Federal Law of May 1, 2021 N 118-FZ “On Amendments to the Federal Law “On the Savings and Mortgage System of Housing for Military Personnel”

General points

The legal framework appeared after the adoption of Federal Law No. 117. This happened in 2004. The creation of the law allowed the state to create a system for accumulating financial resources for professional military personnel. The regulatory act is based on the following documents:

1. Constitution of the Russian Federation;
2. Central Bank instructions;
3. Budget legislation until 2021;
4. Government Regulations 655-1028.

The goal is to allow the serviceman to independently determine his place of residence after transfer to the reserve. Now the military themselves choose how much and when it is more convenient for them to buy real estate.

The condition is the intended purpose. Lending is carried out only to pay for housing. Therefore, participants do not receive cash, making all payments via bank transfers.

The difference is that there is no need to pay a standard down payment. This fee is paid by the army fund and is processed from funds accumulated in the military account.

Federal Law with the latest amendments

Our legislation changes too often. The described Federal Law is far from an exception, to which some changes are periodically made. Since its adoption, the legal act has been amended 17 times. In 2015 alone, 3 amendments were made. There were a similar number the following year.

The latest amendment to the law was made in August last year. The current edition contains the latest changes dated 08/03/2018. The document contains 7 chapters, as well as 36 articles.

Refinancing a military mortgage

Mortgage refinancing is available to any borrower under the described law. The purpose of this procedure:

• Reducing the interest rate;
• Contract extension;
• Deferment of payments.

The procedure itself is in demand when a serviceman leaves the army early. According to legal regulations, payments from the state on the loan are stopped, so only the citizen bears the burden of servicing it. To prevent debt from mounting, he should visit a financial institution to arrange a mortgage refinance.

It is now possible to note the indexation of funds accrued to the military personnel’s balance. Also, starting this year, it is possible to combine a military mortgage with maternity capital. This is good news for military families with young children.

How to participate in the program

Not everyone is allowed to participate in the benefit program. Military mortgage is targeted, it applies only to certain categories of citizens:

• Career military personnel who began serving in 2005.
• Military personnel who returned from the reserves to serve after 2005.
• Persons serving on long-term contracts.
• Extended conscripts who entered into a re-contract after 2005.
• FSB employees whose status is equal to military personnel.
• Employees of the Ministry of Emergency Situations serving in rescue paramilitary units.
• Military personnel who went into the reserve due to deterioration in health due to injury, occupational disease, or work injury.
• Ministry of Defense employees who were fired during the disbandment of their military unit, after the termination of their contract.

Civil servants of paramilitary units, soldiers and sergeants in conscript service do not fall into the category of beneficiaries. Those who are entitled to it have the right to use it only 3 years after the conclusion of the contract. They need:

1. Submit a report notifying your desire to participate in the program;
2. Provide a photocopy of your passport and a copy of the contract;
3. Expect to be included in the register and receive a personal registration number for an open personal savings account;
4. Includes the military personnel in the current register of the housing department;
5. After 3 years, the service member can use the funds in his account to pay the down payment of the mortgage.

When a serviceman breaks a contract early, he loses benefits and is removed from the register and his personal account is closed. At the same time, his rights to the already accumulated funds disappear. This rule does not apply to military personnel who served for ten years before breaking their contract. Then they can use the saved money to pay the mortgage.

Look at the same topic: Review of the mortgage lending market in Russia in [y] year

How to get a military mortgage to buy an apartment in a new building in 2021?

Initially, the serviceman must write a report addressed to the unit commander to obtain a certificate of a targeted housing loan (validity period of the Central Housing Loan - 6 months), then submit it to the bank along with an identity card to obtain preliminary approval for a mortgage. The financial institution will also provide a list of accredited developers and/or new buildings, if there are any restrictions.

After choosing an apartment, you must provide the credit institution with a standard mortgage package of documents:

- passport and military ID,

- certificate of targeted housing loan,

— notarized consent of the spouse to complete the transaction or marriage contract,

- birth certificates of children,

— a preliminary agreement on the conclusion in the future of an agreement for participation in shared construction of a residential building,

— additional documents at the bank’s request.

An account is opened at the bank to receive funds.

