State legislature proposes compulsory reporting for managing corporations
Passage of New Law Boosts Transparency in Housing Sector
On Tuesday, the State Duma approved a law demanding managing organizations to disclose information about their activities to homeowners. The legislation aims to promote transparency within the housing and utilities sector, as reported by Interfax.
Key aspects of the law:- Managing companies, Technical Supervision Consortia (TSCs), and housing cooperatives are required to submit an annual report on their operations from the previous year, due in the first quarter.- These reports will be published in the national housing and utilities sector information system or regional databases.- The Ministry of Construction, Housing, and Utilities will establish a standardized report format, which will include data on financial and economic activities.- The new rules will take effect in 2026.
According to State Duma speaker Vyacheslav Volodin, over 1,100 complaints about utility company (UC) performance were filed in 2024. Volodin stated that the law will oblige companies to present their reports uniformly, justify expenditures, and make their spending more transparent, thus fostering order.
The legislation also streamlines the registration of property rights during renovation if new living spaces are constructed. This move is expected to empower homeowners to oversee managing organizations more effectively, reducing violations within the housing and utilities sector.
Additional Information:The State Duma has also established conditions for YouTube to resume full operation in Russia. These conditions are centered around YouTube's compliance with Russian legal and technical requirements[1][2], involving both legal obligations (i.e., data localization, content moderation, and cooperation with Russian authorities) and technical adaptations for surveillance and enforcement, though the detailed list of requirements has not been publicly disclosed beyond these general categories[2].
In the context of the new law aimed at boosting transparency in the housing sector, managing organizations, technical supervision consortia, and housing cooperatives will be required to submit annual financial reports, contributing to the transparency within the finance industry and the business sector as a whole. Further, the legislation aims to make the spending of utility companies more transparent, promoting order and reducing violations in the business of providing housing and utilities.
With the new law, homeowners will be empowered to oversee managing organizations more effectively, thanks to the increased transparency in the finance and business sectors of the housing and utilities industry. This is expected to improve the overall performance of utility companies and foster a more orderly business environment.
