Implementation of a new expropriation procedure
Until now, only buildings that had been subject to a safety order or an order to address unsanitary conditions—which mandated demolition or a permanent ban on occupancy—could be expropriated.
The “Renovation of Deteriorated Housing” Act now establishes a new mechanism allowing for the expropriation of substandard buildings that, although they have been subject to at least two orders in the past 10 years, are not in a state of irreparable deterioration requiring their demolition.
This applies to buildings requiring restoration measures to prevent further deterioration and for which a relocation plan has been established.
To calculate the compensation owed to the owner, the value of the property is then estimated either by reference to property transfers or amicable agreements involving comparable properties located in the same area; or, when such references are insufficient, by reference to property transfers or out-of-court settlements involving higher-quality properties, with a deduction determined based on the depreciation resulting from the property’s deterioration and unfitness for habitation.
