Placepoint

Utbyggingsavtale

An utbyggingsavtale (development agreement) is an agreement between the municipality and a landowner or developer on carrying out a land use plan. It is used to set out who funds and builds the infrastructure that the reguleringsplan (zoning plan) or the land use element of the kommuneplan (municipal master plan) assumes. The legal basis is set out in plan- og bygningsloven chapter 17 (the Planning and Building Act), specifically section 17-1, which defines what a development agreement is and what it can be used for.

Before the municipality can enter into such an agreement, the municipal council must first pass a predictability resolution under section 17-2. The resolution states publicly which areas, which measures and which cost allocations the municipality expects in future agreements. Negotiations that start before the predictability resolution make the agreement invalid. The agreement itself is decided politically and published under section 17-6, with a 30 day public inspection period before it is signed.

There are clear limits on what the municipality can require. Under section 17-3, the measures must be necessary as a result of the development, and under section 17-4 the contributions must be in "reasonable proportion to the nature and scale of the development" (the proportionality requirement). Social infrastructure (schools, care homes, kindergartens) cannot be shifted onto the developer, because these are statutory municipal duties funded through the block grant. Agreements that go beyond this scope can be set aside in full under avtaleloven section 36 (the Contracts Act), and Sivilombudet (the Parliamentary Ombud) interprets the proportionality requirement strictly.

A development agreement typically covers:

  • roads and pavements, footpaths and cycle paths
  • water and wastewater systems
  • parks, playgrounds and green corridors
  • rekkefølgebestemmelser (sequencing provisions) in the reguleringsplan
  • funding allocation and timetable
  • security provided by the developer

The financial part of the agreement is often called utbyggingsbidrag (development contribution). Kommunal- og distriktsdepartementet has published guidance H-2401, which recommends drawing a clear line between the duty to build under section 18-1 and voluntary contributions in the development agreement. The two have different legal bases and can be challenged in different ways.

Development agreements are public documents and are often attached to the reguleringsplan in the municipal planning register.

From Placepoint's dictionary: Utbyggingsavtale

More information: Lovdata: Plan- og bygningsloven chapter 17, Regjeringen: Kommunal- og distriktsdepartementet, Store norske leksikon: utbyggingsavtale

English: Development agreement (between developer and municipality, per Plan- og bygningsloven).

Common questions we come across

What is an utbyggingsavtale?

An utbyggingsavtale is an agreement between the municipality and the developer on carrying out measures linked to a reguleringsplan. It is used to set out who funds and builds the infrastructure.

What is the legal basis for development agreements?

Development agreements are based on plan- og bygningsloven section 17-3. The municipality can only require measures that are directly linked to the development, not measures outside the plan area that are not necessary.

What can a development agreement cover?

A development agreement can include requirements for roads, water and wastewater systems, parks, footpaths, play areas and other infrastructure needed for the development. Rekkefølgebestemmelser are often handled here.

Can the municipality require anything it wants in a development agreement?

The municipality cannot require the developer to fund measures outside the plan area that are not directly necessary for the development. Unreasonable requirements can be appealed and set aside.

How do I find development agreements for a project?

Development agreements are public documents and are often attached to the reguleringsplan. Placepoint gives you access to the reguleringsplan, and the content of the agreement itself must be obtained from the municipality's planning system.