Article 8-1. The organization of equity participation in housing construction as part of renovation is a way to obtain a guarantee from a Single operator of the Law On Equity Participation in Housing Construction

     1. In order to carry out activities related to the organization of equity participation in housing construction as part of renovation in order to obtain a guarantee from a Single Operator, the developer must meet the following requirements:

     1) have experience in the construction of multi-family residential buildings as a customer, contractor (general contractor) for at least two years, with a total area of at least ten thousand square meters during construction in cities of republican significance, the capital, and at least five thousand square meters during construction in other administrative-territorial units;

     2) have assets, the value of which must be at least ten percent of total assets remaining after deducting short-term and long-term liabilities, for the last two financial years according to its financial statements, confirmed by the auditor's report;

     3) the value of the coefficient calculated by the ratio of borrowed funds and equity capital should not exceed seven during the entire period of construction of an apartment building before its commissioning.

     2. In order to carry out activities related to the organization of equity participation in housing construction within the framework of renovation by obtaining a guarantee from a Single Operator, the developer creates an authorized company or acquires one hundred percent of the voting shares (shares in the authorized capital) of another legal entity to carry out activities for no more than one multi-apartment building construction project.

     An apartment building construction project may include several construction projects on the same land plot.

     It is allowed to build construction projects on several land plots if such construction is provided for by the multi-apartment building construction project.

     The developer has the right to involve an authorized company that has fulfilled its obligations for the construction, commissioning and commissioning of a previous project for the construction of an apartment building or a complex of individual residential buildings, or another legal entity of which he is the sole founder (participant).

     3. In order to organize equity participation in housing construction as part of renovation in order to obtain a guarantee from a Single Operator, an authorized company must have:

     1) an agreement signed by the developer, an authorized company and all owners of the renovation facility and (or) the real estate included in the renovation facility to provide a guarantee within the framework of the renovation;

     2) the money planned to be spent in accordance with Article 20 of this Law, in an amount equivalent to the cost of housing, which will be transferred to the owners of the renovation object and (or) real estate included in the renovation object, but not less than thirty percent of the declared project cost, as well as for the provision of temporary housing to the owners of the renovation object and (or) immovable property included in the renovation project, in the amount of, in accordance with the procedure established by the authorized company for providing temporary housing and (or) compensation payments to the owners of the renovation facility and (or) real estate included in the renovation facility, taking into account the extension of the construction period;

     3) money to pay the commission for the review of documents, the guarantee fee under the contract for the provision of guarantees in the framework of renovation.

     4. In order to organize equity participation in housing construction as part of renovation, an apartment building and (or) an individual apartment building with a plot of land included in the housing renovation program must be the object of renovation.

     The renovation object must be free from any encumbrances, rights and claims of third parties.

     5. The concluded guarantee agreement within the framework of the renovation is the basis for attracting money from shareholders, taking into account the requirements of the second part of paragraph 1 of Article 36 of this Law and does not require the developer and the authorized company to obtain permission to attract money from shareholders from the local executive body.

     6. A renovation agreement is concluded between a Single Operator, a developer and an authorized company. The term of the renovation agreement is determined in accordance with subparagraph 10) of paragraph 3 of Article 32 of this Law and until its expiration, the Single Operator is not entitled to conclude a renovation agreement with other developers and authorized companies.

     7. In order to comply with the requirements of this Law, the developer and the authorized company shall submit to the Single Operator, through the digital system of the Single Operator, annual financial statements, confirmed by an audit report, and quarterly financial statements in accordance with the legislation of the Republic of Kazakhstan on accounting and financial reporting during the term of the renovation guarantee agreement.

     8. In order to conclude a renovation agreement with the subsequent guarantee of a Single Operator, the developer and the authorized company submit an application for the organization of equity participation in housing construction as part of the renovation.

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 apartment 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     

© 2012. RSE na PHB "Institute of Legislation and Legal Information of the Republic of Kazakhstan" of the Ministry of Justice of the Republic of Kazakhstan  

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