The Russian government has developed a program to provide citizens serving under contract with their own housing on preferential terms. It allows a soldier to take out a loan to purchase real estate using public funds. In this article we will understand what the savings-mortgage system for the military is, who can take part in the program and under what conditions they can get housing.
NIS for military personnel, definition of the concept
The savings and mortgage system (SMS) for housing provision for military personnel was founded in 2005. It allows young citizens serving in the RF Armed Forces to buy housing. The NIS participant has the right to choose living space at his own discretion: parameters and location of the property.
To ensure the functioning of the NIS, the “Federal Administration of the Savings and Mortgage System of Housing for Military Personnel” (FGKU “Rosvoenipoteka”) was developed. The main tasks performed by Rosvoenipoteka:
- registration and issuance of documentation;
- informing the population on the official website;
- maintaining a register of participants;
- accounting of money in individual accounts.
Legislative regulation
All issues related to the military housing program are regulated by the provisions of several legislative documents:
- Federal Law No. 117 - Federal Law of August 20, 2004.
- Civil Code of Russia.
- Housing complex of the Russian Federation.
- Decree of the Government of the Russian Federation No. 370 of April 15, 2008.
- Order of the Ministry of Defense of the Russian Federation No. 166 dated February 28, 2013.
- Order of the Russian Ministry of Defense No. 465 dated 04/08/2011.
- Order of the Ministry of Defense of the Russian Federation No. 225 dated 06/08/2005.
The main legislative document regulating the functioning of NIS is No. 117 - Federal Law. It specifies the rights and obligations of the parties, the procedure for spending funds and other nuances of this program.
Participation in the NIS is provided only for contract military personnel
Only military personnel performing military service under a contract can become participants in the NIS.
Military service, and therefore military mortgage, is provided for in the following government bodies:
⭐ Ministry of Defense of the Russian Federation (Ministry of Defense of Russia, code 10) ⭐ Federal Agency for Special Construction (Spetsstroy of Russia, code 14) ⭐ Federal Service of the National Guard Troops of the Russian Federation (Rosgvardia, code 20) ⭐ Ministry of the Russian Federation for Civil Defense, Emergency Situations and disaster response (EMERCOM of Russia, code 30) ⭐ Federal Security Service of the Russian Federation (FSB of Russia, code 40) ⭐ Federal Security Service of the Russian Federation (FSO of Russia, code 50) ⭐ Foreign Intelligence Service of the Russian Federation (SVR of Russia, code 60) ⭐ Main Directorate of Special Programs of the President of the Russian Federation (GUSP, code 80) ⭐ General Prosecutor's Office of the Russian Federation (Prosecutor General's Office, code 81) ⭐ Investigative Committee of the Russian Federation (IC of Russia, code 82)
How NIS works
The essence of the savings mortgage program for military personnel is as follows:
- The federal budget allocates funds and sends them to the serviceman’s personal account.
- 3 years after registration in the program, a military man can use the savings and use them to pay the first installment on a housing loan.
- Subsequent payments to the bank are made from the budget of the Russian Ministry of Defense.
Savings are generated by monthly transfer of subsidies to the participant’s personal account. The amount of such charges is established by the Government of the Russian Federation and is subject to annual indexation. The annual savings contribution for a military mortgage in 2021 is about 260,000 rubles. To calculate the amount of monthly transfers, you need to divide the annual contribution by 12.
Funds credited to the serviceman’s personal account can be used to purchase housing, both in the primary and secondary real estate markets.
Financing under the NIS may be terminated. This may happen in the following situations:
- after the dismissal of a military man from the RF Armed Forces;
- death of a program participant;
- declaring a serviceman missing in action in court;
In the event of the death of a serviceman, his family members can take away the deceased’s savings. They can also continue to repay their military mortgage using NIS funds.
Important: this program does not provide for the possibility of purchasing a plot of land for subsequent housing construction.
What it is
NIS is a set of activities carried out by several government agencies. These include:
- Ministry of Defense.
- Federal Directorate "Rosvoenipoteka";
- "Agency for Housing Mortgage Lending" (AHML).
The essence of the program is as follows:
- Funds are allocated and transferred from the state treasury to the personal accounts of military personnel.
- Only military personnel who fall within the established parameters can obtain the right to savings.
- Money has a specific purpose, therefore, it can be spent:
- to buy an apartment or house;
- to pay off the mortgage.
For information: funds from the account are not transferred to your hands. They are transferred directly to the individual or legal entity selling the property.
Who can join the system
The program is aimed at military personnel. Civilians cannot participate. And the military also cuddles according to certain rules. The following persons will be able to join the NIS program:
- received officer ranks upon graduation from educational institutions from 01/01/05;
- those who have entered into a contract for military service;
- midshipmen and warrant officers who began service on 01/01/05, after a three-year term;
- Soldiers, sergeants, and sergeants are entitled to participate in a re-contract signed after 01/01/05.
College graduates automatically join the savings system upon receiving their first rank. The lists are prepared by the Ministry of Defense. The remaining soldiers and officers must declare their desire to take part in the program. This is done by submitting a report to senior management.
Attention: relatives of deceased military personnel are provided with preferences related to the provision of money credited to the personal account of the deceased.
Who is excluded from participation?
Receipts to a personal account are terminated for the following reasons:
- death of a serviceman;
- the court declared him missing;
- dismissal from military service;
- allocation of an apartment (house) at the expense of the state budget.
Hint: personnel changes and career moves do not affect participation in the NIS.
