Approval form for developers on the readiness of the project to complete its construction without escrow accounts

Approval form for developers on the readiness of the project to complete its construction without escrow accounts. The corresponding order of the Ministry of Construction of Russia, signed by Deputy Minister Nikita Stasishin is posted on the official portal of legal informationhttp://publication.pravo.gov.ru/Document/View/0001201906030016?index=0&rangeSize=1. This order approved the application form of the developer about the readiness of the project to complete it according to the old rules. The application indicates information about the developer, gives grounds for applying criteria to it, according to which the degree of readiness of the object is determined, and also provides information on the number of the signed equity participation agreement, the total area of ​​all residential and non-residential premises for which equity participation agreement can be concluded.

This key document provides the developer with the opportunity and after 1st of July  2019 to complete the completion of their residential properties according to the old rules - without attracting project (bank) financing and using escrow accounts. To do this, in accordance with the Resolution, it is necessary that the object under construction be ready for at least 30% (in some cases, the project readiness rate decreases to 15% and up to 6%), and the share of equity holders attracted as part of equity participation agreements for this object was not less than 10%. The order of the Ministry of Construction, which approves the developer’s application form for the project’s readiness to complete its construction without escrow accounts, takes effect within 10 days from the date of publication, that is, from 13th of June 2019.