Subsidy for building a house: who is entitled to it, how to get it

Who will receive government support?

Only citizens of the Russian Federation can receive a subsidy for housing construction in rural areas. Foreigners do not have the right to this benefit, but there is an exception - these are persons who have officially received the status of forced migrants.

In 2020, the following can receive government assistance for building a house in rural areas:

young families in which the age of both spouses does not exceed 30, in some cases 35 years;
military, police and other law enforcement officials;
former military and security officials who are registered on the list of those in need of housing;
orphans;
young distribution specialists who will work in rural areas;
large or single-parent families;
disabled people and families with disabled children;
citizens left without housing due to natural disasters or terrorist attacks.

Additional condition for applicants: they must belong to low-income categories that need improved housing conditions.

Some regions have their own conditions for issuing subsidies. To receive a subsidy, for example, in the Republic of Tatarstan, you need to meet several criteria:

What is a subsidy for building a house?

A subsidy from the state is a targeted payment.
You can spend the issued funds in a strictly defined way. In our case, for the construction of housing: wooden houses, brick and concrete cottages within rural settlements. The subsidy can be used to purchase materials necessary for construction or to order the construction of a house by a construction company. The government can also compensate the family for construction costs it has already incurred. You can use these funds together with your own savings or maternity capital.

A subsidy for the construction of a house is not taxed as it is not income. It is impossible to receive it in the form of cash. Transfer of funds to the account of a building materials seller or construction company is carried out in a non-cash form. Their spending is strictly controlled. There are only two exact criteria that applicants for a subsidy must meet:

citizenship of the Russian Federation;
non-participation previously in any of the state programs to improve housing conditions.

However, only those citizens who really need to improve their living conditions and cannot solve this problem on their own can apply for government assistance.

The list of potential subsidy recipients includes:

“waiting lists” for housing expansion or relocation from the emergency fund;
low-income citizens;
young families;
public sector workers;
large families;
disabled citizens, disabled people, etc.

Previously, the state allocated apartments to those in need on the basis of social rent. But it is much more profitable to provide them with financial assistance to independently solve problems with providing housing in the form of various types of subsidies. Financial assistance for the construction of a house in a rural area allows you to attract young promising personnel, which is also important.

What else to pay attention to

To qualify for subsidies, young families must meet certain parameters:

one of the family members works or plans to work officially for 5 years in rural areas in institutions of the agro-industrial complex or social sphere;
permanently live or intend to live in rural areas;
need improved housing conditions;
purchase housing in shared-equity construction.

To qualify for government assistance when building a house in a village or village, young professionals must:

work or plan to work in rural areas for at least 5 years in agro-industrial organizations in accordance with the acquired specialty;
permanently live or plan to live in a rural area;
need improved housing conditions.

Only individuals can participate in the program. You cannot receive a subsidy twice. Once money is allocated from the budget, it must be spent within 6 months, otherwise the state may withdraw the allocated funds.

If you don’t build, but buy. Housing certificates

In addition to subsidies for building a house, the state provides housing certificates for the purchase of housing to certain categories of citizens:

Military personnel transferred to the reserve;
Elderly people who do not have their own home;
Young families without their own home.

If you are applying for a housing certificate, acquiring your own home is much easier than with a subsidy. You can immediately purchase a plot of land or a cottage, and pledge the certificate as full or partial payment.

State aid options

Subsidies in the Russian Federation, which come from the state, can be divided into 2 types:

Targeted payments for housing construction. With this method of subsidizing, citizens receive money even before construction begins. Together with the housing commission, they approve the directions in which the funds received will be spent. The payment is calculated based on the estimate provided by the applicant who applied for the subsidy.
Compensation payments . This money comes after construction is completed. To receive a subsidy, 2 years are given after completion of the work.

In some cases, subsidies may be mixed. That is, the citizen will receive a certain part of the amount before the start of housing construction, and the rest of the money after.

Legal basis for changes

The procedure by which the state issues a subsidy for the construction of a residential building is prescribed in paragraph 4 of Art. BC:

municipal authorities and the applicant sign an agreement;
the purpose of financing and the type of work on the site are indicated;
the rights and obligations of the parties to the transaction are prescribed;
a personal account must be opened where the funds will be received;
money from the federal budget is allocated within a certain period;
the remaining unspent amount is supposed to be returned;
the issuance of subsidies is suspended under certain conditions;
reporting after construction or purchase of your own housing.

