Russia will allow spending maternity capital on private house construction

The bill, which provides for the possibility of using maternity capital funds for individual housing construction, passed the second reading in the State Duma. Federal media explain that the primary condition for using state support for a child is through escrow accounts, so the money is transferred to the builders only after construction.

Maternity capital and escrow accounts are already widely used in mortgages and the construction of apartment buildings.

According to the bill, the following conditions must be met: the contractor must have an account in the Unified Information System for Housing Construction and bank accreditation, and domestic house kits or standard designs must be used.

Escrow accounts for the construction of individual housing are insured according to the same rules as equity participation agreements—reimbursement for up to 10 million rubles is possible.

Author: Elina Akhmetova