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PRESIDENTIAL DECREE OF THE REPUBLIC OF UZBEKISTAN

of November 28, 2019 No. UP-5886

About additional measures for enhancement of mechanisms of mortgage lending

(as amended on 17-03-2021)

In the country consecutive measures for improvement of domestic conditions of the population due to expansion of scales of construction of available apartment and apartment houses, implementation in industry of new architectural and technical solutions are taken. So, for last three years 104 thousand families are provided with housing that is one and a half times more, than the number of the houses built over the last ten years.

At the same time further improvement of housing conditions of the population causes need of forming and development of modern market system of mortgage lending of physical persons, universal involvement and complete transition to housing construction by private contract organizations, gradual building-up of financing by commercial banks, and also strengthening of targeting and transparency of provision of the state support to the families needing improvement of housing conditions.

For the purpose of further expansion of scales of mortgage lending, creation of conditions for development of private contract organizations, implementation of new mechanisms of support to persons needing improvement of housing conditions, rational use of land resources and activization of processes of urbanization of settlements:

1. Enter new procedure for providing the population with housing at the expense of mortgage loans on the basis of the market principles (further - new procedure) according to which:

for the purpose of providing the mortgage market with the long-term Ministry of Finance of the Republic of Uzbekistan resources places in commercial banks money on market conditions for a period of 20 years;

commercial banks grant to the population mortgage loans at the expense of own means and funds allocated by the Ministry of Finance of the Republic of Uzbekistan;

mortgage loans, at the expense of the funds allocated to commercial banks by the Ministry of Finance of the Republic of Uzbekistan are provided on market rate with limiting establishment of credit amount on one borrower and provision to the borrower of the right of the independent choice of location and the area of housing;

to individuals, including with low income level and needing improvement of housing conditions (further - individuals), subsidies at the expense of funds of the Government budget of the Republic of Uzbekistan for compensation of part of the initial contribution and (or) percent on mortgage loan are paid (further - subsidies).

2. Implement new procedure:

in the rural zone - in the territories adjacent to the cities and the administrative centers of areas of the Republic of Karakalpakstan and areas;

in the city of Tashkent, and also in the cities of the Republic of Karakalpakstan and areas.

3. Determine that in case of realization of new procedure:

a) in the rural zone:

the construction of apartment houses is performed with their arrangement in the form of the makromassiv including at least 200 apartments;

the subjects of entrepreneurship performing construction of apartment houses are determined following the results of the competitive biddings;

the competitive auction is held by the territorial contest committees by determination of contract organizations for construction of apartment houses in the rural zone created by solutions of hokim of areas;

the parcels of land for construction of apartment houses are provided to subjects of entrepreneurship - bidding winners without running an electronic auction on a grant basis;

the construction of the apartment house is performed by the subject of entrepreneurship - the bidding winner at the expense of own means, the credits of commercial banks and other sources which are not forbidden by the legislation;

the construction of the bringing and on-site networks of water supply and the sewerage and highways is performed by khokimiyats of areas at the expense of means of centralized sources, including means of the international financial institutions and local budgets;

the construction of the bringing and on-site electric utility power grids and gas supply is performed respectively at the expense of own means of JSC Regionalnye elektricheskiye seti and JSC Hududgaztajminot, if necessary - at the expense of means republican and local budgets;

b) in the cities:

the parcels of land for construction of apartment houses are provided to subjects of entrepreneurship on paid basis by means of electronic auction through United electronic market place of "E-IJRO AUKSION";

the construction of apartment houses is performed by the subject of entrepreneurship - the winner of electronic auction at the expense of own means, the credits of commercial banks and other sources which are not forbidden by the legislation;

the construction of engineering and transport communications is performed at the expense of means of the subject of entrepreneurship - the winner of electronic auction and other sources which are not forbidden by the legislation, if necessary - at the expense of means republican and local budgets.

To the ministry of construction, the Ministry of Economy and Industry together with the interested ministries and departments to submit for approval in the Cabinet of Ministers of the Republic of Uzbekistan mechanisms, criteria of carrying out the competitive biddings and qualification requirements to the subjects of entrepreneurship performing construction of apartment houses in the rural zone within new procedure including criteria in a month "the price - quantity".

