Housing reform in the Russian Federation : a review of three cities and their transition to a market economy

For each city, the report assesses housing sector status and trends, the structure of the municipal government, the city"s capacity to manage housing reform, constraints to the provision of private housing, and problems affecting the housing sector. An initial section identifies the following cross-cutting trends and issues observed in the three cities. (1) There is a significant shortage of housing, and new residential construction has dropped off sharply due to drastic central budget cuts affecting large construction firms. (2) At the same time, small contractors and "self-help" families have begun building single-family houses outside Moscow in significant numbers. This is a key development -- in regard to both housing type and builder -- and highlights the general need for expanded micro-utility systems. (3) Management and maintenance of the existing housing stock require substantial reform, especially in light of budget shortfalls and the continuing cap on rents. Land and property registration and valuation also need to be modernized. (4) There is a critical need for a stable financial system to channel resources for the development of infrastructure and the construction and purchase of housing. (5) Privatization is a growing phenomenon, but is constrained by uncertainty over property taxes and maintenance costs. (6) Communist-era bureaucracies are still responsible for administering housing programs.