Russia (bbabo.net), - Defrauded equity holders are deprived of compensation because of buyers-investors. Konstantin Timofeev, general director of the Territorial Development Fund (formerly the head of the Fund for the Protection of the Rights of Citizens - Participants in Equity Construction), told about this in an interview with Rossiyskaya Gazeta.

“Recently, we faced a situation where the region petitions us to apply the Fund’s mechanisms, and citizens create a housing construction cooperative and refuse the Fund’s assistance. As a rule, this applies to objects that we plan to pay,” Timofeev said. The fund compensates only for the cost of an apartment up to 120 sq. m per person. But if investors bought apartments in this house - legal entities or individuals who bought five, ten, twenty apartments for subsequent earnings, they are not satisfied with this procedure, since they will also receive compensation for a maximum of 120 sq. m. meters. “And they start working with citizens, they say: “Well, why do you need a fund? Let's better create a cooperative and go to the governor, the governor will help us!" And citizens create a cooperative, forgetting or not knowing that in this case they themselves have to finish building the house. And the region has no legal mechanisms to help such housing cooperatives. Therefore, we all “We still recommend citizens not to refuse the Fund’s assistance, because this is a guaranteed way to restore their rights,” Timofeev emphasized.

There are already quite a lot of similar cases - in the Novosibirsk region, the Krasnodar Territory. “Here it is necessary to carry out explanatory work with citizens that for people this is a road to nowhere. It turns out that instead of a share of co-financing, a 100 percent burden on such facilities will fall on the regional budget. It is also very difficult for the region,” said the head of the fund.

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