On the right of military spouses – NIS participants (1) to other forms of housing support as members of military families

We receive many questions about the fact that now all contract workers will be mandatory participants in NIS, including those who entered into a contract before 2020. They ask what should those who entered the service before do? Let's be clear so we don't rely on rumors.

Let's start with the reason - Federal Law No. 316-FZ of August 2, 2020, Article 9 of the Federal Law “On the savings and mortgage system of housing for military personnel” was supplemented with important innovations.

Let's look at the 42nd issue of the legal video blog dedicated to changes in NIS legislation:

First, clause 4.1 of 117-FZ introduced a new category of NIS participants - sergeants and foremen, soldiers and sailors who entered military service after December 31, 2020. That is, all of the above military personnel who enter military service in 2020 will become mandatory participants in the NIS without the right to choose the method of providing housing. However, I draw your attention to the fact that the order of the Minister of Defense of the Russian Federation dated April 24, 2020 No. 245 does not yet contain changes by category, that is, new NIS participants have not been introduced into it. The second change concerns those military personnel who entered into a contract before January 1, 2020. For them, there are separate innovations in paragraph 4 of the same article 9, which read: 4) for sergeants and foremen, soldiers and sailors who entered military service before January 1, 2020 - the basis for inclusion in the register is a written application for their inclusion in the register. Therefore, as you can see, those military personnel who were a voluntary category before the introduction of the law should not be afraid of inclusion in the NIS, since the legislator clearly distinguished between the two categories. And the third innovation that everyone has been waiting for a long time - Federal Law No. 316 brought clarity to those who were restored from reserve. Here we will make an important note - after such inclusion, a soldier from the voluntary category can always leave the NIS. The main thing is that the apartment is not purchased, that is, the right to housing provision is not realized.

We have already talked about this in blogs, see the links below:

Exit from the NIS of different categories of military personnel

Exit of officers from NIS

Discussion of military mortgages on our forum here >>>

What is the essence of Law 117-FZ on military mortgages

Federal Law 117 regulates the basic rules for accumulating funds and their use for the purchase of housing for military personnel.
According to the savings-mortgage system (NIS), government funds are transferred to the personal account of each participant. A serviceman can receive these funds after 20 years of service (in a number of non-standard cases - earlier, Article 10 of Federal Law 117 talks about this).

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However, the law allows a military man, after three years of participation in the NIS, to apply for a Targeted Housing Loan (CHL) at any time and buy a home without waiting for the end of his service. CZZ is issued in the amount of savings already credited to the serviceman’s account: the longer the military man was a member of the NIS, the more amount he will receive.

That is, while a military man does not have the right to use savings (20 years of service or other reasons), he receives funds on loan from the state. A military person must repay a targeted housing loan only in cases specified by law (Article 15 of Federal Law 117): for example, termination of service at his own request with less than 10 years of service.

If the Targeted Housing Loan is not enough to purchase a home, the military can take out a loan from the bank under the Military Mortgage program. The funds accumulated by this time in the personal account can be used as a down payment on a mortgage (Article 14 of the Federal Law 117), and the loan will be repaid through subsequent monthly transfers within the NIS. Thus, as long as the military man continues to serve and is listed as a participant in the NIS, the state pays for the mortgage.

If a military member participating in the NIS has the right to use funds in a savings account, but he does not take advantage of this, then he has the right, upon dismissal from service, to receive savings and spend them at his own discretion.

The meaning of the federal military mortgage law

According to the law on military mortgages, military personnel who became participants in the NIS were given the opportunity to use funds from a targeted housing loan (CHL) 3 years after being included in the register. During this time, an amount sufficient for a down payment on an apartment accumulated in the account (10-20% of the cost, depending on the bank’s program).

If a serviceman decides to enter into a loan agreement with a bank, then, according to the rules of Federal Law No. 117, he needs to write an application to the Federal State Institution “Rosvoenipoteka” for the provision of funds to the Central Life Loan. After this, he receives a certificate of the right to use the CZHZ money to purchase housing and can already choose an apartment.

