Russian Ministry of Construction has prepared a bill that provides for the creation of public-law companies to protect the rights holders.

The document is posted on the federal portal of the draft regulations.

Protection Fund rights of citizens - participatory construction should be created by converting non-profit organization of the same name. Its functions include in particular the formation of a compensation fund of shared construction at the expense of mandatory contributions of developers.

Under the bill, the fund will monitor the receipt of contributions, real estate investors to make payment of compensation under the contracts of a joint construction in insolvency (bankruptcy), the developer and exercise the powers of the bankruptcy trustee in the bankruptcy of the developer.

The organization will also be able to provide loans or contributions to housing construction or other consumer cooperatives or developer to complete construction.

How to write Internet-portal "Kuban 24," Russian President Vladimir Putin in June 2016 ordered the state to create a compensation fund of shared construction. Deputy Minister of Construction of the Russian Federation Oleg Betin said in July that the state compensation fund share construction should start in January 2017. Russian Prime Minister Dmitry Medvedev in December instructed to establish a fund to help the participants of shared construction.