“I'd like to speak about the housing issue. This has been the main issue in this country for many, many years. As you know, we promised to resolve this problem for those veterans of the Great Patriotic War who registered before March 1, 2005. We have reached this goal. The Krasnodar Territory was the last region to report that it had carried out this objective. We received their report on May 1 of this year. I assume that there are still some problems, but let me repeat that all regions have officially reported on this issue. Of course, we will verify this, but it seems as if the problem has been resolved - 28,500 veterans have received flats.”
“We will also launch a fundamentally new federal targeted programme for the comprehensive modernisation of housing and public utilities, which will complement the efforts that the Housing Reform Promotion Fund started several years ago. Naturally, this programme will not just be about major housing repairs. Significant renovation of utilities networks is also necessary. Moreover, this renovation should not only be undertaken in emergencies and should involve modern technology, materials, energy-efficient equipment, private investment and concessions.”
“Such loans are exclusively designed for buying flats in new buildings. This is also a well-thought-out decision, because new flats are cheaper, and sometimes much cheaper, than secondary real estate market because in the past construction materials and everything else were more expensive than today. I hope this will allow us to support housing construction and encourage new construction projects.”
“We have together agreed that it is premature to reduce measures of support for the real economy this year. Support for housing construction is one of these measures. I believe that we should use government resources to encourage demand for inexpensive, affordable housing. Therefore, we will impose a ceiling on mortgage loans - three million roubles in the regions and eight million roubles in Moscow and St Petersburg, our metropolises.”
“Vnesheconombank (VEB) and the National Welfare Fund will grant commercial banks a total of 250 billion roubles to enable them to issue affordable loans. This is the long-term credit that we will use to resolve the housing problem.”
“At the end of last year, the government issued an instruction to the relevant bodies to find additional resources for supporting mortgage loans in order to make them accessible to the public. I have already said more than once that interest rates on mortgage loans should not exceed 11%, and the down payment should not be more than 20% of the cost of a flat. Calculations show that such terms will allow many more people to take advantage of mortgage loans, because they cannot afford to pay the 14%-15% the banks require today. Even 11% is high, and should be lowered in the future.”
“We have two key goals for housing. First of all, we must consistently fulfil the government's obligations to supply housing to particular demographics, such as war veterans, people who took part in the Chernobyl cleanup, army servicemen, etc. I'm also talking about relocating people out of dilapidated housing and other similar programmes.”
“The state corporation is called the Housing and Utilities Reform Fund, and I would like you to remember this. The regions should not only co-finance your projects and the necessary funds for resettlement and repair of housing, but also submit programmes on the reform of the housing and utilities sector. They must de-monopolise this sector, create the partnerships of housing owners and help them on their feet, and also encourage the creation of companies that will not bring housing into disrepair on such a large scale, but help to make the next step, that is, maintain it in good order and to make repairs when necessary.”
“At the end of the day, increasing construction is the only sure way to meet people's housing demands. It is important to provide construction companies with the widest range of sites connected to all necessary infrastructure, including roads. We are relying on the Housing Construction Fund to address this issue.”
“There is another important issue we must discuss today. We have said many times this year that we will allocate another 250 billion roubles to revitalise the mortgage market. These additional funds will be allotted to reduce the mortgage interest rate. I would like to stress that this is our objective. Our objective is not just to allot funds, but actually reduce mortgage interest rates.”
