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FEDERAL LAW OF THE RUSSIAN FEDERATION

of December 30, 2004 No. 214-FZ

About participation in shared-equity construction of apartment houses and other real estate objects and about modification of some legal acts of the Russian Federation

(as amended on 27-06-2019)

Accepted by the State Duma on December 22, 2004

Approved by the Federation Council on December 24, 2004

Article 1. Subject of regulation of this Federal Law

1. This Federal Law governs the relations connected with attraction of money of citizens and legal entities for shared-equity construction of apartment houses and (or) other real estate objects (further - participants of shared-equity construction), for cost recovery on such construction and origin at participants of shared-equity construction of the property right to objects of shared-equity construction and the right of common ownership to common property in the apartment house and (or) other real estate object, and also establishes guarantees of protection of the rights, legitimate interests and property of participants of shared-equity construction.

2. The attraction of money of citizens connected with the property right to rooms arising at citizens in apartment houses and (or) other real estate objects which at the time of attraction of such money of citizens are not put into operation according to the procedure, established by the legislation on town-planning activities (further - attraction of money of citizens for construction), is allowed only:

1) based on the agreement of participation in shared-equity construction;

2) ceased to be valid according to the Federal Law of the Russian Federation of 01.07.2018 No. 175-FZ

3) are created by housing cooperatives which perform construction on the parcels of land provided to them in gratuitous fixed-term use from municipal property or state-owned property including according to the Federal Law of July 24, 2008 No. 161-FZ "About assistance to development of house construction" or according to the Federal Law of October 26, 2002 No. 127-FZ "About insolvency (bankruptcy)".

2.1. Attraction of money of citizens for construction in defiance of the requirements established by part 2 of this Article, including the offer and sale of securities to citizens as a result of implementation of the rights according to which in accordance with the terms of emission of the specified securities or terms of the contract of trust management of mutual investment fund the citizen will acquire the right to require room apportionment in the apartment house and (or) other real estate object which at the time of attraction of money of citizens for construction are not put into operation is forbidden. The transaction on attraction of money of citizens for construction made in defiance of the requirements established by this Article can be acknowledged as court invalid only in the claim of the citizen who concluded such bargain.

2.2. Persons raising money of citizens for construction in defiance of the requirements established by this Article bear responsibility in accordance with the legislation of the Russian Federation.

2.3. Operation of this Federal Law regarding regulation of the relations in case of construction (creation) of apartment houses equally extends to the relations in case of construction (creation) of the apartment houses of the blocked building consisting of three and more blocks in case of attraction for construction (creation) of such houses of money of citizens and legal entities.

3. Operation of this Federal Law does not extend to the relations of legal entities and (or) individual entrepreneurs connected with investing activities on construction (creation) of real estate objects (including apartment houses) and not based on the agreement of participation in shared-equity construction. The specified relations are governed by the Civil code of the Russian Federation and the legislation of the Russian Federation on investing activities. Transfer to citizens of the rights by concession of the requirement for agreements which are signed by legal entities and (or) individual entrepreneurs and are connected with investing activities on construction (creation) of apartment houses and after which execution citizens have property right to premises in the under construction (created) apartment house, it is not allowed.

4. Operation of this Federal Law extends to the relations connected with attraction of money of citizens and legal entities for shared-equity construction of apartment houses and (or) other real estate objects and arising in communication:

1) with renovation of housing stock in the subject of the Russian Federation - the federal city of Moscow, taking into account the features provided by the Law of the Russian Federation of April 15, 1993 No. 4802-1 "About the status of the capital of the Russian Federation";

2) with settlement of obligations of the builder to participants of shared-equity construction and transfer of its property (including property rights) and obligations of unitary non-profit organization in the form of business of fund created according to the Federal Law of July 29, 2017 No. 218-FZ "About the public company on protection of the rights of citizens - participants of shared-equity construction in case of insolvency (bankruptcy) of builders and about modification of separate legal acts of the Russian Federation", taking into account the features provided by this Federal Law, the Federal Law of October 26, 2002 No. 127-FZ "About insolvency (bankruptcy)" The Federal Law of July 29, 2017 No. 218-FZ "About the public company on protection of the rights of citizens - participants of shared-equity construction in case of insolvency (bankruptcy) of builders and about modification of separate legal acts of the Russian Federation";

