CONSTRUCTION BUSINESS RECEIVES SPECIAL SUPPORT
22/05/2020
Companies operating in the construction industry can benefit from both, special industry-targeted measures and also general business support options. Additional advantages are provided for ‘system-forming companies.
Special measures include:
- Extension of construction documentation validity terms: in case the construction permit expires within the period from April 7, 2020 to January 1, 2021, its term is extended for another year. Same rule applies to the site development plans, used for obtaining or amending construction permits, preparing and making assessments of project documentation; and territory planning projects used in the course of project documentation examination.
- The amount of the developer’s liability to the co-investment agreement participant shall not include losses incurred from April 3, 2020 to January 1, 2021. In the same manner, developers are exempt from penalties for violation of the handover deadline and from interest for violation of the co-investment agreement.
- From April 3, 2020 to January 1, 2021 controlling bodies are not allowed to claim court injunctions for developers forbidding them to raise funds from equity construction investors, in case such developers have delayed the handover of the facility for more than three months, but only if the violation occurred within the named period. In addition, facilities which construction and handover deadlines have been violated for more than six months, will not be included in the register of ‘complicated facilities’, if the violation arose from April 3, 2020 till January 1, 2021.
- Banks can reduce the loan rate not to exceed the key rate of the Central Bank of the Russian Federation (5.5% as of now) for the period until the end of 2021. Banks’ losses will be compensated from the federal budget. Besides, individuals can benefit from grant-aided mortgages for participating in co-investment construction agreements.
This document provides general information on the subject and does not constitute a legal opinion or recommendation. Consulting a specialist is recommended before taking an action. No claim arising from the content of or relating to this document can be asserted against NAZALI.