Transformation of high-rise building management in Kazakhstan: essential insights for tenants
Starting mid-September, a significant change in the Housing Relations law will take effect in Kazakhstan. This new legislation aims to bring transparency and order to the management of residential buildings across the country.
The government agency responsible for overseeing and ensuring compliance with these regulations is the Committee for Residential Building Services under the Ministry of Industry and Infrastructure Development of Kazakhstan.
For buildings with 36 apartments or fewer, residents have the choice between a housing cooperative (KSC) or a management company as the management subject. KSCs, which do not pay taxes, and management companies, which operate on a general business regime and must pay taxes, including VAT on turnover over 10,000 MCI (approximately 40 million tenge), are the two management forms introduced by the new law.
The new law also establishes a single open registry of managing organisations (KSCs and UCs), which will be operational by the end of 2025. This registry will serve as a valuable resource for residents, allowing them to check who manages their building and identify who is responsible for emergency situations.
The registry will also show if a capital repair account is open and display approved tariffs and estimates. From September 17, a unified payment order is introduced for monthly payments.
In addition, the new law introduces a one-year transition period for KSCs to avoid chaos. If residents are inactive, the local administration will appoint a temporary management company for a period of two years.
Meetings and decisions are made by a majority of votes (51%), with voting options including in-person, mail, and online. Targeted Contributions, introduced by residents for additional services, are not mandatory but can be voted on.
Another important aspect of the new law is the minimum mandatory monthly payment amount, which is set annually by the akimat. Accumulated Funds, saved for major works, have a minimum fixed by law at 0.005 MCI per sq.m.
KSCs can now manage buildings via a contract with residents, acting as a management subject. The decision to choose a management subject must be made at a meeting, recorded in the protocol, and signed by a majority (51% of votes).
For larger buildings and residential complexes, the new law introduces the Joint Property Ownership Association (JPOA), while Direct Joint Management (DJM) is suitable for buildings with 36 apartments or fewer.
In case of inactivity from the residents, the local administration will appoint a temporary management company for a period of two years. This measure is designed to ensure the smooth operation of residential buildings and the protection of the rights and interests of all residents.
In conclusion, the new Housing Relations law in Kazakhstan aims to bring transparency, order, and efficiency to the management of residential buildings. The introduction of a single open registry, the choice between KSCs and management companies, and the establishment of JPOA and DJM as management forms are significant steps towards achieving these goals. Residents are encouraged to familiarise themselves with the new law and actively participate in the management of their buildings.
