Public utility portion

19 April 2018

Study Valuation

What portion of Russian wages is transferred as public utility payments to housing management offices for repair and maintenance of housing.

Analytical service of FinExpertiza

RESEARCH GOAL

Calculation of costs which residents transfer to housing management offices for maintenance and repair of housing in relation to their wages in Russian regions.

USED SOURCES

Data from the Federal Statistics Service (Rosstat).

Law on "direct" contracts

After the entry into force of the Federal Law No. 59-FZ of April 3, 2018 "On Amendments to the Housing Code of the Russian Federation" , apartment owners can transfer payments to public utility providers without help of housing management offices and homeowners associations.

Conclusion of "direct" contracts between apartment owners and public utility providers in terms of cold and hot water supply, water disposal, electricity supply, gas supply, heating as well as contracts for services related to solid waste can significantly reduce amounts of payment transferred by residents to housing management offices.

Tariffs established by owners

Tariffs of public utility providers are established at the federal and regional levels. Tariffs for housing-related services under Article 156 of the Housing Code of the Russian Federation are defined by apartment owners.

In practice, housing management offices calculate tariffs for maintenance and repair of housing on the basis of the cost of materials, fuel, labor of workers, overheads and other costs, given expected inflation. Management office's profit is added to the cost of certain work and services. Apartment owners just vote for such tariffs proposed by representatives of management offices.

Table 1 shows the ranking list of Russian regions according to value of maintenance and repair per square meter of housing.

Table 1. Tariffs for repair and maintenance of housing in the regions of Russia

No	Russian region	Value of maintenance and repair of housing. RUB / sq. m.
1	Kamchatka Area	44.83
2	Chukotka Autonomous Area	43.35
3	Yamal-Nenets Autonomous Area	35.67
4	Khabarovsk region	34.88
5	Republic of Sakha (Yakutia)	34.69
6	Moscow region	34.23
7	Tyumen region	29.64
8	Nizhny Novgorod region	28.82
9	Murmansk region	27.32
10	Moscow	27.25
11	Saint Petersburg	26.63
12	Sakhalin region	26.01
13	Tyumen region (without autonomous area)	25.85
14	Krasnoyarsk region	25.53
15	Saint Petersburg region	25.3
16	Arhangelsk region	25.06
17	Republic of Karelia	24.87
18	Magadan region	24.61
19	Komi Republic	23.06
20	Sverdlovsk region	22.44
21	Russian Federation	22.15
22	Primorsky Krai	21.93
23	Novosibirsk region	21.33
24	Novgorod region	21.2
25	Republic of Khakassia	21.05
26	Republic of Mordovia	20.9
27	Republic of Tatarstan	20.82
28	Ivanovo region	20.78
29	Samara region	20.78
30	Perm region	20.76
31	Transbaikal region	20.7
32	Yaroslavl region	20.67
33	Amur region	20.59
34	Kostroma region	20.59
35	Jewish Autonomous Area	20.41
36	Krasnodar region	20.34
37	Republic of Bashkortostan	20.21
38	Ulyanovsk region	20.18
39	Orenburg region	20.15
40	Omsk Region	20.14
41	Volgograd region	19.93
42	Chelyabinsk region	19.61
43	Kirov region	19.6
44	Altai Republic	19.49
45	Udmurt Republic	19.4
46	Stavropol region	19.38
47	Tomsk region	19.28
48	Voronezh region	19.05
49	Vladimir region	18.69
50	Irkutsk region	18.46
51	Kemerovo region	18.4
52	Republic of Adygea	18.25
53	Tula region	17.95
54	Vologda region	17.93
55	Saratov region	17.91
56	Rostov region	17.86
57	Bryansk region	17.2
58	Republic of Buryatia	17.05
59	Belgorod region	16.51
60	Tver region	16.51
61	Smolensk region	16.41
62	Penza region	16.4
63	Chuvash Republic	16.09
64	Mari El Republic	15.91
65	Astrakhan region	15.64
66	Kaluga region	15.46
67	Kaliningrad region	15.37
68	Tyva Republic	15.29
69	Republic of Crimea	15.06
70	Tambov region	14.98
71	Kurgan region	14.68
72	Lipetsk region	14.68
73	Sevastopol	14.52
74	Oryol region	14.23
75	Ryazan region	13.99
76	Chechen Republic	13.96
77	Altai region	13.9
78	Republic of North Ossetia-Alania	13.63
79	Kursk region	13.62
80	Pskov region	13.47
81	Republic of Dagestan	13.21
82	Karachay-Cherkess Republic	12.76
83	Kabardino-Balkaria Republic	11.71
84	Republic of Kalmykia	9.31
85	Republic of Ingushetia	3.3

The list of 10 regions with a minimum value of services for maintenance and repair of housing includes the leading position taken by the Republic of Ingushetia with value of 3.3 rubles per square meter, and the lower position taken by Chechen Republic with tariff of 13.96 rubles per square meter. The list of 10 regions with highest tariffs in terms of these services is headed by Kamchatka area with value of 44.83 rubles per square meter, is closed by Moscow, the capital of our country, with value of 27.25 rubles per square meter.

