The Legal Nature of Compensation Payments to Citizens Participating in Shared-Equity Construction

Abstract

Relevance. Meeting the needs of citizens for housing is a constitutional obligation of the State, and at the legislative level it is implemented in various forms, including through participation in shared-equity construction. In cases when a developer becomes bankrupt and cannot fulfill its obligations to shareholders, various measures are provided by law to guarantee the restoration of property rights. Such measures also include a compensation mechanism aimed at ensuring the payment of funds by the Public Law Company "Territorial Development Fund" to compensate citizens participating in construction who have claims for the transfer of residential premises, parking spaces and non-residential premises included in the register of claims of construction participants.However, the peculiarity of the legal status of the Fund as a public law company creates problems for the law enforcement officer to determine the legal nature of these compensation payments, which negatively affects the level of protection of citizens' rights. The purpose of the study is to identify the legal nature of compensation payments made by the PPK "Territory Development Fund", to determine the effectiveness of the legally established compensation mechanism.Objectives: to determine the legal status of the Fund, to identify the peculiarities of the procedural and legal status of the Fund in cases of insolvency (bankruptcy) of the developer, to analyze the legal facts that constitute the grounds for succession between the bankrupt developer and the Fund.Methodology. In preparing the study, the author applied general scientific methods, methods of analysis and synthesis, a systematic method, a formal legal method.Results. In the course of the study, it was determined that the compensation mechanism and obligations to pay money to shareholders are of a civil nature. When determining the effectiveness of the compensation mechanism, its low level is established, since the goal of ensuring the protection of the rights and legitimate interests of citizens participating in construction is not fully achieved.Conclusions. The current compensation mechanism does not ensure the restoration of the right to housing by participating in shared construction. The factors that have a negative impact can be called a significant change in socio-economic conditions and poorly effective legal means that generate collisions and gaps in legal regulation, which negatively affects the process of their implementation.