President came to the rescue
Vladimir Putin instructed the government to support the construction indust
Russian President Vladimir Putin approved the main list of instructions following a meeting on the development of the Russian construction complex on April 16. Then the head of state discussed with developers, representatives of the professional community and members of the government the situation in the industry, which was in a difficult situation due to the COVID-19 epidemic. Priority support measures were outlined, which are now documented. Presidential instructions are posted on kremlin.ru.
By May 1, the government needed to approve the terms of the new preferential mortgage program (they were approved by the time the number was handed over), adopt documents on increasing the availability of bank financing for developers, on recapitalizing the Fund for the Protection of the Rights of Interest Holders, on providing state guarantees “DOM.RF” and resolving a number other issues. The president gave officials time until May 20 to work out other proposals regarding, for example, the appropriateness of using the funds of compensation funds of construction self-regulatory organizations (SROs) to support their members, as well as the possibility of recognizing the construction industry as a victim of a pandemic. By June, all responsible officials will have to submit reports to Vladimir Putin on the progress in the implementation of the issued instructions.
In particular, by the end of this week, the Russian government (Prime Minister Mikhail Mishustin has been appointed responsible) should ensure the implementation of a set of measures aimed at the availability of bank loans for developers. This is planned to be done through compensation of interest rates on loans issued to builders. The amount of funds that are supposed to be used to support lending to the construction business has already been determined – 12 billion rubles. However, only companies that have retained the number of employed workers and have assumed legal obligations to complete the construction of multi-apartment buildings scheduled for commissioning in 2020-2021 will be able to apply for such assistance.
On May 1, the Cabinet of Ministers must also submit a final decision to increase up to 50% of the maximum advance amount (now 30%) in the execution of previously concluded contracts for the construction of capital construction projects. This will give companies additional working capital, which will allow them to fulfill their obligations to suppliers, and most importantly, to save jobs and employee salaries.
By the beginning of the month, a system should be introduced in the country to organize the work of the construction industry, taking into account recommendations to reduce the risks of the spread of coronavirus (the NOSTRO methodology already developed can be found on page 2) and includes rapid testing. We are now considering the possibility for state customers not to apply a number of penalties to government contractor for the implementation of projects in the field of construction of capital construction projects if their non-fulfillment is caused by restrictions related to measures to counteract COVID-19.
The “May measures” include the president’s order to recapitalize the “Fund for the Protection of the Rights of Citizens – Participants in Equity Construction” at the expense of budget funds in the amount of 30 billion rubles to restore the rights of defrauded equity holders, as well as providing a state guarantee for the financial institution for development in the housing sector “DOM. RF ”in the amount of 50 billion rubles for the purchase of standard housing from developers for its subsequent sale. At the same time, as it became known to SG a few days ago, DOM.RF is also going to send additional funds for these purposes. According to the Director General of DOM.RF Vitaliy Mutko, the purchase of new housing will not only support the market, but will also contribute to the implementation of the national project Housing and Urban Environment. “We are ready to expand the program announced by the president of the Russian Federation by another 100 billion rubles. We sent a draft resolution to the Ministry of Finance and the Ministry of Construction and we hope that our proposals will be taken into account, ”said the head of the state company. To implement the plan in the near future, it is planned to create a closed real estate unit investment fund with the help of which DOM.RF will be able to directly buy apartments from developers in houses belonging to standard housing, with the condition that the buildings should be commissioned before June 30, 2021 of the year. According to Vitaliy Mutko, up to 3 million “squares” of housing can be bought in this way.
The “supra-measure” has already become the proposal of the head of state to launch a new preferential mortgage program. The Government of the Russian Federation even earlier than the “May Day” approved the conditions for obtaining a loan for standard-class new buildings at a record low rate of 6.5% per annum for the entire loan term. The corresponding decree No. 566, Prime Minister Mikhail Mishustin signed on April 23.