It is worth noting that the average Russian tariff for maintenance and repair of housing as of February 2018 is 22.15 rubles per square meter.

Public utility portion

In order to calculate the portion of wages transferred by residents to management offices for repair and maintenance of housing, we have used the data of Rosstat on average wages in the regions of Russia in 2017.

The total payment for these services has been calculated on the basis of a tariff for maintenance and repair of housing per region and the average area of housing, defined as 50 м2.

Table 2. Portion of wages transferred for repair and maintenance of housing

No	Russian region	Portion of wages transferred for housing maintenance per region. %
1	Nizhny Novgorod region	4.71
2	Ivanovo region	4.48
3	Kostroma region	4.24
4	Republic of Mordovia	4.20
5	Khabarovsk region	4.08
6	Kirov region	3.92
7	Ulyanovsk region	3.85
8	Altai Republic	3.78
9	Republic of Adygea	3.77
10	Moscow region	3.67
11	Orenburg region	3.67
12	Novgorod region	3.63
13	Saratov region	3.62
14	Stavropol region	3.60
15	Volgograd region	3.57
16	Republic of Karelia	3.56
17	Bryansk region	3.52
18	Samara region	3.43
19	Yaroslavl region	3.39
20	Kamchatka Area	3.37
21	Voronezh region	3.36
22	Vladimir region	3.36
23	Republic of Bashkortostan	3.35
24	Omsk Region	3.34
25	Krasnodar region	3.33
26	Udmurt Republic	3.33
27	Chuvash Republic	3.28
28	Saint Petersburg region	3.26
29	Sverdlovsk region	3.25
30	Novosibirsk region	3.23
31	Republic of Tatarstan	3.21
32	Perm region	3.20
33	Rostov region	3.17
34	Tyumen region without autonomous area	3.15
35	Krasnoyarsk region	3.13
36	Smolensk region	3.11
37	Tambov region	3.10
38	Mari El Republic	3.10
39	Penza region	3.09
40	Republic of Khakassia	3.07
41	Altai region	3.06
42	Chelyabinsk region	3.04
43	Republic of Dagestan	3.03
44	Chechen Republic	3.02
45	Tver region	3.01
46	Transbaikal region	2.97
47	Jewish Autonomous Area	2.96
48	Arhangelsk region	2.90
49	Kurgan region	2.90
50	Pskov region	2.89
51	Primorsky Krai	2.89
52	Oryol region	2.89
53	Tula region	2.87
54	Republic of Crimea	2.86
55	Belgorod region	2.84
56	Vologda region	2.84
57	Republic of North Ossetia-Alania	2.83
58	Russian Federation	2.83
59	Kemerovo region	2.81
60	Republic of Sakha (Yakutia)	2.80
61	Karachay-Cherkess Republic	2.77
62	Amur region	2.76
63	Astrakhan region	2.67
64	Republic of Buryatia	2.66
65	Murmansk region	2.65
66	Sevastopol	2.65
67	Kabardino-Balkaria Republic	2.64
68	Lipetsk region	2.58
69	Komi Republic	2.54
70	Tomsk region	2.51
71	Kursk region	2.50
72	Tyva Republic	2.49
73	Kaliningrad region	2.46
74	Irkutsk region	2.46
75	Saint Petersburg	2.45
76	Ryazan region	2.40
77	Chukotka Autonomous Area	2.34
78	Tyumen region	2.32
79	Kaluga region	2.28
80	Republic of Kalmykia	2.01
81	Yamalo-Nenets Autonomous Area	1.98
82	Sakhalin Oblast	1.88
83	Moscow	1.86
84	Magadan region	1.64
85	Republic of Ingushetia	0.75

The list of 10 regions with a minimum portion of wages in terms of maintenance and repair of housing is headed by the Republic of Ingushetia with a share of 0.75% in wages and is closed by Ryazan region with a share of 2.4% in wages.

The list of 10 regions with a highest portion of wages is headed by Nizhny Novgorod region with a share of 4.71%, and is closed by Moscow region. Residents of Moscow region give 3.67% of their wages on average for maintenance and repair of housing.

The average Russian transfers 2.83% of his wage to a management office for maintenance and repair of a two-room apartment with area of 50 sq. m.