Expert opinion

Kozlov Andrey Kirillovich

Lawyer with 10 years of experience. Specialization: criminal law. More than 3 years of experience in developing legal documentation.

The next step will be the conclusion of an agreement on the central housing estate with the Federal State Institution "Rosvoenipoteka", the signing of a loan agreement with the bank and an equity participation agreement (DPA) with the seller of the apartment in the new building. All documents related to the transaction are sent to Rosvoenipoteka.

Conditions for approving a military mortgage in 2021

Mortgages for military personnel are provided for a period of up to 20 years, while the age of the borrower at the time of the last payment should not exceed 45 years.

The purchased home will be used as collateral, just like with a regular home loan. Registration of necessary insurance policies is mandatory.

The savings and mortgage system should become the main tool for providing military personnel with housing in the coming years

According to the Russian Ministry of Defense, the popularity of military mortgages has increased by more than 2.5 times since 2012. Today, the number of participants in this system exceeds the total number of those who received permanent housing or housing certificates and subsidies from the department.

Providing housing for different categories of the population and, in particular, military personnel is still one of the most pressing problems of Russian society. Until December 2021, apartments for military personnel were distributed by the Housing Department of the Russian Ministry of Defense.

But 01.01. 2021 a new law came into force: obtaining housing on a first-come, first-served basis was replaced by a mortgage for military personnel under a contract.

Its conditions in 2021 apply to certain categories of defenders of the Motherland. Let's look at them and find out who can count on a military mortgage.

1. How does a mortgage work for contract workers?
2. Special conditions
3. Who is it for?
4. About the advantages and disadvantages
5. Conditions for contract military personnel
6. How to get a mortgage
7. Participating banks
8. Changes in military mortgage: Video

List of required documents

When the accumulated money is enough for the first mortgage payment, you can purchase real estate.

You need to submit the following documents to bank employees:

• Completed mortgage application;
• Passport;
• Marriage certificate;
• Metrics of children or their passports;
• Certificates confirming participation in the NIS.

After this, the bank determines the size of the loan. Having recognized him, the serviceman looks for suitable housing. It is limited only by the loan amount; everything else is decided by the region of residence and technical parameters of housing at its own discretion.

Amount provided

The law defines the conditions under which banks are required to provide military mortgages:

1. Its minimum amount is 300,000 rubles;
2. Maximum size - 2400000;
3. Grant period: 3–25 years;
4. The serviceman's age at the time of full repayment must be above 45 years;
5. The Ministry of Defense services the mortgage, but all additional costs are borne by the buyer of the home;
6. The amount of the subsidy credited to the account is not fixed; it changes, taking into account inflation and funds allocated from the state budget.

After registering a mortgage and purchasing a home, the debt is repaid by the federal corporation Rosvoenipoteka. The institution controls the activities of the system, regulating its accumulative and expenditure side. Budget funds are used to pay current payments. Finances are transferred automatically according to the established schedule. Until the loan is repaid in full, the citizen does not have full rights to the property, since the housing is legally pledged to the bank.

An individual has the right to fully repay the debt on his own. Then he has the right to dispose of housing at his own discretion. Until full payment is made, he is allowed to live there, register, and register his family.

How to become a participant in the mortgage program

Not all military personnel can become participants in the preferential program for purchasing residential property on credit. The military mortgage system is targeted and applies to certain groups of Russian citizens. The following have the right to rely on purchasing housing with a military mortgage:

• Career military personnel - officers, warrant officers, contract soldiers - who began serving in the ranks of the Republic of Armenia in 2005.
• Career military personnel who returned to military service from the reserves after 2005.
• Contractors serving in the ranks of the Armed Forces of the Russian Federation on the basis of long-term contracts exceeding 5 years.
• Long-term servicemen who decided to enter into a contract for a second term after Federal Law No. 117 came into force.
• Personnel employees of the FSB, equal in status to military personnel.
• A number of employees of the Ministry of Emergency Situations serving in paramilitary rescue units.
• Career military personnel transferred to the reserve due to deterioration in their health - injury, work injury or disease, the direct cause of which was the performance of military duties.
• Defense Ministry employees dismissed from the army as a result of the disbandment of their military unit, or as a result of termination of a contract due to any other circumstances beyond their control. In the last two cases, service life does not matter, that is, it can be less than three years.

