What is an Association of Property Owners (APO)

At the first meeting, the owners of apartments, non-residential premises must choose:

• members of the house council, who will represent the interests of the owners of apartments, non-residential premises on the management and maintenance of the common property of the condominium object;
• the form of management of the condominium object or delegate such authority to choose the form of management to the council of the house.

The owners of apartments, non-residential premises are obliged to choose one of two forms of management:

1. Association of property owners (APO) - a legal entity formed by the owners of apartments in non-residential premises;
2. simple partnership - direct joint management of all owners of apartments and non-residential premises without forming a legal entity.

At the same time, both forms of condominium management will operate on the principle of “one house-one association or simple partnership-two bank reports”, which implies that each association of property owners or a simple partnership will open its own current and savings bank accounts. 

Further at the meeting are elected the following:

• chairman of the APO;
• audit commission (auditor).

The chairman of the APO is elected from among the owners of apartments, non-residential premises of an multi apartment building and carries out management functions, concludes independently contracts for the provision of services with the subjects of service activities.

He is elected from among the apartment owners for a period of one year. The chairman performs the following functions:

• Registers with the justice authorities;
• Forms a list of tenants and owners of non-residential premises, concludes contracts with contractors;
• Executes the decisions of the tenants;
• Places information about the decisions made by the meeting and the council in public places;
• Opens current and savings accounts with second-tier banks;
• Monitors the performance of the duties of tenants and contractors;
• Submits monthly and yearly reports to tenants at meetings;
• Performs other functions related to the management of the condominium object and the maintenance of the common property of the condominium object.

The chairman of the APO has the right to represent the association in all courts, state bodies and organizations without a power of attorney.

The amount of remuneration for the chairman of the APO is agreed upon at the meeting by all owners of an apartment building.

After the creation of the APO, the residents of the house need to hold a meeting and accept the cost estimate.

Money can be spent from a major overhaul account to repair the roof, façade, and other high-value parts of the common property of the condominium. 

And the money from the account "For housing maintenance" is divided: no more than 30 percent goes to management, no more than 70 percent - to the maintenance of common property.  

The following costs are included in the management of the condominium:

• payment for accounting services, statistical and tax reporting;
• payment to the executive body for managing the condominium object (the amount is agreed upon at the meeting or by the house council);
• obligatory payments to the budget (taxes, deductions, etc.);
• bank services;
• payment for settlement and cash services;

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

The following expenses are included in the maintenance of the common property of the condominium object:

• deratization, disinfestation, disinfection of basements, parking lots and other common areas of the condominium facility;
• maintenance, localization of accidents of general building engineering systems (heating, hot and cold water supply, water disposal, power supply, gas supply, ventilation);
• preparation of general building engineering systems and equipment for the autumn-winter period;
• ensuring the sanitary condition of common areas of the condominium facility;
• ensuring the sanitary condition of the land plot of the adjacent territory of the condominium object.This includes landscaping (planting, maintenance, pruning of green spaces and lawns), sanitary cleaning of garbage chutes, cleaning of cesspools, cleaning and whitewashing of yard latrines, cleaning leaves, snow and ice, including from the roof;
• purchase, installation, service and calibration of general house metering devices;
• ensuring the safe operation of hazardous technical devices, routine repairs and localization of emergencies (elevator maintenance) by decision of the meeting of owners of apartments and non-residential premises;
• fire-fighting measures, including the maintenance of fire-fighting equipment, the purchase and charging of fire extinguishers, the implementation of special inscriptions, signs, the preparation of plans and schemes for evacuation, with the exception of the acquisition and installation of fire alarm and fire extinguishing systems;
• current repair of the common property of the condominium object (based on a defective act);
• payment of utilities for the maintenance of common property of the condominium object by decision of the meeting of owners of apartments, non-residential premises;
• installation of intercom equipment;
• maintenance of intercom equipment;
• household expenses (purchase of inventory, equipment, etc.).

It is impossible to refuse making contributions for major overhaul of the house.

