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Land use agreements

When a town plan is being prepared or revised, the municipality and the landowners affected by the town plan agree upon their respective rights and obligations related to the realisation of the town plan. Landowners are obligated to bear some of the costs of civil construction resulting from the implementation of the town plan.

The city will always prepare a land use agreement with a landowner when a town plan, a revision of a town plan or related deviation permit or planning need decision results in considerable financial gain for the landowner.

The minimum limit for considerable financial gain that requires the preparation of a land use agreement is 700,000 euros. However, in the case of complementary construction carried out in city blocks consisting of residential flats in accordance with existing town plans (designation AK, AKR or A in the plan), the minimum limit for considerable financial gain is 1,000,000 euros.

When the first version of a town plan is being prepared or a planning need decision is being made, the landowner agrees by the land use agreement to pay the city 50% of the increase in value that exceeds seven hundred thousand (700,000) euros.
When a town plan is being revised or a deviation decision is being made, the landowner agrees to pay the city 35% of the increase in value that exceeds 700,000 euros. In the case of plan revision for the purpose of complementary construction or similar deviation decisions that have to do with the construction of housing, the compensation is calculated from an increase in value that exceeds one million (1,000,000) euros.

In addition to the compensation, the landowner is obligated to hand over all the public areas designated in the town plan that he or she owns to the city free of charge, up to a maximum of 50% of the total land area owned by the landowner in the town plan area. The land area of the public areas handed over to the city free of charge cannot exceed the landowner’s designated building volume in the town plan area.

The agreement is prepared at the Urban Environment Division's Plot Office once the City Planning Board has approved the town plan revision proposal.

More information about land use agreements:

The Urban Environment Division, Land Property Development and Plots

tontti@hel.fi








15.12.2021 16:06