PRESIDENTIAL DECREE OF THE REPUBLIC OF UZBEKISTAN

of January 27, 2025 No. UP-11

About measures for further development of the sphere of house construction and enhancement of mechanisms of regulation of process of construction of residential and non-residential objects on the basis of equity

For the purpose of complex regulation of the sphere of house construction in the country, since projecting phases before commissioning of housing, further development of the sphere of house construction, enhancement of mechanisms of investment attraction, and also guaranteeing the rights and legitimate interests of citizens in the course of construction of residential and non-residential objects on the basis of equity:

1. Approve the offer of the Agency of strategic reforms in case of the President of the Republic of Uzbekistan, the Ministry of Economics and finance, the Ministries of Construction and Housing and Communal Services, the Central bank and the Ministry of Justice about implementation of the principle "Single lifecycle of housing" providing:

ensuring protection of the rights of physical persons and legal entities (further - the shareholder) in the course of construction of residential and non-residential objects (further - object) on the basis of equity;

the organization of house construction with effective (intensive) use of the available land resources;

reducing terms of implementation of investment projects in the field of house construction;

creation of reliable and effective possibility of acquisition of housing on the basis of equity and mortgage lending;

promoting of use of energy efficient construction materials in house construction.

2. For the purpose of ensuring protection of the rights of shareholders in the course of construction of facilities on the basis of equity to establish within the principle "Single lifecycle of housing" the procedure according to which since July 1, 2025:

a) attraction of money of shareholders on the basis of equity in construction of facilities is performed by construction contract organizations, developers and customers (further - the builder) is exclusive based on the notarized agreement on the basis of the equity in asset construction (further - the agreement of equity) which underwent state registration in cadastral bodies;

b) from the date of state registration of the agreement of equity before provision of permission to joint operation of object by the parties on which building and construction works is complete:

transfer to other person of the rights of the shareholder to reclamation under the agreement of equity, and also acceptance as subject of pledge of the agreement of equity is allowed, and its state registration in cadastral bodies is performed;

the property rights and obligations based on the agreement of equity are part of inheritance of the shareholder;

c) means under the agreement of equity for their accounting take place and deposited by the shareholder on the escrow account opened in authorized commercial bank (further - commercial bank) based on the agreement signed between the builder, the shareholder and the relevant commercial bank;

d) suspension of transactions, seizure or write-off of means on escrow account according to obligations of shareholders to the third parties and obligations of the builder is not allowed;

e) financing of works on asset construction is made at the expense of own means of the builder, borrowing facilities allocated by commercial banks by project financing, and also other means which are not prohibited by the legislation;

e) the system of allocation of purpose-oriented loan by commercial bank to the builder after accomplishment by the builder at the first stage at least 30 percent of total amount of works on asset construction at the expense of own means takes root;

g) the annual interest rate of the credits allocated by commercial banks to builders by project financing is established proceeding from the amount of the means accumulated on escrow account. At the same time the system of interest rate reduction of the credit as a result of increase in means on escrow account takes root;

h) after provision of the permission to operate of object with complete building and construction works and the equity constructed based on the agreement:

the means deposited on escrow account go commercial bank for repayment of the allocated credit to the builder for construction, the rest is listed to the builder;

the builder and the shareholder sign the deed of conveyance to the shareholder of object of shared-equity construction;

state registration of the property right of the shareholder to object is performed by cadastral bodies;

i) in case of failure to complete timely of building and construction works and lack of the permission to operate of object, the separate fixed penalties for each day of delay take root, prolongation of terms under the agreement is performed only with the consent of the shareholder by the conclusion of the supplementary agreement. At the same time in case of commissioning of the object after six months from the term specified in the design estimates, the shareholder can perform return of the means deposited on escrow account by one-sided agreement cancelation of equity;

j) it is forbidden to offer and realize the securities granting the right to allocation of residential and non-residential premises in nature for attraction of financial resources of shareholders on asset construction on which there is no permission to operate of object with complete building and construction works, and also to sign other agreements, misfitting to requirements of the procedure established by this Decree.

3. Determine that attraction of financial resources of shareholders for construction is performed:

during the period from July 1, 2025 to December 31, 2025 - in parallel by means of escrow accounts and the procedure for equity acting today on the basis of the mechanism of direct attraction at the choice of the parties;

since January 1, 2026 - only by means of escrow accounts.

4. To Central Bank together with the Ministry of Justice in three-months time to approve the list of the commercial banks performing project financing of shared-equity construction and transaction on escrow accounts, criteria of their rights and obligations, procedures for maintaining escrow accounts and project financing of objects.

5. To the Ministry of Construction and Housing and Communal Services together with the Central bank to organize training abroad of employees of the commercial banks responsible for project financing of objects, the conclusion of agreements of equity, implementation of transactions for escrow accounts in a month, and also increase in their qualification with involvement of foreign specialists.

6. To the Ministry of Construction and Housing and Communal Services together with the Ministry of digital technologies in three-months time within the information system "Transparent Construction" to create and since July 1, 2025 to provide full functioning of electronic platform of house construction. At the same time to determine that:

a) the builder raising funds of shareholders for construction places on electronic platform the following data on the construction organizations and objects:

the exact address of dislocation of each object under construction according to the project, the number of floors, entrances, apartments, non-residential premises, the square and the adjacent territory, data on the financing commercial bank, actually realized residential and non-residential premises;

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info