Major amendments to the legislation on shared-equity housing construction have been adopted. Prohibition of shared participation in construction When will shared participation in construction be prohibited?

Refusal shared construction may happen this year instead of July 1, 2019, and the sale of apartments in buildings under construction will be completely banned in 2020.

Such conclusions can be drawn based on the information that ended up in the hands of the business press after a meeting between President Vladimir Putin and government officials and developers.

The tightening of the authorities’ position is aimed at protecting citizens from unscrupulous developers. However, professional market participants themselves say that the measure could lead to rising real estate prices and oligopolization of the construction market.

The vast majority of new buildings in Russia (about 80%) are sold through shared construction agreements (DDU), under which real estate is built using the funds of investors (shareholders). Since such a scheme carries risks for citizens of losing money and being left without housing, joining the ranks of “deceived shareholders,” the authorities decided to change the rules of the game and exclude a large number of investors from the construction project. According to various estimates, the number of buyers whose terms of equity contracts were not fulfilled exceeded 100 thousand people across the country, which could not but alert both federal and regional authorities.

The decision to abandon shared-equity construction was made back in 2017, but in order to minimize the risks of a collapse in the market, the process of transition to project financing of the sector was extended over three years. During this time, developers had to learn to function in the new realities of project financing, master all the nuances of interaction with banks and completely “withdraw” from citizens’ funds and acquire their own capital.

According to the adopted amendments to the law on shared construction N 214-FZ, from July 1, 2019, developers will receive funds for sold apartments only after the housing is delivered to buyers. Until this moment, clients’ money will be in special bank accounts that are inaccessible to either the “builder” or future homeowners. At the same time, the insured amount, compensated from the Deposit Insurance Fund in case of problems, is limited to 10 million rubles.

According to the press, at a meeting with the head of state, developers tried to achieve relief, but everything turned out exactly the opposite: they will have to hurry up with the abandonment of shared construction, since the situation on the market is becoming critical.

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“Fuel to the fire” was added by the troubled company Urban Group, in the event of bankruptcy of which the list of affected shareholders will increase by 16 thousand people. At the moment, the company, which has liabilities of 80 billion rubles, has announced the cessation of real estate sales. The developer was on the verge of bankruptcy due to gross errors and violations in the company's management system. According to media reports, we are talking about the withdrawal Money according to shadow schemes.

“In a shrinking market, where the solvency of buyers is decreasing, many decisions have to be made faster,” she explained in an interview with Tsargrad. Director of Research at Market Information LLC Svetlana Podchalina. “In general, we can say that the construction market is experiencing a situation similar to what happened in the banking sector.”

But the problem of defrauded shareholders has always been a priority, and during the pre-election period, the government’s attention to it increased even more, VTB Capital analysts indicate in their commentary. At the same time, the company noted that the introduced rules, in particular the ban on receiving payment for apartments before completion of construction and the tightening of requirements for a construction company, significantly change the “economic basis of the sector’s operations.”

Currently, only two financing schemes will be available to developers: own funds and credit. According to Mrs. Podchalina, it is necessary to take into account that few developers build with their own funds.

“If developers had to finance construction only with their own or borrowed funds, its cost would increase by about 20%,” they point out, in turn. analysts "VTB Capital" . In their opinion, the new rules of the game provide a competitive advantage for large developers “who have established ties with banks, and create the preconditions for large-scale consolidation of the sector.”

Experts are confident that the authorities’ decision will cause serious problems for developers and even bankruptcy in the market. First of all, we are talking about small companies. Further oligopolization of the market will affect not only the cost of new buildings, but also the quality of the housing being built. Oligopoly excludes competition, analysts explain.

“Small developers will most likely leave the market because they will not be able to play by the new rules, primarily due to the lack of funds for construction,” says S. Podchalina . - At the same time, banks are, in principle, very reluctant to lend even to large ones and those with a long and successful story the existence of developers, small developers - even more so."

