What stops developers from renovating the «khrushchivky»

What stops developers from renovating the «khrushchivky»

Everything rests on the economy. The current law provides for the reconstruction of buildings or their complete demolition. In order for the reconstruction to be economically viable, it is necessary to build floors over the existing building. Such a serious reconstruction costs money, while not quite attractive to the developer. It is much more profitable to demolish buildings and build in their place skyscrapers. And here we hear from residents that they want to live in five-story houses, but in new ones. Well, what about the economy then – in commentary to portal Capital real estate told Andriy Ryzhykov, CEO and managing partner of DC Evolution.

Today, we see a situation where the law is, and as such, there is no influence, so the bill announced can bring the issue of reconstruction of outdated housing from a longstanding stupor. The current law for the start of reconstruction provides for consent to the resettlement of 100% of residents, which is often impossible and is the strongest obstacle, so it is very reasonable that in the new bill 75% of residents agree.

But in addition to the law itself, a prescribed implementation procedure is needed – a clear, simple and understandable developer that will protect citizens and the state from fraud. In addition, if not all, at least, reconstruction projects should be exempted from the payment of unit interest, which is actually a corruption component and not a tool for the development of city infrastructure.

Reconstruction projects are real investment projects that must be attractive to the investor, which means that they must first address the issues of land and connection to networks – all that complicate the life of the developer so much. The investor-developer should come to the prepared investment project, build a house for his own money, move the residents there and start construction of a new one on the site of the displaced. All. And no reviews, signatures and additional approvals.

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