3) with settlement of obligations of the builder to participants of shared-equity construction and transfer of its property (including property rights) and obligations of unitary non-profit organization in the form of business of fund created by the subject of the Russian Federation for realization of the purposes specified in this Item taking into account the features provided by this Federal Law and the Federal Law of October 26, 2002 No. 127-FZ "About insolvency (bankruptcy)" (further - Fund of the subject of the Russian Federation).

Article 2. The basic concepts used in this Federal Law

For the purposes of this Federal Law the following basic concepts are used:

1) the builder - economic society:

which which or the main society or any of affiliated economic societies of the main society has experience (at least three years) of participation in construction (creation) of apartment houses with a total area at least five thousand square meters in total, in the presence of received according to the procedure, established by the legislation on town-planning activities, permissions to commissioning of such apartment houses as the builder, and (or) the technical customer, and (or) the prime contractor according to the construction contract;

which has in property or on the lease right, on the right of the sublease or in provided by the Federal Law of July 24, 2008 No. 161-FZ "About assistance to development of house construction" (further - the Federal Law "About Assistance to Development of House Construction"), the subitem 15 of Item 2 of Article 39.10 of the Land code of the Russian Federation cases on the right of free use the parcel of land and raises money of participants of shared-equity construction according to this Federal Law for construction (creation) on this parcel of land of apartment houses and (or) other real estate objects, except for subjects to production assignment, based on the got construction permit;

which name contains the words "specialized builder".

The builder is also understood as the non-profit organization created according to the Law of the Russian Federation of April 15, 1993 No. 4802-1 "About the status of the capital of the Russian Federation" or the unitary non-profit organization in form of business of fund created according to the Federal Law of July 29, 2017 No. 218-FZ "About the public company on protection of the rights of citizens - participants of shared-equity construction in case of insolvency (bankruptcy) of builders and about modification of separate legal acts of the Russian Federation", and also the Fund of the subject of the Russian Federation specified in Item 3 of part 4 of article 1 of this Federal Law;

2) object of shared-equity construction - the residential or non-residential premise, the parking place which is subject to transfer to the participant of shared-equity construction after receipt of permission to commissioning of the apartment house and (or) other real estate object and which is part of the specified apartment house and (or) other real estate object, under construction (created) also with attraction of money of the participant of shared-equity construction;

2. 1) the construction project - the construction project of the apartment house and (or) other real estate object or several apartment houses and (or) other real estate objects which construction is performed within one construction permit;

3) authorized bank - the bank created in accordance with the legislation of the Russian Federation and included by the Bank of Russia in the list of the banks corresponding to the criteria established by the Government of the Russian Federation. The Bank of Russia monthly posts the specified list of banks on the official site on the Internet;

4) purpose-oriented loan (target loan) - the credit or loan for construction (creation) of the apartment house and (or) other real estate object in accordance with the terms of the agreement signed between the builder and the creditor (bank or the founder (participant) of builder) who can be used only on the purposes specified regarding 1 article 18 of this Federal Law, or the loan granted for the purpose of refinancing (loaning up) specified in this Item of the credit or loan. At the same time the target loan granted by all founders (participants) of builder shall not exceed twenty percent from the planned construction cost (creation) of apartment houses and (or) other real estate objects specified in the project declaration according to Item 10 of part 1 of article 21 of this Federal Law (further - project construction cost), on each of the issued construction permits provided that percent on such target loan do not exceed the key interest rate of the Central bank of the Russian Federation operating for date of the conclusion of the loan agreement increased by two percent points. The restrictions on the purposes of use of means of purpose-oriented loan (target loan) and the size of target loan specified in this Item are not applied if the builder performs construction (creation) of apartment houses and (or) other real estate objects with attraction of money of participants of shared-equity construction on condition of placement of such money on escrow accounts according to the procedure, the stipulated in Article 15.4 presents of the Federal Law;

5) authorized bank in the field of house construction - the bank created in accordance with the legislation of the Russian Federation and determined by the Federal Law of July 13, 2015 No. 225-FZ "About assistance to development and increase in management efficiency in the housing sphere and about modification of separate legal acts of the Russian Federation".

