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How to create an OSMD in Ukraine: step-by-step instructions, problems and solutions

Often, developers’ operating companies do not want to transfer tenants the right to manage a new building

In Ukraine, the number of co-owners of apartment buildings is growing, because this is a great way to manage a high-rise building, repair and improve the quality of living in a house. What is needed to create an OSMD in Ukraine, what problems may arise and how to solve them was recognized by the capital real estate portal 100realty.ua.

Some statistics on OSMD in Ukraine
Every year the number of OSMD in Ukraine is growing. According to the Ministry of Regional Development, in 2018 about 1.5 thousand of such associations were created. Now the country has 31 thousand 583 OSMD, which means that 17.6% of the houses are managed by residents.

Areas leading in the number of OSMD:

Kherson region (associations were created in 40% of houses);
Ternopil region (35% of houses);
Vinnytsia region (28% of houses).
“Almost 7% of apartment buildings have chosen managers on their own. In Ukraine as a whole, 22.7% of the houses of the manager are still appointed by local authorities according to the results of tenders. This is of course important the dynamics of the development of the institution of ownership in Ukraine. And now I think our common task is to protect it, to enable people to really manage their property and feel secure, ”said the Minister of Development of Communities and Territories of Ukraine Alena Babak.

Related article: Results of 2019 on the real estate market of Kiev: the market is “stormy”, prices have changed significantly

Thus, the process is moving forward and residents of high-rise buildings are trying to help organize the process of unification into society.

How to create an OSMD in Ukraine: step-by-step instructions
OSMD (association of owners of an apartment building) is a legal entity created by the owners of apartments and / or non-residential premises of an apartment building to facilitate the use of their property and the management, maintenance and use of common property.

There is the Law of Ukraine “On OSMD”, adopted in 2001, the norms of which govern the procedure for creating an OSMD, the basics of its work, structure and other related issues.

The first thing you should pay attention to is that OSMD or OSBB is a non-entrepreneurial society, a non-profit organization, that is, income cannot be distributed between owners.

According to Oleg Goretsky, managing partner of Goretsky and Patners Law Firm, mediator, candidate of legal sciences, the process of creating an OSMD consists of several stages:

First stage. Constituent Assembly on the creation of OSMD
OSMD can be created only by owners of apartments and non-residential premises. Owner fees can only be held after state registration of ownership of more than half of the apartments and non-residential premises.

Related article: New rules for assessing real estate in Ukraine – opinions of lawyers

To create an OSMD, a constituent assembly is convened by an initiative group, the composition of which is at least three owners. At the same time, a notice of fees at least 14 days in advance is given to each owner against receipt or sent by a recommended letter.

The notification on the creation of the OSMD shall indicate:

place and time of the meeting,
draft agenda
information on whose initiative the meeting is convened.
Before the meeting, the name of the OSMD is voiced for its approval. The main thing is to check that there is no OSMD with the same name, otherwise the registrar will refuse to register.

The constituent assembly is led by a chapter, which is elected by a majority vote of the owners present.

The number of votes of each owner is proportional to its part of the total area of ​​the apartment (room) in the total area of ​​all apartments (and premises) of the house.

A decision is considered adopted if more than half of the total number of all owners voted for it. If the number of votes is not gained, a written poll of the non-voting owners shall be conducted within 15 days from the date of the meeting. If, after a written survey, the required number of votes is not gained, then the decision shall be considered not adopted.

Related article: What taxes and costs when buying an apartment in a new building in Ukraine

The Constituent Assembly takes a decision on the creation of the OSMD (OSBB) and approves its charter (Statute of the OSMD), which is signed by the head of fees or another authorized person.

Second phase. State registration of OSMD in Ukraine
OSMD is considered to be created from the date of its registration, after which the former balance holder supports the transfer of technical and other documentation for three months.

The next steps after registration are organizational work:

determination of the composition of the board,
composition of the audit commission,
approval of the work of the statutory bodies,
definition of areas of work and priorities.
Difficulties in creating OSMD in Ukraine and ways to overcome
According to Oleg Goretsky, first of all, when creating the OSMD in

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