What is an Association of Property Owners (APO)

The OWNER of an apartment building is a legal entity that is a non–profit organization formed by the owners of apartments and non-residential premises of one apartment building, which manages a condominium facility, finances its maintenance and ensures its safety.

The Organization is considered established and acquires the rights of a legal entity from the moment of its state registration.

The state registration of the AXIS is carried out by the judicial authorities in accordance with the procedure established by the legislation of the Republic of Kazakhstan on state registration of legal entities and registration of branches and representative offices.

In turn, paragraph 3 of the above-mentioned article of the Law states that for the state registration of the AXIS, the following documents are submitted to the judicial authorities:

1) an application in the form prescribed by the Ministry of Justice of the Republic of Kazakhstan;

2) Minutes of the meeting;

3) the statute of the AXIS;

4) a receipt or other document confirming the payment to the budget of the registration fee for the state registration of a legal entity.

The owners of apartments and non-residential premises at the meeting consider issues and make decisions related to the management of the condominium facility and the maintenance of the common property of the condominium facility.

The decisions adopted by the meeting are binding on all owners of apartments, non-residential premises, parking spaces, storerooms.

The decision of the meeting is formalized by the protocol.

The meeting is held at least once a year. A meeting is convened or a written survey is appointed on the initiative of the council of the house or the chairman of the AXIS, or a trustee of the PT, or at the request of the audit commission (auditor), or at the request of at least ten percent of the owners of apartments, non-residential premises, or at the initiative of the housing inspectorate.

In turn, sub-paragraphs 1) and 3) of paragraph 2 of Article 42-1 of the Law states that the competence of the assembly includes the issues of electing the chairman of the AXIS, the trustee of the PT, members of the house council, re-election, as well as early termination of their powers, as well as making a decision on choosing the form of management of the condominium facility or delegating authority to choose the form managing the council of the house.

According to paragraph 5 of the above-mentioned article of the Law, the assembly is authorized to make a decision if more than half of the total number of apartment owners and non-residential premises participate in it.

The decision is made with the consent of the majority of the total number of owners of apartments and non-residential premises who directly participated in the voting.

Article 42-2 of the Law stipulates that a meeting is held by written poll if the previously announced meeting did not take place in person due to the lack of a quorum.

To organize a meeting, an initiative group is determined by conducting a written survey from among the owners of apartments and non-residential premises.

Thus, the initiative group consists of at least ten percent of the owners of apartments and non-residential premises.

Based on the above, an initiative group consisting of at least 10% of the owners of apartments and non-residential premises of the house has the right to make a decision on organizational and procedural issues of the meeting.

The Chairman of the AXIS is elected at the meeting from among the owners of apartments and non-residential premises for a period of one year.

Subparagraph 5) of paragraph 7 of Article 43 of the Law stipulates that the Chairman of the AXIS performs the functions of opening current and savings accounts in second-tier banks.

Based on the above, the election of a new AXIS Chairman or the re-election of the current AXIS Chairman for a new term should be carried out at a meeting, well in advance of the expiration of the term of office of the current AXIS Chairman.

The extension of the powers of the chairman of the AXIS without a decision of the general meeting of owners of apartments and non-residential premises is contrary to current legislation.

Subitems 1) and 16) of paragraph 2 of Article 42-1 of the Law provide that the competence of the assembly includes the following issues::

- election of the Chairman of the AXIS, re-election, as well as early termination of his powers;

- agreeing on the amount of remuneration for the Chairman of the AXIS.

At the same time, paragraph 5 of the Methodology for calculating the cost estimates for the management of the condominium facility and the maintenance of the common property of the condominium facility (approved by Order of the Acting Minister of Industry and Infrastructure Development of the Republic of Kazakhstan dated March 30, 2020 No. 166) provides that the following costs are included in the management of the condominium facility:

1) remuneration for accounting, statistical and tax reporting;

2) remuneration to the Executive Body (Chairman of the AXIS) for the management of the condominium facility;

3) mandatory payments to the budget (taxes, deductions, etc.);

4) Banking services;

5) payment for cash and settlement services;

6) office expenses (rent, communications, stationery, office equipment and its maintenance).

Based on the above, the chairman's remuneration is based on the minutes of the meeting of apartment owners and non-residential premises.

