The State Duma has allowed the use of maternity capital for individual housing construction through escrow accounts
The State Duma has allowed the use of maternity capital for individual housing construction (IHC) through escrow accounts. The adoption of the relevant amendment is reported by TASS.
The amendments suggest that maternity capital can be spent on the construction of a residential building under a construction contract using an escrow account. The funds or part of the maternity capital funds can be sent to an escrow account, the beneficiary of which is a legal entity or individual entrepreneur who is building the house.
According to Sergei Kolunov, a member of the Construction and Housing and Utilities Committee, the measure will help provide additional protection for families. If the escrow account agreement is terminated, the funds will be returned to the customer. “If the family changes its mind or is not satisfied with something, for example, the contractor turns out to be unscrupulous, the maternity capital will be returned to the family, and it will be able to use it again,” Kolunov explained.
Earlier, Russian President Vladimir Putin proposed expanding the family mortgage program at six percent per annum.
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