Scheme of the Federal Law on Military Mortgage

The most important thing is that the law allows those military personnel who already own an apartment or house in their personal property to become participants in the NIS. Also, military personnel have the right to buy housing in a region other than the one in which they are serving. For example, a person serves in the North, but after the end of his contract he wants to move to the sea in the South. During his service, he can buy a house in the Krasnodar region, for example.

Funds for purchasing housing and paying off loans come from the state throughout the entire service life. These savings consist not only of annual contributions from the federal budget, but also of income from investing money in reliable businesses.

A serviceman has the opportunity to track the movement of funds in his account on the official website of the Federal State Institution “Rosvoenipoteka”.

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A brief overview of the articles of Law No. 117-FZ on the savings and mortgage system for military personnel

Question	Article of the law
What is: savings contribution, personal savings account (INS), targeted housing loan (TSHL), estimated total contribution	Article 3. Basic concepts used in this Federal Law
Who can become a member of NIS? Do I need to write a report to be included in the register of NIS participants?	Article 9. Participants in the savings-mortgage system
On what basis are NIS participants excluded from the register?	Clause 3 of Article 9.
When and on what basis does the right to use savings arise?	Article 10. Emergence of the right to use savings recorded in the participant’s personal savings account
When can you get a Targeted Housing Loan and what can you spend it on?	Article 14. The right of a participant in the savings-mortgage system to receive a targeted housing loan
In what cases must a military personnel repay the Targeted Housing Loan?	Article 15. Features of repayment of a targeted housing loan

Procedure for participation in NIS

After submitting a report on inclusion in the register of participants, a personal account is opened, where everyone can personally control monthly savings. After three years, you can submit a report on the use of funds, after which the serviceman receives a certificate that must be presented to the bank that works with military mortgages. It is valid for six months.

Having chosen an apartment through a real estate agency or privately, the serviceman writes an application to the bank.

The necessary documents must be provided to the mortgage department, after which the funds are transferred to the seller’s account. The apartment remains pledged to the bank until full redemption.

Federal Law on military mortgage with latest changes

Since 2004, several changes have been made to Federal Law No. 117. The law was supplemented by orders of the Minister of Defense and Resolutions of the Government of the Russian Federation. Briefly about the most important ones:

On May 15, 2008, Decree of the Government of the Russian Federation No. 370 was issued with a given action algorithm for NIS participants purchasing an apartment on the primary and secondary markets, a residential building, a townhouse or a plot of land for construction under the military mortgage program. Here, for each type of housing, there is a separate list of documents and the deadlines for consideration of applications in Rosvoenipoteka are regulated.
On April 28, 2013, Order of the Minister of Defense No. 166 was issued with standards for technical issues, registration of participation in the NIS and maintenance of the register. It is addressed to employees of departments of the Ministry of Defense involved in document flow of NIS participants.
On June 10, 2020, Order of the Minister of Defense No. 245 “On approval of the Procedure for implementing the savings and mortgage system of housing provision for military personnel in the Armed Forces of the Russian Federation” was issued. This law replaced Order No. 166.

The need to develop Order No. 245 arose due to the large number of changes that have been made to the NIS in recent years. The new Procedure provides an up-to-date list of documents for receiving funds to supplement savings. A number of certificates were removed from it.

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Also, Order No. 245 describes the procedure for removing the state encumbrance on housing when a serviceman reaches 20 years of service and 10 years for those who retired on preferential terms.

Important: Order of the Minister of Defense No. 245 “On approval of the Procedure for implementing the savings-mortgage housing system for military personnel in the Armed Forces of the Russian Federation” cancels Order No. 166.

Changes in the savings and mortgage system for military personnel

The procedure for the sale of military mortgages in the Ministry of Defense is regulated by a new Order.

On June 10, 2020, Order of the Ministry of Defense of the Russian Federation No. 245 dated April 24, 2017 came into force. This Order completely replaces the previously existing Procedure approved by Order No. 166 dated February 28, 2013. The new Procedure for military mortgages in the Ministry of Defense was introduced due to the presence of a large number of changes made in recent years in the savings-mortgage system.

