"Affordable" housing, and inaccessible mortgage





09.11.2010 17:02
Articles about real estate | "Affordable" housing, and inaccessible mortgage The construction industry this year is very much subsided. People who are "at the helm of the country, should either say frankly that money to developers in the next five years will not give, or somehow affect the National Bank. But officials want to send to inspect unfinished.
About this in an interview LigaBusinessInform deputy head of the Verkhovna Rada Committee on Construction, Regional Policy and Housing, the deputy head of Ukrainian Construction Association (UCA) Igor Lysov.

- Igor, what actually is done in order that bring the industry out of crisis?


- Today, unfortunately, many of those laws that we have adopted in the construction industry do not work. To make life easier for developers and somehow establish the situation in the construction industry, we go three ways. First, we try to improve the legislative rules have been adopted and in effect. Second, simplify the approval procedures for construction, reduce construction time and the procedure for putting into operation, but that is not affected the quality of work. And third - to accelerate the creation of territorial development plans.

Therefore, it is a radical reform of the licensing system designed to significantly reduce the time and simplifying the procedures that need to go to the investor in the design, construction and putting into operation of real estate. Look what is happening: more than 320 construction projects are under consideration for over a year. These are the projects, which highlighted areas, but are not given permission to build.

- Reduce whether housing prices as a result of these innovations?

- In order to reduce housing prices, we are all under development. In addition, the program is being developed for affordable housing, construction of which will be used the most advanced technology at home and will be economical in cost. Customer costs for the construction of such houses will be reduced by 30-40%. Houses will be no higher than 9 floors. Holding heat and water to the territory and facilities will take place immediately, "Kievgorvodokanalom" Kyivenerho etc.

Social facilities (kindergartens, health clinics, roads, etc. - Ed.) Should be built at the expense of local budgets, and not at the expense of building companies. Thus, for people who are on housing lists, prices will not load in the form of the cost of engineering services and social facilities. Deal with this all will be the leaders of district and provincial centers.

- When people can really get the housing, of which you speak?

- Period of construction sites in question, ranging from 9 to 12 months. The only investors are the people themselves. To date, every leader in the field should determine what and how much to build in his district or region, to approve the design decisions and provide the right financial approach: either find the funds to local or state budget, or contact the National Bank and take a short-term loans on the construction of the facility.

- Do you personally think? How to do this time?

- We have developed a program designed for 7 years. During this period we must learn the order of 260 billion UAH. This money is returnable. And we will build 50 million square meters. m of housing. This will be almost completely removed all the social gravity of the problem.

- Igor, why do you think, we still do not have a normal mortgage real estate developers?

- We do not runs Act N800. People who are at the helm, should understand what they are waiting for some solution. They should either say frankly that money to developers in the next 5 years will not give. And then we start thinking about how to get out.

Or somehow influence the board of the National Bank. After all, the commercial banks a lot of money, but they can not give them because of the limitations of the National Bank. And Vladimir Semenovich (NBU head Volodymyr Stelmakh, - Ed.) At every meeting said that the construction money will not give, and give farmers better.

I believe that, for the interest, which is, and those harsh conditions in which its prominent citizens, the mortgage will not go. The rate of 16% per annum - this is too much. And I'm telling you from experience of the builder.

The State should provide such conditions that the country was working slogan: "A working person can be poor." And people are now barely enough money to feed themselves. I think 90% of people in the country live that way. They do not think nothing about mortgages or about real estate.

I made an inquiry about why the law is not working yet N800 President Yushchenko. He sent me to Tymoshenko, Yulia Tymoshenko said that she is doing everything it can, but the National Bank it does not listen. Now ask the same thing at Azarov.

- So what does it do to the mortgage, we still had and was available?

- My personal opinion: I would have changed the leadership of the National Bank. Because quite moving. After all, money does not go into construction, and those that give the state - are used inefficiently. Look what happens: the youth building fund gets the money, but instead spend it on development of utilities, it gives them directly to people.