The rise in prices for new housing contradicts the goals set by the Russian President in the new May decree, he noted in an interview with BFM Member of the Board of Support of Russia Dmitry Kotrovsky . One of the tasks in improving the lives of citizens is the creation of 40 million square meters of affordable housing, so that 5 million citizens could improve their living conditions. “This does not correlate with each other at all,” he argues. “PIK” occupied more than 30% of the market, but it is not yet able to cast a shadow over the entire market and adjust absolutely all participants to its liking.”

According to the expert, only a major player will be able to determine the margin that will ultimately allow the final cost of the product to be formed. “I don’t imagine it’s possible for other market participants, especially those working in the regions, to keep up with this opportunity,” concluded sir Kotrovsky .

True, the consumer will not feel all these negative phenomena immediately; for some time the market will exist by inertia.

“In 2018-2020, there will most likely be an overstocking of the market, as many developers tried to start construction of projects under development according to the old scheme,” predicts S. Podchalina. “At the same time, the required volume of demand from buyers is not observed. First of all, such overstocking will affect Moscow and the Moscow region."

According to her, as a result, housing prices will not rise in the next year and a half.

“In the current situation, it is very difficult to plan even two years, because the market will change, its relief and landscape will change,” the expert believes. “What we get in the future will depend on how it changes and how stable it remains.” .

So far there are no prerequisites for a rise in prices, and first of all, because there are no prerequisites for an increase in domestic effective demand. As Tsargrad has already reported, while the troubled Urban Group is undergoing an external audit, experts are wondering who and the developers will pick up the “orphaned” projects. Among those to whom the developer turned for help are Ingrad, PIK and Granel.

However, the expert community has expressed doubts about the developers’ interest in saving the Urban Group. In the absence of demand, market positions are shaky, and there is a minimum of people willing to take on new risks in conditions of instability.

Purchasing your own home is a problem for many citizens. Some young people decide to take such a desperate step as purchasing an apartment in a building under construction only to start an independent life, separating from their parents. Unfortunately, such a risk is not always justified, especially when there is relatively little information about the developer.

Today, a law banning equity participation in construction is being approved. Russian President Vladimir Putin announced that the law banning DDU will soon come into force. This innovation is due to the need to protect shareholders from possible fraud. There will no longer be a situation where the DDU forces people to pay their last money for apartments that have not yet been completed at the time of sale. Still, this is a big risk, and it is connected, first of all, with the fact that the money of the shareholders may not be justified.

This is a serious problem that has worried many people who have decided to purchase an unfinished apartment for a long time. After all, it was necessary to enter into an agreement with the developer, pay your hard-earned money, and then wait a long period of time in order to finally get the opportunity to settle in the long-awaited home.

Guarantees and liability

The presidential decree banning equity participation provides certain guarantees to those citizens who decide to purchase an apartment. Now, when buying housing in a new building, you can remain firmly confident that the citizen will receive housing in any case. All risk is eliminated.

If for some reason the developer fails to fulfill his obligations, he must pay a penalty. A citizen who invests his funds when buying an apartment does not suffer in any way from possible changes.

Mandatory documents

According to the law, in some cases no one can accept money from private investors until the relevant documents have been completed. Only developer-owners can use public money. However, there is a certain package of documents that must be collected. If at least one important document is missing, it will be impossible to conclude such an important deal. So, what should you pay attention to?

Construction permit

Basic document giving the right to purchase housing. A building permit must be present. Without this, it is impossible to talk about protecting the rights of shareholders. Before concluding the DDU agreement itself in 2018, you need to pay attention to the amended law and act in accordance with the changed rules.

Land document

The ban on shared participation in construction now provides an opportunity to thoroughly study your rights and make the most of them. The document itself must necessarily contain registration of ownership.

Project declaration

This type of document must be published. It is best to read the papers in advance to have an idea of what the partner is offering. The project declaration provides certain guarantees.

It is worth noting that all of the above documents are of great importance. One cannot be neglected in favor of the other. In shared construction, you cannot borrow funds before work begins. Otherwise, it will be considered a gross violation. Before taking any decisive steps, you should carefully study your partner’s documents, analyze the situation and only then make a decision. In any case, it should be meaningful and serious, not taken in a hurry.

