Everything in the house

on Thursday, the President held a meeting on the development of the construction industry. The discussion was attended by the heads of several companies where the head of state asked about the challenges of the pandemic. Vladimir Putin also appealed to the heads of the regions, calling on the preventive measures on the ground have to take into account the specifics of the construction industry and the need for continuous operation, particularly on the key, the vital facilities. “Please apply here flexible solutions, find balance,” he said.

it is Necessary to strictly comply with all requirements of occupational safety, protection of health workers, but it does not slow down the construction and not to freeze objects, according to the President. “Especially the construction sector, like other industries, was faced with objective difficulties. And the main of them is the fall, the compression of demand,” he said. The growth of mortgages in the first quarter was replaced now by the recession, difficult access for developers to credit. Companies engaged in large infrastructure projects, also in a difficult situation – it is important to see the perspective that long-term to plan the work.

“I must say: we will support the construction sector. Moreover, in the recovery phase of the economy it is the construction site should become one of locomotives of growth which will pull in other sectors,” said Putin, and then gave the floor to representatives of the industry. They talked about the sharp decline in home sales in connection with the regime of isolation and noted that the current rate mortgages unaffordable for most citizens. The President asked to increase the share of advance payments and not to stop work on design and new contracts.

the Head of the Ministry Vladimir Yakushev said that in all regions the demand has declined by 30 percent and this situation will develop incrementally. “After you come out of the isolation mode, the demand may drop to 50 percent or more,” he calculated and asked me to support residential construction.

Deputy Prime Minister Marat Khusnullin proposed to accelerate the resettlement program of emergency housing to support the industry and stated that the implementation of the road project is ahead of schedule, the majority of regions is ready to exceed the program for the repair and construction of roads this year. The key task is to prevent the emergence of new defrauded investors, he said.

after Listening to the speakers, Putin announced a package of support measures. The first is a special subsidized mortgage program that will allow citizens to help the state to improve their living conditions. You can get a mortgage at a rate of 6.5 percent per annum for the purchase of new housing-class comfort at the price of up to 3 million rubles in the regions and to 8 million in Moscow and St.Petersburg. The rest is subsidized by the government. Moreover, the reduced rate remains in effect the entire term of the loan. For such mortgage it will be possible to apply until November 1. The implementation of the program will require about 6 billion rubles this year, Putin said.

in addition, he instructed the government to prepare a package of measures that will increase the availability of credit for companies in the construction industry. “I propose in this case to subsidize the interest rate, but I stress that such assistance will be provided to companies that will save employment,” he said. The Cabinet will determine the criteria to the end of the month.

“Getting the support with the loans, companies must commit themselves to complete the construction of homes, scheduled for commissioning this year and next. Need to avoid the so-called protracted. It is important that people know that their apartments will be built qualitatively and in time”, – said the head of state.

the Government has already determined the amount of funds that will be allocated to support the program of lending to the construction industry – 12 billion rubles. Putin pointed out to start this mechanism until the end of April.

the Third is to capitalize the Fund for the protection of rights of investors on 30 billion rubles to complete construction of unfinished homes to thousands of families were able to quickly get their long-awaited housing. Corporation HOUSE.Russia will receive a state guarantee of the Ministry of Finance in the amount of 50 billion rubles for the purchase of new apartments comfort class from developers. Their citizens will be able to purchase including in the framework of preferential mortgage programs.

the Head of state assured that there will be continued large-scale infrastructure projects. Moreover, the timing should be conditioned to the financial resources of the state are not frozen, and worked on the economy, on improving the quality of life, he added. Of course, in the spread of the coronavirus in all construction sites will need a special mode for safe operation.

Putin suggested the possibility of redistribution of the expenses under the national project “Safe and high-quality roads” and programmes for the resettlement of dilapidated housing. This will allow us to fill orders to construction and related industries, to maintain employment. Within a month the government should prepare proposals.

Separately, we must consider the question of the increase in advances on contracts in infrastructure construction. Now advanced 30 percent, and Putin has suggested to increase this figure to 50 percent. This will allow you to perform obligations to suppliers and to maintain jobs and wages.

the Head of state did not rule out additional solutions. “I ask the government to keep abreast of constantly… and to offer variants of development of the industry based on current OBSdraw”, he concluded.