RENOVATION OF HOUSING SPACE: DEVELOPMENT OF CAPITAL REPAIR MECHANISMS

Abstract

Relevance: Significance of renovation processes in the housing sector as a basis for the formation of quality and comfortable residential environment for population. The destruction of the system of preventive current repairs of housing stock and the limited financing of renovation processes in this area lead to a catastrophic increase in the wear and tear of residence buildings. In this connection, there is an increasing need to find the most effective mechanism for financing the housing stock renovation via the additional assets and increase in the population's contribution to capital repairs. Purpose: Theoretical substantiation and development of the approach to capital repair financing mechanism based on systematization and generalization of the Russian and foreign experience and approbation of proposals on the example of the Tomsk region. The aim is to study the major repair experience in the Tomsk region to identify the main problems that limit the formation of a quality housing space; analyze the best foreign experience in the implementation of housing renovation projects and identification of promising tools and methods that can be used to adapt to the Russian reality; take measures for the formation of alternative sources of capital repair financing; approve the proposed activities using statistical materials on the example of the capital repair program on apartment buildings in the Tomsk region. Approach/methodology: The methodology utilizes general and specific scientific methods. We use methods of systematization and generalization of scientific approaches, structural and comparative analysis and synthesis, which help to identify effective tools for implementing renovation in the housing sector. Graphical interpretation of the analytical results and statistical methods of data processing are used to analyze the existing situation in the Tomsk region. Using methods of structural grouping we determine regularities and characteristic properties of the objects studied. The analysis of the foreign experience in financing the renovation of the housing stock assists in identification of the most advanced practices in this area. A study of practical aspects of the Russian realities shows capital repair reformation over the past few years has not been able to provide a significant reduction in the number of residence buildings to be repaired. The lack of financing is a major barrier for capital repairs. Research findings: The author proposes to create a reserve fund and increase the contribution to capital repairs. The calculation results show that the additional financing will reduce the number of buildings which need in capital repair. Practical implications: The proposed approach can be used to increase the amount of capital repair of residence buildings and provide the opportunity of forming the quality residential environment which will meet the standards of social convenience.