In particular, the new Procedure specifies an updated list of documents submitted by an NIS participant to receive funds that supplement savings (note - additional funds, additional funds)

. The following documents are excluded from the mandatory documents for receiving additional supplements in accordance with Resolution No. 686: extracts from the Unified State Register, extracts from the house register, financial personal accounts. It is worth noting that earlier, before Order No. 245 came into force, military personnel were unlawfully required to provide these documents, despite the fact that the Resolution regulating the payment of additional funds was changed at the end of 2020.

Also, the new Procedure for the implementation of military mortgages in the RF Ministry of Defense includes a procedure for removing the encumbrance in favor of the Russian Federation from housing purchased with a military mortgage when a serviceman reaches 20 years of military service, incl. in preferential terms. It is worth noting that a NIS participant can remove the encumbrance in favor of the Russian Federation while continuing military service only if the military mortgage is fully repaid, i.e. the NIS participant has fulfilled all obligations under the loan agreement.

In addition, Order No. 245 contains a number of additional clarifications, definitions and annexes regarding the Procedure for implementing the NIS in the Ministry of Defense.

We draw the attention of NIS participants - military personnel of the Ministry of Defense of the Russian Federation, that from June 10, 2017, Order No. 166 of February 28, 2013 lost its force, and all actions related to the savings and mortgage system must be carried out on the basis of Order No. 245 of April 24, 2017.
It is no secret that military personnel often have to deal with the incompetence of those involved in the process of implementing the NIS. Often, not all “authorities” are up-to-date on the current regulatory framework for the savings-mortgage system, and NIS participants are subject to requirements for outdated documents. We strongly recommend that you monitor all changes in NIS yourself and protect your rights. The requirement by interested authorities of any documents on the basis of Order No. 166 after June 10, 2020 will be a violation of the law and the rights of military personnel participating in the NIS.

We also want to inform our readers that on September 8, 2020, by Decree of the Government of the Russian Federation No. 1085, a number of changes were made to some acts of the Government of the Russian Federation on the issues of the savings and mortgage housing system for military personnel.

You can familiarize yourself with these changes by clicking on the link

Download Decree of the Government of the Russian Federation of September 8, 2020 No. 1085 “On amendments to certain acts of the Government of the Russian Federation on the issues of the savings and mortgage system of housing provision for military personnel”

“Military mortgage”: all legislation in 2020

Main document: Federal Law of August 20, 2004 N 117-FZ (as amended on July 29, 2017) “On the savings and mortgage system of housing for military personnel.”

This law regulates the basic provisions for military mortgages not only for contract military personnel, but also for the Ministry of Emergency Situations, the Russian National Guard and other military personnel assigned to non-military positions in organizations operating in the interests of the country's defense and state security.

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Federal Law 117-FZ is supplemented by Government Decrees and orders of the Ministry of Defense:

Government Decree No. 370 dated May 15, 2008. The document approved the rules for the provision and repayment of targeted housing loans, as well as the rules for obtaining a mortgage. The algorithm of actions, deadlines and lists of documents when purchasing housing for military personnel using a military mortgage are prescribed.
Order of the Minister of Defense of the Russian Federation dated April 24, 2017 No. 245. Establishes the procedure for forming and maintaining the register of NIS participants, and approved document forms.
Decree of the Government of the Russian Federation of November 17, 2005 N 686. On additional payments.
Order of the Minister of Defense of the Russian Federation dated December 23, 2015 N 820. The document approved 6 standard forms of Targeted Housing Loan agreements depending on the direction of use of funds (for the purchase of finished or under construction housing, for paying the first installment on a mortgage, etc.).

Instructions and procedures were also approved by orders of the Russian Guard (dated March 14, 2017 N 79), the Prosecutor General's Office (dated February 28, 2017 N 128), the FSO (dated November 23, 2005 N 450) and the FSB (dated March 13, 2020 N 136).

On the right of military spouses - NIS participants (1) to other forms of housing provision as members of military families