OREANDA-NEWS. November 22, 2013. The Office of the Federal Antimonopoly Service in Moscow (Moscow OFAS Russia) continues verifying the procedure for selecting managing companies for residential facilities, which Moscow OFAS Russia started in summer 2013.

Under the current law, management of the apartment houses, over 50% of the premises of which are owned by a subject of the Russian Federation, takes place on the basis of tenders – a competitive method of selecting a managing company, used in accordance with the procedures established by the Moscow Government.

Tenders must take place, in particular, for the residential facilities, over 50% of which are owned by the Moscow Government. Prefectures of the administrative districts of Moscow and Moscow Department for Housing Policy and Housing Stock of are responsible for organizing the tenders.

Omissions by Moscow executive bodies, responsible for organizing the tenders, can restrict competition on the market of managing apartment houses in breach of Part 1 Article 16 of the Federal Law “On Protection of Competition”.

“Failure to organize tenders to select a managing company means that residential facilities are managed by the same organizations for many years, the costs of services over time increase, while the quality leaves a lot to be desired. As a result, residential facilities are in a deplorable state, which affects the level of life of its residents”, points out Alexander Dorovsky, Deputy Head of Moscow OFAS Russia.

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Moscow OFAS Russia has initiated and investigated more than 400 cases against all Moscow prefectures and the Department of Housing Policy and Housing Stock.

Under Article 94 of the Housing Code of the Russian Federation, a residential facility is an apartment house for temporary residence of individuals during the period of their work, service or education. Residential facilities fall under a restrictive legal regulation. In accordance with Part 3 Article 92 of the Housing Code these residential premises are not subject to alienation, letting, renting, except for a contract for lease of such premises.

Under the Register of housing property owned by the city of Moscow, at the beginning of 2013 Moscow owned 240 residential facilities.