The Law of Ukraine
On Associations of Apartment House Owners
Date of Entry into Force:
January 1, 2002
This Law defines legal and organizational principles of establishment, functioning, reorganization and liquidation of associations of owners of residential premises and premises used for non-residential purposes, protection of their rights and performance of duties regarding joint maintenance of apartment house.
The Law regulates:
- the procedure for establishment, registration, reorganization, functioning and liquidation of associations and unions;
- relations of subjects of ownership right regarding use and disposal of real estate in association or union;
- relations between associations and unions;
- relations between associations, unions and bodies of state power, as well as bodies of local self-government;
- relations between associations and business entities.
The association shall be established in order to secure and protect rights of its members and observe their duties, properly maintain and use indivisible and public property, to ensure timely allocation of money for payments envisaged by legislation and statutory documents. Only one association may be established in one housing complex. Association may carry out economic activity for provision of own needs directly or by concluding agreements with natural persons or legal entities. Association shall be:
- a legal entity which has seal with its name and other necessary requisites, as well as settlement accounts in bank establishments;
- a non-profit organization that does not aim at receipt of profit for its distribution between the members of association.
Building societies may be reorganized into associations. Reorganization shall be performed upon decision of the general meeting. Participants of constituent assembly shall be members of building society who expressed such wish, fully paid value of living quarters and owned share in the value of uninhabited premises and other property.
Association may be created in the house of any ownership form by those who privatized or purchased a flat, as well as the owner of house or the person authorized by him, the owners of living quarters, as well as the owners of uninhabited premises.
Meeting of founders of association shall adopt the Statute of association which is approved by the specially authorized central body of executive power for town-planning and housing policy.
After acquiring the status of legal entity the association can:
- take the whole housing complex to own balance;
- upon agreement with the previous owner retain it as a balance holder of the whole housing complex or its part;
- conclude agreement on transfer the whole housing complex or its part to balance of any legal entity, which statute envisages the possibility of performing such activity.
The Law contains the list of rights and duties of association and its members.
Money of association shall be allocated to and kept on accounts in bank establishments. They shall be used only for a specified purpose. Money shall be used and disposed of according to the statute and approved estimate. Money of association shall not be distributed between the members of association.
In order to accumulate money for repair of indivisible and public property and expeditiously cover losses that arose due to accidents or unforeseen circumstances repair and reserve funds of association shall be created mandatory. Money of these funds shall be accumulated on the account of association in bank establishments and shall be used only purposively.
Expenditures for maintenance and repair of premises or other jointly-owned property shall be determined by the statute of association and agreement on its use. Money for use of indivisible and general property and servicing of joint property shall be paid to the bank account of association. This part of communal services shall be rendered to the association as end consumer.
The board of association may insure joint property from any risks and direct losses. Members of association – owners of living quarters or uninhabited premises shall insure owned premises by themselves. Insurance payments obtained for compensation of losses from accident shall be used first of all for restoration and repair.
The association shall be liquidated in case of:
- physical destruction or ruin of housing complex which makes impossible its restoration or repair;
- alienation of housing complex according to the decision of court;
- acquisition of all premises in the housing complex by one person.