement or even a single land plot. They can be prepared faster with less bureaucracy compared to master or comprehensive plans.

In addition, there are certain limitations to making amendments to the above-mentioned documents, such as they could be amended no more than one time per year. A DPT has no such limitation.

Legislative developments: possible reprieve

Removing the DPT’s ability to establish functional zones until the other steps of the reform are completed significantly complicates the construction process. Those steps require the drafting of comprehensive special development plan for each community, digitalising urban planning documentation and transferring this data to the state land cadastre. Recognising the practical implications of this process, Ukrainian lawmakers are considering amendments. Draft Law No. 12283 proposes to extend the transitional provisions of the Urban Development Law allowing DPTs to determine functional zoning. According to the draft, during martial law and for three years after its conclusion, DPTs would once again be allowed to establish functional zones, except in areas where the following has been approved according to the law “On Amendments to Certain Legislative Acts of Ukraine on Land Use Planning”:

• a comprehensive spatial development plan; or
• a master plan of a settlement.

This draft law passed its first reading in parliament and is undergoing preparations for a second reading. If passed, it will temporarily restore a critical planning instrument.

Conclusion

In light of insufficiently developed urban planning documents, the discontinuation of the of DPT as the authorised urban planning document for establishing functional zoning has posed significant difficulties for landowners and users, and has hindered reconstruction. The pending legislative initiative under Draft Law No. 12283 reflects an awareness of the practical implications of this shift. Should the draft law be enacted, it would provide a temporary legal basis for the continued use of DPTs in determining functional zones, with certain exceptions.

For more information on these land-use measures and opportunities in Ukraine’s reconstruction process, contact your CMS client partner or these CMS experts: Natalia Kushniruk.