4. Determine that within new procedure mortgage loans at the expense of the means allocated to commercial banks with the Ministry of Finance of the Republic of Uzbekistan are provided on acquisition of the apartments realized in the primary market of housing (including the apartments realized in the primary market of housing and built outside new procedure) in the cities and the rural zone in the amount of which is not exceeding 85 percent of settlement cost of housing for a period of 20 years and with the initial contribution in the amount of at least 15 percent from the cost of the acquired apartment.

At the same time:

estimated cost of housing is determined annually by the Ministry of Finance together with the Ministry of Economic Development and reducings poverty and the Ministry of construction of the Republic of Uzbekistan proceeding from average market value of one square meter of housing in the respective region and the maximum space allowance of the apartment irrespective of the number of rooms in it;

in case of excess of cost of the acquired apartment over its settlement cost the rest of cost is paid by the borrower at the expense of own means and other sources which are not forbidden by the legislation;

in case of decrease in the main rate of the Central bank the size of percent on mortgage loans of commercial banks and to the funds allocated by the Ministry of Finance of the Republic of Uzbekistan in proportion decreases, and in case of its increase - remains invariable.

5. To the Ministry of Finance together with the Central bank of the Republic of Uzbekistan in two-month time to develop the concept of issue of mortgage loans on acquisition of apartments in apartment houses according to new procedure, and also requirements to potential borrowers.

6. Determine that within new procedure for subsidy are paid:

in the rural zone - on compensation for expenses, connected with payment of part of the initial contribution in the amount of 10 percent from the settlement cost of housing and percent on mortgage loan within the first five years - in the part exceeding 10 percent points;

in the cities - on compensation for expenses, connected with payment of part of the initial contribution in the amount of 10 percent from the settlement cost of housing, and percent on the credit within the first five years - in the part exceeding 12 percent points in the city of Tashkent and also 10 percent points in the cities of the Republic of Karakalpakstan and areas.

Determine that since March 1, 2020 applications are submitted for receipt of subsidies through the Centers of the state services or the Single portal of interactive state services of the Republic of Uzbekistan.

7. To the Ministry of Finance of the Republic of Uzbekistan:

provide payment of subsidies within the means approved in annual parameters of the Government budget of the Republic of Uzbekistan;

in a month to make in the Cabinet of Ministers suggestions for improvement of payment procedure of subsidies from the Government budget and extrabudgetary funds of the ministries and departments for payment of the initial contribution on the mortgage loans granted to citizens within the existing target state programs including military personnel of the Ministry of Defence, National guard, the Ministry of Emergency Situations, Service of state security, Public service of safety of the President of the Republic of Uzbekistan and the staff of law-enforcement bodies, taking into account the requirement of paragraph two of Item 9 of this Decree;

together with the Ministry of Economy and Industry, the Ministry of Justice, other ministries and departments to introduce to the Cabinet of Ministers of the Republic of Uzbekistan the draft of the government decision according to criteria and procedure for selection of persons to which subsidies are paid in a month.

8. Approve:

Target reference points on construction of apartment houses and payment of subsidies according to new procedure in the rural zone for 2020 according to appendix No. 1;

Target reference points on construction of apartment houses and payment of subsidies according to new procedure in the cities for 2020 according to appendix No. 2.

9. Determine that within new procedure:

for 2020 for the military personnel, including the Ministries of Defence, National guard, the Ministry of Emergency Situations, Service of state security, Public service of safety of the President of the Republic of Uzbekistan and the staff of law-enforcement bodies remain the operating terms for crediting and the payments of the initial contribution established by earlier adopted acts of the legislation;

the choice of the parcels of land for construction of apartment houses and engineering and transport communications is performed by Council of Ministers of the Republic of Karakalpakstan, khokimiyats of areas and the city of Tashkent in coordination with the Ministry of Economic Development and reducings poverty, the Ministry of construction, the Center of hydrometeorological service under the Cabinet of Ministers and the Agency according to the inventory under the State Tax Committee;

for construction of apartment houses the empty parcels of land which are not entering category of the irrigated lands of agricultural purpose and forest fund having access to external engineering and transport communications and located in densely populated areas are provided.

To the state committee on land resources, geodesy, cartography and the state inventory together with the Agency of urbanization under the Ministry of Economy and Industry of the Republic of Uzbekistan in three-months time to create databank of the free and inefficiently used parcels of land having access to external engineering and transport communications ("Land bank").

10. Form the Republican commission on implementation of new procedure for construction and realization of housing on the basis of the market principles in structure according to appendix No. 6, having determined it the main objectives:

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