Urban Lands Lease Holding Proclamation No. 80/1993

PROCLAMATION .No. 80/1993 A PROCLAMATION TO PROVIDE FOR THE LEASE HOLDING OF URBAN LANDS WHEHEAS mbun land is 111 p,·escnt owued by the Govllrn• n1ent; ',VHEHEAS iL is ncces,ar; lo prO\'i,!o for !In, utifuativu of urban land iu such munner as can sa1isfy tlw ncuds of th,· variou:1 sc,Liou, oi the populutiou; WHEREAS !he nwnLer of urba.11 dwellers has continued to increase at a high rate of growth thus causing urLau cen tres to expand without plan and f,u·thcr colllplicating the prn• hl<>ms nssociutcd with !he ullocalion ,>f nrhan land; WHEREAS, on the contrary, the firumcial capacity oJ' urban centres l.in~ed on 1·cvcnucs collcctccl. from land nsc fee, und o,ther source■ bus proved inndequa1., to finuucc the buil• ding of infraslructum ant! tlw prodsio.n of :;ociol services It> urlwn dwellers: \VHF'tEi\S. coll:.i<lcriug the· pn•sent shortngu of t!wclling houses iu urbun center~, it is 11cccs.a1·y to expedite Ilic build ing, by various section. of 'urbnn dwcllcu huving different in• come level», of. dwlllling homc:1 uc~-ording to thoir capacilics uml 11cccl.s; ,vHEREAS, i.u particular. it is necess&ry to create a source of revenue for th~ ·purpose of fiuauciug the ~upply of dwell• iug Imus<"> to ,ati•fy !hi' need~ nf low income g1-oups; \VHEH.EAS 11w law prc::,cntly iu furt·t:, .uamt•iv,tiw Guv. l.'!'.illllL'Jll Owucr~hjp of Cr/Jt111 Lm1d.:, uud Exlra-llou:,cs. P.ruduruu~ tioa Xo. 17/ 1975 Jocs Bot provide for the value uf luml utili z:ition lo Le e:,.prcsscd in tl'rrus of money; \'i' 11 Elll.!:i,S. IJL't:ittJ.-c• ol tlii, cm:11111.,l,IIH'<'. 1L I iii., ln-,·1, lound nccPssnry to cn•afi' the couditio11;-; \\ ln·rdJy tlu: right Ju U:":>t; url1t1u lnuti 1·an !1an· 1uarl,et vaJue and I iierel,y !mpl1•JJ1-:JH the free uia:·kl't priuci11k.-:, whkh 11ndl·rliu1· 1 !11' 1:C(Hlua1ic 1 J.,, Iii" -nr th~ 'l'nuhilioa-.,l Lon•nune11t; WHEHEAS, the 11011-ln,11,parcnt applica1iut1 of the [JCrwit '5}Slcm o[ land holding and utilization pruvitl.cd for i11 th~ Proclamation 1·dcn-etl lo above is beset "ith loophole, making it tl:Hicult tu control di,niminatory trl'almt·nt u[ "l'Jllic:u1b am! couupliou; \VHEREAS, lbc HCccl lo promult, t!w ecu11um,c ,:cvdu1, ment of lll'huu ccm1·cs ne,·c,,itates 1h,, eoull·ul uf ap1n·upriatiun of unjustified gµin, 1·caliJ ... ,l during the tra11sfrr uf the l'ight to use urbun land whose value has appreciated: \\'Jil~REA~, it !.s ncee~sary lo la~ dO\\H !la! fr~1UH:\\ul·k \\ ii,,i.iu whfoh Ethiupiun iun:jJo.r,:; cuu purl.iclp.:itc !11 the ceu uumic development of urLan cent.res iu acc1H·<luncc »ilh the Economic Policy of the Ti·unsitionul Govcm111cnl and the laws and n,gulaHons issued fm Llic purpose of implementing said policy; WHEHEAS, il has 1eeu 1·ccog11izctl that inon.lcr iu1• th~ economy of urbun centres to grow und fur their som·ccs of revenue tu cxpuml, those 1d1u build dwelling houses ,rn,l c,to• J.,Jish clev1>lopment ~11tc1·p1·iscs uecJ to hnrn Juutl tcuurc term~ loug enough to ennhle thcnt tv plan dwir ;.u ·li\'tties .iu a,b am..:c, to reco,·cr their capital t'X}H'tHlilure ;uid lo eHjo} :.;.t•rurt: larnl holding:;; \VI-IEHEAS, it ha, h,·cn fouH<l nccc»,1'·) 1u 1,ru,jdc for tho planned <levelopmeut