I. – The territorial public establishment, in place and stead of its member municipalities, shall automatically exercise competences in the areas of:
1° Urban policy:
a) Drawing up a diagnosis of the territory and defining the guidelines for the city contract;
b) Leading and coordinating contractual arrangements for urban development, local development and economic and social integration, as well as local arrangements for preventing delinquency;
c) Action programmes defined in the city contract;
d) Signing the inter-municipal agreement referred to in Article 8 of Law no. 2014-173 of 21 February 2014 on programming for the city and urban cohesion ;
2° Construction, development, maintenance and operation of cultural, socio-cultural, socio-educational and sporting facilities of territorial interest;
3° Sanitation and water;
4° Management of household and similar waste;
5° Social action of territorial interest, with the exception of that implemented as part of housing and housing policy. The territorial public establishment may entrust responsibility for this, in whole or in part, to an intercommunal social action centre created under the conditions provided for in article L. 123-4-1 of the Code de l’action sociale et des familles and called a “territorial social action centre”.
Where the competences provided for in 3° and 4° of this I were exercised, on behalf of the municipalities or public establishments of inter-municipal cooperation with their own tax status, by trade unions on the date of 31 December 2015, the territorial public establishment replaces, until 31 December 2017 for the competences provided for in 3° and until 31 December 2016 for the competence provided for in 4°, the municipalities or public establishments of inter-municipal cooperation with their own tax status within the trade unions concerned. At the end of this period, the public territorial establishment is automatically withdrawn from the unions concerned.
I bis. – The territorial public establishments and the Paris municipality implement the policy for allocating social housing, managing demand for social housing and informing applicants, pursuant to Articles L. 411-10, L. 441-1, L. 441-1-1, L. 441-1-4, L. 441-1-5, L. 441-1-6, L. 441-2-3, L. 441-2-6, L. 441-2-7, L. 441-2-8 and L. 442-5 of the Construction and Housing Code. The actions of this policy are compatible with the axes mentioned in the seventh paragraph of V of article L. 5219-1.
I ter.-The president of the territorial public establishment may benefit from the delegation of the prerogatives of the representative of the State in the department in terms of public health policing under the conditions defined by article L. 301-5-1-1 of the construction and housing code.
II. – The territorial public establishment automatically draws up, in place of the member municipalities, an inter-municipal local town planning plan, under the conditions set out in articles L. 134-1 to L. 134-9 of the town planning code.
III. – The territorial public establishments and the municipality of Paris draw up a climate-air-energy plan, in application of article L. 229-26 of the Environment Code, which must be compatible with the territorial climate-air-energy plan of the metropolis as well as with the action plan for the reduction of atmospheric pollutant emissions provided for in 3° of II of the same article L. 229-26. The action plan for the reduction of atmospheric pollutant emissions drawn up by the territorial public establishments does not include the study on the creation of one or more low mobility emission zones mentioned in the second paragraph of the same 3°. Each territorial climate-air-energy plan must include a programme of actions enabling the objectives set by the metropolitan area’s climate-air-energy plan to be achieved within the territory’s areas of competence. It is submitted to the Greater Paris Metropolitan Council for its opinion. This opinion is given within three months; failing this, it is deemed to be favourable.
IV. – The Établissement Public Territorial automatically exercises, in place of the member municipalities, the competencies provided for in II of Article L. 5219-1 of this code, subject to the definition of a metropolitan interest but not recognised as such.
With regard to the competency to define, create and carry out development operations defined in Article L. 300-1 of the town planning code, set out in a of 1° of II of article L. 5219-1 of this code, the period provided for in the second paragraph of III of article L. 5211-5 for the adoption of the concordant deliberations of the territorial public establishment and its member municipalities setting the financial and asset conditions for the transfer of real estate assets is extended to two years from the definition of the metropolitan interest.
V. – Without prejudice to the same II, the public territorial establishment shall exercise, over its entire perimeter, the competences that were, on 31 December 2015, transferred by the member communes to the existing public establishments for intercommunal cooperation with their own tax status. However:
1° Until the territorial public establishment deliberates on extending the exercise of each of these competences to its entire perimeter, and no later than 31 December 2017, the compulsory and optional competences of the public establishments of inter-municipal cooperation with their own tax status existing on 31 December 2015 are exercised:
a) By the territorial public establishment under the same conditions and only within the perimeters corresponding to those of each of the public establishments of inter-municipal cooperation with their own tax status existing on 31 December 2015. Where the public establishments for intercommunal cooperation with their own tax status belonged to trade unions for the exercise of these powers, the territorial public establishment replaces these establishments within the trade unions concerned until the territorial public establishment deliberates on extending the exercise of each of these powers to its entire perimeter, and until 31 December 2017 at the latest. At the end of this period, the territorial public establishment is automatically withdrawn from the unions concerned;
b) Or by the municipalities in other cases;
2° When the exercise of the compulsory and optional competencies of the public establishments of inter-municipal cooperation with their own tax status existing on 31 December 2015 was subject to the recognition of a community interest, a territorial interest is determined by deliberation of the territorial council, by a majority of two-thirds of its members. It is defined no later than two years after the creation of the territorial public body. By way of derogation, this deliberation is optional for public territorial establishments whose perimeter corresponds to a public intercommunal cooperation establishment with its own tax status existing on 31 December 2015.
