The Analytical Center together with IFC conducted a roundtable “Possibilities and limitations of fund raising by managing companies for full repairs financing”.
The purpose of this roundtable is to discuss management companies’ readiness to borrow funds to finance full repairs and define operational objectives to reduce possible barriers for their crediting, noted experts. They also reviewed the topic of management organizations’ interest in acting as a special account owner or as a contractor for full repairs.
The Head of the Directorate for Housing and Communal Services of the Analytical Center Maria Shilina told about the tools that are needed to run a credit market in apartment buildings and about what is needed from the state, banks and borrowers to make the system work. "We found out that authorities should improve and develop the statutory regulations system and work on information disclosure. This will help banks to form their credit products at this stage. It is also necessary to form the institutional environment and promote regional budgets to abandon direct financing measures in favor of guarantee measures. Educational work, training system for credit institutions and potential borrowers are obligatory”, said the expert. On the part of banks, development of new products and marketing strategy for work with borrowers should be conducted. "Borrowers should understand the value and benefits of crediting in comparison with accumulation. They are designed to improve payment discipline and justify the payment levels. Moreover, easy access to credit products should be created”, said Ms. Shilina.
Speaking about the managing organizations’ role in the new system of apartment buildings’ full repairs organization and funding, the advisor of the Directorate for Housing and Communal Services of the Analytical Center Konstantin Shishkin marked several key points. "Firstly, the role of management companies is underestimated in the formation of regional infrastructure of full repairs. We consider it possible to minimize expenses, using today's infrastructure, especially large management companies. Secondly, a management company is responsible for the urgent works accomplishment, that is, within its activities framework occur situations when it is forced to raise additional funds and to carry out work, and then somehow compensate for these expenses”, considers the expert. Regardless of the full repairs fund formation scenario a managing company has to find source of financing for full repairs, said the expert. Finally, the presence of a special account is considered to be management companies’ opportunity to attract credits.
Unlike regional operators and housing cooperatives a managing organization is a commercial activities object with the ultimate goal – profit extraction, reminded the IFC expert Eduard Yakubov. Therefore, there is a very important issue of managing organizations economic interest in carrying out full repairs and credit attraction for this activity.
During the discussion experts considered key challenges and risks for managing companies, acting as a contractor for full repairs. Also, experts discussed managing companies’ interest in acting as a borrower of money in case owners resolve on loan raising for full repair, and a repayment source is owners money, which comes on special account (managing company’s one). The support which is needed for managing companies if they are interested in acting as an owner of a special account, or a contractor for full repairs of apartments buildings or a borrower on the loan for full repairs, was also under discussion.
Representatives of managing companies, banking institutions, members of interagency working group on realization of pilot projects on full repair of common property in an apartment building financing for the Ministry of Construction, Housing and Utilities of the Russian Federation, Housing and Utilities Reforming Assistance Fund took part in the roundtable.