Registration

There is a law in the real estate market according to which an equity participation agreement is subject to mandatory registration. Otherwise it will be considered invalid. Registration eliminates the possibility of any fraud on the part of the developer. Thus, it will be impossible to sell the home twice and get money dishonestly. The law prohibiting equity participation, which prohibits the dishonest use of shareholder's funds, helps citizens remain confident in the future. The specific apartment will be entered into the unified state register. Thus, the likelihood of encountering deception and severe disappointment in life is eliminated.

Other obligations

The parties undertake to fulfill the assigned tasks in relation to each other. A citizen who has paid the required amount has every right to take the finished property at his full disposal. The developer signs a condition that the house will definitely be built. If for some reason the terms of the contract are violated in some way, the culprit will have to pay a penalty amounting to a significant amount. The contract itself is concluded according to the laws of the construction market, only in writing, in order to avoid various misunderstandings. The Government of the Russian Federation has identified specific requirements for the document itself. It must contain certain data.

Description of the object

The property (house or apartment) must be clearly recorded in the documents. The total number of square meters, number of rooms, balconies, loggias, etc. are described in detail. This is necessary in order to exclude possible mistakes, prevent the development of deception on the part of the developer. The Fund for the Protection of the Rights of Shared Construction Participants is aimed at maximizing the safety of every person who is going to purchase an apartment.

Indication of the deadline

An important factor that is also worth paying attention to. Clearly recording the deadlines for completing the work allows you to understand when the process will come to an end and you can move into a new home. There is usually still some information available to help you understand the warranty period for the property.

If, within a certain amount of time, the newly-minted owner realizes that he is not satisfied with something specifically regarding the construction work performed, some clauses in the contract may be revised. It is quite possible to even achieve good monetary compensation.

Moment of payment

The cost of the services provided is always clearly and clearly stated in the contract. Both parties must clearly understand what task they are facing at a given time in order to avoid any inaccuracies.

For the future owner, some assistance in financing is provided here. Financing involves providing bank loans when needed. The payment procedure is also clearly indicated in the document.

Thus, the law banning shared participation in construction has its tangible advantages. In this case, sales of apartments in buildings under construction will be stopped. Most people will be happy with such changes, since they will only pay money for what they are guaranteed to get in the end. This law really protects the personal funds of citizens, allowing them to invest only in what is necessary and necessary.

He told reporters about the president’s instructions to explore the possibility of transitioning through banking support from shared construction to project financing. He did not talk about any specific dates.

The minister spoke about the need to abandon shared construction back in the summer. “Of course, we must strive to someday move away from shared construction and move on to banking support, but this is not today or tomorrow, while our task is to maximally protect the people who participate in shared construction,” Men noted.

Developers now mostly use loans to implement their projects, market participants comment. But the funds of shareholders are much cheaper for them.

“The question here is not about the project financing mechanism itself, but about the rate at which banks lend to developers. Bank funds for developers today are a much more expensive resource than the money of shareholders,” notes the general director of the development company Ingrad.

Players who build housing without attracting bank financing, there are on the market, but they are in the minority, says the financial director of the City-XXI Century development group. These are either the largest companies or companies affiliated with banking or government agencies, or companies that carefully calculate the level of credit load and build mainly with their own funds.

Today, only a quarter of developers build at their own expense, noted the Granel Group of Companies. They also add that a complete transition to project financing could lead to the fact that at the regional level up to 90% of developers could leave the market.

“The cost of construction in the regions is approximately 25 thousand rubles. per sq. m. Sales on average - 35 thousand rubles. per sq. m. These conditions are financially burdensome for the regions and business becomes unprofitable,” the company says.

If we take into account the amendments to the law on shared construction, then only financially stable companies that have profit not only from development will remain on the market, since the profitability of this business decreases more and more every year, adds Andrey Tsvet, development director of the Granel Group of Companies. .

We are talking about amendments to the law on shared construction, which will come into force on July 1, 2018. They introduce a ban on obtaining several construction permits at once, oblige the general contractor, technical customer and developer to have an account in the same bank and make payments among themselves using escrow accounts.

“After stringent requirements for developers are applied, we can talk about other adjustments - the structure of the development market will change, from which small players who are “unable to cope” with the new rules of the game will leave. At the same time, although it is possible to predict a change in the structure of the industry and the consolidation of companies, it is premature to talk about a decrease in the volume of supply,” shared. Head of work with key partners of Est-a-Tet.