Until this deliberation, and at the latest until the expiry of the two-year period referred to in the second sentence of the first paragraph of this 2°, the competences that were subject to a definition of community interest continue to be exercised under the same conditions solely within the perimeters corresponding to each of the public establishments of inter-municipal cooperation with their own tax status existing on 31 December 2015. The competences subject to the definition of a community interest and not recognised as being of community interest continue to be exercised by the communes under the same conditions.
At the end of the two-year period, for the competencies that have not been the subject of this deliberation, the territorial public establishment exercises the entirety of the transferred competency;
3° The territorial council of the territorial public establishment may, by deliberation, return the competencies transferred on an additional basis by the member communes to the inter-municipal cooperation public establishments with their own tax status existing on 31 December 2015, within a period of two years following the creation of the territorial public establishment. Until this deliberation, and at the latest until the expiry of the two-year period mentioned in the first sentence of this 3°, the public territorial entity exercises the competences transferred in application of the first paragraph of this V and not provided for in I within the perimeter of the former public establishments of inter-municipal cooperation with their own tax status existing on 31 December 2015. On expiry of the two-year period and in the absence of a decision, the public territorial establishment shall exercise all the powers transferred.
VI. – When a territorial public establishment has had one of the competencies mentioned in I of Article L. 5211-9-2 transferred to it, the mayors of the member municipalities of the public establishment transfer their powers to the president of this establishment under the conditions provided for in the same Article L. 5211-9-2.
VI bis.-The territorial public establishment may entrust the creation or management of certain facilities or services falling within its remit to one or more member municipalities, by agreement with the municipality or municipalities concerned.
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Under the same conditions, the member municipalities of a territorial public establishment may entrust by agreement to the said territorial public establishment the creation or management of certain facilities or services falling within its remit.
VII. – When the exercise of the competencies mentioned in I is subject to the recognition of their territorial interest, this interest is determined by deliberation of the territorial council by a two-thirds majority of its members, no later than two years after the creation of the Greater Paris metropolitan area. Until this deliberation, and at the latest until the expiry of the two-year period mentioned in the first sentence of this VII, these competencies are exercised by the territorial public establishment within the boundaries of the public establishments of inter-municipal cooperation with their own tax status existing on 31 December 2015 and under the same conditions. On expiry of the two-year period, and in the absence of a decision, the public territorial entity will exercise all the powers transferred. Municipalities that do not belong to any public establishment for inter-municipal cooperation with their own tax status on 31 December 2015 will exercise, within their boundaries, the competencies provided for in I subject to the definition of a territorial interest but not recognised as such.
VIII. – The public housing offices previously attached to the municipalities or their groupings located within the perimeter of the territorial public establishments are attached to the latter by 31 December 2017 at the latest, except in the case of the municipality of Paris. At least half of the representatives of the territorial public body on the board of directors of the office include members proposed by the municipality to which the office was initially attached, provided that at least half of the office’s assets are located within its territory.
If the municipality concerned fails to make these proposals within two months, the representative of the State in the département will give it formal notice to make the proposals in question within a period of two months. If no such proposals have been made by the end of this period, the representative of the State in the département will refer the matter to the territorial public body for the purpose of appointing the missing representatives in accordance with the procedures set out in Title II of Book IV of the Construction and Housing Code.
IX. – When, as a result of the creation of the Greater Paris metropolitan area, a public establishment for inter-municipal cooperation now comprising only one member municipality located outside the metropolitan perimeter is dissolved and the establishment was the local authority to which a public housing office was attached, this office is dissolved ipso jure on the date of the creation of the Greater Paris metropolitan area.
Par dérogation à l’article L. 421-7-1 du code de la construction et de l’habitation, the assets of the office and all of its property, rights and obligations are transferred on a universal basis to a low-income housing body designated by the State representative in the département by 31 December 2015 at the latest.
This body is automatically substituted for the public housing office in all its deliberations and acts.
Contracts entered into by the public housing office are performed under the previous conditions until they expire, unless the parties agree otherwise. The co-contracting parties are informed of the substitution of legal entity by the transferee. The substitution of legal entity does not entail any right to termination or compensation for the co-contractor.
