Speaking at a session of the State Council Tuesday, President Putin said housing reform seemed very timely indeed, with some 4.5 million Russian families on the waiting list for subsidized housing, as ones living in particularly cramped conditions. The average waiting time is twenty years, he added.
According to statistics cited by the President, commercial housing in this country is affordable to a mere 5 percent of the population; another two percent may afford it if they get a long-term bank loan.
Putin deems it necessary to elaborate, well in advance, a new scheme for leasing land out for construction projects. Starting on October 1, 2005, municipal land will be offered for development projects through competitive bidding only. The idea behind this scheme is to demonopolize the construction market and to open it up to efficient developers. In this connection, the President said he deemed it "feasible to think through the idea of setting up a national council for housing policies," adding that all preparatory paperwork would have to be done without delay. The government should come out with new mechanisms for managing urban development, ones that would ensure coordination of work at all levels and between all branches, he pointed out.
President Putin also said that the national program for affordable housing could not rely entirely on the government for its implementation. In his view, that would be both "nonsensical and harmful," he remarked. A lot here will depend on the business community, on the pro-active position of members of the public and their legal literacy, Putin said. He emphasized the importance of awareness-raising measures, to enable the public to make informed choices.
President Putin also pointed out that regional and local authorities should make sure all necessary groundwork was done for the gradual transition to new financial mechanisms in the housing & utilities sector and to competitive terms for the provision of services.
