• June 1, 2015 came into force the Law of Ukraine “On peculiarities of property rights in an apartment house”. This Law actually eliminates all HMO (Housing maintenance office), that over time independence of the state, good or bad but served multifamily housing fund. According to the final and transitional provisions of the Law, owners of apartments and nonresidential buildings in houses given time to July 1, 2016 for a decision on the establishment condominium and electing form of management house. Otherwise, the manager will be appointed on competitive basis by the executive committee of the local council, on whose territory apartment house is located.

    Is an important that these newly formed managers  may be: individual entrepreneur or legal entity, but any legislative criteria that requirements for economic indicators, manufacturing facilities and the availability of professional experts which would meet the following entities – not defined.

    Condominium in essence is a legal entity that has no for-profit, established apartment owners for maintenance and use of common property. The basic idea of a condominium is to change poorly functional HMOs. This will change as communal, as private HMOs. At that private is likely to will actively fight for the continued maintenance of houses that were on their balance sheets to innovation. Obviously, the such reallocation market of utilities that can prevent not professional, not honest managers, especially in houses that were built not long ago, is causing an ambiguous public response.

    Establishment and activity condominium regulate two laws:  the Law of Ukraine “On peculiarities of property rights in an apartment house” and the Law of Ukraine “On Associations of condominiums”.  Therefore, to understand the basic mechanisms and stages of creating an association, enough to read these special acts.

    We would like to draw attention to the pitfalls and specific, arising already in practice.

    First when creating condominium should give an objective assessment of the state housing fund.With the moment of receipt the balance of the house, a new manager gets  and all issues that may be associated with the state of internal household networks, communications and lifting equipment. In such houses for the formation of the new tariff will need to take for the calculation of significantly higher indicator of major repairs household networks and reserve fund in case of accident.

    Secondly accepted and approved by the general meeting of the association the size of contributions and tariffs for services is mandatory for all owners of residential and nonresidential buildings.The question of membership of individuals does not affect the obligation to pay for services.So if most of the observance of the law and the statute of the association adopted appropriate decisions, they have performed all owners.

    Thirdly, most pensioners, the poor and the special status of owners mistakenly fear for the loss of benefits and subsidies for the creation of the association.These residents of houses for the accrual subsidies should contact the Administration of Labour and Social Protection of the place of registration.The only difference in accrual of benefits and subsidies to certain categories of citizens is that condominium in houses the size of discounts approved by the meeting of within the norms established by local authorities.Costs are reimbursed by association subventions from the state budget to local budgets.

    The fourth novel is a change of approach to the definition of powers in the management of common property of all owners of residential and nonresidential buildings in the house.  So after creating condominium each owner of the apartment manages property in proportion to the area of the real estate which is in his ownership.For example, previously in the general meeting of tenants votes are allocated on the basis of one apartment – one vote.While resolving issues general meeting in condominium, then proportionally greater advantage in the  voice will be person  the size of the property which is in this house more.

    Fifth cost of your tariffs may increase as the newly appointed private agencies to manage and to created condominiums.Most experts are appealing to the fact that innovation there is a sharp increase in tariff for the maintenance of houses adjoining areas of current and overhaul.This position conditioned by the fact that according to ch. 2, Art. 7 of the Law of Ukraine “On peculiarities of property rights in an apartment house” each co-owner has an obligation of proper maintenance, operation, rehabilitation, restoration, current and overhaul, technical re-equipment of common property of an apartment building in proportion to its share of co-owner.  Based on the fact that the maintenance of the of houses of state and local budgets not foreseen subsidies not  from state or local budgets, such financial support and fully repair will be borne by tenants.We have already noted that the optimal construction of the new manager, this increase may be due to a greater extent only a single objective factor – as the house and networking. Obviously, the owners of apartments in the house that is in an emergency condition or in need of urgent overhaul – the sum of utility bills will increase in proportion to the amount required for such repairs. The need to address the issue of collecting funds in such situations are inevitable as the private the manager, and for condominiums. However, it should be noted that according empowerment co-owners in the condominium, then anyone can get acquainted with the financial statements and control that the money went to repair it or provide material and technical base.However, the speed and authenticity of information about cash flows from private managers, in our view, would be much more difficult.The law leaves apartments owners to influence the activities of condominiums.But on the condition that the citizen the association chairman from among residents that are not “alien” to neighbors and enjoys high business reputation, the chances that you will be “robbed” significantly reduced.

    Private manager of your house

    Separately, I note that condominium can be a customer of utilities in connection with the receipt of the balance of the building. A performer on the basis of contractual relations with condominium private entity. We believe that the key will be two factors. The size (area) apartment building in need of service and the availability of profitable price offers for services from the subject that has capacity and experience in this sphere.

    We want to warn owners that have already decided to create condominiums, especially in houses with good technical condition that the acting balance-may refuse to voluntarily transfer the technical documentation and the actual house on the act of reception and transmission. Such facts of violation of the law in new buildings there very often. The only solution is to address with the requirements to the court and complaints to prosecutors.

    In the case of the appointment of the executive committee of the private the manager for your home, the parties entered into the contract. The term which concluded a contract – 1 year. At the end of this period if none of the parties notifies you of an its refusal, the contract is extended for the next calendar year. That co-owners have a one year to  commit conclusions about qualitative changes in the new service.

    In case of poor co-owners may return to the issue of management house with condominiums. Obviously requirements for proper transfer house condominiums, reported his registration to the Executive Committee should also be made a month before the expiry of the said calendar year.

    Additionally, the highlight on changes to land laws which were caused by the adoption of laws on condominiums. So in the Land Code of Ukraine again introduced provisions on the right of permanent use of land. That land, which is under the house  and adjacent territories belonging to the right of joint ownership to all cohabitants on a pro rata basis relative to their share of property rights in the building. This rule permit in case of destruction houses to leave home land ownership by tenants respective homes.

    In summary we can say that none of the forms of management for a particular your home can not be considered a panacea in advance. Effective management will depend on the position of co-owners of activity, legal and economic professionalism in the creation condominium reached agreement with the management company, the quality control of the services provided, integrity and competence of Chairman of the Board and Director condominium management company and others. factors.

    If your house is not indifferent and has targeted neighbors that are ready to feel themselves and to help neighbors feel these advantages condominium as cost reductions in tariffs as well as the private manager seeks to profit from its services, so it is a priori to be more expensive than a non-profit against connection. With the election of conscientious head of government – control over cash flows in condominium is much more transparent. If the contractual terms the house  to transfer service in private manager of this will always be better to elect the assembly members condominiums. In this case, the initiative group condominium, in contrast to the executive committee may hold a truly transparent competition. Only then such a decision will be based on criteria of reasonableness, effectiveness, appropriateness and objectivity.

    Because as organizational basis of houses management condominium in law and subject listed in Article aspects will exceed the “imposed” executive committees private entities. The correct option is to enlist qualified legal support and create their own  or accept the offer of initiative group on creation of condominiums. If a condominium as soon as possible will be created in practice will be the place designated by local councils abuse administrators who actually endowed with certain legal inequality versus owners.