Article 8. Organization of equity participation in housing construction by way of obtaining a guarantee from a Single Operator of the Law On Equity Participation in Housing Construction

Home / RLA / Article 8. Organization of equity participation in housing construction by way of obtaining a guarantee from a Single Operator of the Law On Equity Participation in Housing Construction

 Note from <url>! The first paragraph of paragraph 1 is amended by the Law of the Republic of Kazakhstan dated 30.06.2025 No. 204-VIII (effective sixty calendar days after the date of its first official publication).

1. In order to carry out activities related to the organization of equity participation in housing construction by obtaining a guarantee from a Single operator, the developer of an apartment building must meet the following requirements:

Note from <url>! Subparagraph 1) is amended by the Law of the Republic of Kazakhstan dated 30.06.2025 No. 204-VIII (effective sixty calendar days after the date of its first official publication).

1) have experience in the construction of multi-family residential buildings, including as a customer, contractor (general contractor) for at least two years, with a total area of at least ten thousand square meters during construction in cities of republican significance, the capital, and at least five thousand square meters during construction in other administrative-territorial units;

IZPI's note! Subparagraph 2) is amended by the Law of the Republic of Kazakhstan dated 30.06.2025 No. 204-VIII (effective sixty calendar days after the date of its first official publication).

2) have assets, the value of which must be at least ten percent of total assets remaining after deducting short-term and long-term liabilities, for the last two financial years according to its financial statements, confirmed by the auditor's report;

IZPI's note! Subparagraph 3) is amended by the Law of the Republic of Kazakhstan dated 30.06.2025 No. 204-VIII (effective sixty calendar days after the date of its first official publication).

3) the value of the coefficient calculated by the ratio of borrowed funds and equity capital should not exceed seven during the entire period of construction of an apartment building before its commissioning.

Note from <url>! Article 8 is provided to be supplemented by paragraph 1-1 in accordance with the Law of the Republic of Kazakhstan dated 30.06.2025 No. 204-VIII (effective six months after the date of its first official publication).

1-1. In order to carry out activities related to the organization of equity participation in housing construction by obtaining a guarantee from a Single operator, the developer of a complex of individual residential buildings must meet the following requirements:

1) have experience in the construction of multi-family residential buildings and (or) a complex of individual residential buildings, including as a customer, contractor (general contractor) for at least two years, with a total area of at least ten thousand square meters during construction in cities of national significance, the capital and at least five thousand square meters during construction in other administrative-territorial units;

3) the value of the coefficient calculated by the ratio of borrowed funds and equity capital should not exceed seven during the entire construction period of the complex of individual residential buildings before its commissioning.

Note from <url>! Paragraph 2 is amended by the Law of the Republic of Kazakhstan dated 30.06.2025 No. 204-VIII (effective sixty calendar days after the date of its first official publication).

2. To carry out activities related to the organization of equity participation in housing construction by obtaining a guarantee from a Single operator, the developer creates an authorized company or acquires one hundred percent of the voting shares (shares in the authorized capital) of another legal entity to carry out activities for no more than one project for the construction of an apartment building or a complex of individual residential buildings.

An apartment building construction project may include several construction projects on the same land plot.

It is allowed to build construction projects on several land plots if such construction is provided for by the multi-apartment building construction project.

The developer has the right to involve an authorized company that has fulfilled its obligations for the construction, commissioning and commissioning of the previous multi-apartment building construction project, or another legal entity of which he is the sole founder (participant).

3. In order to organize equity participation in housing construction by obtaining a guarantee from a Single Operator, an authorized company must have:

IZPI's note! Subparagraph 1) is amended by the Law of the Republic of Kazakhstan dated 30.06.2025 No. 204-VIII (effective sixty calendar days after the date of its first official publication).

1) a title document for a land plot owned by the right of temporary paid land use (lease) provided by the state, or by the right of ownership;

Note from <url>! Subparagraph 2) is amended by the Law of the Republic of Kazakhstan dated 30.06.2025 No. 204-VIII (effective sixty calendar days after the date of its first official publication).

2) design and estimate documentation for the construction of an apartment building or a complex of individual residential buildings with a positive conclusion of a comprehensive non-departmental examination;

3) money planned to be spent in accordance with Article 20 of this Law, and (or) unfinished construction, confirmed by acts of completed work, in the amount of at least ten percent of the design value if the land plot belongs by right of ownership, or in the amount of at least fifteen percent of the design value if if the land plot belongs to the right of temporary paid land use (lease) provided by the state;

4) money to pay the commission for reviewing documents, the guarantee fee under the guarantee agreement;

Note from <url>! Subparagraph 5) is amended by the Law of the Republic of Kazakhstan dated 30.06.2025 No. 204-VIII (effective sixty calendar days after the date of its first official publication).

5) a contract for the construction of an apartment building or a complex of individual residential buildings.

4. The property defined in paragraph 3 of this article must be free from any encumbrances, rights and claims of third parties.

Construction and installation works on the unfinished construction specified in subparagraph 3) of paragraph 3 of this Article must be paid in full by the developer and (or) an authorized company prior to submitting the application to the Unified Operator and confirmed by reconciliation reports between the customer and the contractor.

Note from <url>! Paragraph 5 is amended by the Law of the Republic of Kazakhstan dated 30.06.2025 No. 204-VIII (effective sixty calendar days after the date of its first official publication).

5. If the developer and the authorized company comply with the requirements established by this article, the Single Operator verifies the documents for the construction project of an apartment building or a complex of individual residential buildings in accordance with the procedure approved by the authorized body and concludes a guarantee agreement.

6. The concluded guarantee agreement is the basis for attracting shareholders' money and does not require the developer and an authorized company to obtain permission to attract shareholders' money from the local executive body.

Note from <url>! Paragraph 7 is amended by the Law of the Republic of Kazakhstan dated 30.06.2025 No. 204-VIII (effective sixty calendar days after the date of its first official publication).

7. In order to comply with the requirements of this Law, the developer and the authorized company submit to the Single Operator through information systems annual financial statements, confirmed by an audit report, and quarterly financial statements in accordance with the legislation of the Republic of Kazakhstan on accounting and financial reporting during the term of the guarantee agreement.

Note from <url>! Article 8 is provided to be supplemented by paragraph 8 in accordance with the Law of the Republic of Kazakhstan dated 30.06.2025 No. 204-VIII (effective six months after the date of its first official publication).

8. The Single Operator may reduce the obligations under the guarantee in proportion to the difference between the cost of construction in progress at the time of issuing the guarantee of the Single Operator and the amount of construction in progress as of the last reporting date, confirmed by the assessment report.

The Law of the Republic of Kazakhstan dated April 7, 2016 No. 486-V SAM.

This Law regulates public relations related to the activities of equity participation in the housing construction of multi-family residential buildings by attracting money from individuals and (or) legal entities, and also establishes guarantees for the protection of the rights and legitimate interests of the parties to the agreement on equity participation in housing construction.

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