Housing construction guarantee
In order to protect the rights and legitimate interests of equity holders, on April 7, 2016, the Law of the Republic of Kazakhstan “On Shared Participation in Housing Construction” was enacted, which spelled out three legal ways of organizing shared participation in housing construction:
- Obtaining a guarantee from Kazakhstan Housing Company JSC.
- Participation in a second-tier bank project.
- Obtaining the permission of the LEB after the construction of the frame of a residential building at the expense of the developer’s own funds.
Today, JSC “Kazakhstan Housing Company” performs the function of the Single operator of housing construction, one of the main tasks of which is to ensure the stable and efficient operation of the mechanism for guaranteeing equity participation in housing construction. Also, Kazakhstan Housing Company JSC is responsible for protecting the rights and legitimate interests of equity holders in the event of a warranty case.
The mechanism for guaranteeing shared construction helps to solve the socially oriented tasks of the state, helping thousands of Kazakhstanis to acquire 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 expedient use of equity holders’ money in order to preserve their investments and ensure the completion of the facility in a timely manner.
In order to carry out activities on the organization of share participation in housing construction by way of guarantee of JSC “Kazakhstan Housing Company” the developer must meet the following requirements:
- have experience of realized objects of apartment houses construction, including in the capacity of customer, contractor (general contractor) in aggregate not less than 3 years, with total area not less than 18 000 sq.m. during construction in cities of republican level, capital city and not less than 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;
- coefficient calculated by the ratio of borrowed and own capital should not exceed seven during the whole period of construction of the apartment house before its acceptance for exploitation.
In order to organize shared participation in residential construction by way of guarantee of JSC “Kazakhstan Housing Company” the authorized company must have:
- A land plot owned on the right of temporary compensation land use (lease) provided by the state or on the right of ownership;
- design and estimate documentation of the project of construction of the apartment house with a positive conclusion of the complex non-departmental expertise;
- funds planned for expenditure in accordance with Article 20 of the Act on shared participation in housing construction, and (or) the construction in progress, confirmed by the acts of works performed in an amount not less than 10% of the project cost if the land belongs to the right of ownership, or in an amount not less than 15% of the project cost if the land belongs to the right of temporary fee-based land use (lease), provided by the state;
- money to pay the commission for review of documents, the guarantee fee under the contract to provide a guarantee;
contract for the construction of an apartment building.
To obtain a guarantee for the completion of construction and to attract the funds of shareholders, the developer and the authorized company shall send JSC “Kazakhstan Housing Company” an application with a package of documents on the project of construction of a residential 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 residential construction, JSC “Kazakhstan Housing Company” makes a decision to issue or refuse to issue a guarantee for this project.
The list of documents required to apply for a Single Operator Guarantee:
In case of a positive decision, between JSC “Kazakhstan Housing Company”, the developer and the authorized company, a tripartite agreement on the provision of a guarantee is concluded. From the moment of the conclusion of the contract, the developer has the right to sell shares in a house under construction, concluding contracts of equity participation in housing construction with the citizens of the Republic of Kazakhstan. Moreover, each agreement is subject to mandatory registration with the akimat.
By objects of guarantee
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|Стандарт сити 2||01/02/2021|