A meeting attended by representatives of the construction industry was held at the platform of Atameken National Chamber of Entrepreneurs. Kazakhstan Housing Company presented a mechanism for housing renovation under shared-equity construction.
The event was attended by developers and representatives of industry associations, including the Association of Developers of Kazakhstan, QAZPROPERTY, the Kazakhstan Association of the Construction Industry, the Union of Engineering Companies of the Republic of Kazakhstan, and the Union of Builders of Kazakhstan.
During the meeting, the KHC presented key approaches to implement renovation projects using a guarantee mechanism, including requirements for developers and authorized companies, and outlined the benefits of obtaining a KHC guarantee when implementing such projects.
The renovation mechanism involves a two-stage process: in the first stage, a renovation agreement is signed; in the second stage—once agreements have been reached with the owners of dilapidated and unsafe housing—a guarantee agreement is signed.
The renovation agreement serves as confirmation of the KHC commitment to ensure the project’s completion in accordance with the established requirements and conditions.
The requirements for developers regarding construction experience align with the terms of the traditional guarantee mechanism. The authorized company is required to make an equity contribution of no less than an amount equivalent to the value of the housing to be transferred to the owners, but not less than 30% of the project’s cost, as well as to ensure the relocation of residents, including the provision of temporary housing and/or the payment of compensation.
The new guarantee mechanism as part of housing renovation ensures 100% protection of the rights of residents of dilapidated and unsafe housing, will expand co-investors’ access to the STB mortgage line for housing under construction, and will increase the confidence of citizens and investors in renovation programs.
The program also stimulates the inflow of private investment, reduces the burden on the state budget, and contributes to the establishment of a unified legal framework at the national level. The implementation of renovation projects will allow for the modernization of the housing stock in line with contemporary comfort standards, as well as the optimization of engineering infrastructure costs by locating facilities in already developed areas.