As we see, civil servants of the Ministry of Defense, the Ministry of Emergency Situations, employees of the Ministry of Internal Affairs, as well as soldiers and sergeants of conscript service cannot count on preferential purchase of housing at the expense of the state. The above categories of military personnel and persons equivalent to them have the right to become participants in a military mortgage only three years after signing the contract.

To do this they will need:

• After three years of service, you must submit a report to your immediate commander. In it, you should notify the military authorities of your desire to become a participant in the military mortgage program.
• Provide the command with a photocopy of your civil passport, and for contract employees, a copy of the concluded contract.
• Wait for notification that your name is included in the Rosvoenipoteka register. The citizen receives a personal registration number and an individual savings account. From this moment, cash subsidies begin to be credited to your open personal account.
• The housing department is responsible for considering the inclusion of a serviceman in the register. At the same time, neither the applicant’s title, nor his marital status, nor the presence or absence of children influence the decision. The period for consideration of the application should not exceed 3 months.
• Three years after inclusion in the register, the serviceman has the right to use the money accumulated in the account at that time to pay the down payment for the purchased apartment. It should be borne in mind that the amount of the down payment cannot be less than 10% of the total cost of the home purchased with a mortgage. If the funds accumulated over three years are not enough for this, then you can wait longer - any time necessary to accumulate the required amount in the account.

If an officer or contract soldier, who has already become a participant in the preferential mortgage program, decides to terminate the military contract before its expiration, or this contract is terminated at the initiative of the Ministry of Defense due to some disciplinary offense, then he loses all rights to benefits. After cancellation of the contract, the citizen is excluded from the registry list, and his personal account is closed.

At the same time, he also loses the rights to the funds accumulated in his account by this time. The exception is the situation when, before breaking the contract, the officer or long-term conscript served in the ranks of the RA for more than ten years.

In this case, he retains the right to use the money accumulated in his mortgage account to pay the down payment when purchasing an apartment.

How is NIS organized?

The system has certain elements. The military is able to exercise the right to housing in the following way:

• Open a personal account;
• Accumulate money on it;
• Apply for a mortgage;
• Make payments on it to quickly close the loan.

Since the budget becomes the source of savings, their size is calculated annually after the adoption of this legislative act. The following parameters are also taken into account:

• Amount of contributions for the past year;
• Inflation indicator;
• Development forecast for the coming year.

According to the government order, the authorized body is obliged to control contributions. The accumulated funds are the property of the Russian Federation. They cannot be returned to the budget; they do not become the subject of collateral.

State authorized bodies are obliged to:

• Form and then maintain a register of NIS participants serving;
• Send notifications about changes in the place of duty of an NIS participant;
• Generate information about the quantitative composition of NIS participants in order to take this into account when forming the federal budget;
• Notify military personnel about inclusion or exclusion from the mortgage register;
• Make authorized payments to military personnel and their families.

The federal body is vested with some powers:

1. It receives budget funds for the formation of contributions;
2. Controls savings accounts;
3. The depositary organizes the competition by concluding agreements;
4. Performs the processing and then disbursement of the loan.

An important place in the system is given to the council involved in investing savings. This body controls this procedure. Its members include representatives involved in securities, some government agencies and public organizations.

What is NIS

The savings mortgage system (NMS) involves making monthly transfers to the individual account of a serviceman to further improve his living conditions. It opens automatically after 3 years of military service or at the request of the employee. The amount of deductions does not depend on the rank, period and place of service of the program participant.

After joining the program, funds accumulate in the serviceman’s account, which can be used to purchase housing. In 2021, there are 2 ways to purchase real estate:

1. Wait until the required amount is collected in the account (the maximum possible amount of savings in 2021 is 2.4 million rubles) and buy a home.
2. Without waiting for the required amount to be collected, apply for a military mortgage at the bank. The savings available in the NIS account can be used to pay the down payment.

In the second case, payments on a military mortgage will be made not by the borrower himself, but from funds from the Federal Budget.

Money in the account works the same way as in a simple deposit. A serviceman can receive additional income in the form of annual interest on the amount placed on the NIS account. This additional income can also be used to purchase a home or make regular monthly mortgage payments.

