RESOLUTION OF THE CABINET OF MINISTERS OF THE KYRGYZ REPUBLIC

of November 21, 2023 No. 614

About approval of the Regulations on procedure and conditions of attraction of financial resources of physical persons or legal entities in construction of apartment houses and other real estate objects

For the purpose of providing guarantees to participants of construction of apartment houses and other real estate objects, and creations of conditions for successful and fair realization of construction intentions of customers, and builders, according to article 10 of the Housing code of the Kyrgyz Republic, Articles 13, of the 17th constitutional Law of the Kyrgyz Republic "About the Cabinet of Ministers of the Kyrgyz Republic" the Cabinet of Ministers of the Kyrgyz Republic decides:

1. Approve Regulations on procedure and conditions of attraction of financial resources of physical persons or legal entities in construction of apartment houses and other real estate objects according to appendix.

2. This resolution is subject to official publication and becomes effective since January 1, 2024.

Appendix

to the Resolution of the Cabinet of Ministers of the Kyrgyz Republic of November 21, 2023 No. 614

Regulations on procedure and conditions of attraction of financial resources of physical persons or legal entities in construction of apartment houses and other real estate objects

Chapter 1. General provisions

1. This Provision determines conditions of implementation of construction of apartment houses and other real estate objects with involvement of physical persons and legal entities by the customer (builder) of financial resources.

1-1. Regulations of this provision do not extend to housing construction with use of mechanisms of participation financing within the state housing programmes realized by authorized body in the sphere of mortgage housing lending.

2. For the purposes of this provision the following basic concepts are used:

1) the prime contractor (general contractor) - the construction organization having the relevant allowing documents, including the license, which based on the signed contract with the customer (builder) (except as specified when the customer (builder) is the same legal entity or the individual entrepreneur) carries out everything provided by the project of construction object and the agreement of work on asset construction, with attraction in need of other organizations as the subcontractors which are carrying out part of special or separate work types according to the project of construction object and under the contract with the general contractor on construction asset construction including input of construction object in operation;

2) the schedule of production of construction works of object - the complete list of installation and construction works according to the project of construction object, their sequence and terms of realization;

3) the agreements signed regarding construction object (further - the agreement) - the agreements signed in writing between the customer (builder) and physical person or legal entity in type:

- the provisional agreement at stage of asset construction of construction and in consequence put in the form of the basic agreement about sale of subject of construction object in property to the client after completion of construction works of construction object, commissioning of construction object and its registration in bodies of state registration of the rights to real estate and transactions with them;

- or in other forms of agreements, concluded regarding construction object according to the civil legislation of the Kyrgyz Republic;

4) the customer (builder) - one or several legal entities or individual entrepreneurs, included in the Register, having rights to raise funds of clients for construction object before input of construction object in operation, and the having allowing documents for carrying out construction works on construction object on certain parcel of land;

5) the client - physical person or legal entity, the signed contract with the customer (builder) for the purpose of acquisition in property one or several objects of construction object before input of this construction object in operation;

6) construction object - apartment houses the consisting of residential and non-residential premises, and places public and (or) other real estate objects connected with construction of commercial and non-commercial objects (public and cultural, administrative and business, trade and household buildings and constructions), both separately under construction, and entering building of quarter, residential district or other element of planning structure;

7) construction object subject - the residential and non-residential premises of construction object acquired by clients on the conditions provided in agreements;

8) project total area - the amount of total areas of residential and non-residential premises, and also the rooms public of construction object specified in the project of construction object before input of construction object in operation;

9) the project of construction object the graphical decision which - is previously prepared, proved by technical and economic calculations and represented on construction of any building, construction or their complex;

10) the register of objects under construction (further - the Register) - the single electronic database containing data on construction objects, on customers (builders) raising financial resources of clients on construction object including information on the prime contractor, and also data on availability of state examinations and on problem construction objects;

11) construction object subject cost - the price at which the customer (builder) realizes to the client construction object subject specified in agreements;

12) subcontractor - legal entity or physical person, the individual entrepreneur who is carrying out special or separate work types on construction asset construction according to the contract with the general contractor (builder);

13) financial provision of the customer (builder) - own means of the customer (builder) used for conducting business activity, determined by the size of the created authorized capital of the legal entity, the confirmed own money of the individual entrepreneur;

14) authorized state body - The state agency of architecture, construction and housing and communal services under the Cabinet of Ministers of the Kyrgyz Republic both its structural and territorial subdivisions.

3. In case of real estate asset construction, the legal entity can be at the same time the customer (builder) and the prime contractor on one construction object and perform construction of this construction object by own efforts, in the presence of the relevant allowing documents issued to the legal entity and the individual entrepreneur, the project of the construction object approved by the relevant state body and other allowing documents.

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