The decision to carry out major repairs in an apartment building

Reasons for carrying out major repairs

Overhaul of an apartment building is a set of works aimed at eliminating problems, damage to building structures, replacing and repairing elements and worn-out structures of common property in an apartment building. Work within the framework of major repairs is provided for by law and is carried out in accordance with standards and a clearly developed plan. Carrying out major repairs of common property requires developing a work program, obtaining financing, and drawing up a protocol that indicates the need for repair work.

The main basis for carrying out repair work is the decision to carry out major repairs by a meeting of residents and apartment owners in an apartment building. The exception is cases when a decision has not been made by a meeting of residents - in such a situation, the decision on the need for repairs can be made by an authorized local government body.

A decision on the need for repairs in a building, in accordance with the provisions of the Housing Code, can be made at any time.

The initiator may be the person who manages the house or is responsible for providing certain services for maintaining the house. The list of works, terms, cost of services and other financial and organizational issues are discussed with the owners of apartments in the building no later than six months before the start of the work. Major repairs of common property are carried out depending on the decision made by the residents. The consequence of this decision is the formation of a special account, which will generate funds for repair work.

List of works

The law on major repairs of apartment buildings in 2021 does not lose its relevance, because as before, the majority of the country’s housing stock needs modernization and repair and finishing work. Article 166 of Federal Law No. 271 establishes a strict list of works that must be paid for from the capital repair fund, formed from the minimum contributions of residents. This minimum is established by legislative and regulatory acts at the regional level. The list of works for organizing the overhaul of the building includes repairs:

roofs;
facade;
foundation;
elevator equipment;
engineering and communication systems;
basements.

Additionally, these funds can finance the insulation of the facade, the reconstruction of the roof or its equipping with exit devices, the installation of collective devices for metering resource consumption (gas, electricity, water, etc.). If the owners of residential apartments decide at a public meeting that they want to pay contributions higher than the standard established by the authorities, these funds can be used for any types of work and services necessary for the major repairs of common property. It is worth noting that some major repair work may be paid for through government support. What services local authorities agree to pay for must be clarified with the city administration or through the social protection authorities.

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In December 2021, further amendments were made to the current rules. According to them, major repairs will also include work to replace or restore the load-bearing elements of the building and utility systems. The Town Planning Code prohibited the classification of reconstruction as a major overhaul, but in this aspect it allowed payment for a number of services from the overhaul fund.

Organization of major repairs

The decision to carry out major repairs in a building is made by a meeting of residents of an apartment building - this is the main governing body of the building. The decision on the need for repair work can also be made by the authorized local government body. The decision is made by drawing up a protocol.

At least six months before the repairs will be carried out, it is necessary to solve problems regarding opening an account, how to form a fund for repair work, determining the scope of work and the company that will need to perform repair and construction services. A set of works can be aimed at eliminating problems with the facade, roof, foundation, basements, and utilities.

Stages of major renovations in a building:

it is necessary to clarify the period when repair work must be carried out. Period data can be obtained from the capital improvement program, which is publicly available. The program is developed for a long term, but provides a short-term plan - for a period of 1-3 years.
Decision-making by a meeting of residents.
Selecting the organization that will carry out the work. An agreement must be concluded with this organization. The document contains information about all services and their costs.
Work acceptance certificate, control operations.
Payment for work.
Notification of authorized bodies about the work performed.

For whom are benefits provided for payment for major repairs?

Payment of the fee is mandatory for owners of apartments in apartment buildings and owners of public housing, regardless of whether they are an individual or a legal entity.

However, there are exceptions to the rules. According to Law 271 of the Federal Law on capital repairs, the following persons may not pay the fee:

Residents of emergency areas that are no longer suitable for living.
Residents of houses subject to demolition.
Tenants of municipal or state apartments.
Residents of apartment buildings located on state or municipal land.
People living in houses that will become the property of the municipality or the state in the future.

Since 2021, the law on major repairs of apartment buildings has introduced a number of benefits, which are determined independently by each region. There is a general list of beneficiaries under this law:

Benefits for utilities

In addition to benefits for paying contributions for capital repairs of apartment buildings, the state also provides pensioners with benefits for utilities. To find out if you are entitled to benefits and how to apply for them, contact the social security service or housing and communal services. Read more about benefits for pensioners on utility bills here.

