Russian housing reform policies

By 1999, share of communal service costs paid by residents had increased substantially:

Mix of Housing and Communal Payments,
%

Sources of payments

1990

1995

1997

1999

FebSubsidies from the federal budget

68

50

22

18

Cross-subsidies

30

40

40

22

Residents' payments

2

10

38

60

In order to realize the President's Decree No. 425, "On Reform of Housing and Communal Sector in the Russian Federation" (issued April 28, 1997 with changes of July 1997), the Russian government annually issues decrees "On Federal Standards of Transition to the New System of Housing and Communal Payments" (the latest one is No. 965 of December 15, 2000, and covers the period of 2000-2001).
Transfers from the federal budget to regions are estimated on the basis of:

a) Indirect subsidies to residents: 30% in 2000 and 20% in 2001. This standard is used when federal financial support to regions is being assessed.

b) Share of housing and communal payments in family's income, not to exceed 20% in 2000 and 22% in 2001. Amounts beyond these limits will be covered by direct subsidies.

c) Cost of housing and communal services in Russia on average should not exceed 12.8 Rbl per sq. meter in 2000 and 14.2 Rbl per sq. meter in 2001. This cost differs by regions according to the Appendix to this Decree.

Examples of Residents' Payments as of December
2000

Region

Federal standard, Rbl/sq.m
monthly

Residents' billed payments, Rbl/sq.m
monthly

Share of HC costs covered by billed
residents' payments, %: 

Share of families who receive direct
subsidies, %

Average per capita monthly income, in
Rbl

Share of HC costs covered by transfers
from the federal budget, % 

Russia

13.36

8.32

62.3

6.9

2224

32.5

Komi Republic

23.9

16.7

70

8.1

2795

22.1

Pskov region

13.7

9.58

70

5.0

1280

24.4

St. Petersburg city

10.3

6.31

61.1

24.2

2476

56.4

Moscow city

11.6

6.04

52.3

11.2

8638

96.9

Tver region

9.9

6.95

70

10.3

1312

26.0

Yaroslavl region

12.6

8.82

70

4.6

1722

29.6

Kirovsk region

13.8

9.66

70.1

3.1

1178

15.6

Kalmykia Republic

9.7

6.95

71.7

5.0

993

16.5

Samara region

15.3

10.71

70

8.5

2458

26.3

Stavropolsky Krai

12.6

8.82

70

3.4

1438

11.7

Bashkortostan Republic

10.4

7.28

70

12.6

1843

44.8

For Comparison: Nizhegorodskaya Oblast

13.1

6.02

45.9

2.7

1506

16.0

Regions are recommended to use these standards when planning minimum funds channeled to housing and communal subsidies. If a region's costs are higher than federal standards or if regional authorities want to establish social protection from high tariffs, no money will be transferred from the federal budget.* Bashkortostan, St. Petersburg, Moscow and Yaroslavl data (in bold) include special transfers, not only subsidies. For other cities, disparity in payments is to be covered from regional budgets (for Samara it is 100-70-26.3=3.7%, for Nizhny Novgorod 100-45.9-16.0=38.1%). Source: ZhKH (Housing and communal sector - S.S.) Journal #7, 2001, p. 39-44.