Money, which gives the state should go to reduce the cost of land and infrastructure rather than specific individuals. Because the money is enough for 100 or concrete person, or - to reduce the price thousands of apartments.

- Igor, but you must understand that even the shelter, which is called "affordable" for most Ukrainians get simply unrealistic?

- I have often talked about this. But here I want to draw your attention even if such a fact. Developers give the city charges on infrastructure development, and these charges are included in the cost per square meter. Investors who bought an apartment in the new house, just pay for kindergartens, clinics and roads near the house. But the city does not build them.

Why is this problem going to the developer, not the city authorities, because they are responsible for it? Money comes to the city budget, but no one asks why not build kindergartens and parks. The city is not profitable to build kindergartens and playgrounds - they do not earn.

And yet I say. I decided on my own example to show how to build affordable housing. That has signed the Law "On Amendments to Article 4 of the Law of Ukraine" On the use of land defense "(in respect of housing for servicemen and their families)."

Its essence is that the lands of Defense may be used for the construction of social and cultural facilities, housing for military personnel, as well as for the construction of social and affordable housing.

To date, I have a project to build 400 thousand square meters. m on the selling price of about 6,5 UAH. per sq. m. The houses will be 10.9 floors. I want to spend such an experiment and show the result by the end of 2011.

- What is the situation today with unfinished?

- At my initiative, a working group of the Cabinet. But personally, I would have explored each object individually. So I would program "Affordable Housing" posted on these (incomplete - Ed.) Facilities.

Because every investor has gone and invested, and the developer can not finish the house, the State can take away the object itself and complete the funds for the program "Affordable Housing" and give these apartments are on the program 30 to 70 (Program for standing on the housing register, in which 30% of the cost of new housing pays for the future owner, and the rest - the State - Ed.).

- But you need to at least inspect each object ...

- Do we have enough officers? The country has 6,000 unfinished.

Also, I would not give money to the customer, and would give money and normative terms of executive local authorities. But note: if it had not been enacted N800, and there would be no delay in payments, and people would have the right to demand their money back, then we would have had a lot of "Elita-Center".

In a normally operating the scheme does not need any extra agents, nor are any other "add". There are three link of the chain: the bank, the developer and the purchaser - all. The Bank will monitor the proper use of the builder and developer, if the apartment will not be sold, will lower prices to repay the loan.

Price regulation - it is solely the prerogative of the market. And to put some sort of average cost, to try to get into the market, this ... is precisely why we have extra structure committees.

- Construction output this year will be below, or still at the level of the past year of crisis?

- I'm sure there will be much lower than in 2008. They have nowhere to take. Investor confidence does not appear, purchasing power - too. As if officials do not beat yourself in the chest, I believe that the construction industry heavily crippled.

Construction - durable and capital-intensive process. In the crisis did not begin new construction. Even now, investor confidence has not yet appeared, purchasing power - too.

- As far as the volumes have fallen?

- Well, if they legalize samostroi, the private construction slightly tighten performance of SSC. But also to legitimize the (illegally erected housing - Ed.) Are now very hard.

- Your company ("Liko Holding") included in the list of companies that will receive preferential loans for the completion of residential properties. You can comment on this?

- I read this information. But I must tell you that there are no credits, we do not get it. Banks require a very clear and big mortgages, in our pledge of such amounts do not.

You see, you need to open a credit line of 100 or 200 mln., And under this amount, we can not provide collateral. Therefore, the fact that the company got into this list, thanks, but unfinished, we complete ourselves. We and the military, and fund the construction of the youth - all are buying flats and no problems with selling.

- How are things in your company?

- During the crisis we have fallen a bit rate of construction. But now incorporated 4 new homes. In development are 7 platforms. This year we plan to hand over 75 thousand sq.m. (In the past there were 36 thousand square meters), and the next - 120 sq.m.
LigaBusinessInform
Content tags: Housing Kiev
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