Let us recall that last year the requirements for the minimum amount of authorized capital for developers raising funds from the public were tightened. The amount of authorized capital is calculated individually for each developer depending on the maximum area of all shared construction projects.

The minimum size is 2.5 million rubles with plans to build 1.5 thousand square meters. Moreover, if a developer is going to build 500 thousand square meters using citizens’ funds, then its authorized capital must be at least 1.5 billion rubles.

In addition, this summer the president signed a law on a fund for the protection of the rights of shareholders (compensation fund), which establishes a uniform contribution rate for developers - 1.2% of the price of each contract with a shareholder. At the same time, the amount of the developer’s own funds for the project, which is planned for implementation, must be no less than 10% of its cost throughout the entire construction period.

If the president’s new initiative is implemented, then the scheme, in fact, will hardly change, since the bank finances the construction, Sobolev noted. However, the period of time for using bank money changes.

“The bank will lend money for a longer period - the so-called “long-term money”. To receive funds from buyers, developers will first have to build the property. In essence, we are talking about selling apartments according to the same scheme that secondary housing is currently being sold,” the expert said.

He is confident that we can expect a reduction in the number of companies and further monopolization of the market. In this case, an increase in the cost per square meter and an increase in apartment prices due to decreased competition are inevitable.

Other market participants are also confident that the cost of housing will rise. Project financing is provided at 13-20% per annum, which, taking into account the duration of projects, gives from 20% to 60% of the overpayment on the loan. These amounts will certainly be reflected in the price per square meter, which will become much more expensive than now, says the managing partner of Metrium Group.

“For project financing to work, the loan must be cheap and long-term, but in Russia today there is an acute shortage of just such investments. And given the high cost of capital, the need to accelerate its payback increases, so it is not profitable for either developers or banks to get involved in long-term and expensive projects,” she believes.

According to her, macroeconomic stability and predictability, primarily in the foreign exchange market, are extremely important for long-term investments. It also doesn’t exist today, and the lack of guarantees that the devaluation of 2014 will not happen again is the main obstacle to the introduction of project financing.

With full project financing, there is no need to sell apartments under the DDU; accordingly, only new buildings that have been put into operation will appear on the market. They will, of course, be more expensive than those sold at the foundation pit stage.

“At the current stage, the transition to project financing should not be perceived as a prospect for the near future. There will be an impact on the market only when we see concrete steps towards creating conditions for the development of this construction financing scheme. Now it successfully coexists with the attraction of funds from equity holders and, in my opinion, the situation will not change in the next 5-10 years,” the expert noted.

Pavel Poselenov also believes that it will not be possible to completely switch to project financing in a short time; we are talking about five years or more.

Meanwhile, the problem of defrauded shareholders in Russia is acute. The president addressed her more than once in his statements. Today, the regions have provided roadmaps for solving problems to almost 40 thousand deceived citizens.

But according to a number of deputies, the problem is much larger, and we are talking about 150 thousand people who invested their money in the construction of houses and did not receive housing.

Mikhail Men talks about the lack of proper control over shared-equity construction in the constituent entities. He also notes that it is planned to establish a unified procedure for exercising control in the field of shared-equity construction in all constituent entities of the country and assign control powers to the state construction supervision bodies of the constituent entities of the Russian Federation.

“This will allow for simultaneous control of the timing and quality of construction and control of the intended use of shareholders’ funds,” the minister is quoted as saying in the department’s materials.

Shared construction was legalized in 2004 in order to streamline the use by developers of citizens' funds in the construction of residential buildings and to protect property purchasers from unscrupulous builders. Over all these years, a number of changes have appeared in the law on shared-equity construction, designed to strengthen control over the work of developers and strengthen the protection of the rights of shareholders. Last changes were adopted into law at the end of 2017. Several more will come into effect on July 1, 2018. Shared construction: changes since 2018, how shared construction will work from July 1, what you should know about it.

