Article 1. The basic concepts used in this Law of the Law On Equity Participation in Housing Construction

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The following basic concepts are used in this Law:

1) a complex of individual residential buildings – detached buildings in the amount of at least fifty, intended for personal (family) living, with a height of no more than three floors, taking into account the attic and ground floor, the construction of which is provided for in the design and estimate documentation;

1-1) guarantee – the obligation of a Single housing Construction Operator to organize the completion of an apartment building and (or) a complex of individual residential buildings upon the occurrence of a guarantee event and the transfer of a share in an apartment building and (or) a complex of individual residential buildings to shareholders under equity agreements in housing construction and (or) shareholders as part of renovation under agreements on equity participation in housing construction as part of renovation;

2) guarantee event – an event or a set of events defined by this Law, upon the occurrence of which a Single Housing Construction Operator has an obligation to complete the construction of an apartment building and (or) a complex of individual residential buildings and is responsible to shareholders under an agreement to provide a guarantee of equity participation in housing construction and (or) to shareholders within the framework of renovation under the agreement on the provision of a guarantee of equity participation in housing construction as part of the renovation;

3) guarantee fee – the amount of money paid by an authorized company to a Single housing Construction Operator under an agreement on the provision of a guarantee of equity participation in housing construction or an agreement on the provision of a guarantee of equity participation in housing construction as part of renovation;

4) Warranty period – the period of operation of multi-apartment residential building construction facilities and (or) a complex of individual residential buildings established in accordance with the Civil Code of the Republic of Kazakhstan and the legislation of the Republic of Kazakhstan on architectural, urban planning and construction activities, during which the developer, The authorized company and the contractor (general contractor) guarantee the preservation of the quality of the indicators of an apartment building built and put into operation in accordance with the design and estimate documentation and the agreement on equity participation in housing construction.;

4-1) a renovation agreement under a guarantee (hereinafter referred to as a renovation agreement) is an agreement concluded between a Single Housing Construction Operator, a developer and an authorized company on the conditions for providing a guarantee of equity participation in housing construction as part of the renovation;

5) suspensive condition – a condition or set of conditions, upon the occurrence of which the parties have rights and obligations under the contract of trust management of voting shares (shares of participation in the authorized capital) of an authorized company upon the occurrence of a guarantee event.;

6) a share in an apartment building is an apartment or non–residential premises transferred to an equity holder in fulfillment of an agreement on equity participation in housing construction, which is part of a built apartment building.;

7) the design cost of an apartment building or a complex of individual residential buildings (hereinafter referred to as the design cost) is the cost of construction and installation work, project management costs, author's and technical supervision, remuneration for loans and other expenses provided for by this Law.;

8) the frame of an apartment building is a load–bearing system (skeleton) that accepts loads and impacts, provides strength, rigidity and stability of an apartment building, having load-bearing structures, floor structures and coatings;

8-1) borrowed funds – funds received in the form of a debt obligation, including on the terms of payment, urgency and repayment;

8-2) renovation co-investor – an individual (with the exception of temporarily staying foreigners) or a legal entity that has entered into an equity agreement in housing construction as part of the renovation in order to obtain a share in an apartment building;

8-3) equity participation in housing construction within the framework of renovation – the relationship of the parties based on an agreement on equity participation in housing construction within the framework of renovation;

8-4) an agreement on the provision of a guarantee of equity participation in housing construction within the framework of renovation (hereinafter referred to as the agreement on the provision of a guarantee within the framework of renovation) is an agreement concluded between a Single Housing Construction Operator, a developer, an authorized company and all owners of the renovation facility or real estate included in the renovation facility, in accordance with the procedure and on the terms determined by by this Law;

8-5) an agreement on equity participation in housing construction within the framework of renovation is an agreement concluded between an authorized company and an equity holder within the framework of renovation, regulating the legal relations of the parties related to equity participation in housing construction within the framework of renovation, in which one party undertakes to ensure the construction of an apartment building and transfer, upon completion of construction, a share in an apartment building to the other party. an apartment building, and the second – to make a counter provision of the renovation object and (or) real estate within the renovation object and accept a share in an apartment building;

