Legislative Amendments Affect the Operations of the Federal Fund for the Promotion of Housing Construction

Pepeliaev Group hereby informs that Federal Law No. 343-FZ “On Amendments to the Federal Law “On Facilitating Development of Housing Construction” and Individual Legislative Acts of the Russian Federation” was adopted on 27 December 2009.

The Law introduces amendments to the operating procedures and scope of authority of the Federal Fund for the Promotion of Housing Construction (the Fund).

For example, the Fund has been granted the authority, when selling the rights to conclude lease contracts for the land plots of the Fund, to establish requirements on construction parameters (the building density and construction parameters for an area, the minimum proportion of residential construction, the requirements on the construction materials and construction technologies to be used in terms of energy efficiency and environmental safety, etc.).

In addition, the Fund may establish requirements on the parameters of properties located on the land plots granted by the Fund and designated for the production of environmentally-sound and energy-saving construction materials, products and structures for the purposes of housing construction. Such requirements may be established with regard to ways of securing obligations relating to the construction of corresponding properties, as well as maximum terms for the construction of such properties and types of properties.

The law stipulates, inter alia, that the Fund’s scope of authority includes the right to refuse to grant title to the land plots of the Fund, on which blocks of flats are located and to sell the land plots of the Fund, on which individual residential premises or other real estate properties owned by individuals or legal entities are located.

The law also regulates issues pertaining to disposal of the Fund’s land plots and other real estate properties of the Fund.

For further details, please contact:

in Moscow – Alexey Konevsky, Head of Land, Real Estate and Construction Practice, at (495) 967-00-07 or by e-mail: a.konevsky@pgplaw.ru

in St Petersburg – Elena Ryzhkova, Head of Land, Real Estate and Construction Practice, at (812) 333-07-17 or by e-mail: spb@pgplaw.ru