Institutional reformation is of great importance for efficient functioning of housing and utility complex (HUC) infrastructure. The article systemizes market conditions and criteria of functioning of housing and utility service (HUS) market infrastructure taking into account identifying form of competition to compatible housing and utility services. A system model of forming market institutes in the HUC field is proposed. Criteria for assessing development level of the sector infrastructure are suggested. Special emphasis is made on improving state and private cooperation in the HUC area.

Further development of housing and utility infrastructure (HUI) should be based on using economic levers and incentives taking into a maximum possible account the interests of consumers and specifics of this business area. These approaches should provide upgrade of this business area, increase reliability and quality of rendered services. The mechanism of managing housing area must not be of administrative-departmental nature, but should be indicative (directing). The article rationalizes priorities of perfecting this mechanism of management.

The article offers a view of an auditor in practice on the now-existing problems of housing and utility infrastructure (HUI) reforming. It is needed to create conditions for attracting private capital into HUI field, to improve system of forming economically rational HUI service rates, to implement modern management mechanisms in the managing practice of HUI organizations and enterprises, as well as to worked out and take measures aimed at financial rehabilitation of HUI organizations and enterprises.

The issue of rising functional efficiency and assuring solvency of HUI organizations is discussed. Systematic analysis and financial state assessment, as well as monitoring these organizations constitute an important instrument in making timely managing decisions and preventing their insolvency. The article states main tasks and principles of conducting utility enterprise monitoring.

HUI reforming should provide improvement in the procedure of control, accounting and applying funds from the city budget for building maintenance and repair, as well as for organization and redirection of cash flows. The article discusses possible financing resources: main, additional, consolidated. Directions for improving system of forming HUI financial resources are suggested. Building this sector financing system requires integration of efforts and concerted operation of the authorities, financial institutes, organizations of various patterns of ownership and private individuals.

A motivating factor for performing amalgamation and merger is synergetic effect, creation of new opportunities for business development, increase in compatibility and financial viability of a new organization. However, up to 70% of all transactions are not efficient and lead to splitting of the united company. The article examines new instruments used in conducting such transactions. The principles of rising integration process efficiency are rationalized.