Financing of houses that are not subject to inclusion in the regional capital repair program
Services and/or work to carry out major repairs of joint property in an apartment building can be provided at the expense of funds allocated from federal budgets, budget funds of constituent entities of Russia, and local budgets.
The procedure and conditions on the basis of which money is provided are provided for by the relevant federal legislative acts, legislative acts of the constituent entities of Russia, and municipal legal acts. Such financing can also be provided to apartment buildings, which, according to Article 168, paragraph 2 of the Housing Code, are not subject to inclusion in regional programs (overhaul RG), these include:
- an apartment building, which in a certain order was recognized as unsafe and therefore subject to demolition (reconstruction);
- buildings containing less than three apartments;
- housing for which, during the approval of the program, a decision was made on reconstruction or demolition.
The following can count on funding from the state:
- housing and housing-construction cooperatives (ZhK and ZhSK);
- homeowner associations (HOA);
- regional operators and management organizations.
The provisions on the basis of which funds are allocated for major repairs in apartment buildings must be approved by all constituent entities of Russia, based on the characteristics of the region. Such Regulations determine in what order and under what conditions budget funds are provided that are received from the Fund for Assistance to the Reform of Housing and Communal Services (Fund), as well as finances that are included in the budget to provide state support for the implementation of major repairs of the joint property of an apartment building, including equity financing.
The funds that were received by the regional budget from the Fund, as well as those that were budgeted for shared financing (DF) for capital repairs, are distributed among municipalities that applied for such funds and fulfilled the necessary conditions.
Budget funds and funds received by the budget from the Fund are transferred to a separate bank account, which is opened in the name of the regional operator, as a property contribution for the implementation of major repairs of apartment buildings. Other state support funds are received by the regional operator in the form of additional property contributions for major repairs.
There are certain conditions for receiving material resources allocated by the Fund and provided for by the regional budget. This is co-financing from local budgets, as well as from home owners. The amount of co-financing that will be received from the financial resources of the Foundation, the local budget and from the owners of the premises is determined by federal legislative acts. Federal legislation also establishes how control is exercised over the use of funds allocated by the Fund.
How are major repairs of common property in apartment buildings financed?
Major repairs of common property in an apartment building are financed from the capital repair fund and other sources not prohibited by law. The obligation to pay contributions to the fund arises from the owners three to eight months after the publication of the regional program. A different period is established if the house was put into operation after the approval of the regional program.
Sources of financing for capital repairs
Expenses for major repairs of common property in an apartment building are financed from the capital repair fund and other sources not prohibited by law (Part 2 of Article 158 of the Housing Code of the Russian Federation
).
The capital repair fund is formed, among other things, from contributions for capital repairs paid by the owners of premises in an apartment building (Part 1 of Article 170 of the Housing Code of the Russian Federation
).
Paying the costs of major repairs is the responsibility of all property owners. The law of a subject of the Russian Federation may provide for compensation of expenses for paying a contribution for major repairs to the following categories of citizens (Part 3 of Article 158, Part 2.1 of Article 169 of the Housing Code of the Russian Federation
;
Art. 1 of the Moscow Law of March 23, 2016 No. 10 “On social support measures for paying contributions for major repairs of common property in an apartment building in the city of Moscow”
;
clause 1.2 of the Procedure, approved. Decree of the Moscow Government dated 04/05/2016 No. N 161-PP “On the procedure for providing owners of residential premises with social support measures for paying contributions for major repairs of common property in an apartment building in the city of Moscow”
:
• single living non-working owners of residential premises who have reached the age of 70 years - in the amount of 50%, 80 years - in the amount of 100%;
• living in a family consisting only of cohabiting non-working citizens of retirement age and (or) non-working disabled people of groups I and (or) II, owners of residential premises who have reached the age of 70 years - in the amount of 50%, 80 years - in the amount of 100 %.
In addition, disabled people of groups I and II, disabled children, citizens with disabled children are provided with compensation for the costs of paying a contribution for major repairs in the amount of no more than 50% of the specified contribution (Part 14, Article 17 of the Federal Law of November 24, 1995 No. 181-FZ “On social protection of disabled people in the Russian Federation”
).