At the same time, we note that the relationship between the chairman of the AXIS and the owners of apartments and non-residential premises is concluded by an agreement on the provision of services for the management of the condominium facility and the maintenance of the common property of the condominium facility, which does not provide for paid annual work leave.

In accordance with subparagraph 2 of article 42-1 of the Law, the assembly is responsible for approving the annual cost estimates for the management of the condominium facility and the maintenance of the common property of the condominium facility, making changes and additions to it, as well as approving the amount of costs for the management of the condominium facility and the maintenance of the common property of the condominium facility.

Based on the above, the owners of apartments and non-residential premises at the meeting, by voting, if there is a majority of votes from the total number of owners of apartments and non-residential premises, have the right to make a decision regarding the approval of the annual cost estimates for the management of the condominium facility and the maintenance of the common property of the condominium facility.

The following expenses are included in the management of the condominium facility:

1) payment of labor (services) to the Executive Body for the management of the condominium facility;    

2) remuneration of labor (services) for accounting, statistical and tax reporting;

3) mandatory payments to the budget (taxes, contributions, deductions, etc.);

4) Banking services;

5) payment for cash and settlement services;

6) office expenses (rent, communications, Internet, stationery, office equipment and its maintenance);

7) compulsory insurance of employees against accidents;

8) payment for printing and processing payments for the costs of managing the condominium facility and maintaining the common property of the condominium facility, as well as accumulation for major repairs, a target contribution;

9) expenses related to compulsory debt collection (notary services, postal services, state duty, etc.).

The following expenses are included for the maintenance of the common property of the condominium facility:

1) deratization, disinfection, disinfection of basements, parking lots and other common areas of the condominium facility;

2) maintenance, localization of accidents of communal engineering systems (heating, hot and cold water supply, sanitation, electricity, gas supply, ventilation) and equipment of the condominium facility, except in cases when the proper technical condition and safety of energy networks, as well as metering devices for energy consumption is assigned to the energy supply organization;

3) preparation of general house engineering systems and equipment for the autumn-winter period;

4) ensuring the sanitary condition of the common areas of the condominium facility;

5) ensuring the sanitary condition of the land plot of the adjacent territory of the condominium facility (landscaping (planting, maintenance, pruning of green spaces and lawns), sanitary cleaning of the garbage chute, cleaning of cesspools, cleaning and whitewashing of yard latrines, cleaning of leaves, snow and ice, including from the roof);

6) purchase, installation, maintenance and verification of household metering devices;

7) ensuring the safe operation of dangerous technical devices, routine repairs and localization of emergencies (elevator maintenance) by decision of the meeting of owners of apartments and non-residential premises;

8) fire-fighting measures, including the maintenance of fire-fighting equipment, the purchase and charging of fire extinguishers, the implementation of special inscriptions, signs, plans and evacuation schemes, with the exception of the purchase and installation of fire alarm and extinguishing systems;

9) routine repairs of the common property of the condominium facility (based on a defective act);

10) payment of utilities for the maintenance of the common property of the condominium facility by decision of the meeting of apartment owners, non-residential premises;

11) installation of intercom equipment;

12) maintenance of intercom equipment;

13) household expenses (purchase of inventory, equipment, etc.).

The approval of the tariff is calculated according to the approved annual cost estimates for the management of the condominium facility and the maintenance of the common property of the condominium facility, in accordance with paragraphs 5 and 6 of the Methodology.

According to subparagraph 5) of paragraph 1 of Article 41-2 of the Law, the housing inspectorate exercises the authority to issue binding orders (submissions) to eliminate violations of the Law and rules on the management of the condominium facility and the maintenance of the common property of the condominium facility and to draw up protocols on administrative offenses.

The housing Inspectorate conducts preventive control with a visit to the subject (object) of control for the availability of supporting documents on the provision of a monthly and annual report on the management of the condominium facility, as well as the compliance of the minutes of meetings of apartment owners, non-residential premises, parking spaces, storerooms of the Ministry of Railways with Standard minutes of meetings of apartment owners, non-residential premises, parking spaces, storerooms of the Ministry of Railways.

We note that, according to paragraph 1 of Article 8 of the Law, disputes arising from housing relations are resolved by the court.

According to article 91 of the Administrative Procedural Procedure Code of the Republic of Kazakhstan, in case of disagreement with the decision of the body, the participant in the administrative procedure has the right to appeal the administrative act, administrative action (inaction) to another body considering the complaint or to the court.