GUARANTEEING HOUSING CONSTRUCTION

General information

In order to protect the rights and legitimate interests of shareholders, since April 7, 2016, the Law of the Republic of Kazakhstan “On Equity Participation in Housing Construction” has been put into effect, which prescribes three legal ways of organizing equity participation in housing construction:

Obtaining a guarantee from JSC “Kazakhstan Housing Company”;
Participation in the second-tier bank project;
Obtaining the permission of the MIO after the construction of the frame of a residential building at the expense of the developer’s own funds.

Today, Kazakhstan Housing Company JSC performs the function of a Single housing construction Operator, one of the main tasks of which is to ensure stable and effective operation of the mechanism for guaranteeing equity participation in housing construction. Also, JSC “Kazakhstan Housing Company” is responsible for protecting the rights and legitimate interests of shareholders in the event of a warranty event.

The mechanism of guaranteeing shared-equity construction helps to solve socially oriented tasks of the state, helping thousands of Kazakhstanis to purchase affordable and high-quality housing. This mechanism ensures the transparency of the project: control and monitoring of the construction process is carried out, as well as the appropriate use of shareholders’ money in order to preserve their investments and ensure the completion of the facility on time.

Requirements for obtaining a guarantee

In order to carry out activities on the organization of equity participation in housing construction by obtaining a guarantee from JSC “Kazakhstan Housing Company”, the developer must comply with the following requirements:

have experience in the construction of multi-apartment residential buildings, including as a customer, contractor (general contractor) in aggregate, for at least 3 years, with a total area of at least 18,000 sq.m. during construction in cities of republican significance, the capital and at least 9,000 sq.m. during construction in other administrative-territorial units;
have assets remaining after deduction of short-term and long-term liabilities for the last two financial years according to its financial statements, confirmed by the auditor’s report;
the value of the coefficient calculated by the ratio of debt and equity capital should not exceed seven during the entire period of construction of an apartment building before its commissioning.

In order to carry out activities for the organization of equity participation in housing construction by obtaining a guarantee from JSC “Kazakhstan Housing Company”, the developer creates an authorized company or acquires 100% of voting shares (participation shares in the authorized capital) of another legal entity to carry out activities for no more than one multi-apartment building construction project.

In order to organize equity participation in housing construction by obtaining a guarantee from JSC “Kazakhstan Housing Company”, an authorized company must have:

a land plot owned on the right of temporary paid land use (lease) provided by the state, or on the right of ownership;
design and estimate documentation for the construction of an apartment building with a positive conclusion of a comprehensive non-departmental examination;
money planned for expenditure in accordance with Article 20 of the Law on Equity Participation in Housing Construction, and (or) construction in progress, confirmed by acts of completed work, in the amount of at least 10% of the project cost if the land plot belongs to the ownership right, or in the amount of at least 15% of the project cost if the land plot belongs to the right of temporary paid land use (lease) provided by the state;
money to pay the commission for reviewing documents, the guarantee fee under the guarantee agreement;
the contract for the construction of an apartment building.

In order to obtain a guarantee for the completion of construction and to attract funds from shareholders, the developer and the authorized company send JSC “Kazakhstan Housing Company” an application with a package of documents for the construction of an apartment building. After the documents are checked for compliance with the requirements of the legislation of the Republic of Kazakhstan in the field of equity participation in housing construction, JSC “Kazakhstan Housing Company”.

With a positive decision, a trilateral guarantee agreement is concluded between JSC “Kazakhstan Housing Company”, the developer and the authorized company. From the moment of signing the contract, the developer has the right to sell shares in the house under construction, concluding equity agreements with citizens of the Republic of Kazakhstan in housing construction. At the same time, each contract is subject to mandatory registration with the akimat.

Instructions

Instructions for applying for a guarantee

Instructions for sending appeals in the personal cabinet of legal entities

Common mistakes when applying for a guarantee

List of documents for applying for a guarantee

List of documents for consideration of the application

PRUE of the authorized body of the Criminal Code on the transfer of a loan

Consent to a technical inspection

Protocol of the decision of the participants of the Building_3 issue

A letter about the absence of the right to a second signature

A letter to the WIKI at your own expense

IKI‘s letter will join the project later

PZ forms, sales plan, etc.

Consent to receive state expertise

Consent to request a report from the PCB

List of documents for extending the construction period

List of documents for 1 extension

List of documents for the 2nd extension

List of documents for the 3rd extension

Recommendations for creating an application

1. Constituent documents

A list of documents for which frequent comments are identified	Common mistakes that a Developer or an Authorized Company makes when applying for guarantees for the completion of construction
1) The constituent documents of the developer and the authorized company (notarized copies of the charter and the founding agreement /decision of the sole founder on the establishment of the company).	Copies of the articles of association and the founding agreement, as well as amendments and additions to the founding documents must be up-to-date, comply with current legislation, decisions of authorized bodies of legal entities, information about all registration actions of a legal entity, and must also be notarized.