The minimum amount of contribution for major repairs is established by the regulatory legal act of the constituent entity of the Russian Federation. Owners of premises may decide to establish a contribution in an amount exceeding the established minimum amount (Parts 8.1, 8.2 of Article 156 of the Housing Code of the Russian Federation
).
Owners of premises in an apartment building have the right to choose one of the following methods for forming a capital repair fund (Part 3 of Article 170 of the Housing Code of the Russian Federation
):
1) transfer of contributions for major repairs to a special account.
In this case, by decision of the general meeting of premises owners, it is necessary to determine the amount of contributions (which cannot be less than the established minimum amount), the owner of the special account (for example, a HOA or a housing cooperative) and the credit institution in which the special account will be opened (Part 4 of Art. 170 Residential Complex of the Russian Federation
);
2) transfer of contributions for major repairs to the account of the regional operator.
Reference.
Regional operator
Regional operator is a specialized non-profit organization created in the organizational and legal form of a foundation, which carries out activities aimed at ensuring the overhaul of common property in apartment buildings (clause 16.5 of article 12, part 1 of article 178 of the Housing Code of the Russian Federation
).
A regional operator is created on the basis of a regulatory legal act of a constituent entity of the Russian Federation (Article 167, Chapter 17 of the Housing Code of the Russian Federation
;
Part 1 Art. 17 of the Law of the Moscow Region dated July 1, 2013 No. 66/2013-OZ “On organizing major repairs of common property in apartment buildings located on the territory of the Moscow Region”)
.
It should be taken into account that the funds you transferred to the account of the regional operator can be used on a refundable basis for major repairs of common property in other apartment buildings, the owners of premises in which also transfer contributions to the account of this operator (Part 4 of Article 179 of the Housing Code of the Russian Federation
).
The priority of repairs is determined on the basis of objective criteria that ensure priority implementation, in particular, in those houses where living in is dangerous to the life or health of citizens. At the same time, the order of repairs, as well as the failure to implement the regional program that established it, can be challenged ( resolution of the Constitutional Court of the Russian Federation dated April 12, 2016 No. 10-P “In the case of verifying the constitutionality of the provisions of part 1 of article 169, parts 4 and 7 of article 170 and part 4 of Article 179 of the Housing Code of the Russian Federation in connection with requests from groups of deputies of the State Duma"
).
The decision to determine the method of forming a capital repair fund must be made and implemented by the owners of the premises no less than within three months and no more than six months after the official publication of the regional program, which includes the house in respect of which the issue of choosing the method of formation is being decided its capital improvement fund. The exact period is established by the state authority of the subject of the Russian Federation (Part 5 of Article 170 of the RF Housing Code
).
At the same time, the owners of premises in an apartment building are required to pay contributions for major repairs, regardless of whether an agreement was concluded on the formation of a capital repair fund and on the organization of major repairs between the owner of the premises in an apartment building and the regional operator ( Letter of the Ministry of Construction of Russia dated 05.08.2015 No. 24470-OD/04 “On the issue of payment of contributions for major repairs by owners of premises in an apartment building”
).
If, before the deadline established by the regional program for the overhaul of common property in the apartment building, individual work on such repairs was carried out and their payment was made without the use of budgetary funds and funds of the regional operator, funds in the amount of the cost of these works (but not exceeding the maximum cost) are counted towards the established procedure for the fulfillment for a future period of obligations to pay contributions for major repairs (Part 5 of Article 181 of the Housing Code of the Russian Federation
;
Decree of the Moscow Government dated 06.06.2016 No. 306-PP
).
Deadline for payment of contributions for major repairs
The obligation to pay contributions for major repairs arises for the owners of premises after at least three and no more than eight calendar months, starting from the month following the month in which the regional program in which the house is included was officially published. The exact period is established by the law of the subject of the Russian Federation (Part 3 of Article 169 of the RF Housing Code
).
Other deadlines are established if the house was put into operation after the approval of the regional program and is included in the regional program when it is updated. In this case, the obligation to pay contributions for capital repairs to the owners of premises arises upon the expiration of the period established by the government body of the constituent entity of the Russian Federation, but no later than within five years from the date of inclusion of the house in the regional capital repair program (Part 5.1 of Article 170 of the Housing Code of the Russian Federation
).