Important! Based on Art. Recipients of the BC RF can be state-owned objects and government institutions that have entered into a contract with the municipality.

Article 78 of the Budget Code of the Russian Federation “Provision of subsidies to legal entities (with the exception of subsidies to state (municipal) institutions), individual entrepreneurs, and individuals”

Article 79 of the Budget Code of the Russian Federation “Budget investments in state (municipal) property”

Budget investments

Features of budget investments are targeting and long-term.
They are within the competence of the regional chief manager if it is planned to allocate up to 1.5 billion rubles. An Investment Fund has been created on the territory of the Russian Federation, which includes a certain amount of money to finance development. The annual volume is included in the federal budget on the basis of Resolution No. 134. Read also: Benefits when buying a home

Money can be directed to:

carrying out capital work on real estate objects - to pay for documents, competitions, tenders, land purchase;
subsidizing citizens' property;
investments in regional investment funds.

Projects are selected based on the principles of availability of investors, efficiency in the economic sphere, and compliance of the applicant’s goals with state support.

Subsidies for capital investments

Based on Decree of the Government of the Russian Federation No. 14, funds from the federal budget should be allocated only for capital development. The program has a number of nuances:

selection of an object on the basis of current state projects, on the personal instructions of the President or representatives of the State Duma;
before issuance, an assessment of the capital measure is carried out in terms of compliance with territorial development programs;
subsidies cannot be used to pay workers;
the candidate must provide a construction project;
technological, documentation, price audits, engineering surveys are carried out and only after that a decision is made;
the maximum amount for capital investments is from 1.5 billion rubles.

Important! The main administrator of the program cannot receive payments.

Capital investment process

Capital construction projects of state infrastructure can receive benefits in the following order:

An agreement is concluded under which a subsidy is provided for reconstruction or capital construction;
The document specifies the terms and limits of payments;
The recipient opens a separate personal account;
An autonomous institution maintains accounting. Money from budget funds is designated as “Other income” of KOSGU. Security code - 6;
After the receipt of subsidy funds, a debit and credit entry is made in the Federal Treasury;
An advance payment is transferred to the contractor with the registration of an accounting entry;
Cost reporting is provided under code 4;
After completion of construction, a Transfer and Acceptance Certificate is drawn up and signed;
All movements of funds between the customer and the contractor are reflected in accounting cards and supported by checks and receipts.

On a note! Recipient objects that are state property of the Russian Federation are exempt from VAT.

Cost reimbursement

Since capital investment objects are individual buildings, structures, and works, they are reflected in the report as:

construction operations;
installation activities;
expenses for the purchase of equipment, inventory, tools;
purchase of land or natural object.

When receiving a subsidy issued for capital investments in construction, you must indicate the type of object - basic or for sale. All fines from the customer and penalties from the contractor are classified as “other expenses” and are taxed.

Compensations for capital investments are paid under the following headings:

wages are not subsidized, but can be reimbursed by the state if the financing was from a third-party investor;
operation of imported and domestic equipment - is compensated if its acquisition was leased;
material resources make up 60-70% of the work, therefore they are fully compensated.

Important! Intermediary services, storage of building materials in a warehouse, and their transportation to the site are not paid for from budget money.

How is the amount of subsidies determined?

The estimated cost of housing under construction or purchased is determined depending on how much 1 square meter costs. m. in this region. In addition, they take into account how much housing space is needed for a family of a certain number of people. Living space standards:

People living alone – 33 sq. m.
For families of two people – 42 sq. m.
Families of three or more people – 18 sq. m. for each family member.

The size of the living space also depends on the region of residence of the family.

If desired, a young family or a specialist can build a house with an area larger than the established norm. But the construction of that part of the housing that is not included in the norm is financed by a family or a young specialist.

Typically, the amount of subsidized funds does not exceed 70% of the estimated cost of the house built or purchased. Only in very rare cases can they finance the entire amount spent on construction. The minimum portion financed by the state is 10%. The decision on how much of the construction or purchase will be financed is made by local governments.

