Since the day of its adoption, the Law on Special Conditions for the Implementation of the Project for Construction of Apartments for Members of the Security Forces (“the Law“) represents a matter of general interest for strengthening the National Security System of the Republic of Serbia, and all procedures conducted based on this Law are considered urgent.
Two years after the last amendments came into force, the National Assembly of the Republic of Serbia adopted the Law on Amendments and Supplements to the Law on Special Conditions for the Implementation of Housing Construction Projects for Members of Security Forces on 27 July 2023, which entered into force on 3 August 2023.
According to the prior version of the Law, the purchase price of an apartment at each specific location is determined by a Commission established by the Government of the Republic of Serbia and this price could not exceed EUR 500 per square meter of the apartment in dinar equivalent at the middle exchange rate of the National Bank of Serbia on the day of the conclusion of sale and purchase agreement, excluding value-added tax.
With the adopted amendments, the purchase price of an apartment at each specific location is determined by a mentioned Commission established by the Government, based on conditions also prescribed by the Government and which will be determined for each specific location, now without the limitation of the purchase price of EUR 500.
All procedures initiated before the date of entry into force of these amendments to the Law will be concluded according to the provisions of the newly adopted amendments to the Law.
Pursuant to explanation of the Proposal for Amendments to the Law, the main reason for these amendments is the emergence of circumstances that could negatively impact the success of the entire project implementation. This mostly refers to significant inflationary pressures that have been present from January 2021 until now, manifested in (i) dynamic nominal wage growth, (ii) rising financing costs, (iii) difficulties in procuring necessary materials and equipment, (iv) inability to assess risks for contractors’ work, and (v) increased overall business risks. Extraordinary events like the COVID-19 pandemic, the war conflict in Ukraine and energy crises have seriously affected the global economy, consequently impacting the economic situation in the Republic of Serbia.
Finally, it should be noted that the scope of contracted works includes the construction of 5,953 aparment units, out of which 5,267 apartments have been built, and there are still 686 apartment units under the construction.
The Law on Special Conditions for the Construction of Apartments for Security Force Members stands as a pivotal instrument in enhancing the National Security System, and with recent amendments reflecting a dynamic response to evolving in economic challenges while advancing the projects’s goals.
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