uf u,·Lun centres with a 1·icw lo crca• ting approprjute cumlition, for the pruYisiuu ol health facili ties and other services to urbuu ti\\ cllcrs and for l he ccunomit: development of m·Lan centl'Cs; WHEREAS, inonlc1· to achieve, in a Jmluuccd uiannc,·, the objectives stated abovet it is nece~~ury to issue a hn\· 01, the Jesse holdinl:( or urba11 Jau<ls; NOW. THEllf:l'OlU:, in accorda,11:c \\ith Article 9\J) ul tlic Trau,:ilionnl Pcrh><I Chu1·ter, ii is hereby proclui1ne,I a, f('!Jows: l. Short 1'itie This Procl11mntio11 may be cited as the "Ud,an 1.umh Lensc Holding Proclamation No. 80/199:1. •· 2. Def initim, Iu this Proclamation, unless the coulcxl ulhcrwisc ""1uin,s; 1. ··ul'b:m luu<li' m,•uns all lands 1rithin the hountlarie, of a Lown; :l. •~to,,·11' 1 mc:.lU!1 1.1uy townshi1, wht·rc u u1unicipalily i:, estublishc<l. 01· an urcu which is ,lcsignatetl us u tuwn by the co11corned Natiouul; llt>gioual ::id[-Gun•nunent in consultation \lith the l\lini~try. 3. ''mi11isl1-y'' u1cn1u thc Min isl ry of ,,.-orl..s uml L rhan Dcvelopmrnt. 4. 0 perso11·• u1et.uis any nuturul 01· juri<licul pl•rsun. 3. Scope of ilJJplfrutio11 1. This Proclamation shall not be applicul,lc ,o urban lands previously utilized fo1· building dwelling houses. ~- 'i'hc regulations of urhan land holdiii" for pi·ivak dwelling houses which were in force 0 prior to the caaclmtnt of the present proclamation shull eOtltiuue to be inforce, provided, however, that where a <lwellin1;: house is t1·ansfcrred to another pcxson iu ~·· 1na11uer other thnn inheritnnee, the pe.1·.-;1nl ~~ whom the said hot1.<e is trausfcrn•d ~J~~Ji";: bnd in ::9 ?0:':!nncc ,;,i~i;-;1;1;n~c ho-l~li,;g system !;..~. l'idcd for in this Proclamatio11. · •1. Application fur· Lease llol,/iug of Urban Laud 1. The particulars lo he contained in 1·he applien,ion of auy person who dc~in,s to hold u1·ban land 011 leas,· ,hall Le dctcrw.inecl by dirccth·es to b,) issued by 1mlional/rcgional con,wils. :!. Subjl'cl: lo the pro\ i,-:-iriu.-, of suL•artil'le l of tltis .\.rticle, inn•stors awy unly be n!([tWTtl to -.upply iufunnution which h1h relevance to the 11ia:,tt~r plan of the urLan centre 01· lo the allocation o[ lautl which is appropriate to the type of investment in accor<lnncc with the clh·eetivcs iswe<l by the regional ,;elf-govern ment. A town administration lo which upplicution i3 submitted in accordance with Article 4 of thls P1·oclamaliou shall only grant lease holding permit: a) where the urban centre has a ma,;ler pla.u, in conformity with the land use provisions thereof, or where the urban ccutrc docs not have a master plnn. in accordance with the directivPs issued by the regional self-govcmment; l,) after condw,ting competitive public tendering. I. 'file lown atlu1inblratiou oliall issue w the holder of ! he lease u title docmneul evidencing the cunttacl of lease nt the time o[ leusiug of the urbun lall(l. 2. Tho till,; tloctwicul: ,hall ,•011llli11 thH following pa1·• ticulurs: a) The rnuuc uf lh,, lr.,,cc; Ii) The part of the town whert1 rim fou<l 1s l<wnted; r,) The gru<lc o[ th,· Jan,l; <l) The sue of th" luud anu its bou.udu.rfo,; C) Tho type or USC for which the Inn,! i;, intcmlcrl; f) The <lurnlio11 o{ the lease; g) tho lensc amount and terms of payment. 