The State Duma supported the bill, which provides funding for the construction of apartment buildings

Posted on Feb 13, 2012

Today the State Duma adopted in the second reading a bill aimed at raising funds from individuals and businesses for the construction of apartment buildings and other real estate.

Its main purpose – balancing the interests of developers and participatory construction. To this end, proposed to expand the list of cases where people are allowed to raise funds for the construction of housing. Dimensions of sanctions for failure to fulfill obligations participatory construction and developer plans to bring the refinancing rate of the Bank of Russia, while maintaining a high level of protection of human rights.

The bill eliminates the mechanism of joint responsibility of the developer and the bank to the participants of shared construction when the bank issues a loan secured by the land and the construction of the property, according to ITAR-TASS.

Reduced time of state registration of contracts of a joint construction of up to 10 days after the registration of the first agreement of such participation. As the head of the State Duma Committee on Industry, Construction and High Technology Shakkum Martin, the law is crucial for the implementation of the priority national project “Affordable Housing.”

According to the deputy, now 70% of housing in Russia is being built using the equity in apartment buildings. “For many this is the only way to improve their living conditions, as the apartment in which case costs twice cheaper than the market” – said Shakkum.