Law, crime

Developer ordered to pay Lviv over UAH 366,000 in infrastructure contribution

The construction companies corporation “Karpatbud” must return over UAH 366,000 in infrastructure contribution to the budget of the Lviv city community. This decision was taken by the Western Commercial Court of Appeal, as reported by the Legal Department of Lviv City Council.

If this decision is not appealed in cassation, the funds will be transferred to the city budget.

The Legal Department also reported that this week the courts in Lviv will hear a further 11 cases concerning the recovery from developers of funds due as infrastructure contributions. The total amount of claims in these cases exceeds UAH 51 million.

These are funds that developers were obliged to pay to the community for the development of the city infrastructure. Such contributions were directed towards the construction and modernisation of utility networks, roads, schools, nursery schools and other social facilities.

Until 2021, legislation required developers to pay an infrastructure contribution towards the development of the infrastructure of the locality where construction was taking place. The amount of the contribution depended on the type of facility, and it had to be paid before the building was put into operation.

Because some developers failed to meet these obligations, the city budget did not receive substantial sums. Therefore, Lviv City Council continues to defend the interests of the community in the courts and to seek the return of funds that should be used for the development of the city infrastructure.