7. Duratio,i of Lease l. 'l'h<' dnration of 1,m,,, holding uf urban land nl;<f nut rxcMrl: a) lautl lJ1 .~ I !1 le, el 1u·/Ju11 ('l'llll'C:, allotr,·d fllr ',a. J'lOll':, u~c:,: I. dwdliu,; houses: ·) dwdliJJg house~ fur private use 99 ."~ar.-, dwelling huu::;cs fur letliug ()tJ )L'illS 2. indtt-.Lry ()il ) ear:-, a. educutiuu.- science, technology 1 eu [lure, ltealth und :,pOrL-, YO r•~.:u:s ,1·. other, :;u y1•ur:.. ]J) luml in ,Ill, 1,,,,,1 urban c"nlrt,, alloll,·d for ,·ari.oth use~: l. d,"!lling huuscj: C dwelling houses for pl"ivate u~e 9CJ ~ l'lll'.., dwelliug houses for letting ·:u )"U:H':, ., industrr '', .. .... ;o rear~ .,. cJucalio.n, ~c.ieucc, tecluwlogy. eulturo, lwalth an,l ~poi't~ 9•J : l'ar-. .J. ulhcr:; OU "l'~t!":" ") lnud Ill :Jr{l [i,l'cl urba,L c1..,11treb ,,11.,twd tur \ il· rious lb('-.; 1. tlwclliug Luu::,c!i: dweliiug houSL'S for privuli, use 9') year:-. dwelli11g houses for letting :.itl year:, industry 80 ) ear::. ·-· cduculit,u. ::.cicncc, teel1nulogy. v, cultun,, health an<l :;ports 99 ycnt·~ 4. other~ ... 70 ) l'III',"' J) Jund h1 2nd Icn,I urb1111 n·11tn•:; all,,ltcd fo,· ,-a rious uses: 1. dwclliug houses: Q ,!welling house~ for prirntc use . . .... ')Q year: ,., dwelling hou~es for ll'tting 9') Yl'...11 :-i 2. industry ' ... <;0 yi:;11· • .., •,, cdut.:aliuu, jcico.cc, tochuulogy, ~ culture. hc:ilth and Hi10l'l."' 1)9 ) l':ll":, ·(. other~ Bil years e I lnnd in Isl [u, ,,[ urha11 t•CJlll"t.., allollLid fot· various uses: I. d"t•lling huu..;e:. 99 ) L'i.ll'S ~- i11du,lry 9j \"t:11'~ ,,. education, suieuoe, technology, culture, hculth urul spu,·h tp) )l'l.ll':-0 ·J. othcn . . . .. 90 year~ 2. \Vh~rc Hll) urlm11 lurnl is o(fet·,,c[ Lu1 l'lll,li,, ll'11d1·r· ing the tendering shull be coucludL'll a;;, follows: a} lbu dul'ation of the lens<' fixed 1111,l th~ reut pt·r square metre <lete,·mineJ by the upp1·0;,ri,1k .,,,. tioual/rcgional couucil ,;hull be the iuiti:,l l<'nrn, o1 the tendering; h) the highest 1·enl offered al the Pnd of 1111• 1,·,uln ing shall he th,· rent for the laud: c) the appropriate authorit)' shall conducl " puulic lentl<'ring at the place a1111om1e~d L, ,la.r- in advance. :,. At the end of the duration. the lea~L' ,hall, ,·,ccpt where the lam! i,; 1·c,1uired for puhlic l""'i'"'"'· 111· l't'1H:\';ed upuu pnynir1n of the rem•,Hil rent .it ll1c r;,ilt· t:nfun;t• al the time of n.•ncwul. The dur;!fion of rnncwul ::1hall 1,c fixed in aceordaneo wilh --111,-a.rtid, l nf thi• Article, 8. R111, of Rent l. The rule ul rclll u( udrn11 lnnd shall he dt•lc·rn1iucd 1,r lnw issued- by the appropriuil<: national, n·)?i•rnal eouncil taking into nccmmt: a/ the level of the urban ccnl1·c; h) lh,. zoning of th<, u.rLau coulre; uml c) the purpose for which the particular pieee of lnnrl iH to be used. 2. In the case of urban land used for sociui services and low cost houses, the tale of rent pnynblc in uc• ,·orrlnncc with suh-arliele 1 of this Article ;hall l,c low. 3. Notwith.;;tanding suh-u1·ticlc 1 of this Articll'. tht' rate of rent payable in r<'spcct of urlmn lund !easd after the effective tlute hereof shall be determiued by public tendering, provided that. the 1·cu1 dct,·r• mined by