2. Documents confirming the fulfillment by the authorized company of the requirements provided for in paragraph 3 of Article 8 of the Law:

A list of documents for which frequent comments are identified	Common mistakes that a Developer or an Authorized Company makes when applying for guarantees for the completion of construction
1) a contract of sale (barter, donation or other transaction on the alienation of a land plot), or a decision of judicial authorities on the recognition of the right of private ownership of a land plot, land use rights and other proprietary rights to land (a notarized copy);	Identification characteristics (information about the land plot, including address, registration code of the address (if any), cadastral number, form of ownership, number of components, category of land, divisibility, purpose) specified in the purchase agreement – sale (barter, donation or other transaction on alienation of a land plot), or a decision of judicial authorities on recognition of the right of private ownership of a land plot, land use rights and other proprietary rights to land, an act on the right of private ownership of a land plot (or an act on the right of temporary (paid) land use) and a certificate of registered rights (encumbrances) on real estate and its technical characteristics (F-2) must be identical. Title and identification documents for the land plot must be notarized. The certificate of registered rights (encumbrances) on real estate and its technical characteristics must be current at the time of filing the application. If payment has not been made at the time of the commission of a paid transaction for the purchase of a land plot, it is necessary to provide documents confirming such payment. The land plot must be free from any encumbrances, rights and claims of third parties.
2) an act on the right of private ownership of a land plot or an act on the right of temporary (paid) land use (a notarized copy);
3) certificate of registered rights (encumbrances) on real estate and its technical characteristics (from the portal "electronic government");
4) copies of the acts of commissioning of the construction project, taking into account the delivered square meters, confirming the experience of the developer in the construction of apartment buildings, including by state order. To confirm the experience in the construction of multi-apartment residential buildings, a developer not specified in the act of commissioning of the construction project as a customer/ contractor (general contractor), the following copies of documents on the completed construction project are provided: - the act of commissioning the construction project; - a contract providing for the performance of earthworks, the construction of load-bearing and (or) enclosing structures of buildings, the installation of engineering networks, as well as work on the protection and decoration of structures according to the construction project; - the act of work performed under the contract; - a bank account statement or an act of reconciliation of mutual settlements confirming payment under the contract. The developer submits their originals together with the specified documents.	The submitted documents must confirm the experience of the developer in the implementation of multi-apartment residential buildings, including as a customer, contractor (general contractor) in aggregate, for at least three years, with a total area of at least eighteen thousand square meters during construction in cities of republican significance, the capital and at least nine thousand square meters during construction in other administrative-territorial units. In case of inconsistency of the name of the developer in the submitted documents, it is necessary to provide information from the registering authority from the national register of business identification numbers about the previous names of the developer and the conduct of the corresponding state re-registration.
5) a copy of the bank account agreement with a second-tier bank (hereinafter referred to as the STB), or another document confirming the opening of an account with the STB (certified by the seal of the organization) and an extract on the balance and movement of money in the bank account, confirming the availability of money to pay the commission for reviewing documents, the guarantee fee under the guarantee agreement;	A copy of the bank account agreement with a second-tier bank must be stamped by the bank, and this agreement must also contain the account number. In case of inconsistency of the name of the authorized company and/or developer in the bank account agreement, it is necessary to provide information from the registering authority from the national register of business identification numbers on the previous names of the authorized company and/or developer and the relevant state re-registration.
6) a copy of the contract concluded between the authorized company and the contractor (general contractor) with an approved plan for construction and installation works, accompanied by a copy of documents confirming the authority of the person to sign the contract (decision of the authorized body/order on the appointment of the first head), as well as a copy of the document certifying his identity. If the party to the construction contract is an Authorized FEZ Participant company, information on the volume of purchased materials and (or) equipment, sources of financing for such acquisitions are attached to the application.	The general contract must be drawn up in accordance with the norms of civil law, and must also contain correct information on the project, namely: 1) the name of the project must correspond to the expert opinion; 2) the address of the land plot must correspond to the title and identification documents; 3) the bank accounts of the authorized company and the contractor (general contractor) must be in only one second-tier bank; 4) the project implementation period must correspond to the notification of the start of construction and installation work, the application and the schedule of work. Also, copies of documents confirming the authority of the person to sign the contract (decision of the authorized body / order on the appointment of the first head), as well as copies of the document certifying his identity, must be attached.