9) excluded by the Law of the Republic of Kazakhstan dated 06/09/2020 No. 341-VI (effective from 07/01/2020);

10) equity participation in housing construction – the relationship of the parties based on the agreement on equity participation in housing construction;

11) an agreement on the provision of a guarantee of equity participation in housing construction (hereinafter referred to as a guarantee agreement) is an agreement concluded between a Single Operator, a developer and an authorized company in accordance with the procedure and on the terms determined by this Law.;

12) participants in equity participation in housing construction – a developer, an authorized company, a contractor (general contractor), a second-tier bank, an engineering company, a single operator, a shareholder and a shareholder in the framework of renovation;

13) an engineering company in the field of equity participation in housing construction (hereinafter referred to as an engineering company) is a legal entity providing engineering services in the field of architecture, urban planning and construction, accredited in accordance with the procedure established by the legislation of the Republic of Kazakhstan and complying with the requirements of this Law;

14) engineering services in the field of equity participation in housing construction – a complex of engineering services in the field of architectural, urban planning and construction activities, including monitoring the progress of construction of an apartment building or a complex of individual residential buildings and monitoring the targeted use of money allocated for the construction of an apartment building;

15) a developer in the field of equity participation in housing construction (hereinafter referred to as the developer) is a legal entity engaged in organizing equity participation in the housing construction of multi–family residential buildings at the expense of its own and (or) attracted money through participation in the authorized capital of an authorized company;

16) the authorized body in the field of equity participation in housing construction (hereinafter referred to as the authorized body) is the central executive body responsible for management, as well as, within its competence, intersectoral coordination in the field of equity participation in housing construction;

17) an agreement on equity participation in housing construction is an agreement concluded between an authorized company and an equity holder regulating the legal relations of the parties related to equity participation in housing construction, in which one party undertakes to ensure the construction of an apartment building or a complex of individual residential buildings and transfer a share in an apartment building to the other party upon completion of construction, and The second is to make a payment and accept a share in an apartment building.;

17-1) Unified Housing Construction Operator (hereinafter referred to as the Unified Operator) is a mortgage organization with direct or indirect government participation in the authorized capital, the purpose of which is to participate in the implementation of state policy in the field of housing affordability to the population of the Republic of Kazakhstan through mortgage lending and rental housing, the development of shared housing construction, as well as ensuring the availability of financial resources for the construction industry;

18) authorized company is a legal entity, one hundred percent of the voting shares (participation shares in the authorized capital) of which belong to the developer, engaged in the provision of shared–equity construction of an apartment building or a complex of individual residential buildings and the sale of shares in an apartment building or a complex of individual residential buildings, which is not entitled to engage in any other commercial activity, except for activities in special economic zones;

18-1) authorized organization is a legal entity, one hundred percent of the voting shares (participation shares in the authorized capital) of which are directly or indirectly owned by the state, which carries out activities to ensure the completion of problematic housing construction projects in the capital, cities of republican significance or other administrative–territorial units within the framework of state housing construction programs;

18-2) share – an apartment or non-residential premises in an apartment building, or an individual residential building with a plot of land in a complex of individual residential buildings, transferred to a co-owner in accordance with an agreement on equity participation in housing construction and (or) to a co-owner as part of renovation in accordance with an agreement on equity participation in housing construction as part of renovation, included in a built multi-apartment residential building or a complex of individual residential buildings;

19) equity holder – an individual (with the exception of temporarily staying foreigners), a legal entity or a person operating in accordance with a joint venture agreement (simple partnership, consortium) who has concluded an equity agreement in housing construction in order to obtain a share in an apartment building or a complex of individual residential buildings;

20) low–rise construction - low-rise multi-family residential buildings with a height of no more than three above-ground floors (excluding the attic), including blockaded multi-family residential buildings, each of which has direct access to the apartment block.

The Law of the Republic of Kazakhstan dated April 7, 2016 No. 486-V SAM.

This Law regulates public relations related to the activities of equity participation in the housing construction of multi-family residential buildings by attracting money from individuals and (or) legal entities, and also establishes guarantees for the protection of the rights and legitimate interests of the parties to the agreement on equity participation in housing construction.

President

Republic of Kazakhstan

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