Changes in the law on shared construction since 2018

The authorities are constantly taking measures designed to streamline the construction market and bring it into an increasingly civilized framework. Legislators believe that a smooth transition from shared construction to the sale of ready-made apartments will greatly reduce the risks of this market.

The government has long been discussing the need to abandon shared-equity construction and switch to the mortgage method. In December last year, a “road map” was published on the government website, which included an action plan for the transition to a project type of financing for the construction of residential buildings:

by July 1, 2018, it is planned to create a regulatory framework for the transition to a new method of financing;
from July 1, 2018 to July 30, 2019, allow mixed construction financing - it is possible to use an escrow account or special and direct money from participants in shared construction;
from July 1, 2019, to raise money for the construction of housing, it will be allowed to use exclusively an escrow or special account.

Lawmakers also developed a law to protect the rights of shareholders in the event of bankruptcy of a developer, introducing many changes to federal law that will come into force on January 1 and July 1, 2018.

Time frame for introducing adopted changes

At the same time as the introduction of the roadmap for the transition to project financing of the construction industry, legislators made certain changes to the law on shared construction. Now the amount of own funds and the work of the developer will become more strictly controlled in a number of areas.

Most changes will come into effect on July 1, 2018. Consequently, developers have a reserve of time to prepare for activities in changed conditions and to complete the projects they have started.

It should be noted that the innovations will not affect certain new buildings. These include those in the construction of which the schemes of housing cooperatives - housing construction cooperatives - are used. Legislators do not prohibit this, but this law does not apply to them.

Measures taken previously to protect the rights of shareholders in the form of liability insurance for developers have proven to be ineffective. Insurers used a large number of tricks to avoid payments for such insurance; not a single building was completed from insurance payments.

Last year, a new organization, “Fund for the Protection of the Rights of Citizens Participating in Shared Construction,” was registered to help shareholders. Developers are required to contribute 1.2% of the cost of the apartment to this fund for each concluded equity participation agreement.

Money from the compensation fund will be used to complete the construction of unfinished structures or to make compensation payments to affected shareholders.

General criteria for developers

Requirements for developers in shared-equity construction in 2018 are included in one concept “specialized developer”. Among the main new requirements we note the following:

“Specialized developers” will be considered exclusively commercial companies dealing with construction. Any public non-profit organizations, educational, sports and other organizations will not be allowed to participate in construction.
The developer has at least 3 years of experience in the construction market and has received permits for the commissioning of apartment buildings with a total area of 10,000 m2.
The director, chief accountant and other managers of the developer will no longer be able to be persons with a criminal record or bankruptcy individual, or brought to subsidiary liability. Developers will be required to place data on the management’s compliance with these requirements in the Project Declaration.
From January 1, 2018, developers are required to place full and intermediate financial statements in the United information system housing construction and on your official website.

A large number of amendments to legislation are aimed at strengthening financial stability developers.

Thus, the minimum amount of authorized capital has been abolished; it will now depend on the total area of housing under construction. Today the requirement is the following: builders must have their own funds in excess of 10% of the project cost.

At the time of submitting the project declaration, the developer’s special account must have a balance in the authorized bank in the amount of at least 10% of the estimated cost of the property.

At the time of presentation of project documentation, the developer should not have financial obligations that are not related to construction in excess of 1%. Maintenance costs are also limited - no more than 10%. Moreover, the total amount of all advance payments should not be more than 30%.

Recent amendments to the law prohibit developers from:

Issue or buy securities, unless they are their own shares. This will close the bill of exchange scheme for financing construction.
Attract or provide loans for construction in addition to targeted ones.
Create or take part in commercial and non-profit organizations, through which the money of defrauded investors was often withdrawn.

Another important change in 2018 is the introduction of an escrow account, where money from participants in shared construction will be transferred. Developers will be able to use the money only after the apartments are handed over to purchasers under transfer deeds.

Consequently, after the changes in legislation come into force cash flows developers will fall under the control of authorized banking organizations.

All changes to the law on shared construction have both advantages and disadvantages. The advantages include strengthening control over the real estate market and reducing risks for potential equity holders. The downside is the potential rise in prices for apartments in new buildings. How it really turns out will be clear in less than a month.

