What Mikhail Menn told Vladimir Putin about the licensing of Housing and Utilities Management Companies

The minister Mikhail Menn recently reported to President Vladimir Putin, speaking about the licensing of administration companies in Russia. According to the minister, to improve the quality of work administration companies last year it was decided to introduce licensing for their activities. The creation of an appropriate regulatory framework was completed at the end of last year.
Under the new rules, if the administration companies receive two administrative penalties (even for dirty floors) for one house, it loses the right to control this house. If such houses recruited more than 15%, it loses its license and it falls onto a federal "black list” and for 3 years is deprived of the right to lead such a group.
At the same time the inhabitants of the house have a veto - if the management company promises to "fix" it, even after two recorded violations, those at the general meeting may decide to give it a second chance.
The decision to grant a license by the Commission is taken in each region. The commissions, in addition to officials, are composed of representatives of self-regulatory organizations involved in the management of apartment buildings, of public offices for the prevention of corruption, and of the Commissioner for the Protection of the Rights of Entrepreneurs.
To obtain a license, the licensee must submit a set of documents to the Commission and get approval by answering the requirements of federal legislation, which includes the head of the administration company passing a qualifying exam on housing legislation, and the organization must be registered in Russia.
Currently, the licensing process is in full swing until it ends in just over a month. The total in Russia, according to the information disclosure system "Housing Reform", is 16,000 management companies, but after a detailed analysis of the market situation, it turns out that there are actually only 11,800 management companies governing the houses of our citizens (the difference came about because some companies actually ceased operations).
According to our estimate for licenses, 2,000 operating companies will, under the tough new rules, not be profitable. To date, 6,565 companies have a set of documents for obtaining a license and 1,032 companies have acquired the right to housing management. Given the pace of processing documents for obtaining a license (about 700 sets every day), we are confident that this work will be completed in time.
We are monitoring the situation and updating the numbers daily. Problematic regions are dealt with in the weekly conference calls. Where the Criminal Code will not permit a license, and if there is no alternative (for example, in a small town), the municipal government will take responsibility for managing homes itself, said Mikhail Menn.