Cooperative housing societies to be regulated by 214-FZ
Since July 14, 2016, cooperative housing societies (CHS) began to work in accordance with the law on participation in shared construction (214-FZ), said Konstantin Timofeev, the Head of Moskomstroyinvest (Moscow Committee for Realization of Construction Investment Projects and Co-Investment Agreements).
“Now the work of all CHS is regulated by 214-FZ. Today nine CHS in the capital work on 30 out of the 454 objects that are built with the involvement of funds of citizens,” said Konstantin Timofeev.
He stressed that according to 214-FZ, a CHS should have a building leasehold in order to raise money from citizens. To get this right, you must have a land lease contract or a property registration, as well as a construction permit.
Moskomstroyinvest held a large-scale awareness campaign for CHS about innovations in the law.
“Cooperative housing societies may forfeit the right to use citizen’s money if it does not fulfill all the necessary requirements,” summed up Konstantin Timofeev.
It has to be recalled that, in order to become the owner of property in a house which is currently under construction, one has to enter into a shared construction participation agreement with a development company. This procedure is regulated by the Federal Law “On participation in the shared construction of apartment buildings and other real estate and on amendments to some legislative acts of the Russian Federation” (214-FZ).
A shared construction participation agreement controls all the activities of the builder. The contractual payment carried out only after the document has received state registration.