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Problems of Government Regulation of the Business Activity of Housing Management Companies

Abstract

The presented article examines the mechanisms of public and municipal administration, interaction between public and municipal authorities, management companies engaged in business activities with social implications, and owners of residential and non-residential property in apartment buildings (mostly newly built).

Aim. The study aims to improve upon the existing mechanisms of interaction between public and municipal authorities, management companies, and owners of facilities in apartment buildings.

Tasks. 1) to determine the legal mechanisms, grounds, specific aspects, and nature of the business activity of management companies in the maintenance of apartment buildings; 2) to examine the basis for interaction between public and municipal authorities, management companies, and owners of facilities in apartment buildings; 3) to identify the major problems of government regulation of the housing sector in the field of interaction with management companies in the maintenance of apartment buildings; 4) to propose solutions to the identified problems in the maintenance of apartment buildings.

Methods. The methodological basis for the consideration of the problems in this article includes general scientific methods, systems, structural, functional, and institutional analysis.

Results. The study thoroughly examines the fundamentals of the government housing policy, public and municipal administration, and business activity of companies engaged in the maintenance of apartment buildings, their impact on the socio-economic well-being of the owners of facilities in apartment buildings, identifies problems associated with the considered questions, and formulates proposals on how to improve government regulation of the business activity of housing management companies.

Conclusions. Articles 25 and 40 of the Constitution of the Russian Federation determines that everyone shall have the right to a home. No one may be arbitrarily deprived of his or her home. The bodies of state authority and local self-government shall encourage housing construction and create conditions for exercising the right to a home. The current implementation of the housing policy is far from perfect. There are challenges both for management companies engaged in the business activities associated with the maintenance of apartment buildings and for the owners of facilities in these apartment buildings. The identified problems and proposed mechanisms of government regulation of the business activity of housing management companies serve to improve the existing housing policy.

About the Authors

Roman A. Lugovskoy
St. Petersburg University of Management Technologies and Economics
Russian Federation

Lermontovskiy Ave 44/A, St. Petersburg, 190103



Egor V. Mikhaylov
St. Petersburg University of Management Technologies and Economics
Russian Federation

Lermontovskiy Ave 44/A, St. Petersburg, 190103



References

1. Bogdanova T. Communal affairs: How often do they steal in the housing and utilities sector? Argumenty i fakty. 23 March, 2017. Available at: http://www.aif.ru/money/corruption/kommunalnye_dela_kak_chashche_vsego_voruyut_v_sfere_zhkh. Accessed 04.04.2019. (in Russ.).

2. How do management companies cheat tenants? 2018. Available at: https://www.9111.ru/questions/777777777319273/. Accessed 04.04.2019. (in Russ.).

3. Babkin A. V., Lugovskoy R. A. Bor’ba s korruptsiey, kak osnova ekonomicheskoy bezopasnosti Rossii [The fight against corruption, as the basis of economic security of Russia]. In: Litvinenko A. N., ed. Mezhdistsiplinarnoe osmyslenie fenomena ekonomicheskoy bezopasnosti [Interdisciplinary understanding of the phenomenon of economic security]. St. Petersburg: SPb. Univ. of the Ministry of Internal Affairs of Russia, 2015, pp. 83–99.

4. Housing Code of the Russian Federation of December 29, 2004 No. 188-ФЗ (as amended on April 15, 2019). Available at: http://www.consultant.ru/document/cons_doc_LAW_51057/. Accessed 16.04.2019. (in Russ.).

5. On the procedure for the local government body to hold an open competition for the selection of a managing organization to manage an apartment building. Decree of the Government of the Russian Federation of February 6, 2006 No. 75. Available at: https://base.garant.ru/12144905/. Accessed 04.04.2019. (in Russ.).


Review

For citations:


Lugovskoy R.A., Mikhaylov E.V. Problems of Government Regulation of the Business Activity of Housing Management Companies. Economics and Management. 2019;(5):75-80. (In Russ.)

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ISSN 1998-1627 (Print)