Previously, contributions to an individual account were made once a month, but starting in 2021, payments became annual. They are transferred until March 20 of the current year. The amount of funds allocated to an employee under the NIS program is constantly increasing, since accruals are subject to annual indexation.

The question often arises: can a military man dispose of his savings in the NIS at his own discretion. To answer this question, you should study Art.

10 No. 117 – Federal Law “On the savings and mortgage system of housing for military personnel.” This regulatory legal act explains that the following categories of participants can spend NIS funds for personal purposes:

• Military personnel who have served in the army for 20 years or more;
• Certain categories of participants who have served in the RF Armed Forces for at least 10 years.

The second group includes military personnel who left the army after 10 years of service for the following reasons:

• A change in health condition that resulted in the military being declared unfit for service;
• Family circumstances;
• Organizational staffing activities.

This also includes military personnel who retired due to reaching the age limit for military service.

Using savings

The Law clearly addresses the procedure for using accumulated funds. According to legislative wording, they are allowed to be used only for the following purposes:

• Purchase of residential real estate;
• Acquisition of land with a residential building;
• Payment of the first loan installment in accordance with the terms of the military mortgage law;
• Payment of some part of the money during shared construction;
• Closing a mortgage.

These are the purposes of using gradual savings. In addition to them, the law provides for additional certain conditions. Military personnel are allowed to use available funds only 3 years after being enrolled as participants in the NIS. You also need to know that the purchased real estate will certainly become the subject of bank collateral.

At the same time, the Law regulates situations when members of the NIS are registered in an official marriage. Then they are allowed to separately enter into an agreement for a targeted loan. Each spouse is required to participate in the NIS for at least 3 years. Real estate acquired in this way becomes joint property.

The standard form of lending and the procedure for its execution are provided for by a separate government legislative act. The authorized body from the state provides a targeted loan for the entire period of military service of the applicant. During this period of time, such a loan is considered interest-free.

At the same time, the Law provides for the procedure for repayment of a targeted loan. Its repayment is made by a state authorized body if the grounds described by current legislation arise. For them, the main requirements are the following parameters:

• The duration of service must be more than 20 years;
• If the military personnel is discharged after serving at least 10 years;
• When a military man has already reached the maximum age limit for further service;
• If he is unable to perform professional duties due to illness.

Look at the same topic: Mortgage in RosEvroBank: conditions and interest rates in [y] year

When a soldier dies or is declared missing, his relatives receive the accumulated amount. If a serviceman leaves service early without valid reasons provided for by law, he is obliged to return the money previously paid by the authorized body for the monthly payments made. Then a clear repayment schedule is drawn up; the repayment period cannot last longer than 10 years.

Coming Changes

The latest news says that some adjustments will be made to the savings-mortgage system. They will affect the list of NIS participants, as well as the amounts allocated from the state. budget funds.

Participants

Starting from 2021, the list of participants in the existing savings mortgage system in Russia will expand. At the moment, only representatives of the officer corps can become them.

Starting next year, the list will include sergeants, sailors, foremen and ordinary soldiers. But such military personnel must come to service after the end (December thirty-first) of the current year 2019, that is, from the first of January of the coming 2021.

At the same time, their total duration of contract service after the end of 2019 must be at least 3 years to exercise the right to secure real estate under a mortgage (the period of service before the specified date will also be taken into account).

Until the changes in legislation came into force, only officers, midshipmen and warrant officers with a total duration of contract service of three years (starting from two thousand and five) or those who began contract service had the opportunity to participate in the program. as well as re-serving sailors, sergeants, petty officers and soldiers.

Good to know! The adjustments are due to changes that were made to the eighth and ninth articles of federal law number 117, adopted in 2004.

With the onset of 2021, the military mortgage program, implemented with state support, will become the only form of providing housing to newly admitted military personnel. This means that when a serviceman becomes a participant in the NIS, he cannot be classified as needing living space under other government programs.

Expert opinion

Kozlov Andrey Kirillovich

Lawyer with 10 years of experience. Specialization: criminal law. More than 3 years of experience in developing legal documentation.

Such measures will exclude repeated excess housing provision (an employee must have only one immovable residential property purchased with budget funds).