3. Documents provided by the developer/authorized company for carrying out the legal assessment provided for in subparagraph 1) paragraph 4 of Article 33 of the Law:

A list of documents for which frequent comments are identified	Common mistakes that a Developer or an Authorized Company makes when applying for guarantees for the completion of construction
1) a document on the state registration/re-registration of a legal entity (from the electronic government portal);	The certificate of state registration/re-registration of the legal entity and the certificate of all registration actions of the legal entity must be current at the time of filing the application.
2) a certificate of all registration actions of a legal entity (from the e-government portal).

4. Documents provided by the developer/authorized company for carrying out the legal assessment provided for in subparagraph 2) paragraph 4 of Article 33 of the Law:

A list of documents for which frequent comments are identified	Common mistakes that a Developer or an Authorized Company makes when applying for guarantees for the completion of construction
1) copies of decisions of the authorized body of the developer/authorized company on amendments and/or additions to the constituent documents for the last two years (if any);	Decisions should be drawn up in accordance with the norms of civil legislation, correspond to information about all registration actions of a legal entity, and clearly reflect the decisions taken. In case of inconsistency of the name of the developer or an authorized company in the submitted decisions, it is necessary to provide information from the registering authority from the national register of business identification numbers about the previous names of the developer and the conduct of the corresponding state re-registration.
2) copies of the decisions of the authorized body of the developer on the transfer of voting shares (shares in the authorized capital) of the authorized company to the Company for trust management, as well as 100% of voting shares (shares in the authorized capital) of the authorized company (certified by the seal of the developer (if any));	The decision must be drawn up in accordance with the norms of civil law. In the decision of the authorized body of the developer (certified by the seal of the developer (if any)) the intentions of transferring voting shares (shares in the authorized capital) of an authorized company to the trust management of the Company, as well as voting shares (shares in the authorized capital) of an authorized company, identification characteristics of the land plot being pledged, as well as the name of the project under which the property is pledged and the trust deed must be clearly stated management.
3) a copy of the decision of the authorized body of the authorized company on the transfer of a land plot and/or land use rights with unfinished construction to the Company (if available) with its detailed description (stamped by the authorized company (if available));	The decision must be drawn up in accordance with the norms of civil law. In the decision of the authorized body of the authorized company (certified by the seal of the developer and the authorized company (if any)) the intentions of pledging a land plot and/or land use rights with unfinished construction (if any), the identification characteristics of the land plot being pledged, as well as the name of the project within which the property is being pledged, must be clearly spelled out.

5. Documents provided by the developer/ authorized company for carrying out the financial assessment provided for in paragraph 1 of Article 8 of the Law, as well as paragraph 3 of Article 33 of the Law:

A list of documents for which frequent comments are identified	Common mistakes that a Developer or an Authorized Company makes when applying for guarantees for the completion of construction
1) Financial statements confirmed by the auditor's report for the last two financial years.	It is necessary to provide annual audited and operational financial statements with a limitation period of no more than 4 months on the date of filing the application. The audit report on the financial condition of the developer is provided for 2 (two) full financial years preceding the date of filing the application. The audit report must be certified with the seal of the developer and the auditor, signed by the first head of the developer and the accountant (if any), as well as employees of the auditing company that conducted the audit. It is necessary to provide transcripts for ALL items of the Balance Sheet, OPI, ODDSS, the capital flow report to the operational financial statements, as well as to the audit reports for 2 years. Transcripts should contain detailed information on all articles of the main reporting forms. On the balance sheet – the term of education and the planned maturity of the asset / liability, detailed comments on the subject of education (For example, accounts receivable / payable – the term of education, the planned maturity, under which contract arose, within which "project"). According to the OPI – a breakdown of income by areas of activity/projects/contractors, expenses by homogeneous groups. According to ODDSS, the breakdown of articles into counterparties. It is necessary to provide explanatory notes in case of discrepancies in the financial statements with previous periods, or in case of adjustments/use of retained earnings. If the developer is part of a group of companies and /or income is generated from dividends, acts as a co-borrower / guarantor for the obligations of third parties – financial data is required for the entire group of companies / companies affecting the financial stability of the Developer, similar to the above points.
2) The documents provided for calculating the value of the coefficient calculated by the ratio of debt and equity capital should not exceed seven during the entire period of construction of an apartment building before its commissioning.	The period from the date of formation of the PCB reports at the time of application submission is no more than 5 calendar days. When calculating the value of the coefficient calculated by the ratio of borrowed and equity capital (according to subparagraph 3 of paragraph 1 of Article 8 of the Law of the Republic of Kazakhstan "On Equity participation in Housing construction"), it must be borne in mind that borrowed capital means all financial obligations reflected in the Balance Sheet of the developer, which were attracted with the condition of their urgency and repayment.
3) Documents provided for the analysis of the sources of financing of the project	If the authorized company, as confirmation of subparagraph 3) of paragraph 3 of Article 8 (own participation – 10%/15%), shows funds in the current account, it is necessary to specify the sources of these funds - borrowed capital/ financial assistance (the counterparty who provided these funds and on what terms is indicated) or own funds. In the case of the formation of funds from the borrowed capital of third parties (with the exception of the developer company), financial statements for the related company are provided in the same way as the above points.

