Transition to project financing of housing construction has passed in Moscow unsportly
More than 60% of Moscow developers will complete the facilities under the old financing scheme, so the transition to escrow accounts in residential construction did not affect the capital market. This was announced to journalists by the Deputy Mayor of Moscow in the Moscow Government on issues of urban planning and construction Marat Khusnullin.
“More than 60% of metropolitan developers remained in the old scheme, since they meet all the necessary federal requirements, the remaining companies have already submitted to the authorized banks applications for funding under the new rules,” said Marat Khusnullin.
According to the head of the Construction Complex, about 5% of the projects implemented in Moscow today are questionable.
“For these projects, there is no clear clarity whether they will be able to switch to new work rules, however we work with each of the developers directly, work out models for further work,” Marat Khusnullin emphasized.
From July 1, 2019, Russian developers are required to work on escrow accounts, on which citizens’ funds will be accumulated. At the same time, criteria for residential projects are defined that can be completed after July 1 without switching to a financing scheme using escrow accounts. In particular, the degree of readiness of the house should be at least 30%, and the number of concluded equity participation agreements should be at least 10% of the total area of residential and non-residential premises in the project.
Source: Moscow Construction Complex