The Russian overhaul system was compared to a financial pyramid

Over the year, contributions for capital repairs increased in most Russian regions by 30-50% or more. At the same time, there is no connection between, on the one hand, the volume and final quality of work, and, on the other hand, the rates. That is sky-high increase far from the economically justified level. The regional authorities do not have enough financial resources to fulfill the tasks in the field of housing and communal services set by the federal center, and residents have to pay for this unfortunate reality out of their own pockets.

The record holder was the Republic of Mari El, where contributions increased by 66.7% in January compared to the beginning of 2022. This is followed by the Altai Territory (49.7%), the Sverdlovsk Region (46.5%), the Jewish Autonomous Region (42.8%), the Arkhangelsk Region (41.1%). The increase occurred in 72 regions, 13 subjects abstained from the measure. The national average contribution for overhaul is 10.12 rubles per square meter. At the same time, several regions have not increased the amount of payment since the introduction of the state overhaul program in 2014. For example, in the Saratov region, it was indexed for the first time in nine years – immediately by 27% (up to 8.05 rubles). What is the reason for such drastic changes, we asked Konstantin Krokhin, chairman of the Housing Union, a member of the housing and communal services committee of the Chamber of Commerce and Industry of the Russian Federation.

“The situation should be considered in the general context of the indexation of tariffs for utilities, which was carried out twice in the milestone year for the industry in 2022,” the expert says. Although we were officially promised an increase of no more than 9%, in reality the tariffs increased from 12% to 24%. The state, represented by the regional authorities, actually gave the go-ahead to ensure that the financial burden in the housing and communal services sector falls on the shoulders of citizens to an even greater extent. Capital repairs are carried out by regional operators, but they do not have enough funds to fulfill the tasks set by the federal center. We are talking about the construction of hundreds of millions of square meters of housing, and in relation to housing and communal services – overhaul on a comparable area. This is the general trend: the main monetary source of the industry is the population.

– To what extent does the overhaul justify itself from the point of view of the interests of citizens, for the sake of which it, in fact, is carried out?

– Introduced in 2014, the overhaul program, in fact, legalized the fiscal measure of collecting taxes into centralized funds. It cannot be challenged or canceled by a meeting of homeowners. At the same time, despite the large volumes of work carried out, their quality remains traditionally low. People are also dissatisfied with the fact that today they are excluded from decision-making processes, they cannot influence either the timing or the scope of work. Contractors do not perform their duties properly, workers constantly leave something unfinished or spoil, and then the tenants themselves have to change it for them. And this test is called overhaul? No, this financial and technical procedure imposed on people is needed precisely by contractors who have received tenders from regional authorities. In fact, this is a very profitable mechanism for the development of financial resources, which have a high percentage of collection and good regulatory elaboration. After all, there is nothing easier than collecting money from the population, directing it to some needs, and then reporting: “Look, what good fellows we are, how many houses and entrances have been repaired.”

– And the increase in tariffs for overhaul is not limited in any way?

– The burden that can be increased in relation to citizens is not an infinite value. Judging by opinion polls, since December, dissatisfaction (so far mostly latent) with the increase in housing and communal services tariffs has been growing, and the cost of overhaul falls into this range purely psychologically. People do not see any positive changes. Systemic monopoly remains the default norm, both in the utilities sector and in the home management sector. The quality of services is low, management companies cannot be called customer-oriented. The money of the population goes into their bins, and the number of problems is growing. Kickbacks during installation, contract work reach 30-50%. Against this background, to increase fees means to encourage the robbery of the population.

– Why is there such a big difference in the size of indexation of tariffs for overhaul by regions?

– To the maximum extent (from 30% to 66%), they were increased by those regions that have kept a low rate base for a long time. But we must understand that 2 rubles, and 7, and 9 is a political tariff. With this money, nothing can be repaired in principle. There are independent actuarial calculations that show what the actual cost of a major overhaul of a typical residential building in Russia is. In 2015, it was about $300-400 per square meter, today it is clearly more. Accordingly, at a distance of 25-30 years (the standard collection period), the tariff should be at least 25-30 rubles per square meter. In order to fulfill the instructions of the federal center on the pace of the implementation of the overhaul program, at least for the sake of appearance, it is necessary to raise rates.

– Can the state itself somehow restrain them?

– No. It’s all about the “common boiler” system itself, flawed in essence. Even if you set a rate of 50 rubles per square meter, this will not help solve the issue of overhauling the entire housing stock, which also depends on the cost of materials and work, which has grown by about 30-50% (with a general inflation of 12%). Another problem of the “common pot” is chronic scarcity, that old houses are being repaired at the expense of new houses. And there is no money left for new money. Capital repair rates cannot be increased indefinitely, they should not be equal to half the payment for current utilities, as is now observed everywhere. We need to smoothly exit this system, because sooner or later we will hit a dead end, we will face a drop in payments. After all, there is world experience: the condominium system, widely developed in Europe and the USA. There, overhaul is carried out by the decision of the owners, when they need it. People gathered, carried out and approved the estimate, and began to pay contributions. At the same time, money is not lost, does not depreciate, no one will take it to some strange “leaky” house. As an owner, a person is responsible for the condition of the property. And if it allows to bring it to an accident rate, the housing will simply be closed, and the person will be evicted. And the Russian overhaul system is a financial pyramid: someone managed to earn money, and someone lost everything.