‘Plan of Mikhail Men’: to save a subsidized mortgage loan, the programme of ‘putinka’ and lowering of reserve requirements
In Kazan there has been announced anti-crisis plan of the Russian Ministry of Construction to support the branch
At the final Board of the Ministry of Construction and Housing of Tatarstan Leonid Stavitsky announced measures by which the Ministry of Construction of Russia proposes to support the construction market after the expiration of the programme of subsidizing of mortgage rates. It turned out that the department was not only for its extension on the same terms, but also considers it necessary to reduce the down payment to 10% of the housing cost. Read more in the report of Realnoe Vremya.
1 March is the deadline of duration of the programme of subsidizing of mortgage rate. As the Ministry of Construction of the Russian Federation had previously stated, since April subsidising should be continued. Today, the First Deputy Minister of Construction, Housing and Communal services of the Russian Federation Leonid Stavitsky has told at the Board meeting of RT Ministry of Construction about other measures of market support offered by the Department. They relate to the tools of funding the relationships within the construction business, government regulations.
'This discussion is held very actively in the government of the Russian Federation by the Prime Minister with the supervising Deputy Prime Minister. And, surely, all this is discussed with the President of the Russian Federation,' — he stressed.
Measures proposed in the field of mortgage lending
- To extend the programme of subsidizing of mortgage rates. The rate offered to borrowers is 12%. As Realnoe Vremya wrote, now the public excitement is growing in the real estate market due to whether the subsidy will be continued.
- To reduce mortgage rates to 7-8% at the expense of subsidies from the lost incomes of the credit organisations of all budgets of the budgetary system.
- To create a programme for certain categories of citizens, by analogy with a military mortgage, as a result of which banks can obtain funds from the Central Bank at a preferential rate and to reduce the interest rate for the borrower.
- To recommend to reduce to 10% the down payment on a mortgage loan. Now, it is 30% of the cost of the acquired housing.
- To ensure lowering of reserve requirements on mortgages from 35% to 20% of the loan amount. According to the Agency for Housing Mortgage Lending (AHML), it will release about 1 trillion rubles for the mortgage loans.
- To allow AHML to organized tradings, to ensure the implementation by a unified institution in the housing sector of sequestration of mortgage-backed securities.
- To provide an increase of funds in the mortgage market at the expense of the mortgage retirements by the Central Bank which in case of default on obligations by the borrower will be overbought by a unified institute of development in the housing sector.
Measures relating infrastructure facilities
- To allow for the possibility of inclusion of expenditures on the construction of social facilities in the cost of the project in order to reduce taxation.
- To simplify the procedure of donation of objects created by the developer in the implementation of projects on complex development of territory for housing construction, including avoiding payments of taxes upon such transfer.
- To ensure effective implementation of the programme of AHML on promotion the construction of engineering infrastructure. According to Stravytsky, the regions should determine in the nearest future the list of developers that will receive financial support from funds of AHML.
Offers on lending to property developers
Developers complain without cease of the banks that impose too high demands or offer too high interest rates on loans. Now the Federal Ministry of Construction has developed a block of statements to support developers in terms of lending.
In particular, he decided to ensure the inclusion of projects on complex development of territory for housing construction in a number of projects that are carried out in accordance with the programme of support of investment projects implemented on the territory of the Russian Federation on the basis of project financing, approved by a resolution of the Government of the Russian Federation.
Further, the Ministry of Construction proposes to revise the reserve requirements with the view of housing construction. Besides, with the help of AHML, the AHML subsidiaries and other organizations of non-bank institute of development to provide loans to private developers that implement projects of complex development of territory for housing construction without taking into account the established by the Central Bank reserve requirements, therefore, at lower interest rates.
Another measure — to recommend the developers, when they extend credits, to accept as collateral property rights, including land titles. 'Now only Sberbank practices it. There are no regulatory limits for the extension of such practice' — said Stavitsky.
Statutory regulation
Stavitsky stated the need to extend the duration of the programme 'Housing for Russian family' by 2020. Now, the programme is valid until 31 December 2017. 'Frankly speaking, it didn't give such a tangible result. But we think it is not expedient to exclude this programme, it is necessary to reformat it in the framework of proposals, which were pre-voiced,' — summarized Stavitsky.
Another innovation that should please the developers — reduction of number of administrative procedures when issuing technical conditions for connection to utility networks and the revision of deadlines. 'Well, it's an old story. I know, on the territory of the Republic it is solved much better than in other regions, but despite this, it is necessary to work on this,' — said Stavitsky.
The Ministry of Construction offers in the nearest future not to impose regulations or not to amend existing regulation that unreasonably impose more severe requirements for the developers and lead to higher expenditures on projects in sphere of housing construction and carry out additional administrative procedures. Last changes were the amendments, according to which the procedure of civil liability insurance of the developer was severed.
At last, they proposed to take action on the revision of the cadastral value of real estate. 'The cadastral value is used for tax base. A significant increase in the cadastral value, of course, leads to an increase in payments.'
'It's an effective measures and proposals, which now the Ministry has worked out, and we work at the level of government very actively,' — said Stavitsky.
