Real estate

Multi-annual Works Plan (PPT): explanation

Multi-annual Works Plan (PPT): explanation
The Multi-year Work Plan (PPT) is a legal obligation in France for co-ownerships over 15 years old, introduced by the Climate and Resilience law of August 22, 2021. This plan aims to anticipate and plan the work necessary for the safeguarding, maintenance and energy improvement of co-ownership buildings. Here is an overview of its main characteristics and obligations: \n

Objectives of the PPT

\nThe PPT has several objectives: \n
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  • Safeguarding the building : Ensure the sustainability and safety of buildings.
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  • Maintenance of common areas : Keep equipment and infrastructure in good condition.
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  • Improving energy efficiency : Reduce energy consumption and greenhouse gas emissions.
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Contents of the PPT

\nThe PPT must include: \n
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  • A list of necessary works, ranked in order of priority.
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  • A budget estimate of the costs of the works.
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  • A schedule of works over a period of 10 years.
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  • An estimate of the energy performance expected after the work.
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Development and Adoption

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Development Process

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  1. Preliminary Analysis : The PPT is developed from an analysis of the building's structure and equipment, as well as the collective Energy Performance Diagnostic (DPE) or the Global Technical Diagnostic (DTG) if carried out.
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  3. Qualified Professionals : Only qualified professionals, such as design offices, architects or thermal engineers, can develop the PPT.
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Adoption Process

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  1. General Meeting : The trustee must include on the agenda of the general meeting of co-owners the terms for developing the PPT. These terms are voted on by a simple majority (Article 24 of the law of July 10, 1965).
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  3. Presentation and Vote : Once the draft PPT has been developed, it is presented to the first general meeting of co-owners which follows its development. The adoption of the PPT requires an absolute majority of votes from all co-owners.
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Bonds and Maturities

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Implementation Schedule

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  • Since January 1, 2023 : Mandatory for co-ownerships of more than 200 lots.
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  • From January 1, 2024 : Mandatory for co-ownerships of 51 to 200 lots.
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  • From January 1, 2025 : Mandatory for co-ownerships of less than 51 lots.
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Update

\nThe PPT must be updated every 10 years to reflect new priorities and work carried out. \n

Exemptions

\nCondominiums with a Global Technical Diagnosis (DTG) which reveals no need for work over the ten years following its development may be exempt from the obligation to set up a PPT. \n

Importance and Benefits

\nThe PPT is crucial for: \n
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  • Anticipate Degradations : Prevent unforeseen and costly deterioration.
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  • Facilitate Financing : Help plan and budget for long-term work.
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  • Promote Heritage : Improve the green value of condominium buildings.
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Multi-annual Works Plan Diagnosis (PPT)

\nTHE Multi-annual Works Plan Diagnosis (PPT) is a key tool for the proactive management of co-ownerships in France. This diagnosis is mandatory for co-ownerships over 15 years old, according to the Climate and Resilience law of August 22, 2021. It aims to plan over a period of 10 years the work necessary for the safeguarding, maintenance and energy improvement of condominium buildings. \n

PPT Objectives

\nThe PPT has several main objectives: \n
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  1. Saving the building : Ensure the durability and safety of buildings by anticipating damage and planning the necessary interventions.
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  3. Maintenance of common areas : Maintain equipment and infrastructure in good condition to avoid unplanned costly repairs.
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  5. Improved energy efficiency : Reduce energy consumption and greenhouse gas emissions, thus contributing to the energy transition and the fight against climate change.
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Content of the PPT

\nThe PPT must include the following elements: \n
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  • List of necessary work : Classified in order of priority, this list makes it possible to identify the interventions to be carried out first.
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  • Budget estimate of costs : A cost estimate for each type of work, helping to predict the necessary financing.
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  • Work schedule : A schedule for carrying out the work over a period of 10 years, allowing long-term planning.
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  • Estimation of energy performance : Providing for improvements in terms of energy efficiency after completion of the work.
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Development and Adoption of the PPT

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Development Process

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  1. Preliminary Analysis : The diagnosis is based on an analysis of the building and the equipment of the building, as well as on the collective Energy Performance Diagnosis (DPE) or the Global Technical Diagnosis (DTG) if carried out.
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  3. Qualified Professionals : The development of the PPT must be entrusted to qualified professionals, such as design offices, architects or thermal engineers, thus ensuring the reliability of the diagnosis.
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Adoption Process

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  1. General Assembly : The trustee must include the development of the PPT on the agenda of the general meeting of co-owners. The methods of development are voted on by a simple majority.
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  3. Presentation and Voting : Once the PPT has been developed, it is presented to the general meeting of co-owners. Adoption of the plan requires an absolute majority of votes from all co-owners.
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Bonds and Maturities

\nThe PPT implementation schedule is staggered: \n
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  • Since January 1, 2023 : Mandatory for co-ownerships with more than 200 lots.
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  • From January 1, 2024 : Mandatory for co-ownerships with 51 to 200 lots.
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  • From January 1, 2025 : Mandatory for co-ownerships with fewer than 51 lots.
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\nThe PPT must be updated every 10 years to reflect new priorities and work carried out. \n

Exemptions

\nCertain co-ownerships may be exempted from the obligation to set up a PPT if they have a Global Technical Diagnosis (DTG) revealing no need for work over the ten years following its preparation. \n

Importance and Advantages of the PPT

\nThe Multi-Year Work Plan Diagnostic has several advantages: \n
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  • Anticipation of deterioration : Allows you to predict and prevent unforeseen and costly deterioration.
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  • Financing facilitation : Helps to plan and budget for long-term work, thus facilitating financing by co-owners.
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  • Asset enhancement : Improves the green value of co-ownership buildings by increasing their energy performance and attractiveness.
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\nIn short, the Multi-year Work Plan Diagnosis is an essential tool for sustainable and efficient management of co-ownerships, contributing to their maintenance in good condition and their energy improvement. \n\n\r\n
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What are the sanctions for non-compliance with the Multi-year Work Plan?

\r\nConsequences of Non-Compliance with the Obligation of a Multi-year Work Plan (PPT) for Co-ownerships\n\nFailure to comply with the obligation to set up a Multi-year Work Plan (PPT) for co-ownerships can result in several sanctions. Here is an overview of the main consequences: \n

1. Intervention of the Administrative Authority

\nIf the syndicate of co-owners does not carry out or adopt the PPT, the competent administrative authority (mayor, prefect, or president of a public inter-municipal cooperation establishment) may ask the trustee to transmit the adopted PPT. If the plan is not transmitted within one month or if it does not provide for the necessary work, the authority may automatically draw up or update the PPT at the expense of the condominium association. \n

2. Financial Sanctions

\nLandlord co-owners harmed by the absence of a PPT may take legal action against the condominium association and seek compensation.3. Refusal to Grant Subsidies \n

It is expected that certain sanctions will include the refusal to grant subsidies necessary for the completion of the work.

\n4. Impact on the Sale of Property \n

The absence of a PPT may affect the transparency and protection of purchasers of co-owned real estate, thereby complicating real estate transactions.

\n5. Obligation to Carry Out Works \n

If the PPT is not carried out, the administrative authority may impose the carrying out of the necessary works to guarantee the safety and preservation of the building.

\nConclusion \n

Failure to comply with the obligation to set up a PPT may result in administrative interventions, financial sanctions, refusals of subsidies, and negative impacts on real estate transactions. It is therefore crucial for co-ownerships to comply with this obligation to avoid these consequences.

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