Developers are asking the Federation Council to account their interests


The profile committee of the Federation Council together with representatives of the construction industry will draft a bill that should balance the interests of equity holders and developers. It is planned to submit the document before July 1, 2018.

“Based on the results of the round table, we are preparing recommendations, in particular, for the government. Based on these recommendations, we will draft a bill whose task is to balance the construction market. We are planning to introduce a bill before the end of the spring session. We really hope that we will be in time before July 1, “said Andrei Kutepov, chairman of the Federation Council Committee on Rules and Organization of Parliamentary Activities.
In particular, the package of recommendations included a proposal to allow the developer to build multi-apartment buildings or other real estate objects simultaneously on the basis of two or more construction permits within one or more interconnected elements of the planning structure.
Also, developers are asked to exclude the requirement to have at least 10% of the project cost of construction on the bank account of the company as of the date of sending the project declaration.
In addition, the authors of the draft law consider the possibility of attracting developers of funds in the form of non-targeted loans, loans, issue of bonds and the use of borrowed funds of equity holders at their discretion from the moment of obtaining permission to enter a constructed apartment building or another real estate object into operation.
As previously reported, from July 1, 2018 another set of amendments to the Law on Shared Construction, which toughens requirements for developers, should come into force.
According to industry representatives, this package of amendments will significantly limit the actions of the developer and adversely affect the construction market. Representatives of the top management of many large construction companies expressed the need to finalize the law on shared construction jointly with developers.

Source: AGN Moskva

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