Project Moscow Standard: Renovation Programme for Five-Storey Apartment Buildings

Project Moscow Standard: Renovation Programme for Five-Storey Apartment Buildings

Project Moscow Standard: Renovation Programme for Five-Storey Apartment Buildings

Short description: The major goal of the project is to create comfortable living conditions, to facilitate renovation of people’s living environment, to develop public spaces and prevent growth of the failing housing stock in Moscow.

The draft renovation programme covers rundown five-storey apartment buildings, whose owners/inhabitants will receive equivalent decorated apartments in modern new houses within their residential district in exchange for their old apartments. The total area of the living quarters to be provided will exceed that of the vacated housing. The programme participants will receive additional assistance, including free travel for certain categories, legal aid, fast-track state registration of property title and tax preferences.

In addition, amenity infrastructure facilities, such as schools, kindergartens, outpatient hospitals and recreation facilities, will be built under the programme. Attention will be paid to development of the transport network. Modern land improvement standards will be applied in the renovation areas to create local parks, state-of-the-art sports areas and playgrounds, cycle lanes and parking lots. The green space will be preserved or even increased. The new residential areas will be designed with the involvement of the best national and international architects, urban science, transport and urban environment design specialists.

The renovation programme is a new large-scale dedicated investment programme of the city of Moscow that will drive development of a wealth of industries: construction and construction materials industries; trade, manufacturing of furniture, electrical equipment, domestic appliances, materials and equipment for utility systems, etc.

The renovation programme caters for the interests of businesses, not only those of the city’s residents. Businessmen who own non-residential premises in the buildings slated for demolition will be able to choose between getting equivalent premises in another building or receiving monetary compensation after a market-value appraisal.

Scope of finance: to be confirmed (around RUB 3.5 trn)

Sources of finance: the city budget and, possibly, private investments

Implementation period: 2017–2032

Outcome: The demolition of rundown five-storey apartment buildings, their replacement with comfortable new housing and separate urban districts. The residents of the five-storey apartment buildings to be demolished will receive equivalent apartments with all conveniences and improved decoration in new buildings within their residential district. The high-quality housing proposal will also be developed to satisfy the ever-growing demand for residential property in Moscow.

On average, the market value for the new apartments is expected to be 20–35 % higher than that of the vacated premises (due to the increased space, high-quality decoration and modern infrastructure).

The area of commercial property in the new buildings is expected to be increased 10-fold, as the ground floors will be used for non-residential purposes. This is 2.5 m sq. m. of commercial property (2.7 m sq. m. to be renovated), including more than 2 m sq. m. of newly proposed premises. Other areas will be occupied by the owners of commercial property, with whom the terms and conditions of provision of equivalent non-residential premises or monetary compensation will be negotiated individually. The renovation programme will thus increase substantially the supply of commercial property for businesses.

The renovation will generate bigger tax revenues from the city’s construction companies and other related industries.

The project spurs development of the construction materials industry (ceramic tiles, concrete and plastic products, glass and mirrors, etc.). The development and localisation of state-of-the-art manufacturing plants in the city of Moscow, namely lift equipment plants, manufacturing facilities for advanced control and measurement systems for the housing sector (water, energy, gas meters), electrical and ventilation equipment plants, heat exchangers plants, etc., will be of particular importance.

Since the programme last for a long time and the city will get new opportunities to enter into long-term contracts involving investment commitments to localise manufacturing plants (offset agreements), there are plans to create new jobs at technology parks, special economic and industrial zones, etc. in the city of Moscow.

Current implementation status: On 1 August 2017, the Government of Moscow endorsed the Programme for Renovation of Residential Buildings in the City of Moscow up to 2032 covering 5,144 housing with a total area of 16 m sq. m. The programme will thus involve more than 350,000 apartments with nearly one million inhabitants. The final list was drawn up based on:

  • analysis of the 250,000 applications by inhabitants of five-storey apartment buildings and their voting on 15 May –15 June 2017,
  • consultations held by the prefect’s offices of administrative districts in March–April 2017 with representatives of local authorities and chairmen of housing associations on the expediency of including certain buildings in the renovation programme,
  • a door-to-door telephone survey among five-storey apartment building residents in April 2017,
  • assessment of the technical condition of the houses.

An architectural and urban planning tender was launched on 25 April 2017. It was organised by the Committee for Architecture and Urban Planning of the city of Moscow (Moskomarkhitektura) to select the best solutions for five pilot sites in several administrative districts of the metropolis. The listing of the bids ended on 10 July (a total of 132 bids were received, including 40 bids from 17 countries). The tender results are expected to be announced on 10 November.

At present, Moskomarkhitektura and the prefect’s offices of administrative districts are actively looking for sites to be used for construction of startup buildings in all districts to be covered by the renovation project. On 8 August 2017, the presidium meeting of the Government of Moscow established a residential property renovation fund and endorsed the composition of the board of trustees of the fund, which is chaired by the Mayor of Moscow.

Legal framework:

 Federal Law No. 141-FZ “On Amending the Law of the Russian Federation ‘On the Status of the Capital of the Russian Federation’ and the Specific Legal Acts of the Russian Federation Relating to the Establishment of Some Special Aspects of Regulation of Specific Legal Relations to Renovate the Housing Stock in the Constituent Entity of the Russian Federation — the Federal City of Moscow”, of 1 July 2017

 Law of the City of Moscow No. 14 “On Additional Guarantees of Housing and Property Rights of Individuals and Legal Entities during the Period of Renovation of Housing Stock in the City of Moscow”, of 17 May 2017

 Resolution of the Government of Moscow No. 245-PP “On Consultations with Residents Regarding the Project for Renovation of Housing Stock in the City of Moscow”, of 2 May 2017

 Resolution of the Government of Moscow No. 497-PP “On the Programme of Renovation of Housing Stock in the City of Moscow”, of 1 August 2017

 Resolution of the Government of Moscow No. 517-PP “On Establishment of the Moscow Fund for the Renovation of Residential Buildings”, of 8 August 2017