Social Conservation Areas

Social preservation ordinances are used in inner-city areas that are under strong upgrading and displacement pressure.

In particular, luxury modernizations, the conversion of rental apartments into condominiums and the sale of complete residential buildings threaten the long-established population structures in these districts. In particular, people with low incomes are threatened by displacement into areas that are already partly characterized by economically weak sections of the population.
The Social Preservation Ordinance in combination with the Conversion Ordinance is the only possibility provided by the legislature to limit costly modernizations and, above all, to restrict speculative conversion and sales activities.
Owners whose buildings are in social conservation areas must apply for the following projects:

• Demolition of buildings or parts of buildings,
• Construction or modernization measures, i.e. conversions, extensions and extensions that increase the residential value and lead to rent increases (e.g. installation of balconies or elevators, extensive floor plan changes, expansion through loft extensions, etc.)
• Changes in the type of use (e.g. conversion of rental apartments into office space),
• Conversion of rental apartments into condominiums.

The above-mentioned projects must be applied for at the relevant district office. There it is checked whether the intended measures are likely to have negative effects on the composition of the population. In the case of modernization applications, this depends crucially on the scope of the planned construction work and the associated increase in residential value.
Modernization applications have to be approved if a contemporary furnishing of an apartment typical of the area is to be produced.
It should be noted that the Social Preservation Ordinance is not a tenant protection instrument and has no influence on general rent increases that are not related to construction measures.
In the case of planned conversions of rental apartments into condominiums that have to be applied for, the responsible district office checks whether the owners are acting with speculative intent with the corresponding disadvantages for the tenants. As a rule, the permit is not granted, as a conversion could result in a change in the structure of the residents in the short or medium term.
However, there are exceptions to be noted, especially if the owner undertakes to only sell the apartments to the tenants within 7 years of the conversion.
In areas with a social preservation ordinance, the right of first refusal can also be exercised to protect the social structure. Every time a building is sold, it is examined whether the new owner's speculative intentions (planned conversions, rent increases, etc.) endanger the maintenance goals.
The relevant district office and the tax authority are responsible for exercising the right of first refusal