Government announces criteria for restructuring mortgage

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State program applies to citizens whose income after paying a mortgage is less than two minimum wages

Citizens whose income per family member after paying a mortgage is less than two minimum wages in the region will be able to join the state restructuring program for mortgage borrowers suffering from financial difficulties. This is stated in the draft government decree published on the website dedicated to the disclosure of legal acts.

As previously reported, the borrower will be able to obtain a delay in payment for 1 year, and the monthly payment will not exceed 60% of the payment before the restructuring.

As the draft decree shows, the Housing Mortgage Lending Agency (HMLA) will enter into an insurance contract with a bank or a borrower to cover the risks of the bank in the event of non-payment. For this purpose, the agency will be additionally capitalized by 4.5 bln rubles via the emission of 1.8 mln common shares. HMLA`s subsidiary – HMLA insurance company - will pay the borrower`s premium.

To join the program, the borrower and his or her housing must meet certain requirements. At least one of the borrowers or mortgagors should meet the criteria for the program "Housing for Russian family."

This program is applicable only to the citizens with the housing space of less than 18 sq. m. per person (32 sq. m. for those living alone), with more than 3 minor children or 2 children, as well as the recipients of the maternity capital.

The program also applies to combat veterans, to participants in the savings and mortgage system for housing provision for servicemen, to state and municipal agencies staff, to city-forming organizations and scientists.

The program participant shouldn`t hold other estate property, says the draft decree. The total area of the apartment should not exceed 50 sq. m. for those living alone, 35 sq. m. for two persons, 30 sq. m. for three people or more. As for dwelling houses, the minimum is 70 sq. m. for those living alone, 60 sq. m. for two and 50 sq. m. for three residents or more.

The cost of 1 sq. m. of mortgage housing should not exceed by more than 60% the average cost of 1 sq. m. of housing in the region where the borrower lives. Potential participants in the program should not have a mortgage delinquency of more than 60 days.

The draft decree states that all of these requirements apply to loans both in rubles and in foreign currency. Thus, if the requirements are met, the citizens having difficulty in repaying foreign currency mortgages due to the sharp depreciation of the ruble will also be able to join the program.

Text and pictures by INTERFAX.RU