Compensation fund for the protection of the rights of citizens participating in shared construction. The Fund for the Protection of the Rights of Citizens - Participants in Shared Construction: What is it and why is it necessary? The mechanism of the work of the compensation fund

The Fund for the Protection of the Rights of Citizens - Participants in Equity Construction was registered as a public company on October 20 and began its work.

The State Shared Construction Fund has replaced the developer liability insurance mechanism and is designed to protect the rights of equity holders in new housing construction projects. In contrast to the DDU insurance system (contracts of equity participation), the fund's activities will be directed, among other things, to financing the completion of the facility. The Ministry of Construction of Russia became the founder of the Fund for the Protection of the Rights of Citizens Participating in Shared Construction, CEO appointed head of AHML Alexander Plutnik.

In the event of bankruptcy of the developer, the compensation fund will be used to pay compensation to citizens participating in shared construction or to finance activities to complete the construction of unfinished construction projects.

According to part 5 of article 25 of Law No. 218-FZ, the developer’s obligation to pay mandatory contributions (contributions) to the compensation fund arises in relation to an apartment building and (or) a residential house of a block building, consisting of three or more blocks, if an agreement on participation in shared construction with the first participant in the shared construction of such a real estate object is submitted for state registration after the date of state registration of the Fund. From the date of state registration of the Fund, it is not allowed to register the first agreement on participation in shared construction without paying mandatory contributions (contributions) to the Fund.

According to part 1 of article 10 of Law No. 218-FZ, the amount of mandatory deductions (contributions) of developers to the compensation fund is 1.2 percent of the price agreed by the parties for each agreement for participation in shared construction, which provides for the transfer of residential premises. At the same time, the obligation to pay contributions to the Fund arises in relation to contracts for participation in shared construction, which provide for the transfer of residential premises, regardless of whether the participant in shared construction is an individual or legal entity.

According to Part 3 of Article 10 of Law No. 218-FZ, mandatory deductions (contributions) of developers are made to the nominal account of the Fund, the owner of which is the Fund, at least three working days before the date of submission of documents for state registration of the contract to the Federal Service for State Registration, Cadastre and cartography (hereinafter - Rosreestr).

According to part 1 of Article 11 of Law No. 218-FZ, upon state registration of an agreement on participation in shared construction, which provides for the transfer of residential premises, Rosreestr sends a request to the Fund for payment or non-payment by the developer of mandatory deductions (contributions) under the agreement on participation in shared construction. The Fund, no later than one working day from the date of receipt of such a request, provides the information specified in the request.

According to Part 1 of Article 16 of the Federal Law of July 13, 2015 No. 218-FZ “On State Registration of Real Estate”, the term for state registration of an agreement on participation in shared construction is set from 7 to 9 business days, depending on the method of submitting documents for state registration.

detailed information posted on the Foundation's website on the Internet at www.fond214.rf. Questions about the work of the Fund and other requests, please send to e-mail: [email protected]. Phone of the specialized contact center 8 800-7007-214 or 8-495-685-94-41.

Payment of obligatory deductions (contributions) of the developer to the compensation fund must be carried out according to the details published on the official website of the Fund in the "For Developers" section.

Recall that the law on the Shared Construction Fund - 218-FZ - was signed by Russian President Vladimir Putin on July 31, 2017. By mid-October, a resolution of the Government of Russia was adopted on the creation of a public company "Foundation for the Protection of the Rights of Citizens - Participants in Equity Construction". Now, when registering equity participation agreements in housing construction projects under newly issued permits, the developer is required to make a contribution to the compensation fund.

In addition, the public law company "Foundation for the Protection of the Rights of Citizens of Shared Construction Participants" has other important advantages:

The mechanism of payments to equity holders has been significantly simplified in comparison with the previously existing liability insurance.
The government structure manages the collected financial resources, which in itself increases the reliability of the compensation fund.
The funds of the compensation fund are accounted for in certain accounts, which guarantees the transparency of the mechanism for distributing money.

Main tasks and functions The main task of the created structure is to protect the rights of participants in shared construction. In case of bankruptcy, losses are compensated by contributions previously transferred by the developer.

A fund for the protection of the rights of citizens - participants in shared construction has been created

In essence, this single developer fund will operate similarly to the Deposit Insurance Agency (DIA), which guarantees the return of funds to people who have placed their money in bank deposits. In general, we can say that equity holders who entered into a DDU after January 2017 have a new mechanism for protecting their investments.

True, there is one nuance here, which we will discuss a little below. The procedure for the return of personal income tax when buying an apartment. 2 ways.
List of documents. The compensation fund for shared construction was created on the basis of amendments to the federal law FZ-214, which provide for additional protection of the rights and interests of participants in shared construction (Article 23.2 of the FZ-214 law).

The fund for the protection of equity holders began its work

The funds accumulated in this fund will be used exclusively to pay compensation to deceived shareholders in the event of the Developer's bankruptcy, or to finance the completion of construction. In the latter case, this may be financial aid or a loan to a new developer who will assume obligations to complete the construction of the problematic object.
It is prohibited to use the funds of the fund for other purposes. For new equity holders, this means a significant reduction in the risk of investing in the purchase of apartments in new buildings.
Firstly, there is a real chance to complete the house, even when the Builder went bankrupt. Secondly, the very mechanism of compensation payments to equity holders has become much simpler and clearer (compared to liability insurance).
Thirdly, these funds will be managed not by private insurance companies, but by the state structure.