The devolution of the assets of the public housing office entails the obligation for the beneficiary body to reimburse the territorial authorities for their initial allocations, increased for each year preceding the dissolution, without being able to exceed twenty years, by interest calculated at the rate paid on 31 December of the year in question to holders of a Livret A passbook savings account, increased by 1.5 points, and does not give rise to the payment of any duty or tax, with the exception of the real estate security contribution.
The body benefiting from the devolution is required to offer an open-ended employment contract to each member of the staff of the public housing office with the status of territorial civil servant, within a period of one month prior to the date of devolution of the public housing office’s assets. In the event that a civil servant refuses to resign from the civil service and take up such a contract, or remains silent on the proposed employment contract until the date of devolution of the Office Public de l’Habitat’s assets, the civil servant is made directly available to the management centre or the Centre National de la Fonction Publique Territoriale, in accordance with the conditions set out in article 97 of law no. 84-53 of 26 January 1984 on statutory provisions applicable to the local civil service, with the exception of the period during which the civil servant is surplus to requirements. The body benefiting from the devolution is required to pay the contributions, in accordance with the terms set out in article 97 bis of the same law, in place of the public housing office.
A decree regulates the budgetary and accounting conditions for the dissolution of the public housing office.
X. – For each commune located within the perimeter of the Greater Paris metropolis with the exception of the commune of Paris, the compensation allocation paid or received, as of 1 January 2024, by the Greater Paris metropolis is equal to that paid or received by the Greater Paris metropolis in respect of the 2023 financial year. For the commune of Paris, it is equal to the sum of the compensation allocation that the Greater Paris metropolis paid or received in respect of the 2023 financial year and the business property tax revenue collected within the perimeter of the commune of Paris in 2023.
The Greater Paris metropolis may adjust the compensation allocation, without this adjustment having the effect of reducing or increasing its amount by more than 15%.
The compensation allocation is recalculated, under the conditions provided for in IV of Article 1609 nonies C of the same code, at the time of each transfer of charges to the Greater Paris metropolis.
XI. – A. – A territorial charges compensation fund is set up for the benefit of each territorial public establishment, intended to finance them.
B. – The territorial charges compensation fund comprises:
1° A fraction equal to the product of the taxe d’habitation, the taxe foncière sur les propriétés bâties and the taxe foncière sur les propriétés non bâties collected by the public establishment for inter-communal cooperation with its own tax status existing on 31 December 2015 the year preceding the creation of the Greater Paris metropolis or, where applicable, a share of the product of these same taxes collected by the isolated communes existing on 31 December 2015 the year preceding the creation of the Greater Paris metropolis;
2° (repealed)
C. – The fraction mentioned in 1° of B is repaid by each member commune of the territorial public establishment:
1° Up to the amount of the proceeds of the taxe d’habitation, the taxe foncière sur les propriétés bâties and the taxe foncière sur les propriétés non bâties collected by the public establishment for inter-communal cooperation with own tax status existing on 31 December 2015 on the territory of the commune in the year preceding the creation of the Greater Paris metropolis, increased by the fraction of the attribution de compensation received by the commune in return for the loss of the dotation forfaitaire provided for in Article L. 2334-7 of this code corresponding to the amount previously paid pursuant to I of D of Article 44 of the 1999 Finance Act (no. 98-1266 of 30 December 1998) ;
2° Or, for isolated communes existing on 31 December 2015, on the basis of a share of the proceeds of the taxe d’habitation, taxe foncière sur les propriétés bâties and taxe foncière sur les propriétés non bâties collected by them in the year preceding the creation of the Greater Paris metropolis, determined by concordant deliberations of the territorial council and the municipal council of the commune concerned.
This fraction may be revised, after receiving the opinion of the commission mentioned in XII, by deliberation of the territorial council acting by a two-thirds majority. This revision may not have the effect of reducing or increasing the municipality’s contribution by more than 30% of the revenue from council tax, property tax on built-up properties and property tax on non-built-up properties collected for the benefit of the public inter-municipal cooperation establishment with its own tax status existing on 31 December 2015 on the territory of the municipality in the year preceding the creation of the Greater Paris metropolis, updated since 2015 and until the date of revision according to the annual rate of change in property rental values set out in Article 1518 bis of the General Tax Code, representing no more than 5% of the actual operating revenue of the municipality concerned in the year preceding the revision.
The amount of the fraction mentioned in 1° of B and revised, where applicable, under the conditions provided for in the fourth paragraph of this C is updated each year by applying the rate of change in property rental values for the year shown in article 1518 bis of the General Tax Code. The update is not applicable to the increase provided for in 1° of this C.
The payment of this fraction to the territorial charges compensation funds constitutes a compulsory expense for the municipalities.
D. (repealed)
E. – The Greater Paris metropolis institutes a territorial investment support grant, which is deducted from:
1° A fraction of the business value added levy;
2° A fraction of the business property levy.
