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The Federal Law amends the Federal Law On Additional Measures of State Support for Families With Children in the part of the family (maternity capital) grant use options.

The implementation of the Federal Law will allow families entitled to such grant (in cases when family (maternity capital) grant is used to improve living conditions) to use it for construction (reconstruction) of housing without engaging contractors.

The following procedure is proposed for granting these funds: a sum less than 50 percent of the family (maternity capital) grant amount can be obtained at the initial construction (reconstruction) phase provided that the necessary approval documents are presented, while the rest can be received six months later upon presentation of documents confirming that construction or reconstruction works have been carried out, which resulted in an increase of the total living space of the single-family house being reconstructed by at least one housing occupancy standard [minimal living space area for registration purposes] set forth in accordance with housing legislation of the Russian Federation.

Residential premises acquired (built, reconstructed) with funds (part of funds) comprising family (maternity capital) grant are registered as joint property (co-ownership) of the parents and children, with co-ownership shares set forth in an agreement.

The Federal Law also introduces a shorter period of time between filing an application for family (maternity capital) grant (part thereof) and the actual transfer of these funds to citizens. This is particularly relevant for cases when these funds are used to improve living conditions (particularly, for meeting obligations under purchase and sale agreement, making the initial down payment on loan, etc.)

The Federal Law also extends, until the end of 2010, the period of time for families eligible for additional government support to receive a lump-sum payment of 12 thousand rubles (regardless of the child’s date of birth), which may be used for the family’s immediate needs.

The Federal Law also amends the Federal Law On Acts of Civil Status, in accordance with which, if a child dies within a week of birth, a birth certificate will be issued instead of the postnatal record from maternity hospital (for this purpose, the third paragraph of Article 20.2 of this Federal Law is declared null and void). Issue of such document will broaden the range of individuals entitled to family (maternal capital) grant (families where a child (children) has (have) died will have the right to receive it). This rule will apply to families with a child that died within a week of birth after November 15, 1997 (the date that the Federal Law On Acts of Civil Status went into effect).