The legislation also provides for voluntary participation in the NIS. Starting from 2021, a person who has entered the service from the reserve will not be able to be forcibly included in the category of participants in the savings mortgage system without his knowledge.

The only basis for entry will be and will be enshrined in law only by a written, official and, most importantly, voluntary application with a request to be included in the register of military personnel in need of housing.

Amount of savings contributions

The Ministry of Finance introduced a draft law on the federal budget for future years, including 2021, to the State Duma. In accordance with the planned changes, the amount of one savings contribution will be 288 thousand.

410 rubles. In the current year 2019, such a contribution is a little more than 280 thousand.

That is, the increase will ultimately be more than 8.4 thousand (in percentage terms, this is 3%).

A simple calculation allows you to find out that after increasing the contribution, one monthly amount of mandatory payment will be equal to 24 thousand and 34 rubles.

For your information! The increase in the contribution, as well as other measures of state financial support, is explained by indexation aimed at combating annual inflation. In 2021, the inflation rate is expected to be 3.8%.

total amount

It’s clear how much they give as part of a military mortgage now. But there is no information yet about the size of the amounts for 2021, although there are two options for the development of events. The positive is this: due to annual inflation and rising real estate prices, it is planned to increase the allocated amounts.

The negative option is also being considered by experts. According to this scenario, due to a lack of funds in the federal budget, the total amount of military mortgages may, on the contrary, decrease.

And this is explained not only by forced savings, but also by the lack of a tendency for housing prices to rise: prices are still stable, and in some sectors they are even declining.

Bid

At the moment, the rate under the terms of a military mortgage is 9.2 percent per year. It is not reported anywhere what this figure will be in 2021.

Expert opinion

Kozlov Andrey Kirillovich

Lawyer with 10 years of experience. Specialization: criminal law. More than 3 years of experience in developing legal documentation.

But mortgage interest charges are determined taking into account the key rate set by the Central Bank, so if it decreases, then the rates on housing loans are likely to decrease.

Helpful information! On September 6, 2019, the Central Bank of the Russian Federation decided to lower the key rate to 7%. For 2019, this figure before the changes was 7.25%. That is, there is a possibility of a decrease in interest rates on mortgage loans.

Purchasing apartments in buildings under construction

If a serviceman purchases an apartment related to an unfinished building, an escrow account is opened in his name: funds from it will be transferred to the developer only when the construction company fulfills its obligations and delivers the property. This will eliminate unpleasant situations associated with delays in delivery of housing.

Now you know how the principles of military mortgages will change from 2021. Military personnel are expected to undergo changes that they needed to familiarize themselves with.

On the eve of 2021, banks are providing loans to NIS participants at rates in the range of 8.5-10.6%, the maximum amount of a bank loan for one military personnel under the age of 30 is 2.9 million rubles. To date, a number of credit organizations also work with military personnel under the “family mortgage”, “loan for military spouses” and refinancing (on-lending) programs of existing loans.

By order of the President, mortgage rates should aim for 8%, which we hope will be achieved next year.

The indexation of funded contributions over the years of the existence of the NIS has been carried out unevenly, since the percentage included in the budget for financing the system depends on a number of factors. In particular, the forecast values ​​of inflation, the current filling of the budget and the prospects for its filling, the state of the economic sector, etc. are taken into account.

Table “Contributions transferred to the personal account of an NIS participant and their indexation”

As can be seen from the table, in 2021 there was no indexation of contributions, and in some years the amount of indexation was not insufficient to fully cover the needs of the system. The economic crises of 2008–2010 and 2014–2015 also played a role.

Military mortgages require additional financing, which was confirmed at the meeting of the Prime Minister with the Federation Council on February 25, 2021. Funds to fill the system deficit must be allocated from the federal budget over several years with appropriate indexation of contributions.

According to the Defense Committee, it is these measures that will remove the “debt tails” of military personnel.

It is worth noting that for the first time in many years, the key rate of 6.25% is near minimum values, which has a positive effect on lending programs for military mortgages, but at the same time, income from trust management of savings is decreasing. In these conditions, the best strategy is to invest CZH funds in the purchase of apartments in investment-attractive properties.

If the vector of the Central Bank’s monetary policy continues, then the indexation of contributions to the savings-mortgage system will be within 3%, and investment income will be no more than 5-6%, which is less than the increase in real estate prices.