To determine the fraction of the territorial investment support grant provided for in 1°, the difference between the following two terms is calculated:
– on the one hand, the product of the business value added contribution for the year in which the grant is paid;
– on the other hand, the product of the same taxation recorded in the previous year.
The fraction of the territorial investment support grant provided for in the same 1° is equal to a rate of between 10% and 50%, voted by the metropolitan council, of the positive difference thus obtained. The Metropolitan Council distributes this fraction between the territorial public establishments, the public establishments mentioned in the last paragraph of V of article L. 5219-1 of the present code and in article L. 328-1 of the Urban Planning Code and, where applicable, communes located within the perimeter of the metropolis, taking into account, as a priority, the importance of the costs they bear due to the construction or management of one or more facilities that respond to a territorial solidarity issue and applying other freely determined criteria.
This fraction may be revised, following the opinion of the commission mentioned in XII of this article, excluding the grant allocated to the commune of Paris where applicable. This revision may not have the effect of reducing or increasing the territorial investment support grant by more than 15% of the amount determined in accordance with the seventh paragraph of this E.
The amount of the fraction mentioned in 1° and revised, where applicable, under the conditions provided for in the eighth paragraph of this E is updated each year by applying the rate of change in property rental values for the year set out in Article 1518 bis of the General Tax Code.
To determine the fraction of the territorial investment support grant provided for in 2° of this E, the difference between the following two terms is calculated:
– on the one hand, the proceeds of the business property tax for the year in which the grant is paid;
– on the other hand, the proceeds of the same tax recorded in the previous year.
The fraction of the territorial investment support grant provided for in the same 2° is equal to 50% of the positive difference thus obtained. The council of the metropolis proceeds with the distribution of this fraction between territorial public establishments, public establishments mentioned in the last paragraph of V of article L. 5219-1 of the present code and in article L. 328-1 of the Code de l’urbanisme and, where applicable, communes located within the perimeter of the metropolis, taking into account as a priority the importance of the costs they bear as a result of the construction or management of one or more facilities responding to a territorial solidarity issue and applying other freely determined criteria.
This fraction may be revised, following the opinion of the commission mentioned in XII of this article, where applicable. This revision may not have the effect of reducing or increasing the territorial investment support grant by more than 15% of the amount determined in accordance with the thirteenth paragraph of this E.
The amount of the fraction mentioned in 2° and revised, where applicable, under the conditions provided for in the penultimate paragraph of this E is updated each year by applying the rate of change in property rental values for the year shown in Article 1518 bis of the General Tax Code.
XII. – A local commission for the evaluation of territorial burdens is created between each public territorial entity and the municipalities located within its perimeter, with the exception of the municipality of Paris, which is responsible for setting the burden criteria taken into account to determine the need to finance the competencies exercised by the public territorial entity in place of the municipalities. This commission is created by the deliberative body of the public territorial entity, which determines its composition by a two-thirds majority. It is made up of members of the municipal councils of the municipalities concerned. Each municipal council has at least one representative.
The commission elects its chairman and a vice-chairman from among its members. The chairman convenes the committee, sets its agenda and chairs its meetings. If the chairman is absent or unable to attend, the vice-chairman will take his place.
The committee may call on experts to assist it in the performance of its duties. It reports its conclusions in the year of creation of the territorial public establishments and at the time of each subsequent transfer of charges.
Operating expenses not related to a facility are evaluated according to their actual cost in the communal budgets during the financial year preceding the transfer of competencies or according to their actual cost in the administrative accounts of the financial years preceding this transfer.
In the latter case, the reference period is determined by the commission.
The cost of expenditure on facilities relating to the transferred powers is calculated on the basis of an annualised average cost. This cost includes the cost of building or acquiring the equipment or, where necessary, the cost of renewing it. It also includes financial charges and maintenance expenses. All of this expenditure is taken into account for a normal period of use and reduced to a single year.
The cost of expenditure borne by the territorial public body is reduced, where applicable, by the resources relating to these costs.
The local commission for the evaluation of territorial costs sets the amount of resources required for the annual financing of territorial public bodies. It issues an opinion on the procedures for revising the fraction mentioned in C of XI according to the level of expenditure of the territorial public body that it has assessed. Similarly, it issues an opinion on the procedures for revising the two fractions of the territorial investment support grant provided for in E of the same XI.
XIII. – The contributions to the territorial charges compensation funds determined, in accordance with the procedures set out in XII, by the local commission for the evaluation of territorial charges are paid by the municipalities and received by the territorial public establishments on a monthly basis, at the rate of one twelfth of the amount due in respect of the current financial year.
During the course of the year, one or more twelfths may be paid in advance if the available funds of the territorial public establishment are temporarily insufficient. Additional allocations are authorised by joint deliberations of the territorial council and the municipal councils of the communes taken by the qualified majority provided for in the first paragraph of II of Article L. 5211-5.
This XIII does not apply to the commune of Paris.