Transfer of developers to escrow accounts will not lead to problems on the market of housing in Moscow
The changes in legislation that will come into force on July 1, 2019 will not lead to problems in the Moscow housing market, said Deputy Mayor of Moscow for urban planning and construction Marat Khusnullin at the MIPIM international exhibition in Cannes.
“Banks should check the financial condition of developers. All these calculations we have to do before July 1 to understand who will go to the escrow accounts, and who will work according to the old rules. I can say that this is a big, difficult job, but we are not worried that we will have any problems, ”said Marat Khusnullin.
Recall that Russia is implementing a phase-out plan for shared construction. From July 1, 2019, Russian developers will be required to work on escrow accounts, in which citizens will accumulate 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, developers will be able to complete part of the projects already started by the old rules of financing.
Earlier, the deputy mayor noted that the new system of financing construction projects is aimed at solving the problem of deceived co-investors. “One of the key reasons for the occurrence of defrauded co-investors is the lack of professionalism of developers: an incorrect assessment of the economics of processes, the inability to work with the currently complex legislation. The new system of working with co-investors with money is trying to insure people against such errors of developers, ”said Marat Khusnullin.
Source: Moscow Construction Complex