Maternity capital is a serious financial support for young families from the state. It is paid at the birth of a child, and the amount depends on the number of children in the family. The payment can only be received once. If you have already issued a certificate at the birth of your first child and used the funds, you will not be able to receive the money again after the birth of your second child.
In 2021, you can use maternity capital to build a house. The use of funds in this case corresponds to the objectives of the state maternity capital program, aimed at improving the living conditions of families with children. How to do this correctly, what documents to prepare and where to apply, says lawyer, mediator for family disputes Yuri Kapshtyk .
Is it possible to use maternity capital to build a house?
“Maternity capital can be used for construction if several conditions are met,” Yuri Kapshtyk clarifies. — Firstly, the plot on which the house is supposed to be built must be owned by the family. Secondly, construction must be carried out on the basis of a project and a permit issued by the local administration. If the family has prepared these documents, the future home is considered safe for living, and there are no barriers to the Pension Fund allocating money.”
In 2021, the conditions for allocating funds to build a house have softened. Previously, it was possible to build only on the lands of settlements and private housing construction. Starting this year, construction on garden and dacha plots is permitted, but only if the house is intended to be used for year-round family residence, and registration is possible in dacha real estate.
“The procedure is as follows,” continues Yuri Kapshtyk. — The family submits an application to the local administration to build a house, provides a design, and then a building permit is issued. When the house is built, it must be put into operation and registered, indicating the shared ownership of all family members.”
To carry out the work, the lawyer advises concluding a contract with a company that will build and purchase building materials. If there is such an agreement, the Pension Fund does not have any questions.
Maternity capital: where to spend it.
Maternity capital is paid from the federal and regional budgets. In the first case, the right to payment is acquired by families where a second child was born since 2007 or the first baby was born in 2021.
Money can be spent on improving living conditions if this is related to the following actions:
- Purchasing a finished house or apartment;
- Reconstruction or construction of real estate;
- Mortgage loan repayment;
- Participation in shared construction.
You can buy a plot of land with maternity capital , if it is paid from the regional budget.
Each subject of the Russian Federation has its own rules for providing subsidies. In most cases, it is provided to families if a third minor is born to them.
Starting from 2021, maternity capital can be spent on purchasing a summer cottage, but with the condition that there is a house suitable for living on it. In 2021, the concept of dacha farming was abolished.
From this moment on, only gardening and vegetable gardening non-profit partnerships remained. You can build houses on garden plots, which are subsequently registered as residential. In vegetable garden non-profit partnerships, only outbuildings are allowed.
Construction and reconstruction.
Maternity capital can be used not to purchase land, but to purchase, build a house or compensate for reconstruction costs.
In this case, the building must meet the following requirements:
- Be a separate building;
- Have communications for living;
- Consist of no more than three floors, with a total height of 20 m;
- Have signs of a permanent structure.
To use maternity capital, the garden house must be converted into residential. For this purpose, there is a “dacha amnesty” program that simplifies the procedure as much as possible.
The dacha amnesty has been extended until 2020-2021: the law on how to register a house in SNT and individual housing construction.
List of documents
There is no need to issue a certificate from this year. Employees of the Pension Fund do this without parents’ request, after they receive information from local registry offices when registering children. But to receive money you will have to go to the Pension Fund. You need to take with you:
- passport;
- certificate;
- building permit;
- agreement with the developer;
- certificate of land ownership.
Please note that all documents must be issued in the name of the applicant, that is, the mother who is requesting maternity capital money. The documents should be accompanied by a notarized undertaking that after completion of construction the children will also become the owners of the new house. The documents will be reviewed within 10 days, and the money due to the family will be transferred to the account of the contractor. But not the entire amount at once.
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During the first transfer, only half of the money will come. The second part can be requested only after six months, and only if the funds were used for their intended purpose. Construction must be confirmed: major work, including pouring the foundation, erecting walls and installing the roof, must be completed. This is confirmed by an act from the local administration. By submitting this document to the Pension Fund, you can receive the second part of the maternity capital funds.
Pitfalls when using a certificate
You need to be prepared for some difficulties when repaying:
- if a standard 13 percent tax refund was issued for the purchase of real estate, and then maternal capital was used, then you will have to return part of the funds. The fact is that the refund only applies to personal savings spent on the purchase of housing;
- Problems may arise when selling real estate due to distributed shares among children. To sell an apartment or house, you will need to convince officials that the children will receive equal shares in other real estate;
- Due to children's shares in real estate and other difficulties in registration, another problem may arise. Most banks will not undertake to refinance such a mortgage.