Persons of retirement age over 70 years of age may qualify for reimbursement of 50% of costs.
Disabled people of groups 1 and 2 also claim 50% compensation.
Pensioners over 80 years of age are exempt from paying the contribution.
Families with a disabled child pay 50%.
A large family, depending on the area of residence, claims various benefits.
Veterans of war, labor, widows of veterans of the Great Patriotic War.
Persons affected by the Chernobyl disaster.
Participants of the siege of Leningrad.
At the choice of the municipality, teachers and selected public sector employees.
Victims of political repression.

In case of non-payment of the fee by residents, fund employees will take the following measures:

Notifications. Contains a request for payment of a contribution.
Penalty interest. Imposed by the fund due to the company's increasing interest on late payments.
Legal action with interest and costs. In this case, it will be almost impossible to prove the case.

Role of the general meeting

The general meeting of residents of an apartment building, according to the norms of the Housing Code, is the main body making decisions regarding the work that needs to be carried out in the field of house maintenance. Major repairs of common property are also carried out upon the initiation and decision of the general meeting.

This governing body puts on the agenda issues that relate to the improvement of the building, conducts voting, discussion, and resolution of controversial issues.

Issues that fall within the competence of the meeting of residents of the house:

decisions regarding the need for major repairs and the procedure for these works;
making decisions about the need for reconstruction;
choosing a method for forming a fund of financial resources that will be spent on major repairs;
making a decision on the need to take out a loan for repairs;
making decisions regarding the exploitation of the local area, the use of common property;
choosing an option and procedure for managing an apartment building;
making decisions on the need for ongoing repair work;
other powers that do not contradict the legislation.

Special account

Carrying out major repairs of common property requires opening a special account into which funds are deposited for major repairs in an apartment building.

A special account is an account intended to record funds from the capital repair fund.

All money accumulated here will be used to implement the necessary capital work - replacement, repair, reconstruction of systems and various elements of common property in an apartment building.

An account is opened with a specialized credit institution. The purpose of the account is to generate from contributions the amount that will be used to carry out major repairs in an apartment building. According to the provisions of the law, the specified purpose provides for the use of these financial resources exclusively for major repairs, which is recorded in Article 166 of the Housing Code of the Russian Federation.

The following works and services can be paid for from the funds that I create a special account for major repairs:

materials used during repair work in the building;
services of a specialized company that deals with repairs;
development of design documentation for major repairs;
repayment of loans that were necessary for major repairs;
construction control services;
in the case of work with emergency houses, funds are used for the reconstruction or demolition of this structure.

Types of work that are financed by a special account:

work on the roof of a building;
repair of utilities;
repair of elevator equipment;
facade works;
repair work on the foundation of a residential apartment building;
renovating the basement of a house.

When did the Capital Improvement Act go into effect?

At the end of December 2021, changes were made , according to which apartment owners must pay monthly contributions for major repairs.

271 Federal Law of December 25, 2012 on major repairs of apartment buildings

To achieve the goals of the regional program, accurately calculate deadlines, as well as to calculate the volume of state support, constituent entities of the Russian Federation are required to approve short-term implementation plans for a period of 3 years (clause 7 of Article 168 of the RF Housing Code).

These regulations are constantly subject to amendments and additions. Thus, Federal Law No. 44 on public procurement is subject to changes annually. As of today, the edition dated June 2, 2016, number 21, is in effect. Reaction 22 of June 2, with changes that have not yet entered into force, is being prepared for entry into force.

Many government organizations, including administrations and management companies formed by homeowners' associations, resort to this law in order to carry out major repairs in the most profitable manner.

Overhaul according to Federal Law 185

Federal Law 185 on capital repairs of apartment buildings dated July 21, 2007 talks about exactly how the capital repair fund is formed, how it is opened, and also which structures can be entrusted with this action.

The section provides a list of services, describes the procedure for work, and also defines the regional overhaul program (in Article 168). The 170th paragraph of the document covers issues related to the formation of the fund, and the 172nd regulates control over funds.

So the question of whether the accrual of penalties is legal is irrelevant, since its size, interest rate and the time after which it will begin to accrue on the accumulated debt are stipulated in Federal Law No. 271. In addition, the debt falls under the articles of the law, which indicate the possibility seizure and confiscation of property belonging to the debtor for non-payment.