Fund for the Protection of the Rights of Citizens - Participants in Shared Construction

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In order for the shareholder to have the opportunity to protect himself in the event of bankruptcy of the developer or the occurrence of other unforeseen circumstances, the legislation on participation in shared construction provides for the mandatory registration of a DDU in government agency. Requirements for developers Very serious conditions in relation to developers are enshrined in Federal Law No. 218.

Because of this approach, only those developers who have been tested by time will be able to work on the market. The requirements reflected in the law will come into force from July 2018.

The official name of the developer must contain the name - "specialized developer". Any commercial activity for specialized construction organizations engaged in the construction of residential and non-residential real estate under the DDU is prohibited.

Compensation Fund for the Protection of Shareholders' Rights

On July 21, 2017, the State Duma adopted a law on the state fund for the protection of the rights of equity holders. Construction companies are subject to stringent requirements.

But will it help the families of equity holders to become owners of new apartments. In Russia, the construction of residential facilities with the help of public investment has been legally regulated since 2004. The conclusion of a share participation agreement (DDU) gives families a chance to get housing cheaper than the market value. However, they risk losing hope for housing and being left without savings if the builders fail to fulfill their obligations. In 2014, for the first time, the state intervened in the business of shared construction in order to protect the interests of citizens - investors in housing construction. Prior to registering a DDU with Rosreestr, a construction company was obliged to insure liability from an insurer or take a surety from a bank.

Fund for the Protection of the Rights of Citizens of Shared Construction Participants

This item caused a friendly misunderstanding of both builders and experts, since any construction begins with these costs.

All cash equity construction company must lie in the same bank, which carries out a check on each financial cost.
Persons managing a construction company should not have:

conviction for economic crimes;
be bankrupt;
be subject to disqualification.

Compensation for losses Losses to equity holders in the event of bankruptcy of a construction company are reimbursed from the compensation fund for shared construction in a certain order.

First, the arbitration court establishes the fact of bankruptcy.
Then the board of the compensation fund decides which option is more profitable: payment of losses to equity holders or the completion of a residential facility.

Equity Construction Compensation Fund

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Content

1 Essence
2 Main tasks and functions
3 How to protect your rights
4 Some nuances
5 Requirements for developers

Issues of support for deceived equity holders are very often raised at the most high levels. To support this category of citizens, in 2017, a compensation fund was officially created to protect the rights of citizens participating in shared construction.

Unfortunately, the regulatory part was not developed in parallel. As a result, the fund for the protection of the rights of equity holders could not fully function. After the adoption of Federal Law No. 218 in July last year, the mechanism was finally formed, according to which the public legal company "Fund for the Protection of the Rights of Citizens of Participants in Shared Construction", accountable directly to the President of the Russian Federation, should work.

Fund for the Protection of the Rights of Citizens - Participants in Equity Construction official website

The area of housing for which money is returned from the compensation fund of equity holders should not exceed 120 m2. State Fund - for those who give their last savings to buy an apartment. Buyers of large apartments and luxury housing, according to legislators, can stand up for themselves.
The amount of compensation depends on the cost of housing, which is determined by the Ministry of Construction - it corresponds to the minimum market value, which differs by 30-40% from the actual one. Having received compensation at such rates, equity holders lose part of their funds.

Large companies

Fund for the Protection of the Rights of Citizens of Shared Construction Participants official website

Did you know that… Since January 2017, a state compensation fund for shared construction has been created in Russia. In the people it is also called - the compensation fund of developers or the fund for the protection of the rights of equity holders.

What it is? Who should be happy about this? Legislators argue that this should please equity holders - i.e. participants in shared housing construction in apartment buildings. After all, the main task of the construction compensation fund is to pay compensation to equity holders under Equity Participation Agreements (DDU), in the event of the Developer's bankruptcy.

What about the builder's insurance? Do you mean the developer's civil liability insurance, which has been in effect so far? This insurance (for more details about it, see the link above), was launched in 2014, and for several years has shown its inconsistency. More precisely - inconvenience and complexity in implementation.
The Fund for the Protection of the Rights of Citizens - Participants in Shared Construction is registered in the form of a public company and begins its work, AHML said. The registration of the fund in the form of a public company was completed on 20 October. At the expense of the fund, compensation will be paid to participants in shared construction or construction of unfinished real estate will be financed. The fund will be financed by contributions from developers in the amount of 1.2 percent of each share agreement after the date of state registration of the fund.

Non-payment by the developer of the contribution to the fund of equity holders is the basis for the suspension of state registration of the agreement for participation in shared construction. Detailed information on the procedure and features of contributions made by developers and registration of DDUs is available on the Fund's website.

Fund for the Protection of the Rights of Citizens of Shared Construction Participants official

The Office of Rosreestr for the Kursk Region informs about the creation of the Fund for the Protection of the Rights of Citizens - Participants in Shared Construction. On October 20, 2017, the Fund for the Protection of the Rights of Citizens - Participants in Equity Construction began its work. The creation and functioning of this Fund is regulated by Federal Law No. 218-FZ dated July 29, 2017 “On a public law company to protect the rights of citizens participating in shared construction in case of insolvency (bankruptcy) of developers and on amending certain legislative acts Russian Federation". In pursuance of the provisions of the Law, the Government of the Russian Federation issued a number of resolutions on the work of the Fund.

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