Shared construction may be completely banned in Russia, and this topic was discussed at a meeting with the president. According to Vedomosti’s source, the head of state himself proposed to move away from selling unfinished buildings and to do this almost in 2018

Shared construction may be banned altogether. According to Vedomosti, this possibility was discussed at a meeting with the president. Moreover, as one of the sources close to the meeting participants said, the head of state proposed to move away from selling unfinished buildings and to do this almost in 2018.

Starting next year, the shared construction market is already facing global changes, which should primarily protect shareholders, but they do not excite developers. Apartment developers will not be able to receive money from buyers until they deliver the property. Contributions will be kept in special accounts in banks, and companies will build houses either with loan funds or with their own.

These amendments were criticized by many. There were opinions: this could put an end to shared-equity construction.

Business FM asked market participants, buyers and experts what would happen if the purchase of unfinished buildings was completely banned. The defrauded shareholder of the Terletsky Park residential complex, Nikita Zhevchenko, believes that the state thus wants to relieve itself of responsibility:

Nikita Zhevchenko shareholder of the Terletsky Park residential complex“First of all, there is no shared construction anywhere in Europe. We have it. Why do we have this? Because we have high stakes on a mortgage, that is, that is why the state came up with this method. Instead of a low mortgage, they came up with shared construction, so that this money, which is actually interest-free, which was with a low interest rate, which banks give in Europe, is given here by equity holders. But in this case, if the state has resolved the issue of developing the construction market in this way, then they must somehow protect these investments. Otherwise, it turns out that you kind of wash your hands of it and at the same time there seems to be a boom in construction, but you have nothing to do with it if something happens. As a result, unscrupulous developers took advantage of this, those who do not build, but withdraw money. Accordingly, naturally, the state bears direct responsibility for this. And now they are trying to somehow set it up in such a way as to patch these holes.”

It will be difficult for a business without the possibility of shared construction, especially in the regions, says Dmitry Kotrovsky, member of the board of Support of Russia:

Dmitry KotrovskyMember of the Board of Support of Russia“First of all, this will, of course, lead to an increase in the cost of housing, which, it seems to me, completely contradicts the May decrees, which stated that there should be a plus of 40 million square meters of affordable housing, so that 5 million Russians could improve their living conditions. This is absolutely not correlated with each other. PIK occupied more than 30% of the market, but it is not yet able to cast a shadow over the entire market and adjust absolutely all participants to its liking. The scalability that the PIK group of companies has will, of course, allow them to minimize costs. Accordingly, determine the margin that will ultimately allow you to form the final cost of the product. I don’t imagine it is possible for other market participants, especially those working in the regions, to keep up with this opportunity. Still, if we are talking about the fact that 5 million Russians should receive affordable housing, how can this be done in all 85 regions, taking into account the fact that the developer will first need to get money from somewhere and prove to the bank that the project is feasible and relevant , and after that also include in the cost of the price a load that is comparable to the cost of money, despite the fact that you will be obliged to take out loans. It’s a mystery to me how such two opposing decisions can be elevated to the rank of a state task. I don't know how this can be done."

Experts believe that if the sale of real estate during the construction phase is prohibited, prices for finished housing will skyrocket significantly. This is what Sergei Lobzhanidze, director of the analytical platform BNmap.pro, says:

Sergei Lobzhanidzedirector of the analytical platform BNmap.pro“In addition to the fact that this will automatically lead to an increase in pricing at the stage of final construction, because now the average growth during construction, for example, in Moscow, is from 18% to 27%, the credit load will be added to this. To this will be added VAT, which will have to be paid upon receipt of property, so I think that here the price increase could be up to 50-60%, only based on the increase in volumetric costs for products. This is about the price. As for how popular this is, I can say as an example that at the end of 2017, within the borders of Moscow and New Moscow, we had about 54 thousand transactions for individuals, including apartments, under equity participation agreements for the transfer of rights based on the purchase -sales. The secondary market is about 120 thousand [transactions], that is, in principle, almost half - this is a very large percentage.”

It is not reported whether any decisions were made regarding the ban on shared construction. The publication only notes that the possibility of selling only finished housing from 2020 was also discussed as an option.