Special conditions
The law allows you to use accumulated money in any locality in the country. This leads to the need to provide the military man and his family with housing at the place of service.
These factors are also taken into account in the terms of the program. They stipulate that participation in the system:
- does not affect the right to receive official housing;
- is not related to the ownership of real estate by a military man or his relatives.
For information: state budget funds are also used to create a stock of official housing by relocating from special-purpose camps people who have lost contact with the Ministry of Defense.
How the military is included in the NIS
The rules for registration of participants were approved by government decree No. 89 of February 21, 2005. In particular, the text of the document contains a limiting clause:
- Only a citizen of the Russian Federation can become a participant in the savings program;
- the applicant must have a contract with the Ministry of Defense.
Registration is carried out by entering the participant’s data into the register. In 2021, graduates do not need to submit a report. All information will be included in the list automatically, upon submission of the educational institution (after signing the contract).
Attention: there is a different set of measures to provide housing for military retirees. They are not included in the NIS.
Voluntary applicants are required to write a report to the head of the department. The document is registered in the office and sent to Rosvoenipoteka. After checking the information, the applicant receives a notification that his data has been included in the register and funds are credited to his personal account.
Hint: the first day of participation in the system is the date of submission of the report. Download for viewing and printing:
Decree of the Government of the Russian Federation of February 21, 2005 No. 89 “On approval of the Rules for the formation and maintenance of the register of participants in the savings and mortgage system...”
How to become a member of NIS
The circle of people who can take part in the program is indicated in No. 117 - Federal Law. According to this regulatory act, graduates of military educational institutions are included in the program automatically after being awarded the first officer rank. Lists of such students are prepared at universities. Other military personnel will need to submit a corresponding report addressed to their immediate commander.
After this, the serviceman is entered into the appropriate register and given a certificate of NIS participant. After which Rosvoenipoteka assigns the participant a unique identification number and opens a personal savings account to which government funds are transferred once a month.
When and how to use
You can use the funded part of the NIS funds 3 years after the serviceman is included in the program. You can spend your savings:
- For the down payment on a military mortgage;
- To pay monthly payments on a home loan;
- For repairs and finishing of an apartment purchased on the primary market.
The maximum amount of savings under NIS is limited. In 2021, no more than 2.4 million rubles can be used to pay for a military mortgage at the expense of the state. If a citizen lacks these funds, he can make up for the shortage with personal savings.
A military person gains the opportunity to use savings for other needs after 20 years of service. Also, this right arises upon dismissal if the total duration of service is at least 10 years, on the following grounds:
- for health;
- upon reaching the maximum age for military service;
- dismissal due to general education;
- for family reasons.
Information: if a NIS participant buys an apartment not at the place of service, then he retains the right to receive official living space.
Mandatory participants in military mortgages
| Category (paragraph of Law No. 117 is indicated in brackets) | (1)) Persons who graduated from military professional educational organizations or military educational organizations of higher education and, in connection with this, received the first military rank of officer starting from January 1, 2005 | |
| Grounds for inclusion in the register | receiving the first military rank of officer | |
| Date of occurrence of the basis for inclusion in the register | date of assignment of the first military rank of officer | |
| Category | (2)) Officers called up for military service from the reserves or who voluntarily entered military service from the reserves and who entered into the first contract for military service starting from January 1, 2005 | |
| Grounds for inclusion in the register | conclusion of the first contract for military service | |
| Date of occurrence of the basis for inclusion in the register | effective date of the first military service contract | |
| Category | (3)) Warrant officers and midshipmen whose total duration of military service under the contract will be three years starting from January 1, 2005 | |
| Grounds for inclusion in the register | the total duration of their military service under contract is three years | |
| Date of occurrence of the basis for inclusion in the register | date of reaching 3 years of total duration of their military service under contract | |
| Category | (6)) Persons who received the first military rank of officer in connection with entering military service under a contract for a military position for which the state provides for the military rank of officer, starting from January 1, 2005 | |
| Grounds for inclusion in the register | receiving the first military rank of officer | |
| Date of occurrence of the basis for inclusion in the register | date of assignment of the first military rank of officer | |
| Category | (7)) Military personnel who received the first military rank of officer in connection with appointment to a military position for which the state provides for the military rank of officer, starting from January 1, 2005, whose total duration of military service under the contract is less than three years | |
| Grounds for inclusion in the register | receiving the first military rank of officer | |
| Date of occurrence of the basis for inclusion in the register | date of assignment of the first military rank of officer | |
| Category | (8)) Military personnel who have completed training courses for junior officers and, in connection with this, received the first military rank of officer starting from January 1, 2005, whose total duration of military service under the contract is less than three years | |
| Grounds for inclusion in the register | receiving the first military rank of officer | |
| Date of occurrence of the basis for inclusion in the register | date of assignment of the first military rank of officer | |
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Pros and cons of NIS
The preferential housing program for military personnel is gaining increasing popularity. The savings-mortgage system has its positive and negative aspects:
| Advantages | Flaws |
| Opportunity to purchase living space without waiting for years of service | Limitation of the maximum amount of subsidies – 2.4 million rubles |
| Opportunity to participate in the program even if you have your own home | Duration of the procedure for using savings |
| Mandatory contributions are the same for everyone, regardless of position, rank and other parameters | Exclusion from the program and the need to return savings upon dismissal |
| Freedom to choose an apartment (location, layout, floor) | The need to contribute personal funds to pay for the assessment and purchase insurance |
| Possibility of early repayment using personal funds | |
| Preferential lending program (reduced interest rate, loyal attitude of banks) |
