RESOLUTION OF THE STATE COMMITTEE OF THE REPUBLIC OF KAZAKHSTAN ON THE PRICE AND ANTIMONOPOLY POLICY

of February 14, 1997 No. 13

About approval of methodical recommendations about practical activities of cooperatives of owners of apartments and non-residential premises in apartment houses

1. Approve Methodical recommendations about practical activities of cooperatives of owners of apartments and non-residential premises in apartment houses (are applied).

2. To the head of department of the analysis, information and organizational and personnel work / Aymenov of X.A./to bring this resolution to territorial committees, Akimov of areas, the city of Almaty.

3. To chairmen of territorial committees:

- publish methodical recommendations in local press;

- bring them to heads of associations and chairmen of KSK.

4. To impose control of execution of this resolution on the vice-chairman of committee Kvyatkovskaya T. G.

Methodical recommendations about practical activities of cooperatives of owners of apartments and non-residential premises in apartment houses

I. General provisions

1. These methodical recommendations are developed according to the laws "About Consumer Protection", "About Development of the Competition and Restriction of Monopolistic Activities", the order of the Government of the Republic of Kazakhstan N 587 of May 13, 1996. "About demonopolization of housing and communal services and streamlining of calculations for housing and communal services" and others legislatively regulations, and also according to "The charter of consumer cooperative of owners of apartments" and Provisional regulations "About procedure for provision to needy citizens of housing benefits for content of housing and payment of housing and communal services".

2. Methodical recommendations are developed in connection with numerous appeals of citizens to the Antimonopoly Committee and are intended for the organization and activities of the cooperatives of owners of apartments (COA).

3. It is reasonable to have methodical recommendations in each KSK and to inform all residents.

II. Relation of the parties participating in the sphere of utilities

1. The board of KSK is effective according to the Charter of KSK registered in judicial authorities. Questions of compensation of board members, collection of financial resources for all needs of cooperative are considered on general meeting of owners of apartments in the presence on it at least 2\3 voices of members of KSK. Entry into KSK of large number of apartment houses and difficulty in ensuring quorum at meeting are not the basis for decision making with violation of the above-stated quorum.

2. Large KSK (over 500 apartments) can make additions to the Charters and provide in them collection of voices of members of KSK on the most important issues by holding serially house meetings with the subsequent summing of all results of vote. In addition in amendments to the charter vote conditions by distribution among residents of voting bulletins with accurate designation of the main discussed issues can be pledged.

3. Boards of KSK till March 1 of this year need to conclude with the residents who were not participating in general meetings, agreements on interaction concerning content of housing or to receive their consent on the introduction in members of cooperative.

4. Certain citizens, not persons interested to enter KSK, on the basis of the constitutional regulation about freedom of associations of citizens cannot be enlisted by the member of KSK compulsorily. They have the right to make individually payments for utilities to sellers according to the individual standard agreements signed with them. However, these citizens on an equal basis with members of KSK bear liability for content of all house and shall deposit to account KSK certain part of expenses based on the agreement signed with government of KSK.

5. The board of KSK acts as the seller of some types of utilities in relation to the owners of apartments who did not enter KSK. In this case their relations are governed by the Law "About Consumer Protection".

6. The board of KSK shall provide to each member of cooperative the complete information about the activities: the purposes of the monthly or onetime money dues (target) with indication of the list of the planned or performed expenses, structure and the size of official pay rates of board of KSK, the list of all types of service, on which the owner having the right to apply. Information is carried to owners of apartments by means of the special stand (bulletin board), information leaflets, or otherwise.

7. The board of KSK in case of collection of any payments shall be guided legislative and regulations on financial activities, financial accounting and control.

8. The board of KSK for the purpose of decrease in all cost types has the right to announce competition on hiring of technical workers (janitors, cleaners for cleaning of entrances, etc.), to hold the tender for the conclusion of the contract with this or that business entity for technical and emergency servicing of houses of cooperative, for purchase, installation and servicing of instrumentations, for subscriber services by computer center (listing of payment documents and leading of final calculations after their passing through bank).

9. For the purpose of acquisition and installation of instrumentations the board of KSK has the drawing right in case of representation of mortgage guarantees. At the same time the apartment or other type of property of any member of KSK without its personal consent which is drawn up notarially as a deposit cannot be exposed.

10. The board of KSK shall sign the contract with the seller of utilities for supply of gas, water, the electric power, heat. The questions relating to servicing of common indivisible property of KSK and the solution of organizational and subscriber tasks shall be subject of this agreement.

11. The board of KSK has the right to carry out subscriber work on the contract with all sellers of utilities, using for this purpose single pay books at the same time on all types of service, or separate books on specific type of service, or to independently print out receipts notices for members of KSK.

12. In case of the conclusion of contracts KSK with sellers of utilities for accomplishment by board of cooperative of subscriber work, KSK payments of this work have the right to require.

13. Board of KSK the contracts with local office of People's or other Bank having the right to sign in case of accomplishment of subscriber work.

14. In case of the conclusion of such agreement the bank rendering services of collection of utility payments from the population has no right () to offer to Art. 7 of the Law "About Development of the Competition and Restriction of Monopolistic Activities" of KSK terms of the contract the worst, than to other business entities of the municipal sphere with whom agreements were signed earlier including on interest rate of assignments for banking services.

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