A new state insurance fund may be created in Russia to protect against failing real estate developers. It would be a federal structure into which developers would have to make contributions from 0.5 to 1.5 percent of their volume of transactions. Today the committee of development of Moscow Duma is working on updating the law that regulates shared construction. It aims to tighten control over the expenditure of funds, offer additional criteria of financial stability of the builder, including bank financing alternatives.
Other proposals include raising the level of equity developers are required to invest in a project, as well as increasing ability for project documents to be reviewed and the involvement of tax collector agents, according to the deputy chairman of the Committee of Urban Planning and Land Management of the Moscow Duma.