6. Documents confirming the fulfillment by the authorized company of the requirements provided for in paragraph 3 of Article 8 of the Law within the framework of the technical assessment of the project):

A list of documents for which frequent comments are identified	Common mistakes that a Developer or an Authorized Company makes when applying for guarantees for the completion of construction
6.1 To confirm the volume and quality of construction and installation work performed, the authorized company must provide copies of the following documents (subparagraph 3) of paragraph 3 of Appendix 2 of the Rules for Reviewing Documents on the construction of an apartment building for the conclusion of a guarantee agreement, approved by Order No. 432 of the Minister of National Economy of the Republic of Kazakhstan dated September 30, 2016):
1) a coupon for receiving a notification of the start of construction and installation work	The receipt of the notification of the start of construction and installation works must be accompanied by a notification of the start of construction and installation works, the documents must be issued by the authorized body, formed on the portal www.elicense.kz, contain the name of the project corresponding to the declared project, the specified dates must correspond to the standard construction period.
2) conservation of an object under construction (if available)	In case of temporary suspension of construction, it is necessary to provide all supporting documents on the measures taken to ensure the safety and quality characteristics of structures, materials and equipment of the unfinished construction of the facility for the period of temporary suspension of its construction: acts of conservation indicating the dates, an inventory of unfinished construction with the appropriate seals and signatures of the parties involved in the conservation of the object.
3) the contract of author's supervision	The contract should contain information about the services provided for the declared project, the amount of the contract should not exceed the amount provided for in the estimated documentation, the design company that prepared the design and estimate documentation should act as the author's supervision, in case of replacement of the author's supervision, a document on the delegation of rights by the design organization should be provided.
4) technical supervision agreement	The contract must contain information about the services provided for the declared project, the amount of the contract must not exceed the amount provided for in the estimated documentation.
5) the original report or conclusion of the engineering company on the technical inspection of the project on the technical condition of structural reliability and stability of buildings and engineering and communication systems	In the case of construction that has begun, it is necessary to provide a technical inspection report describing the technical condition of structural reliability and stability of buildings and engineering and communication systems, performed by an accredited organization. The conclusion must be accompanied by documents confirming the costs directly for the declared project (acts of completed works, payment orders) with seals and signatures of the customer, contractor, author's and technical supervision (corresponding to concluded contracts), costs of construction and installation work, development of design estimates, examination, services of author's and technical supervision must comply with the design and estimate documentation: do not exceed the amounts provided for in the design and estimate documentation, as well as comply with the current condition of the facility. The cost of purchasing materials can only be reflected for projects related to the special economic zone. A letter of consent from the developer and an authorized company must also be provided to conduct a technical inspection of the project for the technical condition of the reliability of structures and stability of buildings and engineering and communication systems and to assess the unfinished construction by representatives of a Single Operator.
6.2 Design estimates and permits for the project (sub-paragraphs 4), 5) and 7) of paragraph 3, Appendix 2 of the Rules for Reviewing Documents on the construction of an apartment building for the conclusion of a guarantee agreement, approved by Order No. 432 of the Minister of National Economy of the Republic of Kazakhstan dated September 30, 2016):
1) design and estimate documentation with the conclusion of a comprehensive non-departmental expertise	The design and estimate documentation must be provided in full (in electronic form in PDF format (Portable Document Format)) with a positive conclusion of a comprehensive non-departmental examination or a letter of permission from the copyright holder and the author of the project to receive design and estimate documentation for the declared project from RSE Gosexpertiza (when passing the project of the state comprehensive non-departmental examination). If the customer of the design and estimate documentation is another organization (including the conclusion of a comprehensive non-departmental examination issued to another organization), appropriate documents confirming the ownership rights of the authorized company to the design and estimate documentation with the conclusion of a comprehensive non-departmental examination (acceptance certificate, contract) must be provided. At the same time, the conclusion of a comprehensive non-departmental examination must be valid (validity period: no more than 3 years, if construction and installation work has not begun). Also, in the summary calculation of the estimated section of the estimated documentation, the costs of construction and installation work, author's and technical supervision of the residential part, parking spaces and commercial premises, if any, should be allocated.
2) design permits	The following design permits must be provided: copies of the design resolution, architectural and planning assignment, center plan, act of land selection. A document on approval of the draft design, issued by the authorized body, generated on the portal, must also be provided www.elicense.kz .
3) Technical specifications	Technical conditions must be provided for the connection of all engineering networks (heating networks, electric networks, gas supply, water supply, sewerage). The technical specifications must be valid, issued by the relevant utilities, issued to an authorized company/developer, or documents on the transfer of technical specifications to an authorized company / developer must be provided. A letter about the availability of backbone networks must also be provided.
4) contract for construction and installation works	An agreement concluded between the authorized company and the contractor (general contractor) with an approved construction and installation work plan must be provided, accompanied by a copy of the documents confirming the authority of the person to sign the contract (decision of the authorized body / order on the appointment of the first head), as well as a copy of the document certifying his identity. In this case, the amount of the contract should not exceed the estimated cost, the contract should contain information on the timing of the work corresponding to the standard construction period, the contractor (general contractor) should be a person who has the appropriate license. The approved construction and installation work plan must contain all types of work in accordance with the design and estimate documentation, meet the regulatory construction deadlines, as well as the start dates of work according to the issued coupon for the start of construction and installation work.
6.3 Financing plan for the construction project (item 5, Appendix 2 of the Rules for Reviewing Documents on the construction project of an apartment building for concluding a guarantee agreement, approved by Order No. 432 of the Minister of National Economy of the Republic of Kazakhstan dated September 30, 2016):
1) project cost plan and construction financing schedule	A construction project financing plan signed by the heads of the developer and the authorized company, and certified with their seals, as well as in electronic form in xls/xlsx/xlsm format. At the same time, the financing plan must contain the types of work in accordance with the design and estimate documentation, the cost of the types of work must correspond to the estimated documentation. The financing plan should contain other costs: for design and survey work, the cost of passing the examination, author's and technical supervision. The financing plan must comply with the regulatory deadlines for construction, the start date of financing must correspond to the period of issue of the guarantee, the deadlines for these types of work must comply with the approved construction and installation work plan attached to the contract. The financing plan should contain information about the costs incurred for construction in progress, as well as payment of other costs and the residual value for concluding a guarantee agreement (when construction has begun).
2) a plan for the sale and lease of premises in an apartment building	The sales plan should contain information about apartments, commercial premises and parking spaces, indicating the area and the sale price per 1 sq.m. Information on apartments, parking spaces, and commercial premises must strictly comply with the design and estimate documentation. The sales plan must comply with the regulatory construction deadlines. The sales schedule should cover the costs of the construction of the facility (including taking into account its own participation).

