The law also affects sectoral regulations that, although not central, are relevant to commercial, office, or mixed-use developments.
The New Framework Law on Sectoral Authorizations (LMAS), published in October this year, is not an abstract regulation; its provisions directly modify the legal bodies that govern day-to-day real estate and construction activity.
The most relevant impacts are detailed below.
- Urban Planning and Construction: The Upcoming Reform of the OGUC
The law explicitly mandates the Ministry of Housing and Urban Planning to issue, within nine months of the publication of the LMAS, the necessary amendments to the General Ordinance on Urban Planning and Construction (hereinafter, “OGUC”) to align it with the principles of the new framework law. This is one of the most critical milestones for the sector.
It is anticipated that the amendments to the OGUC will incorporate standardized and mandatory processing times for building permits and other actions, and potentially introduce THA for less complex authorizations.
It is imperative to establish a regulatory monitoring protocol to closely follow the drafting of these amendments, participate in public consultation forums if possible, and prepare the organization for the implementation of the new rules that will govern the core of construction activity.
2. Sanitary Code: A Gradual Implementation of Self-Declaration
The LMAS modifies the Sanitary Code to replace a series of authorizations with sworn statements. This will directly impact the approval of drinking water systems, sewage systems, waste management, and other sanitary facilities crucial to any project.
However, this transition will not be immediate. The implementation has been designed in four stages, with specific regulations for different matters to be issued 7, 12, and 18 months after the law’s publication.
3. Water Code: Reform of Procedures and New Actors
For developments involving water resource management, the LMAS introduces a profound reform of the Water Code.
The changes include: (i) the possibility of using sworn statements for certain authorizations; (ii) a comprehensive reform of the procedures for establishing water rights and authorizing the construction of major hydraulic works, river defense works, and water intakes; and (iii) the recognition of “external professional reviewers.”
The introduction of external reviewers, whose report content will be defined by the General Water Directorate within six months, could create a new private market for technical certification. This could speed up reviews, but it will also require the company to develop processes for selecting and validating these new consultants, whose competence will directly impact the legal viability of projects.
The timeline for these reforms is complex, with milestones at 6, 7, 9, and 12 months, reinforcing the need for detailed planning.
4. Telecommunications and Other Sectoral Impacts
The law also affects sectoral regulations that, although not central, are relevant to commercial, office, or mixed-use developments. A clear example is the amendment to the telecommunications law, where new rules to enforce administrative silence in permits for antenna support towers take effect in just six months.
In this way, the LMAS redefines procedures, deadlines, and responsibilities in multiple regulatory areas, so its implementation will require companies to constantly monitor upcoming regulations and reforms, as well as adequate internal preparation to adapt to a more standardized system with greater management and technical compliance requirements.
For more information on the Framework Law on Sectoral Authorizations, please contact our team:
Álvaro Rosenblut | Partner | arosenblut@az.cl
Antonio Rubilar | Partner | arubilar@az.cl
Federico Rodríguez | Energy and Infrastructure Director | frodriguezm@az.cl
Gonzalo Bravo | Senior Associate Public Law and Regulated Markets Group | gbravo@az.cl
Ramiro Araya | Senior Associate Public Law and Regulated Markets Group | raraya@az.cl
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