Risks of project financing for housing construction

Abstract

The article discusses the risks of planning using project finance. The project financing model is assessed. Planning is considered in a broader sense than it is customary (traditionally, when studying the organization in construction). The authors conduct a research work of the unsolved problem of domestic housing construction in science and economic practice, determine the prospects for its development in Russia during the transition to project financing of housing construction. The experience of concluding equity participation agreements was set aside, and the adaptation of Western experience in project financing to Russian realities did not take place. The authors rely on the methodology of techno-structures, according to which authority and management have passed from the owners to the techno-structure of engineers and technicians. Analyzing the “pros” and “cons” of relations between developers and the legislator in the context of the concept of techno-structures and planning strategies, the authors come to the disappointing conclusion that inefficiency has become the main feature of the “growth” of housing construction in the capital and the largest regions. Recommendations are also provided to resolve the shortcomings of project financing.