In some regions, under the terms of the program, a young family or young professional can take part in co-financing the construction or purchase of a house in a rural area. This is possible subject to confirmation of the availability of an amount of at least 30% of the estimated cost of housing.

Who can get it and what are the conditions?

Subsidies are awarded for the construction of your own housing as funds before the start of work or as compensation upon completion.
Applicants for financial support can be citizens of the Russian Federation registered in the region that allocates subsidies. The recipient must not have previously participated in a similar municipal or state program. Priority is given to persons in need of improved living conditions. Subsidization is carried out subject to the following points:

applies only to individuals;
construction of a house is allowed in a subsidized area;
the development permit was received later than January 1, 2020;
the developer is the owner of the site and has a permit for private construction;
the sanitary and technical requirements of the work are met, as stated in the documents;
A large family must have been registered in the locality for at least 1 year;
footage of the building - in accordance with the standards (36 squares - for one, 50 squares - for two, more than 8 people - 18 squares for each).

Important! The government agency will register and accept an application for only one building.

Types of subsidy support

The applicant can receive assistance aimed at the construction of a residential building from the state budget before and after the work:

targeted payments - provided to the developer before the start of construction. The basis for receiving funds is the estimate. There is no maximum subsidy amount at the state level; it is determined by municipal authorities;
compensation is awarded to citizens who spent their own money on building a house. The amount of assistance is regulated by regional authorities. Families can apply for compensation 2 years after the permit is issued.

Important! The support applies only to areas allocated for individual housing construction.

Features of the state program “Young Family”

In 2017-2020 The government of the Russian Federation is implementing the “Young Family” project. He must help the newly formed “cells of society” solve the housing problem. The program has several conditions:

Only families whose housing area is less than that established in the region can become participants;
spouses must be adults;
at the time of submitting an application for a participant in the “Young Family” program, the age of the husband and wife should not be more than 35 years;
applicants must not own a residential property;
priority is given to low-income or large families;
the spouses live together and have a total income of 21.6 thousand rubles. for two and 32.5 thousand rubles. for three persons;
there must be at least 1 child in the family.

Important! All applicants, including children, are citizens of the Russian Federation.

How much money will be reimbursed

The amount of funds depends on the region of residence. Also, when determining it, the following are taken into account:

cost per square meter of living space;
regional standards for square footage per person;
how long does a person wait for his turn;
average prices for contractor services;
family composition and number of people supported by the applicant;
how much financial support the applicant needs.

Read also: Temporary disability benefits in 2020

In most cases, 10-70% of the total cost of housing is reimbursed. On average, families of two people will receive 600 thousand rubles. If the recipient of budget funds has a spouse and a child, they will give out about 800 thousand rubles. Large families can count on up to 1 million rubles.

How to apply for state aid

Before applying for government support, determine whether you belong to the group of citizens who are entitled to payments. If the conditions are met, contact the special authority at your place of residence, which is authorized to issue certificates for subsidizing construction.

Collect for local governments:

photocopies of all pages of passports and family members;
certificate of family composition;
photocopy of marriage certificate;
photocopy of birth or adoption certificates of children;
certificate of income from the employer or 2-NDFL;
work book;
extract from the Unified State Register of Real Estate;
extract from the house register.

With the help of an employee of the authorized body, fill out an application. It usually takes about 30 days to process your application. If all specified requirements are met, the subsidy is approved and registered. The data is transferred to the housing department for the region.

Most likely, it will take a long time to receive government support. Due to the large number of participants in the subsidy program, the queue of beneficiaries in some regions is so long that citizens have to wait for the receipt of funds for 2 years. Please note that the money is sent to a bank account and cannot be cashed out.

Who can count on receiving subsidies

As you might have guessed, subsidies for construction in rural areas are not given to all young families. Those who meet the criteria described below can apply for it:

all family members without exception have Russian citizenship;
both husband and wife were no more than 35 years old at the time of registration of documents for the subsidy;
at least one family member is registered as a person in need of improved living conditions;
the family had not previously taken part in this or any other social programs;
applicants for subsidies do not own a house or apartment, or the area of their existing home is insufficient for comfortable living;
The income of applicants is at least 21,620 rubles (family without children), 32,000 (family with one child) or 43,000 rubles (for families with two or more children).

