Article 9. Organization of equity participation in housing construction by way of participation in the project of the second-tier bank of the Law on Equity Participation in Housing Construction

Home / RLA / Article 9. Organization of equity participation in housing construction by way of participation in the project of the second-tier bank of 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 participating in a second-tier bank project, the developer of an apartment building must have experience in the construction of apartment buildings, including as a customer, contractor (general contractor) in total, for at least two years, with a total area of at least ten thousand square meters. construction in cities of national importance, the capital and at least five thousand square meters during construction in other administrative-territorial units.

Note from <url>! Article 9 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 participating in a second-tier bank project, the developer of a complex of individual residential buildings must 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) in total, for at least two years, with a total area of at least ten thousand square meters during construction in cities of national importance, the capital and at least five thousand square meters during construction in other administrative-territorial units.

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 organize equity participation in housing construction by participating in a second-tier bank project, 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 sites on a single title deed for a 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 participating in a second-tier bank project, 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 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 expertise.

4. The property defined in paragraph 3 of this article must be free from any encumbrances, rights and claims of third parties, with the exception of a land plot that may be pledged to a second-tier bank financing construction.

Note from <url>! Paragraph 5 is provided for in the wording of 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 meet the requirements set out in this article, the developer and (or) the authorized company apply to the second-tier bank to obtain a decision from the second-tier bank on the readiness to finance the construction of an apartment building or a complex of individual residential buildings in an amount sufficient to complete the construction.

Confirmations of the decision of the second-tier bank on the readiness to finance the construction of an apartment building or a complex of individual residential buildings are a concluded bank loan agreement between the second-tier bank and an authorized company, a certificate of loan debt in the amount provided for in the design and estimate documentation of the project for the construction of an apartment building or a complex of individual residential buildings, which has a positive conclusion of a comprehensive non-departmental expertise, minus the cost of construction in progress.

In case of readiness to finance an apartment building or a complex of individual residential buildings, the second-tier bank enters into a trilateral agreement with an authorized company and an engineering company, which provides for the consent of the authorized company to receive information from the engineering company on the operations carried out on the bank accounts of the authorized company specified in paragraph 1 of Article 20 of this Law.

6. 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.

Note from <url>! Paragraph 7 is provided for in the wording of 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. It is allowed to use the money of shareholders from the bank account of an authorized company, subject to the requirements established by Article 20 of this Law, only after obtaining permission to attract the money of shareholders.

The second-tier bank has the right to make a decision on the simultaneous use of money from shareholders and borrowed funds from the developer and (or) an authorized company from bank accounts.

8. The property specified in subitems 1) and 2) 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.

9. When the second-tier bank makes a decision on the sale of the pledged property specified in subitems 1) and 2) of paragraph 3 of this Article, the money earned from the sale of the pledged property is directed to satisfy the claims of the shareholders who have submitted a claim for a refund and the second-tier bank. If there is a shortage of money earned from the sale of mortgaged property, the difference after deduction of the amounts necessary to cover the costs of foreclosure on this property and its sale is distributed between the shareholders and the second-tier bank in proportion to the size of their claims at the time of satisfaction of these claims.

10. The money owed to equity holders who did not declare their claims before the date of the public auction, at which the pledged property was sold, is sent to the bank deposit account in accordance with the terms of the agreement on equity participation in housing construction.

From the moment of conclusion of the agreement on equity participation in housing construction, the second-tier bank is recognized as the trustee of shareholders when foreclosing on mortgaged property and its sale.

Note from <url>! Paragraph 11 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).

11. From the moment an authorized company transfers a share in an apartment building or a complex of individual residential buildings 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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