Decentralized major renovation funds’ accumulation: Aspect of stakeholder interactions

Introduction. The purpose of this study is a systematic analysis of the stakeholder relations on the issue of the formation and management of decentralized capital repair funds. The high social significance of capital repairs of residential real estate, coupled with a high degree of wear and tear, determines the need for coordinated and effective stakeholder interaction, the involvement of public authorities in co-financing expenses and the development of effective mechanisms for the rational allocation of funds from decentralized capital repair funds formed in special accounts in banking organizations and protecting them from inflationary processes. Materials and methods. The authors explore institutional factors in the implementation of major renovations of apartment buildings, identify the key stakeholders of these processes, their interests and risks, and reveal the presence of an agency problem. Based on statistical data and regulations, the authors conduct economic modeling of the formation of a decentralized capital repair fund using the example of an existing homeowners' association, and calculate target indicators for the efficiency of capital repair fund management. Results. The conducted research revealed inconsistency of the current management approaches and the impossibility of forming major overhaul funds in sufficient size to replace elevator equipment after the shelf life expiry without external financing. The authors conduct a study of the agency problem that arises when managing funds placed in special accounts for major overhaul, and identify the presence of informal institutional factors that prevent the formation of a "mature real estate owner". Discussion. Based on the results of the study, the authors proposed regulatory measures that could positively affect the effectiveness of relations on the issue of formation and management of decentralized capital repair funds. In addition to regulatory measures, the authors consider it necessary to involve municipal deputies in awareness-raising activities aimed at creating a “mature property owner.” The scientific novelty of this study consists in the development of management and regulation methods for the formation of decentralized capital repair funds on the basis of the synthesis of stakeholder and institutional approaches.