Article 10. The organization of equity participation in housing construction is a way to attract money from equity holders after the construction of the frame of an apartment building The Law on Equity Participation in Housing Construction

     Note from <url>!      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 attracting money from equity holders after the construction of the frame of an apartment building, the developer must, over the past three years, including as a customer, contractor (general contractor) in aggregate, build and commission multi-apartment residential buildings with a total area of at least thirty square meters in the territory of the Republic of Kazakhstan. six thousand square meters under construction in cities of national importance, the capital and at least eighteen thousand square meters under construction in other administrative-territorial units. This takes into account the combined experience of the developer's subsidiaries.

     2. To organize equity participation in housing construction by attracting money from shareholders, after the construction of the frame of an apartment building, 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 multi-apartment building construction project.

     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. To organize equity participation in housing construction by attracting money from equity holders after the construction of the frame of an apartment building, an authorized company must have:

     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) 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;

     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) the presence of the completed construction of the frame of an apartment building, confirmed by the report of the engineering company;

     4) an agreement with an engineering company.

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

     5. If the developer and the authorized company comply with the requirements established by this article, the developer and the authorized company apply to the local executive body of the region, city of republican significance, capital, district, city of regional significance to obtain permission to attract money from shareholders in accordance with the procedure established by Article 18 of this Law.

     6. After obtaining permission to raise money from shareholders, an authorized company will organize the construction of an apartment building by attracting money from shareholders in accordance with the requirements of Article 20 of this Law.

     7. The property specified in subitems 1), 2) and 3) of paragraph 3 of this Article is considered to be held as collateral by equity holders from the moment the agreement on equity participation in housing construction is registered with the local executive body.

     8. The pledge of the property specified in subitems 1), 2) and 3) of paragraph 3 of this Article is not allowed.

     9. In case of non-fulfillment or improper fulfillment by an authorized company of obligations to complete the construction of an apartment building, shareholders have the right to initiate bankruptcy proceedings for an authorized company in accordance with the legislation of the Republic of Kazakhstan on rehabilitation and bankruptcy.

     10. In case of bankruptcy of an authorized company, shareholders have the right to form a housing construction cooperative in accordance with the housing legislation of the Republic of Kazakhstan to complete the construction of an apartment building.

     11. From the moment an authorized company transfers a share in an apartment building to an equity holder in accordance with the procedure established by Article 17 of this Law, the right of pledge is terminated.

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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