public l~01leriug may not be lower titan thut lixctl iu accorduuce with snb-artielc l of this .,rtidc. I. Fol' the pm1,o,,e of iu,plcmcntinµ thi, Articl,·. n) each national/regional self•goverrun,·nt ,l"tll d,•. te1·minc the level of urhan centres within th•· region in aecordanco with the criteria is;;m•d by the Ministry; I,) c:i.ch town administmtion shall classif} urban lands within vhe urbttn centre into zon,:~ 111ul fix their grades in accordance with the directive:; issued by the rcgion11l self•govemment, U1ilizc1tio1< of Urban Land 1. Au, person who has been grunted the right to hol,l uny urbun lund ou loase sbull start IQ utilize the land wilh in th.: time lilnit l'i.xcd by tho :i.ppropriutc national/regional council. :l, Any ud,au luutl held in accordaucc "ith thi, PnJt·· lamation shall be utiliz~d for the purpose indiC'atctl in the title document issued in acconlance with Article 6 of this Prooluruutiou, prodded tlrnt, rnhjcct to the provisions of the maslcr pln11 of th,• urLu11 c,mt1·c, such purpose 1u11y be varied upon the prior written permission of the town u,lministration. JU. Transf,,r i:11d .liar/gag" of Cse-R.ight Suhjcct lu .1.,·rid<•, i um! 9( l) oi: ,iii, l'rodamaliuu, any pc1·son who accruircs the right to hold urLun hioll nu len::i<· 111ay trausfcr or pkdge .such right or contrilrnl<• it in the form of a share lo the cxlcul ol the rcut puid. 2. Where the right to hold laud ou lease is mortgaged, the building on the land an<l its auxiliary facilities ,hall, unlt•ss otlwrwisc dccidctl, «bu l.,c mortgaged; like wise, where llic huil,fo1g nr1<l ii, au:--;iliary foci. litie:; arc mortgaged, the right lo hold the font! 011 !easn shall also Im uwrtguge<l. 3. The lessee nrny nut. on tI·un:;fer u[ his right of lett.~c, collect, income which fa higher thau the rent of laud he pultl; no1· 1uay he niortguge such 1·ight ~t a \'aluc which i:; higher than the rent. ,i. \Vh.:rc the lessee cullects, on trausfcr uf his right of lease, income which is highc1· than the rent Le paid, he has the tluty lo pay the iliifcrcncc to tho towu adminilltrntion. 5. W 11erc a pc:son who has mortgnged his rgiht of lease fails lo fulfil hls obligations under the coutrnct of mortgage, or where he is declared by the court tu Le htu1krupt 1 the utortgagor 1uay trurn,fcr or hi~clf use the .right of lease, the building on the land and its auxiliury Iucilitlcs in uccordnncc with the law. 6. The implemcntutiou of this Artiule shall Lu in uccor• dance with the enactments or rcgulntious issued by regional self-governments. [1. Tcrmiuatiuiz of tire Leu,e Agree11c.e11t. I. Tho lease 11greemcut of au urLun lund may be termi nated for the following 1·easuns: a) fail urn hy the lessee lo utilize the· land in accor• .lance with Article 9 ( 1) o[ this Prnclunuitions; b) when the land is re<1uircd for public purpot,.,;; or c) failure -to pay the renewal rate of rent and lo 1·c11cw the 1eilse agremnent iu acconluncc with A1·ticle 7 { 3) of this Proclam11tiou nt the end of the dui·ntio11 of lhc lcuse. 