Issue № 83. December 2020

Project Financing in Housing Construction: In Search of a Balance of Interests

Larisa G. Sudas — DSc (Philosophy), Professor, Faculty of Public Administration, Lomonosov Moscow State University, Moscow, Russian Federation.
E-mail: Sudas@spa.msu.ru
ORCID ID: 0000-0003-0498-5145 

Alexander A. Onosov — PhD, Leading Research Fellow, Faculty of Philosophy, Lomonosov Moscow State University, Moscow, Russian Federation.
E-mail: o.ksandr@yandex.ru
ORCID ID: 0000-0003-4002-3496

A year has passed since the beginning of the transition to a new system of financing at the sphere of housing construction in the Russian Federation, which is the deepest transformation of the industry in the last two decades.The article analyzes the problems and risks of such transition as it was foreseen at the eve of the reform by the capital’s construction community representatives and how they are understood now, after a year of transformations. Such a comparative analysis was made on the basis of the prognostic material obtained in the course of a sociological study «Administrative barriers in the passage of procedures in the urban planning sphere of Moscow», carried out in November 2018 – February 2019, on the eve of the reform. Based on the materials of the study, an assessment of the state and dynamics, including the expected, of the investment and business climate in the construction sector of Moscow the authors identified factors influencing it, expectations associated with the transition to project financing in housing construction. Further, the article analyzes the risks that arise for all participants in the construction market during the transition to a new model of housing construction financing, which multiply in an extreme situation of a pandemic, the anti-crisis strategy of the state aimed at adapting the new model of the housing construction financing to this situation. The conclusion is made about the priority importance of the dialogue between the parties-participants of the housing construction market, built by the state, aimed at achieving a balance of interests of all parties on the basis of minimizing costs and reducing risks for each of them, as well as an optimal balance of financial, economic and political risks as the basis for setting realistic goals and tasks of reforming the industry.

Keywords

State regulation of a housing construction, shared construction, defrauded shareholders, project financing, escrow accounts,investment and business climate, balance of interests, COVID-19 pandemic.

DOI: 10.24411/2070-1381-2020-10118