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Wednesday, March 14, 2018

Putin and Kozak have found bureaucrats and masochists in construction

The state Council for construction, which was held in the Kremlin, Vladimir Putin, brought the Russians, pondering over a solution to the housing problem, the two conflicting news. The first is to buy a house now unsafe, the number of defrauded investors is increasing, and to cope with this problem most of the regions fail. Second – homes need to buy right now, because it will not be cheaper.

photo: kremlin.ru

The importance be discussed at the meeting of the state Council of the theme was never in doubt, no one of its members. Construction is one of the few dynamic sectors of the Russian economy that are not directly associated with energy production. Its contribution to GDP is 6%, each invested in the construction of the ruble due to the development of adjacent segment brings 10-15 roubles. “And even Jesus Christ in the beginning of his career was a carpenter” – led already quite indisputable, including, as it turned out, the Communists, the argument Gennady Zyuganov.

In the past two years, housing construction in the country is developing at a record pace. In 2014, reminded Vladimir Putin, was built 84 million square meters of new buildings, and in 2015 amounted to 85 million sq m. the volume of housing most in demand by the economy over the last ten years grew 20%.

Due to the elimination of excessive administrative procedures, active involvement in the turnover of empty plots of land, and most importantly – the development of the mortgage – the authorities, according to the President, managed to finally get close to fulfilling the historic mission – to provide housing for all who need it. “To build the necessary Russia the number of roads is probably impossible, but the right amount of housing you can build exactly. We have a historical chance to solve this problem”, – Putin has inspired officials in new feats.

Governors in response complained about the crisis. Since last year, has again become an urgent problem of the frozen construction projects, the number of defrauded investors has grown.

“For three years we have provided housing 11 thousand people affected by the previous crisis, but because of the market turbulence added another 8 thousand”, – complained the Governor of Moscow region Andrei Vorobyov.

According to Zyuganov, the country now 900 thousand frozen construction projects and 400 thousand of deluded citizens that “nobody will envy”. The government also recognise that on their own with such object regions can not cope. The issue has stalled and the growth of scale is fraught with social conflicts. “We need the state compensation Fund, it will effectively solve the problem of “deceived investors”, – said the head of the Ministry of construction, Mikhail Men. (He later explained to journalists that the Fund should replace insurance companies, which do not cope with their responsibilities. The developers will make the same money they are now paying insurers, and the state to spend on the completion of problem objects).

Vladimir Putin is against the idea of state Fund did not mind – he seems to have become accustomed to that business, as a little child, to solve the problem himself unable to. Here and cadastral service of appraisers recently also had to take under the wing of the state.

– There is no example of completion of problematic objects at the expense of the insurance companies, supposedly they do not have accumulated funds, – sarcastically remarked the President. According to him, in this situation, the creation of the state Fund is a good idea, but a new mechanism should not cover up someone’s flaws and fraud”.

But most of all the President, seemed to be interested in the future of the mortgage. On the one hand, lending to citizens has allowed the flywheel housing – these funds are now being built 60% of homes in Russia. On the other – commercial rates remain unaffordable for many Russians.

In the last two years to keep the mortgage afloat, the government has to subsidize their own shallow resources. But for 2017 funds for compensation, according to the Finance Ministry, no.

Putin during a state Council several times asking different officials question: what do they think about the mortgage bonds, which are offers to run the Ministry? Will it be possible to use them to reduce mortgage rates to the European 1,5%?

Responses were generally positive, but not quite convincing. And this is understandable: not used yet our citizens have to deal with securities, and with such, where providing serve some mythical, not even built square meters! “Extend, please preferential mortgage rates for the 2017-2018 year,” he honestly asked Putin President of the national Association of builders SRO (self-regulatory organization – “MK”) Alexey Molchanov.

However, the opinion of the SRO, as it turned out, interested in power in the last turn. Self-regulation in construction has not justified expectations of officials. “In fact, we got the same bureaucracy, the business community,” again chided the businessmen the President. “Yes, it’s just masochistic organization whose members bullied each other” – supported the head of state, Deputy Prime Minister Dmitry Kozak promised in the near future to reform the SRO.

On behalf of developers to speak at the state Council gave the representative of the Moscow construction complex Leonid Kazinets. He requested the authorities of only one thing: to explain to citizens that it is cheaper than the housing cost will be gone. So, it is necessary to put aside all doubts and risks – and to take.

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