Key provisions of the Law on mandatory capital repairs of apartment buildings in 2021

Credit organizations in whose accounts deductions can be stored are established by the Bank of Russia on a quarterly basis. Requirements for banks are regulated by Federal Law N271, its 176th article. In particular, the organization is subject to high capital requirements - it must be at least 20 billion rubles.

"2. In a credit agreement or loan agreement that is concluded with an individual for purposes unrelated to his or her business activities, and the borrower’s obligations under which are secured by a mortgage, the full cost of the credit (loan) secured by the mortgage must be determined in accordance with the requirements established this Federal Law. The requirements of this part for determining the full cost of a credit (loan) and placing information about the full cost of a credit (loan) on the first page of a credit agreement or loan agreement do not apply to targeted housing loan agreements concluded in accordance with Federal Law No. 117 of August 20, 2004 -FZ “On the savings and mortgage system of housing for military personnel.” The requirements of this Federal Law are also applied to a credit agreement, a loan agreement, which are concluded with an individual for purposes not related to the implementation of his business activities, and the obligations of the borrower under which are secured by a mortgage.

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“11) issue loans to an individual for purposes not related to business activities, the borrower’s obligations for which are secured by collateral (except for cases where the founder (shareholder, participant) of the microfinance organization providing the loan is the Russian Federation, a subject of the Russian Federation, a municipal education):

Document overview

Part 2 of Article 4 of the Federal Law of July 18, 2009 N 190-FZ “On Credit Cooperation” (Collected Legislation of the Russian Federation, 2009, N 29, Art. 3627; 2013, N 51, Art. 6683) should be supplemented with the following sentence: “ The interest rate on loans provided by a credit cooperative to its members - individuals for purposes not related to their business activities, and the obligations of the borrowers for which are secured by a mortgage, cannot exceed the maximum amount established by the Board of Directors of the Bank of Russia."

the house is recognized as unsafe and is subject to demolition;
if the land under the house is taken for state or municipal needs;
the building is not included in the regional modernization and restoration program.

Special account owner

There can be only one special account for repair work - residents’ funds are deposited into it for the further use of finances for their intended purpose. The owner of this account can be:

Housing cooperative is a special organization that manages an apartment building.
A homeowners' association is a management organization that is formed by the owners of apartments in a specific apartment building. Carrying out major repairs of common property by such a structure also requires the opening of a special account with a precise purpose. The society can be formed by the owners of apartments in different buildings, but these buildings must be located on adjacent plots, have common utility networks, and some infrastructure elements.
Regional operator is the owner of the account, which is chosen by the owners of apartments in an apartment building if they have decided to carry out major repairs.
Since 2015, the owner of the account can also be a management organization.

All rights to the funds in the account belong by law to the owners of apartments in an apartment building who deposited these funds into the account.

The account owner is obliged to: open an account, at the request of apartment owners, provide them with information about the amount that is in the account, provide the authorized bodies with information on how the invoice for major repairs will be generated.

Involvement of third party contractors

Repairs are carried out by:

regional operator;
owners of residential premises, if they decided not to rely on the regional operator, but to allocate a special account for their home. They can hire a specialist home renovation company.

In addition, the Regional Operator maintains a special register of qualified contractors who, in all respects, are suitable for performing work - throughout the Russian Federation.

In a word, the owners, if they really don’t want to trust government services, can themselves take full responsibility for the notorious major repairs. But at the same time, the responsibility for insuring the account, accepting work and maintaining quarterly reports will also fall on their shoulders, for omissions in which measures will certainly follow - for starters, in the form of an audit.

Acceptance certificate and payment for repairs

Acceptance certificate is a document that must be concluded upon completion of a major overhaul after a period of repair work. This document is one of the forms of quality control of work carried out by the organization that was selected to carry out the repair.

The text of the document indicates:

the organization that accepts work in the building;
date and address of the facility where the work was carried out;
performers of work;
services and work carried out in an apartment building, as well as the procedure for work;
technical features of the building in which the work was carried out;
conclusion on the work performed.

The acceptance certificate must be accompanied by documentation that confirms the fact of work carried out in the building. The document is signed based on the agreement that was signed with the organization performing major repair services. The certificate is not provided if an advance payment is made for the performance of services in the amount of no more than 30% of the contractual cost of the work.