Build without obstacles
Developers got some relief
At the initiative of the Ministry of Construction of Russia, part of the toughening amendments to Law No. 214-FZ “On Participation in Shared Construction …” will be relaxed “SG” wrote about this in detail in No. 24 of June 22). Novella, which, according to business, created the greatest difficulties for developers, was the rule “one developer – one building permit.” The logic of the legislators was clear: before money co-investors of one house were partially directed to construction of this house, and a part went to the beginning of construction of another object. That is, the funds were spent on the implementation of more than one project, and were allocated to several new construction projects. As a result, it often turned out that the building on the original object was braked or stopped altogether. And this led to the appearance of numerous unfinished objects.
However, the strict requirement “one builder – one building permit” could actually lead to a restriction on the number of simultaneously erected objects. In addition, this amendment made it difficult to build large residential projects in several lines. Complexities would arise and with the possible completion of problematic objects unfinished by bankrupt developers. The new developer would have to receive a permit for the construction of a new facility every time, which would inevitably lead to an increase in the timing and cost of construction.
In this regard, developers as they approach July 1, 2018 – the date of entry into force of amendments – began to actively sell new facilities, seeking to delay work for themselves under the new rules. In the first quarter of 2018, the number of registered contracts of equity participation (DDU) in Russia reached 147.1 thousand.
Considering all this, legislators have gone on some easing of requirements. “Amendments to the Amendments” provide that now in certain cases at the conclusion of the DDU the developer can have simultaneously several building permits.
Another important easing can be considered some provisions related to the financing of projects and interaction with credit organizations.
Changes in the financial aspects of the developer’s activities are aimed at ensuring a balanced and continuous financing of projects for the creation of apartment buildings and related other real estate and, as a result, to reduce the risks of delays in the implementation of these projects.
The developer now has the opportunity to finance the project, including through targeted loans from affiliated persons, and not just through targeted loans from credit institutions. The list of permissible obligations of the developer can include payment obligations in connection with the acquisition of land in the property, the guarantee obligations for previously entered into the operation of the developer of multi-apartment buildings, other real estate and amenities and obligations under contracts with public entities for the creation of infrastructure and amenities .
Developers can have accounts in several authorized banks with a binding of the project, carried out under one construction permit, to one particular account in such a bank.
The developer receives the right to use funds from a special bank account for further activities. In addition, the company will be considered to have no arrears for taxes, fees, arrears on other mandatory payments to the budgets before the decision is taken by the court, and before the effective decision takes effect. +
Source: Stroitelnaya gazeta, №25 of June 29, 2013