Contributions for major repairs are paid by the owners of residential premises on the basis of payment documents within the deadlines established for making payments for residential premises and utilities (Parts 1, 2 of Article 171 of the Housing Code of the Russian Federation
).
Based on materials (“Electronic magazine “ABC of Law”, 2019)
State support measures for major repairs
To provide financial assistance from the state or municipality during capital repairs, it does not play any role in what way the capital repair fund was formed by the owners of housing located in apartment buildings.
Article 191 of the Housing Code of Russia determines that state financial support may be provided to pay for major repairs. It is important to note that such support is provided not only in the form of subsidies, which are provided from federal funds, budgets of constituent entities of Russia and local budgets to homeowners' associations, residential complexes, regional operators and management companies.
Previously, the provision of budget subsidies was the prerogative of local government structures in order to create conditions for the effective management of apartment buildings. Other permissible measures of state support that can be provided by constituent entities of Russia include guarantees, guarantees for loans and credits, if funds for such support are provided for by regional budget laws.
That is, at the legislative level, a way has been created that allows you to attract credit resources to carry out major repairs in the common property of an apartment building.
However, in order for the owner of the premises to have a real opportunity to take advantage of this type of support from the state, he should organize a special guarantee agency, form an authorized capital at the expense of his own financial resources, determine the procedure and conditions under which such an agency will provide guarantees for loans for carrying out major repairs.
Since in the matter of allocating subsidies to homeowners' associations, housing complexes, management organizations and regional operators, it does not matter how the capital repair fund was formed, this decision cannot be entrusted to regional operators in order to avoid a conflict of interest situation.
Author of the article
Factoring according to 615-PP: how to get financing for major repairs
Factoring financing is becoming increasingly popular and penetrating into new areas. At the same time, its use in industries that are regulated by law often raises questions among both customers and the recipients of funds themselves.
Today we will tell you how factoring is arranged under contracts with capital repair funds that enter into contracts within the framework of 615-PP.
The need for factoring under contracts with capital repair funds
Timely major repairs of apartment buildings, including repairs and replacement of elevator equipment, is a serious problem for our country. In Russia there are a huge number of “high-rise buildings” built several decades ago, and now they are very worn out and are constantly in need of repair. At the same time, money for major repairs comes from contributions from residents - individuals, and the collection of payments always corresponds to the necessary costs.
A significant part of capital repair contracts are concluded with a long deferred payment, which is very inconvenient for contractors - they have to divert funds from circulation for a long time. Business liquidity deteriorates, and cash gaps may arise due to a decrease in working capital.
There is another problem - when concluding an agreement with a contractor, the operator cannot be completely sure that the money will arrive on time and in the required amount, which means that the timely payment of the contract is at risk. As a result, the quality of contract execution suffers, deadlines are violated - not receiving money on time, the contractor is unable to pay for personnel services, purchase raw materials and supplies and suspends work.
Factoring can be a way out of the situation: the financing organization opens a limit on the capital repair fund, and its contractors can, within the established amount, receive payment for completed contracts (and even their individual stages) without delay, immediately after the execution of closing documents. Thus, money always arrives exactly at the moment when it is needed, and downtime in work and services is eliminated.
In addition, factoring financing is possible for contracts that have not yet been executed - with the help of such a service, the contractor receives money to fulfill the contract (a kind of analogue of contract lending). This is very convenient when the necessary costs for executing a contract exceed the financial capabilities of the contractor or force him to refuse other contracts until payment for the current one arrives - he will not have to divert funds from circulation.
Read more in the article “Factoring or contract financing?”
Attracting financing is an important tool to ensure continuity of contract execution.
Online factoring is an effective way that allows contractors to receive payment under a contract against the assignment of monetary claims, quickly replenish working capital and reduce the risk of cash gaps, and for capital repair funds to ensure uninterrupted execution of contracts and make payments under contracts with the deferred payment they require. At the same time, when compared with lending, factoring is a more accessible and faster mechanism for obtaining financing - there is no need for collateral or guarantee, and the financing organization assesses the solvency not of the contractor, but of its customer - the capital repair fund. Regulatory regulation of procurement of capital repair funds
The capital repair fund is a “piggy bank” in which funds are accumulated for building maintenance and major repairs of an apartment building. For each individual house, its own fund is created, formed from contributions for major repairs paid by the owners of the premises, interest accrued by banks, income from the rental of common property, etc.