Article 3. The right to attraction of money of participants of shared-equity construction for construction (creation) of the apartment house and (or) other real estate objects

1. The builder has the right to raise money of participants of shared-equity construction for construction (creation) of the apartment house and (or) other real estate objects only after receipt in accordance with the established procedure of construction permit, publications, placements and (or) submissions of the project declaration according to this Federal Law and state registration by the builder of the property right to the parcel of land provided for construction (creation) of the apartment house and (or) other real estate objects which part objects of shared-equity construction, or the lease agreement, agreement of the sublease of such parcel of land or in the cases provided by the Federal Law "About Assistance to Development of House Construction" or the subitem 15 of Item 2 of Article 39.10 of the Land code of the Russian Federation, the agreement of free use by such parcel of land will be.

1.1. The builder has the right to raise money of participants of shared-equity construction for construction (creation) of one or several apartment houses and (or) other real estate objects which part objects of shared-equity construction are, according to the project documentation provided that the construction (creation) of the specified apartment houses and (or) other real estate objects is performed within one construction permit, or within several construction permits according to the development plan for a land plot or the approved site planning of the territory, or within one or several construction permits on one or several parcels of land located in borders of the built-up territory concerning which the agreement on development of the built-up territory, or the territories is signed concerning which the agreement on complex development of the territory or the agreement on complex development of the territory is signed (further - several construction permits). The builder has no right to perform at the same time activities for attraction of money of participants of shared-equity construction for construction (creation) of the real estate objects specified in this part according to several development plans for a land plot or the approved site plannings of the territory or under several agreements on development of the built-up territory, and (or) agreements on complex development of the territory, and (or) agreements on complex development of the territory.

1.2. The builder has the right to perform construction (creation) of apartment houses and (or) other real estate objects within one or several construction permits with attraction of money of participants of shared-equity construction in case of observance of one of conditions:

1) fulfillment of requirements of part 4 of this Article;

2) placements of money of participants of shared-equity construction on escrow accounts according to the procedure, the stipulated in Article 15.4 presents of the Federal Law.

2. For construction (creation) of the apartment house based on the agreement of participation in shared-equity construction the builder meeting the following requirements has the right to attraction of money of participants of shared-equity construction:

1) availability of the project documentation and positive experimental testimony of the project documentation;";

1. 1) the size of own means of the builder shall constitute at least than ten percent from project construction cost. The procedure of payments of own means of the builder is established by the Government of the Russian Federation;

1. 2) availability for date of the direction of the project declaration according to part 2 of article 19 of this Federal Law in the authorized body of the executive authority of the subject of the Russian Federation specified regarding the 2nd article 23 of this Federal Law, money in the amount of at least ten percent from project construction cost on the bank account of the builder opened in authorized bank according to part 2.3 of this Article or availability the specified date of the credit agreement signed by the builder with authorized bank providing authorized bank to the builder of purpose-oriented loan on construction (creation) of the apartment house and (or) other real estate object which part objects of shared-equity construction, in the amount of at least forty percent from project construction cost are;

1. 3) there are no obligations on the credits, loans, loans, except for purpose-oriented loans (target loans) connected with attraction of money of participants of shared-equity construction and with construction (creation) of apartment houses and (or) other real estate objects within one construction permit or several construction permits;

1. 4) the builder does not perform release or issue of securities, except for shares;

1. 5) the obligations of the builder which are not connected with attraction of money of participants of shared-equity construction and with construction (creation) of apartment houses and (or) other real estate objects within one construction permit or several construction permits for date of the direction of the project declaration according to part 2 of article 19 of this Federal Law in the authorized body of the executive authority of the subject of the Russian Federation specified regarding the 2nd article 23 of this Federal Law do not exceed one percent from project construction cost. This rule is not applied to obligations of the builder on remedial action of object of shared-equity construction according to article 7 of this Federal Law;