The Russian government has developed a program to provide military personnel with their own housing. Previously, real estate was issued to military personnel only after retirement due to length of service.

To get housing, you had to wait in line, which could take years. In 2007, the NIS program was developed, which allows you to buy real estate without waiting for the age of dismissal.

Investing savings

The funds accumulated in the accounts of NIS program participants increase due to investment activities. The NIS Law clearly defines the procedure and possible directions for making such investments in relation to cash savings. It states that they are allowed to invest only in limited areas fixed by law.

These directions are:

1. Securities government or regional securities;
2. Shares of foreign or domestic issuers;
3. Publicly available deposits of credit institutions;
4. Mortgage securities.

The law prohibits the purchase of securities from various credit organizations and other institutions that have a concluded agreement for financial services using accumulated material resources. You also cannot invest in organizations officially declared bankrupt if bankruptcy proceedings have already been initiated against them. The main purpose of such bans is to guarantee the safety of military personnel’s financial savings.

To invest money, a special trust management agreement is concluded. The state becomes its founder, and an authorized body acts on its behalf. He organizes a competition announced in advance, at which he selects a suitable manager to formalize the agreement. They can be individual entrepreneurs or specialized organizations that have appropriate permission to carry out such activities.

Such a trustee is obliged to subsequently carry out financial activities by investing savings in accordance with the terms of the executed agreement. He is obliged to scrupulously observe all the prohibitions established by the legislation of our state.

Trustee:

• Responsible for monitoring managed finances;
• Do not enter into any transactions that contradict current legislation;
• Personally carry out all activities;
• Do not enter into agreements providing the material property entrusted to him as collateral or transfer it to other persons.

Investment income does not become the property of the appointed trustee, and he is prohibited from freely disposing of it. At the same time, he receives a certain remuneration due for the work performed. Its size and terms of payment are stipulated in advance by an agreement concluded with the authorized body of the state.

Such an agreement with the manager is drawn up for a maximum period of 3 years. But then its validity is allowed to be extended. The law describes the grounds for early termination of an agreement reached. Such situations arise when the manager is declared bankrupt or his license to perform such work is revoked.

Document history

The state has been trying to solve the problem of providing military personnel with housing for a long time. Previously, this category of citizens was provided with so-called housing certificates, according to which apartments were issued in kind. The very first law, which provided for the procedure for obtaining housing for military personnel, was adopted in 1993.

After 5 years, they sign the Federal Tax Service No. 76 “On the status of military personnel.” The legal act did not say that a person working under a contract in the armed forces of the Russian Federation must be provided with living quarters at the time of retirement. At that time people were not interested in a military career. Soldiers and officers were paid relatively little, and there was not enough money to purchase real estate.

Nobody wanted to wait until retirement. The existing program was not effective enough. Queues for residential premises began to grow; no one guaranteed that even after retirement a person would receive real estate.

In addition, the premises left much to be desired. Strict contracts were concluded with development companies for the construction of houses for the military. The finished premises were not comfortable and were located in disadvantaged areas. Homeowners spoke negatively about social and living conditions.

Finding itself in such a situation, the state was forced to reconsider the existing conditions. Additionally, the authorized persons wanted to take measures to popularize military professions. All this led to the development and signing of Federal Law No. 117 “On the savings and mortgage system” dated August 20, 2004.

Regulation, supervision and control

Supervisory regulation of NIS is carried out by legislative acts together with other documents (government regulations, orders of the Ministry of Defense). The main legal act that regulates this area of ​​legal relations was Federal Law 117.

This Law provides a complete list of all authorized partners vested with control and at the same time supervisory functions regarding this area of ​​activity. The Ministry of Defense, being a federal authorized body, has certain control powers. The Central Bank controls the activities of all trust bodies. Essential functions in such a system are assigned to the council, which is responsible for investing savings.

Summarizing the above, it should be noted that the legislation has created all the required foundations to realize the rights of our military personnel in the acquisition of real estate. State assistance is of great importance for the guaranteed implementation of such a right. To receive such support, a citizen is obliged to properly fulfill his military obligations as provided for in the contract. Otherwise, he will lose the chance to receive such social support.