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Russian families are now promised 14 million "square meters" of affordable housing instead of 25 million

·11.06.2016

Under the "Housing for Russian Families" program, more than 14 million square meters of affordable housing will be built by the end of 2017. This was announced to journalists by Denis Filippov, Director General of the Housing Construction Development Assistance Fund (RZhS Fund). He reminded that this program allows Russian citizens to purchase housing at no more than 35 thousand rubles per square meter, "or at least 20% cheaper than the market." According to Filippov, almost all subjects of the Russian Federation are currently participating in the program, reports RIA "Novosti".

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"We believe that thanks to this program, the majority of Russian citizens will be able to solve their housing issue at an affordable price," noted the head of the fund.

As a reminder, at the launch of the program two years ago, these plans were more ambitious: it was planned to construct 25 million sq. m under the program. However, this spring it became known that due to crisis phenomena in the Russian economy, the Ministry of Construction proposed to reduce construction volumes, abandoning the established upper limit. At the same time, in April, Construction Minister Mikhail Men stated that construction of almost 20 million sq. m has been approved under the "Housing for Russian Families" program, but so far less than 260 thousand "squares" have been delivered.

According to the program's terms, the Housing and Utilities Fund allocates land to developers on lease and through AIZhK compensates part of infrastructure costs. The developer, in turn, is obliged to sell half of the built apartments at no more than 35 thousand rubles per 1 sq. m, or 80% of the market price. It was planned that several categories of Russians would be able to buy an apartment at such a preferential price: for example, those who live in premises with an area of no more than 18 sq. m per person, as well as in dilapidated buildings subject to demolition. The program is also designed for large families, families receiving maternity capital, combat veterans and families with a total income of no more than 45 thousand rubles. In 2014, the circle of program participants was estimated at 1.5 million people (460 thousand families).

Meanwhile, as a supplement and alternative to this project, the government is developing a program for the construction of rental housing, where prices should be cheaper than market rates. The Ministry of Construction previously stated that by 2017-2018, rental housing will account for approximately 7% of total housing commissioning in the Russian Federation, and by 2020 its volume will reach 4.7 million sq. m. Both programs are being implemented to fulfill housing decree No. 600 of President Vladimir Putin dated May 7, 2012.

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