The focus is on ‘Housing and Urban Environment’ national project

Scientists, teachers, practising specialists and young researchers took part in the inter-university conference on legal regulation and strategy for the development of construction and transport in the framework of the national project “Housing and Urban Environment" held on April 14–15 at SPbGASU. The event aimed at analyzing legal problems associated with the implementation of the national project and finding ways to solve them.

Andrey Ivanyuzhenko, PhD, Associate Professor of the SPbGASU Department of Law, drew participants' attention to the property’s limited operational capacity as a problem in the implementation of the national project "Housing and Urban Environment".

In 2020, Russian Federal Law No. 494 "On amendments to the Urban Planning Code of the Russian Federation and certain legislative acts of the Russian Federation in order to ensure the integrated development of territories" was adopted. The changes set up a new institution, which, according to the speaker, causes some concern, as it is not clearly regulated: reference is made to "an apartment building in a limited operational technical condition." Buildings that, in spite of technological defects, are allowed to be occupied can be considered the ones of limited operational capacity. The property is considered conditionally usable, but constant monitoring is necessary in order to implement the building’s technical maintenance and improve its condition.

“I have read expert opinions that a change in an underground river bed or a shift in geological layers, which cannot be predicted at the design stage, can provoke limited unsuitability. This uncertainty allows state executive bodies to include the property in the project for the integrated territorial development or to leave it at the stage of temporary unsuitability, so that it would be possible to save on the costs associated with the preparation of new housing instead of the hazardous dwelling,” noted Andrey Ivanyuzhenko.

Associate Professor of the Department of Law Elena Starova, PhD, spoke about shared construction as an area posing many challenges. Today, participation in shared construction remains risky due to a huge number of disruptions in fulfilling the obligations by developers. Therefore, the state undertakes to co-finance unfinished projects. Legislation is being improved: amendments have been made to Law No. 214-FZ on shared construction, Law No. 218-FZ has been adopted, which defines the procedure for establishing, legal status, purposes, functions, powers and procedure for managing the activities of a public law company to protect the rights of citizens participating in the construction. Since July 1, 2019, developers have been constructing new apartment buildings using their own funds, and the money of equity holders is protected by bank escrow accounts. That means the buyer invests funds that the developer will be able to use only upon completing the construction. All these measures are yielding results, but, unfortunately, developers can take advantage of the sharers’ legal illiteracy, turning the agreement on shared construction into a sale and purchase contract with a transfer of funds to the developer. In this case, citizens will not be protected in terms of the possibility of returning the deposited money. The same happens in the event of the bankruptcy of a developer, which does not give any guarantee for the fulfillment of undertaken obligations.

«Despite the fact that the state is taking measures to protect the interests of participants in shared construction, there are still a number of shortcomings and issues that require reforming and finding solutions», – said Elena Starova.

Fourth-year students Ekaterina Popova and Ekaterina Roslova prepared a report on problems of residential construction. One of the most well-known is the high cost of housing. The authors of the study consider it necessary to establish a maximum mortgage rate for all banks at the legislative level, which means it will be prohibited to exceed the approved mortgage loan rate. Another problem is a lack of land plots suitable for construction. Only 1% of Russia’s territory meets all the requirements for the construction of residential buildings, and this problem can be solved only at the state level by revising the legislative framework.

Fourth-year students Diana Ali and Daria Zavgorodneva concluded that there is a need for a unified legislative act on resettlement from dilapidated or hazardous housing. The resettlement is organized within the framework of the federal project “Ensuring sustainable reduction of unsuitable housing stock”, which is part of the national project “Housing and Urban Environment”. The authors believe that a special law should include clear definitions of dilapidated and dangerous housing, itemize the rights of owners, set deadlines for providing a new dwelling and other important timelines, as well as establish a preferential mortgage rate and draw up a list of persons entitled to benefits.

First-year students Daniil Zaitsev, Oleg Radov and Ksenia Toyesteva considered the issue of renovation in St. Petersburg within the framework of the federal project "Creating a Comfortable Urban Environment". Renovation is a process of improvement without demolishing the entire structure. The students believe that the importance and possibilities of the renovation process have not yet been fully appreciated. However, changing the building can ensure an influx of funds from investors or tenants, and this will not only allow the owners to make a profit, but will also have a positive effect on the appearance of the city.

At the end of 2020, Russia adopted a law on the integrated development of territories, or the so-called “law on the all-Russian renovation”. It is assumed that, first of all, it will improve the mechanisms of resettlement from dilapidated and hazardous dwelling, create a new, faster resettlement algorithm with a possibility of compensating the owners their property’s market value. In addition, more powers have been granted to Russian regional authorities, in particular, in attracting private investments. Renovation of housing can include major repairs, reconstruction with elements of modernization, or restoration. The specific method to be applied will depend on the condition of the building, the purpose of its further use and its historical value.

Text: Tatyana Petrova

✔ Learn more about the programmes and scientific activities of the Department of Law