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Maternity capital for building a house on your own
The pension fund allows the use of funds without the involvement of a developer. In this case, you will also need a project and permission from the local administration for the construction or reconstruction of a house, as well as a document on land ownership.
In this case, the money will be transferred to the mother’s bank account, which she will indicate in the application. The procedure for receiving money is the same: first half of the funds, and only six months later - the second part, provided that the main work has already been carried out. But in this case there are certain risks, says Yuri Kapshtyk.
“You can purchase building materials yourself, but this is not recommended,” the lawyer clarifies, “since it will be difficult to report where the materials were used.”
If there is no contract with a construction organization, meticulously collect all receipts. In case of verification and questions arise to you, they will have to be presented to confirm the intended use of the money.
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Reasons for refusal and what to do if refused?
It happens that the bank has approved the application and is waiting for the funds to be transferred, but the Pension Fund refuses to transfer the money. What could be the reason?
- It turned out that the parent who submitted the application does not have the right to dispose of the certificate. For example, he lost his parental rights;
- the package of documents turned out to be incomplete or some errors were discovered in the preparation of papers. Please note that some certificates are only valid for a few months.
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These are the most common reasons. Sometimes it may turn out that the refusal comes not from the Pension Fund, but from the bank. Most often, because the property being purchased has not passed all the necessary requirements. For example, it was dilapidated or included in the list of emergency premises.
What to do if you decide to buy a dacha using maternal capital?
Requesting financial assistance for the purchase of a cottage or country house is one thing. However, there are times when purchasing a summer house is more important for a family. And here everything is not so simple.
In principle, it is possible to buy a dacha with maternal capital, but it is important to carefully take into account “all the vagaries” of the Pension Fund. To do this, it is necessary that the status of the building be registered as a residential building (with registration, relevant documents and address).
What do you need to do to obtain a certificate?
If there are 2 or more children in a family, then no matter how old they are, it is not necessary to apply for benefits immediately (after the youngest reaches 3 years of age), since there are no restrictions on the period of application by law.
To apply for maternity capital, you must have original documents or copies, previously certified by a notary, with you. In order to get in line to receive benefits, you must complete the following papers:
- Fill out the application;
- Prepare your passport;
- Take your insurance certificate or pension insurance document;
- Provide birth certificates for all children;
- If there are adopted children in the family, then a corresponding court decision is needed.
After collecting a package of all documents, they are submitted to the territorial department of the department at the place of residence. It takes about 1 month to review the documents, after which the authorities communicate their decision in writing.
If you refuse, don't be upset. There is always a chance of appeal. In this case, it is best to consult with a lawyer, analyze the probable causes and decide how to proceed. Most often, there are options to correct the situation and you can safely re-apply.
How will maternity capital help a real estate buyer?
As already noted, this type of benefit allows buyers to repay the debt on a loan taken out for the purchase of real estate, pay a down payment or add this money to the principal amount when concluding a transaction with the seller.
It is worth noting that matkapital is a very profitable tool for those families who cannot achieve a positive decision on issuing a mortgage from the bank. Moreover, the presence of such a “credit of trust” from the state can tilt the bank’s decision in your favor. Although, it is worth noting that in conditions of the economic crisis, not all banks accept certificates for maternal capital. Before applying for a mortgage, it is better to clarify this point in advance.
What innovations are relevant for 2021?
The state has extended the maternity capital program until 2022. There are also new options.
So, in individual cases, funds can be issued monthly. In addition, there will be a preferential program that provides for the provision of cash assistance after the birth of the first child.
In addition to purchasing property, maternity capital can be spent on providing education at school, child care and improving living conditions.
Under what conditions is maternity capital issued?
This state program has been successfully operating since 2007 and during this time hundreds of thousands of families have taken advantage of it, and the amount of benefits has increased from 250 to 450 thousand rubles.
This benefit can only be used once, and the second child must be at least 3 years old (at the time of application). Although, this condition is not strict, and in some regions of the Russian Federation such cases are considered on an individual basis.
Today the size of maternity capital is 450 thousand rubles. This amount can be spent on purchasing real estate, including a house with a plot.
Monitoring compliance with the program is carried out by the Pension Fund of the Russian Federation (link: pfrf.ru). You can contact them if any questions and problems arise related to the registration, making decisions and making payments of maternity capital.