1. 6) the property belonging to the builder is not used for ensuring obligation fulfillment of the third parties, and also for ensuring execution of own obligations of the builder which are not connected with attraction of money of participants of shared-equity construction and with construction (creation) of apartment houses and (or) other real estate objects within one construction permit or several construction permits;

1. 7) there are no obligations on ensuring obligation fulfillment of the third parties;

1. 8) the builder observes standard rates of financial stability;

2) concerning the builder liquidation procedures of the legal entity - the builder are not carried out;

3) concerning the legal entity - the builder there is no decision of Arbitration Court on introduction of one of the procedures applied in the case of bankruptcy according to the Federal Law of October 26, 2002 No. 127-FZ "About insolvency (bankruptcy), except as specified, provided by the specified Federal Law";

4) concerning the legal entity - the builder there is no decision of Arbitration Court on suspension of its activities as measure of administrative punishment;

5) in the register of unfair suppliers which maintaining is performed according to the Federal Law of July 18, 2011 No. 223-FZ "About purchases of goods, works, services as separate types of legal entities" in the register of unfair suppliers (contractors, contractors) which maintaining is performed according to the Federal Law of April 5, 2013 No. 44-FZ "About contractual system in the field of purchases of goods, works, services for ensuring the state and municipal needs", there is no information about the legal entity - the builder (including about person performing functions of sole executive body of the legal entity) regarding execution of the obligations provided by contracts or agreements which subject is performance of works, rendering services in the field of construction, reconstruction and major repair of capital construction projects or the organization such constructions by it reconstruction and major repair or acquisition at the legal entity of premises;

6) in the register of unfair participants of auction for sale of the parcel of land which is in the state-owned or municipal property or auction on right to contract of lease of the parcel of land which is in the state-owned or municipal property which maintaining is performed according to Items 28 and 29 of Article 39.12 of the Land code of the Russian Federation there is no information about the legal entity - the builder (including about person performing functions of sole executive body of the legal entity);

7) the legal entity - the builder has no shortage on taxes, charges, debt on other obligatory payments in budgets of budget system of the Russian Federation (except for the amounts on which are granted delay, payment by installments, the investment tax credit in accordance with the legislation of the Russian Federation about taxes and fees which are re-structured in accordance with the legislation of the Russian Federation, on which there is judgment which took legal effect about recognition of obligation of the applicant on the payment of these amounts performed or which are acknowledged hopeless to collection in accordance with the legislation of the Russian Federation about taxes and fees) for last calendar year which size on the last reporting date is equal to the cumulative size of requirements to the debtor - the legal entity or exceeds it, that No. 127 Federal Law "About insolvency (bankruptcy) is condition for initiation of proceeedings about bankruptcy according to the Federal Law of October 26, 2002. The builder is considered conforming to the established requirement if it in accordance with the established procedure submits the application for appeal specified shortages, debts and the decision on such statement is not made or the term of appeal established by the legislation of the Russian Federation specified shortages, debts did not expire. This rule is not applied in the cases provided by the Federal Law of October 26, 2002 No. 127-FZ "About insolvency (bankruptcy);

8) person performing functions of sole executive body of the builder, person which is the member of collegiate executive body of the builder or person performing functions of sole executive body of managing company if it performs functions of sole executive body of the builder, or temporary sole executive body of the builder (further - the head of the builder), physical person which eventually directly or indirectly (through the third parties) owns (has in the capital participation more than five percent) the corporate legal entity - the builder, the chief accountant of the builder the stipulated in Clause 3.2 presents of the Federal Law conform to requirements;

9) availability of the contract with the first participant of shared-equity construction issued to the conclusion by the builder according to part 2.1 of article 19 of the present Federal the law of the conclusion about compliance of the builder and the project declaration to requirements, the established this Federal Law.

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