Monetization of subsidies. The way it should be

Monetization of subsidies. The way it should be. In my opinion, the given analysis and suggestions are quite reasonable and logical.

I stand for a REAL monetization, not yet another imitation by the government:

Principles and approaches to the 2nd stage of monetization of housing subsidies and benefits

Basic principles:

  1. Assistance is provided by the state at the expense of the budget. Neither condominiums, nor managers, norprovidersof utility services should factor the intended (but not yet paid) housing subsidy as the reduction of the obligations of its receiver, respectively, to condominiums, managers, executors.
  2. The functions of the state are performed by its bodies, not by condominiums. Neither condominiums, nor managers, nor services providers, nor banks should carry out the administrative functions of the state and keep records of “overpayment” or “savings” of housing subsidies. Moreover, they should not be responsible for “returning” “savings” to the budget. For them, all funds received either directly from the consumer or paid for the consumers by the state are the funds of the consumers. The essence of monetization lies in the fact that the recipient of the subsidy (the co-owner and consumer of public services) is responsible for the use of the funds received from the state, and the consumer also receives benefits in case of making some “savings”. In this regard, it should be remembered that even recalculation of payments for not provided/poorly provided services by the utility provider is a statutory compensation for its consumer – and it is fair to leave such “savings” at the disposal of the subsidy recipient.

Similarly, neither condominiums, nor managers, nor housing and communal services should provide the social security authorities with information, the legal owner/holder of which they are not (for example, about the people registered in the premises).

  1. When a housing subsidy is appointed, social standards are applied. Social security authorities should not be performing the functions of a “controller” in relation to condominiums, managers, housing and communal services and check the “actual cost”, “actual volume” or “actual list” of expenses incurred or services consumed. The amount of the subsidy is calculated on the basis of social standards, and, once it is defined,itis not subject to further review/adjustment (except for changes in utility tariffs) right up to the end of the term for which the subsidy is assigned.

Model Vision:

  1. A citizen applies for the appointment of a housing subsidy to a local social security agency. The information necessary for the assigning of the subsidy is obtained from the citizen himself/herself, from state registries, and only when necessary from condominiums (only about the amount of contributions/payments and the absence of debts; the information about those registered and the area of the premises is in state registers).
  2. Thelocal social security agenciesassign a subsidy on the basis of the data obtained, the social norm of housing and social standards. And they do not inform anyone about this information – either condominiums, or managers, or service providers, because the latter do not need this information.
  3. The housing subsidy money is transferred to the recipient ‘s bank account with a special mode of use [in Oshchadbank].
  4. Condominiums, managers, utility service providers issue 100% invoices/bills to the subsidy recipients without taking into account the amounts of the assigned subsidy (of which they do not know).
  5. The recipient of the housing subsidy pays contributions to the condominium, pays for housing and utility services from the account in Oshchadbank, partly from his/her own funds, partly at the expense of the subsidy.
  6. At the end of the term for which the subsidy was assigned, a consumer can receive in cash the funds from the special account [in Oshchadbank] or transfer this money to his/her “ordinary” current account.
Viktoriya Vojtsitska
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