Compensation fund to be controlled by Housing Mortgage Finance Agency
Compensation fund of equity holders will operate under the control of the Housing Mortgage Finance Agency, said the Head of the Ministry of Construction Mikhail Men.
“This is not going to be a public interest entity, the fund will operate under the Housing Mortgage Finance Agency,” said Mikhail Men.
According to him, since January 1, 2017 all shared construction participation agreements will be insured in the new compensation fund.
Earlier, the Russian President Vladimir Putin during a meeting of the State Council allowed the possibility of establishing a state compensation fund to address the needs of hoodwinked investors. This provision was included in the package of amendments to the law on the shared construction #214-FZ, which Putin has signed in early July.
Mikhail Men said that the fund will not serve as an additional insurance, and it will not lead to a rise in the cost of housing.