Requirements for joining a Single operator to a guarantee agreement under renovation

The Developer must:

• own assets of at least 10%of total assets for the last 2 years (according to the audited financial statements);
• observe the loan-to-equity ratio of no more than 7 throughout the entire construction period until the house is put into operation.

An Authorized company must have:

• signed by the Developer, the Authorized company and all owners of the renovation object and (or) the real estate included in the renovation object, an agreement on providing a guarantee within the framework of the renovation;
• money in the amount equivalent to the cost of housing that will be transferred to the owners of the renovation object and (or) immovable property included in the renovation object, but not less than 30% 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 object, in the amount in accordance with the procedure established by the Authorized company for providing temporary housing and (or) compensation payments to the owners of the renovation object and (or) real estate included in the renovation object, taking into account the extension of the construction period.

Consideration of an application for concluding (joining a Single Operator) a guarantee agreement within the framework of renovation provides for the following:

1) monitoring the fulfillment of obligations under the renovation agreement;

2) verification of completeness and analysis of submitted documents on the renovation project.

Financial assessment

As part of the financial assessment, the following factors are analyzed:

• financial condition of the Developer and Authorized company.

Legal assessment

Legal assessment includes:

• review of the title documents of the Developer or Authorized company (if changes are made to these documents);
• review of corporate governance documents, decisions of collegial management bodies and basic powers of attorney of the Authorized company (if changes are made to these documents);
• analysis of title documents for the property of an Authorized company that is supposed to be transferred to trust management (if changes are made to these documents);
• analysis of the legality of formation of the Authorized capital of the Authorized company, information about participants (shareholders), information about affiliates of the Authorized company (if changes are made to the specified information);
• verification of the existence or absence of legal proceedings of a property nature against the Developer, Authorized company and owners of the renovation object (s) and (or) real estate included in the renovation object;
• checking the presence (absence) of tax arrears and other mandatory payments to the budget of the Authorized company, Developer and owners of the renovation object (s) and (or) real estate included in the renovation object;
• analysis of the fulfillment by the Developer and the Authorized company of all the conditions specified in the renovation agreement and the contract for providing guarantees within the framework of renovation;
• availability of a contract signed by the Developer, an Authorized company and all owners of the renovation object and (or) real estate included in the renovation object to provide a guarantee under the renovation, drawn up in accordance with the standard form approved by the Authorized body in the field of equity participation in housing construction;
• analysis of title and identification documents for the renovation object (s) and / or immovable property included in the renovation object.

In case of a positive decision, “Kazakhstan Housing Company” JSC joins the multilateral agreementу on providing guarantees within the framework of renovation, concluded between the Developer, the Authorized company and the owners of the renovation object(s) and (or) real estate included in the renovation object(s).

After joining the Single Operator toу the guarantee agreement under renovation, the Developer gets the right to enter into equity participation agreements with citizens of the Republic of Kazakhstan in housing construction under renovation. Each contract is subject to mandatory registration in the “Kazreestr” information system.

The agreement on equity participation in housing construction within the framework of renovation is concluded on the following terms:

1) equivalence of compensation in terms of roominess (the living area of the received share must not be less than the living area of the renovation object transferred by the owner of immovable property);

2) an equivalent refund.

Other conditions are established by agreement of the parties in accordance with the civil legislation of the Republic of Kazakhstan.