Ilshat Gimaev: “It is possible to complete shared construction according to the old rules"
The criteria according to which it is possible to complete earlier started construction by the old rules, i.e. without using escrow accounts have been approved. This was announced today by the Deputy Minister of Construction, Architecture, Housing and Communal Services of the Republic of Tatarstan Ilshat Gimayev at a republican meeting on project financing of housing construction. It should be noted that from 1st of July 2019, all Russian developers should switch to project financing of housing construction using escrow accounts. Opening the meeting, Deputy Minister of Construction Ilshat Gimaev said that a decree of the Government of the Russian Federation was signed yesterday, which will facilitate construction for developers of apartment buildings. According to the decree, developers will be able to attract funds of real estate investors directly, without creating escrow accounts, if the house is ready for more than 30%. The number of concluded equity participation agreements must reach at least 10% of the number of residential and non-residential premises in a residential building. Ilshat Gimaev assured that there should be no failure in the construction market of Tatarstan due to reform.
“Over the past 8 years, the volume of annual commissioning at the level of 2 million 400 thousand square meters has been maintained in the republic, and one of the highest rates of housing per capita in the Russian Federation has been achieved,” - he said. In Tatarstan, in accordance with 214-FL, 255 apartment buildings for 55,502 apartments (3.809 million square meters, including with non-residential premises) are being built, under which 15,019 equity participation agreements were concluded. A preliminary analysis showed that, according to the criteria of the Government Decree draft (without switching to escrow), 66 developers should pass to 160 apartment buildings for 31,846 apartments with an area of 2,078,649.2 thousand square meters, for which 13,435 equity agreements were concluded participation; they plan to switch to work with banks on escrow accounts for 41 developers in 80 apartment buildings for 20,946 apartments with an area of 1,494,097.4 thousand sq. m. under which 1,480 equity agreements have been concluded; so far there is no clarity on 14 developers in 15 apartment buildings for 2,710 apartments with an area of 237,114.6 thousand sq. m. for which 104 equity agreements were concluded. The work of developers with authorized banks on the financial analysis of the credit model being implemented or planned for housing construction projects continues. "Developers need to strengthen work with authorized banks, to date, only 16 have preliminary approval," - said the deputy minister.