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Preferential rental housing for defense industry employees in Russia in 2023: what Putin proposed in his message, the tariff, who is entitled, where he will build

Date: March 27, 2023 Time: 04:49:00

Real estate agent Aprelev told how Putin’s proposed preferential housing rental program for defense industry employees will work.

Photo: Anastasia OSIPOVA

– I propose to launch a special program of preferential rental housing for employees of defense industry enterprises (military-industrial complex, – Ed.). The rental rate for them will be significantly lower than the market rate, since a significant part of the payment for housing will be covered by the state. I instruct to work out all the details of this program and, without delay, start the construction of said rental housing, said the head of state in a message to the Federal Assembly on February 21. Vladimir Putin noted that he had already discussed this issue with the government.

We answer the main questions about the new initiative.

What is affordable rental housing?

This is rented housing – an apartment or a house – that is partially paid for by the state or a state company.

Where will such houses be built?

– First of all, of course, in the cities, our important defense, industrial and research centers, – emphasized the President.

We believe that the Nizhny Novgorod, Sverdlovsk, Udmurtia regions, etc. will enter the program.

What is a “below market” rate?

The vice president of the Guild of Realtors of Russia, Konstantin Aprelev, suggests that there are two scenarios for the development of the new program.

The first is the construction of homes, which will be provided on a rental basis at the rate of subsidizing the rent.

– For example, the commercial rental rate is 50 thousand rubles for a two- or three-room apartment. And for an employee of a defense industry company and his family, a subsidy of 50% or a fixed amount can be provided to pay the rent, says Konstantin Aprelev.

The second scenario is not to build anything new, but to offset the rental of the home at the expense of the budget in finished houses. Suppose an employee of a company is already renting housing and begins to partially pay for it.

What should be the subsidy regime?

According to Aprelev, one of the possible schemes is the following. The company compensates the employee for part of the rent, and then receives compensation from the budget.

– The main thing is that there are no abuses, – the expert emphasized. – The scheme must be transparent, free of corruption. But how exactly it will work, the government must answer.

Who will be affected by the new state program?

It is still not entirely clear. In Russia, many companies work for the needs of the defense complex. Some produce 100% military products, others produce 50-60-70%, and some produce only a small amount, focusing mainly on civilian goods. Will the employees of the latter be considered employees of the defense industry?

– The criteria will be clearly formulated by the government, – said Konstantin Aprelev. – But now it is important to understand the general need for this type of housing. How many people who work in the defense industry live in rented housing? How many more specialists does the company need to hire?

What are the prospects for such a program?

– It’s a good idea, – emphasizes the expert. – The fact that such a measure is now being taken in relation to the defense industry is a solution to current problems. I believe that in the future it is necessary to direct such a social program to all areas where there is a shortage of personnel: doctors, teachers, etc. And develop this direction for all categories of people who need to improve their living conditions. For example, a person pays for a rental house and cannot save for a down payment on a mortgage. But if you subsidize his rent, he’ll feel more secure. This, by the way, will also affect the growth of the birth rate in the country.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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