2. Upon tenui11utio11 of lhc lease ugrecmcnt in uccunl• uuco with suh-Article l ( 11) of the pt·c,;cnt ,\rtidc, rhe umount ol' nml pnid liy the le,,, . ., shall 1 ... l'<'llll'• ned lmek to him after the appropriate d1ul'ges au,l pt:nuhit~S Jrn\'c l,ccu deducted; pru, itl1•d, ho,,·cvcr, 1hut no penally ,hall he pui,l hy lite !.:,,.,,. ii' l'nilnr" to utili:i;,, the l,utd i~ due lo force majcurc. 3. Upon tcnniuution of the fousc U<'rccmcnl iu uccor<l• a11L-.; with A;ticle l (b) or (o) ott11e present Arliclc, the lessee shall 1·cccivc appropriate compn,ation for property on the laml. In addition, I.he lessee shall receive hack amount of renit for the rcmuini11g <lura• tio11 of lht, lease where termination is effected before the c·ml of the ,lurutiou of the lease to use thu lauJ for public piu·poscti or in nccorclance with the nrnstc1· plan. •J. Cpon lermjuution of the lt';i,e ugn:cmL·nt ia """"nl anrn with A1·ticlc l(c) u[ tltc present .- ick, the f,,.;ce shall deliver Lhe laud to the towu :i,lmiuist ra. lion within six moHth, Ly 1·cn10ving ull the property installed on the land. 5. The towu udmin.istrution may take tlw laud 11ith tf1t, property instullecl Ll1t•1·eon if the lessee fail.; t" rc,ur,\"(• liis pi-opcrty frow the la11t[ 1rithin tlic !JCri,ul ,pcci fied iu rnb-nrticlc -1 of ilw pres,•nt Article. l ,1 ( tili:ation uf lncoo,e Frum Leu::,.e 1 ., ..,, Eueh tuwu mluiiut-;tralioa ".>hall u:-:c at ll'nst 90l;,o of 1iw rtffcuu•.: c0He1;tcd front laud lea.:-e iu {1Ct..:onla11<:L· wi1l1 thr.~ Prodauwliuu for hulhling- udli.lU infrastructure ~111d fur 1 he eun.slrucliou uncl cxpuu.,io11 of low <'O:;t huust•::,.. E.r~cptional Circu111sta11ct', The Government may grunt freely or without public ten dering urban land which is 1o be utilized for investment thut the Government cucourages or for social ~crvicc~ establishments or for other purposes which direct!) ucuefil the public, 14. Repeal a11il Inapplicability" l. The Ct1nstruction anti Use of Urban House:; Prndu• mntion No. 292/1986 is hereby rcpcule,.L 2. Any law, regulations or directives which um incon• sistcnt with this Proclamation shall uot :.ipply in re,;· pect of matters provided for in thi:1 Proclamation. 15. 'l'ransitory l'l"ovisions 1. Any person who, prior to tb.c coming into fore~ of this Proclamation lawfully hol<ls un urbuu huiJ other than th11t which is designated for the co-nstructiuu of ,!welling houses, shall upply to the approp1·iut.c town administration within the time specified by the said udministrution iuordcr lo get for the urban lau.t lw holds u lease hoJ<liug tit)e llucun.1enl in m .. ·t•ordunc-t..~ with Artcilc ti of this l'ruclamatiou. 2. Upon receipt o( upplieutiou ia accunlanc,· witlt rnl> urticle 1 of the present Article•, the town admini.,trn· tiun shull issue tu the applicant the ·title documcut after uscertainiug that the applicant is holding the land lawfuJly uud fixing the time withiu which ilw rent shall be pnirl. 16. J>ow~r Tu l.s~ue Regulutiim;; Natioual/Regio,ml Self-Go,·crnmcuts may issue rcgulat.ion, and directiws which are necessary fo1· the implemc1llatio11 of the erO\'isions of this Proclamation in their re,pcctivi, regions. ]7. Effective Date This Proclamation shall enter into force ou the dntc r,f it., puhlicution in the Negn.rit ,Gazet:i. Done at Addis Ababa, this 23rd day of Occcm.Lcr l 99:l. MELES ZENAWl PRBSlDENT OF TUE TRANSITIONAL GOVERNMENT OZ,' ETlllOJ>IA