Minstroy supports developers in transition period
Developers who continue to work without switching to escrow accounts will be able to receive financial support from the Fund for the Protection of Shareholders’ Rights, if the authorities of the subjects of the Russian Federation request this, said the head of the Ministry of Construction Vladimir Yakushev.
“One of the support tools for developers who are not operating according to the scheme of escrow accounts, which was proposed, is the additional funding of the Fund for the protection of shareholders’ rights and the opportunity to attract resources from there on a returnable basis for the completion of houses. This should occur under the direct administration of the subject of the Russian Federation. Those developers, for whom the subject will apply and take the projects for “manual” management, we must help these developers, ”Vladimir Yakushev told reporters.
He clarified that in the near future a list of instructions signed by the head of state will be published, with a mechanism to support developers who will continue to work without an escrow account scheme.
Vladimir Yakushev stressed that assistance will be provided to companies that have a good reputation, have handed over several objects and do not have a single deceived shareholder.
“Such companies should be helped during this transition period,” said the head of the Ministry of Construction.
Recall that Russia is implementing a phase-out plan for shared construction. From July 1, 2019, developers are required to work on escrow accounts, which will accumulate citizens’ funds.
Construction companies will not be able to use this money until the completion of the work; banks will lend them.
At the same time, the Ministry of Construction has prepared criteria for identifying developers who will be allowed to complete housing without switching to a financing scheme using escrow accounts.
In particular, the number of concluded equity participation agreements (DDU) should be at least 10% of the total area of residential and non-residential premises in the project; the project should be ready for at least 30%.
In addition, the subjects of the Russian Federation will be able to conclude an agreement with the federal government to establish individual criteria for readiness and the number of equity participation agreements.
The deputy head of the Ministry of Construction, Nikita Stasishin, said that the Russian government would prepare an additional financial product for developers who could not receive project financing.
“For companies that have equity holders and who will transfer to escrow accounts, but will not receive project financing, a non-bank product is provided that allows these objects to be completed,” he explained.
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Earlier it was noted that developers who continue to work without attracting escrow accounts will be able to receive funding through the recapitalization of the Fund for the protection of the rights of shareholders. Volumes of recapitalization are discussed.
Source: Moscow Construction Complex