At the same time, all contracts that are concluded by the capital repair fund with direct executors (contractors) are clearly regulated by law - purchases must take place in accordance with the requirements of Government Resolution 615 of July 1, 2016.
According to 615-PP, the regional operator cannot simply choose a contractor at his own request; this procedure must take place in the form of a tender, in which any organization that meets the initial requirements can participate.
This scheme is attractive for both parties: the overhaul fund increases competition in procurement, can choose the most advantageous offer, and new opportunities open up for the business of contractors (especially SMEs) - contracts with reliable large customers become more accessible to them.
How to become a contractor for a capital repair fund?
To participate in the procurement of capital repair funds, the contractor must:
- Take a free pre-selection
, which gives the right to participate in procurement under 615-PP. In each region there are bodies responsible for maintaining the Register of Qualified Contractors (RKPO). Selection for the register is carried out on an ongoing basis at the ETP of government procurement - at least once a quarter.
- Check your company for compliance
to procurement participants under 44-FZ, as well as conditions for the number of specialists, the volume of unfulfilled contracts, and to be absent from the register of unscrupulous contractors.
- Apply for participation
– a complete list of purchases can be found on the ETP and UIS.
- Take part in the electronic auction
(for this you need to obtain accreditation at the site and provide application security).
- Enter into a contract
about carrying out major repairs.
Factoring under contracts concluded within the framework of 615-PP
Capital improvement funds often turn to debt financing to ensure plans and government programs are completed on time. Along with conventional loans, factoring is becoming increasingly popular - financing a contractor against the assignment of a right of claim. In essence, the executor of the contract sells his receivables to the factoring company and immediately receives money - regardless of what delay is established in the contract and whether the capital repair fund has the ability to pay for it.
Financing for the assignment of the right to a monetary claim (factoring) is regulated by the Civil Code of the Russian Federation:
· Chapter 24 of the Civil Code of the Russian Federation “Change of persons in an obligation”
— general regulation of the assignment of the right of claim (cession).
· Chapter 43 of the Civil Code of the Russian Federation “Financing against assignment of monetary claims”
— regulation of factoring (assignment of monetary claims).
Read more in the article “What laws regulate factoring in the Russian Federation”?
Assignment by the contractor to a third party of the right to claim against the customer for the fulfillment of a monetary obligation under a contract concluded within the framework of Government Decree No. 615 dated July 1, 2016 “On the procedure for attracting contractors to provide services and (or) perform work on major repairs of common property in an apartment building and procedure for the procurement of goods, works, services in order to perform the functions of a specialized non-profit organization carrying out activities aimed at ensuring the overhaul of common property in apartment buildings” is
completely legal and complies with current legislation - Art. 382 of the Civil Code of the Russian Federation reserves the right of the creditor to make such assignments, including without the consent of the debtor. Art. 828 of the Civil Code of the Russian Federation directly states that “the assignment of a monetary claim to a financial agent is valid even if there is an agreement prohibiting or restricting it between the client and his debtor or between the client and the person who assigned the right of claim to him.”
We talked about how to obtain financing under a contract with government customers in the article “Is factoring possible under government contracts within the framework of 44-FZ?”
State support for factoring in the field of major repairs
The effectiveness of using debt financing in the field of capital repairs for the timely execution of contracts has also been noted at the government level - various government initiatives often indicate the need to expand the practice of using loans, factoring and other types of financing in the procurement of capital repair funds.
For example, on December 21, 2021, Russian Government Decree No. 2202 was adopted on changes in the provision of financial support to entities for major repairs and replacement of elevators. In particular, the resolution describes the procedure for providing government subsidies to pay interest on factoring or lending. Financial support is provided for elevators put into operation after January 1, 2021, manufactured exclusively in the Russian Federation, and also with high energy efficiency characteristics.
On
GetFinance you can obtain contract financing under 615-PP from 17 large factoring companies online. To find out the conditions for your company, submit an application on the website or contact a specialist by phone 8
