Rustam Minnikhanov holds a meeting on the transition of real estate developers to project funding on the escrow accounts

On July 1, at the Government House of the republic, Tatarstan President Rustam Minnikhanov held a video-conference with participation of all municipal regions of the republic on the transition of real estate developers, constructing houses in the republic, to project funding on the escrow accounts.

Minnikhanov said that since July 1, in accordance with decisions at the federal level, raising fund from citizens for shared-equity construction of apartments which were not commissioned at the time of fund raising are allowed only on escrow accounts.

Tatarstan Minister of Construction, Architrcture, Housing and Utilities Irek Faizullin reported on the situation in the transition of real estate developers under implemented housing construction projects to project funding on the escrow accounts.

Faizullin said that over 200 market participants were united into a single messenger, where they have the opportunity to quickly exchange regulatory legal acts and expert opinions on emerging issues.

He also said that as of July 1, 2019, as many as 87 developers are already operating on the construction of 230 multi-apartment houses in accordance with Federal Law № 214 - FZ.

It was noted during the meeting that as many as 18 banks can provide project financing using escrow accounts in the republic and 10 banks started cooperating with developers.

At the end of the meeting, Tatarstan President proposed to sum up the experience of the transition of developers to escrow accounts at the Russian level. “Today, the use of escrow accounts is already a way of life. Construction companies should work and houses should be built. Everything necessary for this process must be done,” Minnikhanov said. According to Tatarstan President, it is also important to work out the rules for interaction between authorized banks and developers for project financing.