Equalization amount - early redemption

What is a compensation amount and how is it calculated?

The compensation amount represents a contribution to the costs of the redevelopment measure by the properties located in a redevelopment area. It corresponds to the increase in the land value of the properties caused by the construction and redevelopment measures initiated as a result of the redevelopment.

The values on which the compensation amount is based are determined by an expert in consultation with the expert committee for land values for the Saale-Holzland district, the Saale-Orla district and the independent city of Jena, whose office is located at the Thuringian State Office for Land Management and Geoinformation in Pößneck, following an exact valuation. The amount determined depends on the extent to which the individual redevelopment measures in the neighborhood and in the redevelopment area have influenced the value of the respective property.

When is a compensation amount due?

As a rule, the legally prescribed compensation amount is not levied until all the planned measures in the redevelopment area have been completed by means of a formal notice. However, the legislator also allows for the possibility of early formal determination (Section 154 (3) sentence 3 BauGB) or early voluntary redemption (Section 154 (3) sentence 2 BauGB) of the compensation amount.

In the case of a redemption, the redevelopment-related increase in land value is determined for the property in question until the expected completion of the entire redevelopment measure. The redemption of the compensation amount requires a written agreement with the City of Jena. To express your interest in such an agreement, please get in touch with the contact persons listed.

Advantages of a voluntary early redemption of the equalization amount

An early redemption of the equalization amount by the property owner could be financially advantageous under certain circumstances. The expert committee produces a new standard land value map every two years. Upon submission of the new standard land value map, the newly determined standard land value is used to calculate the compensation amount under redevelopment law.

In order to support affected property owners in paying the compensation amount and to provide an additional incentive for its early redemption, it is possible to grant discounts on the expected compensation amount depending on the duration of the respective area.

The corresponding resolution of the city council provides for the following discounts:

"Sophienstraße" redevelopment area (implementation deadline 31.12.2026)

Redevelopment area "Unteraue industrial estate" (implementation deadline 31.12.2026)

Redevelopment area "Model urban renewal project" (old town) without sub-area "Northern inner city" (implementation deadline 31.12.2031)

Redevelopment area "Karl-Liebknecht-Straße" (implementation deadline 31.12.2031)

Redevelopment area "Western inner city" (implementation deadline 31.12.2032)

Once the equalization amount has been redeemed, the obligation to obtain approval under redevelopment law for property purchase agreements also ceases to apply. In the event of a possible sale of the property, the owner is then no longer bound by the price fixing under redevelopment law.

A redemption agreement creates amicable and final legal certainty for both parties. With the redemption, the obligation of a property owner to pay a compensation amount is also fulfilled for the future. Compensation amounts can then no longer be levied by notice. Additional payments as well as reclaims are excluded. Properties can then be sold "free of equalization amounts".

This will also significantly reduce the administrative burden.

The payment modalities (installments, payment dates) can be agreed flexibly. By contrast, the compensation amount determined by means of a notice following the revocation of the redevelopment statutes is due one month after the notice is issued - even in the event of an objection.

Depending on the individual case, the redevelopment of the property can also be declared fully completed after redemption and the property can thus be formally released from the redevelopment ahead of schedule.

This would mean that there would no longer be any restrictions under redevelopment law. According to the requirements of the legislator, compensation amounts that are redeemed prematurely must be reallocated to the respective redevelopment measure. This means that these funds would directly benefit the further upgrading of the area and therefore also the property owners in the redevelopment area.

With the redemption, the obligation of a property owner to pay a compensation amount is also fulfilled for the future. Both a right of reclaim on the part of the owner and a right of subsequent demand on the part of the City of Jena are thus excluded.

In certain cases, the compensation amount can be claimed for tax purposes as acquisition or production costs or as income-related expenses/operating expenses.

• informal application to the Urban Development Department, Urban Redevelopment Team

• § 153 BauGB
• § 154 BauGB