According to the law, the owners of apartments and non-residential premises are obliged to take measures to maintain the common property of the condominium object and ensure its safe operation, including the current and major repairs of the common property of the condominium object.

Management organs can sue the debtors and recover the money.

The owner of an apartment and non-residential premises to accumulate money for capital repairs of the common property of the condominium object is obliged to transfer money to the savings account in the amount for at least 0.005 times the MCI, per 1 square meter of usable area of the apartment belonging to him or non-residential premises.

For savings accounts, the second-tier bank will keep an automated accounting of money with a breakdown for each apartment, non-residential premises.

Each owner of an apartment and non-residential premises, who pays money for the overhaul of the common property of a condominium object, has the right to receive information about the accumulated money for his apartment, non-residential premises.

The chairman of an association of property owners is obliged to provide information on the accumulation of money for overhaul of the common property of a condominium object at the request of the owner of an apartment or non-residential premises.  

When preparing documents, it is necessary to use standard forms of the minutes of the meeting and survey sheets, in accordance with the Rules approved by order of the MIIR RK No. 163 on March 30, 2020. Voting sheets must be numbered and stitched together with the protocol.

The APO charter must be submitted to the registering authority in two languages: state (2 copies) and Russian (2 copies). When developing the charter, it is also easiest to take as a basis the Model Charter of the Association of Property Owners, which was developed just in order to make life easier for apartment owners.

If the apartment owners decide to develop the charter of their APO independently, it is necessary to include the fundamental norms of the Law of the Republic of Kazakhstan "On Housing Relations".

The name of a legal entity in accordance with the Civil Code of the Republic of Kazakhstan should not completely or substantially duplicate the name of the other already registered legal entities.

If you find it difficult to choose the name of the APO take the name of the residential complex or the address of an apartment building.

As the location of a legal entity, you can specify the actual address of the APO office or the home address of the APO head.

The chairman of the APO must be fully capable, not have an outstanding and unexpunged conviction for crimes, premeditated bankruptcy, as well as debts for executive documents.

When filling out an application for state (accounting) registration of a legal entity, branch (representative offices), it is necessary to specify the code OKED 68.32.1 - "Real estate management for remuneration or on a contractual basis".

The meeting of the owners of apartments, non-residential premises on the transition from CAO to APO or on other issues is convened at the initiative of the council of the condominium, the trustee of a simple partnership, or at the request of the audit commission, or at the request of at least 10 percent of the owners of apartments and non-residential premises, or at the request of the housing inspection. 

In order to create an APO, there is no need to contact the local governor office (akimat), it is enough to hold a meeting of owners of apartments and non-residential premises.

If the owners of apartments and non-residential premises of multi-apartment residential buildings, within one year from the date of entry into force of the adopted Law of December 26, 2019, do not create an APO or a simple partnership, then the local executive bodies are obliged to ensure that a meeting of owners of apartments and non-residential premises of an apartment building is held for the election of a council of and the selection of the form of management of the condominium object.

Apartment owners' cooperatives (AOC) will not be abolished automatically, but must be liquidated into the managing or service companies. Already in the new status, they will continue their activities for the maintenance of houses. The created APO or simple partnerships will decide whether to conclude an agreement with them or not.

If earlier CAO simultaneously acted as a customer and a contractor of services for the maintenance of the common property of an apartment building, then APO will act only as customers. There will not be many employees in the staff.

That is, tenants will attract managing or service organizations, conclude contracts with contractors, utility services and control the volume and types of work performed and their payment for their condominium facility.

The chairman of the APO within 15 working days from the date of election is obliged to open two accounts in a second-tier bank:

• current (for crediting money for the costs of the current management of the condominium object and its maintenance);
• savings (to accumulate money for major repairs of common property).

You cannot refuse to open accounts.

Liability is provided for violation of the terms of opening current and savings accounts for a condominium object in second-tier banks.

The sanction first foresees a warning.

If violations are not eliminated within a year, then a fine is established

• in the amount of 10 MCI for individuals (for the authorized representative of the SP)
• in the amount of 20 MCI - for legal entities (for the chairman of the APO).