Video instructions for creating an application

Housing construction guarantee mechanism

GUARANTEEING HOUSING CONSTRUCTION

General information

Requirements for obtaining a guarantee

Instructions

List of documents for applying for a guarantee

List of documents for extending the construction period

Recommendations for creating an application

Video instructions for creating an application

Housing construction guarantee mechanism

Legislation on guarantees

On approval of the Rules for reviewing documents on the construction project of an apartment building for the conclusion of a guarantee agreement

On equity participation in housing construction

phone numbers

+7 727 344-12-22
+7 7172 79 75 75

EMAIL

info@khc.kz

PRESS CENTER

pr@khc.kz

Filing a complaint

A complaint about a residential building

A complaint about a residential building

ON THE FACT OF CORRUPTION

© 2004-2024 Kazakhstan Housing Company JSC,

subsidiary of the Baiterek Holding

GUARANTEEING HOUSING CONSTRUCTION

General information

Requirements for obtaining a guarantee

Instructions

List of documents for applying for a guarantee

List of documents for extending the construction period

Recommendations for creating an application

Video instructions for creating an application

Housing construction guarantee mechanism

Legislation on guarantees

On approval of the Rules for reviewing documents on the construction project of an apartment building for the conclusion of a guarantee agreement

On equity participation in housing construction

phone numbers

+7 727 344-12-22 +7 7172 79 75 75

EMAIL

info@khc.kz

PRESS CENTER

pr@khc.kz

Filing a complaint

A complaint about a residential building

A complaint about a residential building

ON THE FACT OF CORRUPTION

© 2004-2024 Kazakhstan Housing Company JSC,

subsidiary of the Baiterek Holding

+7 727 344-12-22
+7 7172 79 75 75