As follows from the rules of the program, preferential mortgages can be taken in the amount of up to 8 million rubles in Moscow and St. Petersburg and up to 3 million rubles in other regions of the country. The minimum installment for such a loan will be 20%. The program will ensure the issuance of up to 250 thousand housing loans, as well as additionally attract at least 900 billion rubles in housing construction. The total amount of loans is up to 740 billion rubles. The operator of the program, valid until November 1, 2020, will be DOM.RF.
You won’t have to worry for long
However, the conditions for obtaining mortgages by Russians can still be significantly improved. At least this week, Vladimir Putin instructed the government until May 20 to study the possibility of reducing to 15% the minimum initial down payment on mortgages for families claiming to buy housing using maternity capital. The head of state came up with such an initiative on April 27 following a meeting with representatives of the public in the Ivanovo region.
On May 20, Vladimir Putin will ask Mikhail Mishustin whether the government managed to consider the advisability of establishing before January 1, 2021 a special procedure for using the means of SRO compensation funds in the field of construction and design in order to support its members. Recall that the proposal was announced to the president at a meeting on April 16 by the head of the National Association of Builders (NOSTROY) Anton Glushkov. According to him, in the current conditions it is wrong to rely solely on budget sources, extrabudgetary sources must also be looked for in the construction industry. Such may be the funds accumulated in the funds of industry SROs.
“Over ten years, respectable SROs have significantly increased the amount of these funds that are stored in authorized banks. It is necessary to provide the SRO with the opportunity to direct the accumulated income to loans to construction companies – members of the SRO. According to our estimates, the amount of such support can reach 40 billion rubles, ”Anton Glushkov said then.
By the way, the president’s instructions also reflected the proposal for the redistribution within the framework of the national project “Safe and High-Quality Roads” and the programs for the relocation of citizens from emergency houses of the corresponding budgetary funds to accelerate the achievement of the planned indicators for the construction and repair of roads, road infrastructure and resettlement of the emergency gang, with which the meeting was made by Deputy Prime Minister Marat Khusnullin. The Cabinet of Ministers needs to calculate the possible parameters of such a “maneuver” before May 18.
However, by May 20, the government will have to work out a more global issue – the inclusion of the entire construction industry in the list of sectors of the Russian economy that were most affected by the worsening situation due to the spread of coronavirus. It will be necessary to do this, first of all, in order to provide federal support measures in the constituent entities of the Russian Federation, in which, taking into account the prevailing sanitary and epidemiological situation, a decision was made to suspend construction work. By the way, at the moment, the inclusion of construction in the list of the most affected sectors has already been supported by four Russian governors. The corresponding appeal to the Cabinet was sent to the authorities of the Arkhangelsk and Vologda regions, the Khabarovsk Territory and the Khanty-Mansiysk Autonomous Okrug (Ugra). According to the heads of regions, this will allow entrepreneurs from the construction site to restore activity after the removal
Until May 20, Vladimir Putin is going to listen to the reports of the leaders of the highest executive bodies on antiviral measures aimed at ensuring labor safety and protecting the health of citizens working in the construction industry in order to support their continuous operation at large construction sites. By this number, regional action plans to support the construction industry in connection with the spread of COVID-2019 should be approved and monitoring of the status of developers implementing housing projects with the involvement of equity holders should be provided.
Quote in topic
Deputy Prime Minister Marat Khusnullin:
“The speed of decision-making within the framework of anti-crisis measures is now very high. This has never happened before. A government decree is issued per day, and before this often took weeks and months because of approvals. Laws are now passed in two to three days. The government prepares a proposal, submits it to the State Duma, which promptly considers in the first, second and third readings in two or three days, and then the Federation Council. Today, the crisis has pushed us all toward quick decision-making. And one of the main factors of construction is speed, speed is money directly. Therefore, for us, accelerating all procedures is one of the key tasks that we are working on today. ”9 million people are busy, according to the Russian government, only in housing construction (5 million of them are in the industry itself, and another 3-4 million in related industries)
About 9 million people are employed, according to the Russian government, only in housing construction (of which 5 million in the industry itself, and another 3-4 million in related industries)
Source: Stroitelnaya gazeta