In addition, a number of requirements are imposed on the future construction project.

Firstly, it must be built exactly in the region in which the subsidy is issued (and applicants for receiving it must have a residence permit in the same region). Secondly, you must have a building permit on a specific plot of land. And finally, thirdly, design documentation and estimates for the construction of a house must comply with all modern norms and regulations.

How payments are provided

After the local government has decided to accrue payments, the applicant is given documentary evidence within 10 days. This is a certificate for receiving subsidies for housing construction in rural areas. The applicant needs to come to the bank branch with this document. Budget cooperates only with certain banking institutions. Administration staff will tell you which bank you need to contact.

The bank will open a current account in your name. The basis for issuing a special account is the subsidy certificate itself. This account differs in its functions from the personal accounts of bank clients, which they open on their own initiative or to receive wages.

It is prohibited to cash out money received from the state budget from this current account. They can only be redirected to contractor organizations that carried out certain work or provided services during the construction of the house. To carry out a fund transfer operation, you need to show bank employees an agreement with the builder, from which it is clear what to pay for. The agreement must also contain the details of the contractor to whom the payment should be made.

To confirm the intended use of funds transferred as a subsidy for construction, you must submit:

photocopies of payment documents related to housing construction; they give exactly one month to collect these documents;
extract from the Unified State Register of Real Estate.

If you cannot justify where the government money went, you will be required to return the entire amount. Controlling expenditures and monitoring the direction of subsidies allocated to the population is the responsibility of local authorities. They forward the results of the checks to law enforcement agencies. Therefore, if you do not provide complete and detailed reports in a timely manner, a criminal case may be opened against you.

When and where will the money arrive?

After a decision is made to subsidize construction, the applicant is issued a Certificate within 10 days. He submits the document to a state banking institution and opens a special account.

All operations are carried out within the framework of the certificate. The money cannot be cashed out; it can be transferred to contractors. The developer must present a contract for construction work to the bank.

Read also: Benefits for combatants in 2020

How much can you expect?

State targeted subsidies for private construction are calculated based on the following factors:

regional standards for the number of square meters per person;
waiting times on a first-come, first-served basis;
cost per square meter of real estate in the region.

The parameters change annually, so you can calculate the monetary amount yourself. When establishing the estimated cost of housing, you will need to multiply the price per 1 square meter of residential real estate in the region by the estimated area for the project.

On a note! 100% subsidization is rare. You will receive a maximum of 70% compensation.

How to report on budget money

Subsidies are targeted funds, so the citizen confirms their use. He provides copies of payment invoices within 30 days and a cadastral passport of the building within 3 months.

If there is no target justification, the money will be returned in full. A criminal case may be opened.

Package of documents for compensation of construction costs

Reimbursement of expenses for all regions is carried out on a general basis. The recipient contacts the municipal authorities 24 months after receiving the documents. The deadline for writing an application for reimbursement of costs is 2 months from the date of issuance of the cadastral passport.

Reasons for refusal

Compensatory or targeted payments are transferred only if all conditions for participation in the subsidy program are met. In most cases, citizens are refused for the most common reasons:

inaccurate information presented in documents;
non-compliance with the conditions for the provision of subsidies;
not all documents were provided or there were errors made in them.

Once the deficiencies are corrected, the applicant can apply for subsidies again.

The authorities of some regions also provide other measures of support to needy and low-income categories of Russians:

assistance in purchasing land;
benefits when paying for utilities;
provision of free housing.

How to apply for these types of state support can be clarified with local authorities. Read a separate article by Brobank about what support measures families with children can count on.

about the author

Klavdiya Treskova - higher education with qualification “Economist”, with specializations “Economics and Management” and “Computer Technologies” at PSU. She worked in a bank in positions from operator to acting. Head of the Department for servicing private and corporate clients. Every year she successfully passed certifications, education and training in banking services. Total work experience in the bank is more than 15 years. [email protected]

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Author of the article: Klavdiya Treskova

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Category	Explanation
Young families	Spouses who are officially married. Moreover, one of the family members is a citizen of the Russian Federation no older than 30 years. Single-parent families with children, including adopted children, where the parent is no more than 30 years old.
Young professionals	Citizens of the Russian Federation no older than 30 years of age who have completed vocational education or are graduating students.