Nikita Stasishin: the state will help developers with non-returnable projects, but – fair
The Deputy Minister of Construction and Housing and Utilities announced this and many other things on Friday at a press conference in TASS, held in an online format.
Successful implementation of project financing
According to Nikita Stasishin (pictured on the right), not a single housing facility being built in the Russian Federation within the framework of project financing using escrow accounts has stopped due to the situation with the pandemic.
“Despite all the conditions that the housing construction industry has undergone over the past six months, we see that not a single new project has been started,” the minister said and specified that there was no stoppage, as the equity holders continued to invest in new buildings.
Today, about 99.5 million square meters are under construction with the involvement of citizens’ funds. m of housing and 35% of this volume – project financing using escrow accounts, said Stasishin.
In his opinion, the reform “definitely took place”, removing from the market ineffective regional developers, who previously contributed to the appearance of long-term construction and defrauded equity holders.
At the same time, the rate on project financing for successful housing construction projects today, according to the deputy head of the Ministry of Construction, does not exceed 2-3% per annum.
Local engineering infrastructure
At the same time, the Deputy Minister acknowledged the fact of a decrease in the volume of new housing projects entering the market and linked it with the lack of prepared land plots in the regions.
“Today we see, and we do not hide this, a decrease in the volume of new projects coming into construction, but we do not associate this directly with escrow,” Interfax quotes Stasishina.
According to the official, at present the Ministry of Construction needs to solve another important task: to do so “so that the provision of engineering infrastructure” of land plots on the ground goes ahead of schedule.
“Without this, the indicator set by the President for the commissioning of housing by 2024 will be difficult to fulfill,” stressed the Deputy Minister of Construction.
About supporting low-profit projects
At a press conference, the deputy head of the Ministry of Construction also announced that the department was completing the development of a special program for housing projects with low profitability.
“Today, on behalf of the Prime Minister, we are completing the development of a special program that will be aimed at stimulating projects with low profitability,” Stasishin said.
He explained that we are talking about projects where the yield does not exceed 15% and which are deployed in regional or district centers.
On state subsidizing of interest rates on loans to developers
The deputy minister recalled that following the results of the first meeting of the Interdepartmental Commission for Decision-Making on Reimbursement by the State to Banks for Lost Income on Loans at a Preferential Rate for Developers, 185 out of 214 loan agreements were approved.
And the total living area of objects built using loans with an approved preferential rate was, according to Stasishin, more than 10 million square meters. m.
As the portal ERZ.RF has repeatedly informed earlier, the state program of concessional lending to developers was adopted by the Government in pursuance of Vladimir Putin’s April instructions to support the industry during the crisis.
Within the framework of the program of the state corporation DOM.RF, 12 billion rubles were allocated by the Government. At the expense of these funds, the banks will be reimbursed for lost income in an amount exceeding the key rate of the Bank of Russia, which is currently 4.5% per annum.
Lost income must be reimbursed under loan agreements concluded with developers before May 1, 2020.
A number of requirements are imposed on borrowing developers, including the absence of delays in putting houses into operation and maintaining the current number of employees as of May 1.
Nikita Stasishin stressed that developers will be able to use subsidized loans to purchase land plots and build infrastructure, which will allow the released funds to be used directly in housing construction.
“And banks will understand that they should not revise reserves and limits, and this will also give an opportunity to calmly finance projects,” the Deputy Minister of Construction and Housing and Utilities noted with satisfaction.
On the time limits of the preferential mortgage
Stasishin confirmed that the Ministry of Construction of Russia intends to complete the state program of preferential mortgages at 6.5% per annum and less than on November 1, 2020 – as it was planned when the program was launched at the end of April.
“The mortgage program at a preferential rate ends on November 1, 2020. Today the best conditions for buying a home on a mortgage ”, – quoted Stasishin TASS.
As a reminder, as part of a new instruction from the President, the Government promptly prepared amendments to the rules for issuing loans under preferential mortgages.
In accordance with them, at the end of June, the maximum loan amount for residents of Moscow, St. Petersburg, Moscow and Leningrad regions was increased from 8 million to 12 million rubles, for residents of other regions – from 3 million to 6 million rubles.