Amendments to the law on share construction were adopted by the State Duma
The bill, making adjustments to the system of regulating shared construction in Russia, was adopted by the State Duma in the third reading yesterday, June 21. Changes in the legislation will come into force already on July 1 of this year.
The document should help better protect the rights of equity holders and get rid of unscrupulous developers in the housing market.
The adopted bill provides construction companies with the opportunity to attract targeted non-bank loans from the main company, with the establishment of restrictions on the size of the interest rate on such a loan.
The document also clarifies the principle of “one developer-one project.” “Developers are given the opportunity to raise funds for the construction of apartment buildings on several building permits within the framework of one project for the planning of the territory, a town-planning plan for a land plot, a development agreement for a built-up area or an agreement for the integrated development of the territory,” the Ministry of Construction said.
At the same time, developers are allowed to complete the construction of facilities without taking into account changes in the legislation, which come into force on July 1, if the comprehensive development agreement was concluded before January 1, 2018.
In case of revealing the misuse of the means of interest-holders, banks will be able to suspend the payments of developers. In case the construction company violates its obligations to the participants in the shared construction, a mechanism for suspending the registration of new equity and project agreements is provided.
Source: Ministry of Construction of Russia