ZhSK is a housing cooperative, which is a voluntary association of a group of people or organizations with the aim of building multi-apartment buildings.
The history of the emergence and development of housing cooperatives
ZhSK is a rather old and proven scheme for the construction of residential multi-apartment buildings. The appearance of the first housing cooperatives dates back to the 1920s. However, despite the rapidly growing popularity, in 1937 this mechanism was liquidated, since it is a manifestation of private property. In 1957, the housing cooperative revived and became widespread. In the 80s, such construction of apartment buildings amounted to about 8%.
In modern society, the cooperative system is gaining momentum with renewed vigor. Most often, it is used by developers in Moscow, who are not able to fulfill their obligations to equity holders. In this case, on the initiative of deceived buyers, housing cooperatives are created to which all rights to complete the construction are transferred.
Legal basis
Currently, the legal framework for housing cooperatives is regulated by housing legislation. The term "housing cooperative" is clearly defined in Art. 110 Housing Code of the Russian Federation. The conditions for the creation, organization of activities and rules for participation in the housing cooperative are presented:
- in section 5 of the Housing Code of the Russian Federation (LCD RF);
- in the Civil Code of the Russian Federation (Civil Code of the Russian Federation) ;
- in the Charter of the cooperative, which is compiled in accordance with the main provisions of the LC RF and the Civil Code.
However, not all housing cooperatives are cooperatives organized in accordance with the current legislation. Many of them in their activities do not even comply with the basic requirements presented in the Housing Code, as a result of which there is a violation of the rights of participants in such housing cooperatives. In order to avoid such situations, it is necessary to understand in detail all aspects of the activities of cooperatives.
The order of creation and organization of activities
According to the law, there can be no less than five members of a housing cooperative. However, the total number of participants in the cooperative should not exceed the amount of apartments in a residential building under construction or being acquired. At a general meeting, a decision is made to form a housing cooperative. This event may be attended by persons who wish to unite with the goal of building a house. The meeting also approves the Charter of HBC. After the state registration of the cooperative and obtaining the status of a legal entity, the participants who voted for the creation of the cooperative become members of the HBC. The decisions of the meeting of the founders of HBC are recorded in the minutes.
Charter of the housing cooperative
The charter of housing cooperative, in accordance with Art. 113 of the Housing Code of the Russian Federation, must contain information about the name of the cooperative, its location, subject and purpose of activity, the rules for joining the HBC, the procedure for leaving it, the size of entrance and share contributions, various payments, the composition and rights of the cooperative’s governing bodies, about the procedure for the adoption by the control bodies of various decisions on the possibility of covering the losses incurred and the rules for the reorganization or liquidation of the cooperative. Despite this, the Charter may contain other conditions that do not contradict the current laws of the Russian Federation.
Governing bodies
According to Art. 115 ZhK RF governing bodies ZhSK are:
- general meeting of all members of the cooperative;
- if the number of those present at the meeting is more than 50 and it is prescribed in the Charter of the cooperative - conference;
- governing bodies and chairman of the housing cooperative.
General meeting of cooperative members
The general meeting of all members of the cooperative (conference) is considered the highest governing body. It is convened in accordance with the provisions laid down in the Charter. The competence of the highest governing body is also regulated by the Charter of the housing cooperative.
The meeting of participants is lawful if it is attended by a large part of all members of the cooperative. A decision cannot be taken if 50% or more of those present at the meeting vote against the proposal in question. The decision made and spelled out in the protocol is mandatory for all members of the construction cooperative.
The management apparatus and control bodies are also elected by the participants in the general meeting of members of the housing cooperative. The responsibilities of the governing bodies and the procedure for making decisions are governed by the Charter of the cooperative, regulations, regulations and other internal documents. The board of the housing cooperative is entitled to manage the activities of the cooperative and elect a chairman from among its members. The governing bodies of the housing cooperative are accountable to the general meeting of members of the cooperative.
Responsibilities of the Chairman of the HBC
Chairman of the Board of the building cooperative:
- must ensure the implementation of decisions made by the board;
- protect the interests of the cooperative, enter into transactions and without a power of attorney act on behalf of all members of the cooperative;
- has other powers that are not part of the duties of the general meeting of members of the HBC or its board.
The essence of the audit commission
To control the economic and settlement activities of the cooperative, a special audit commission is elected for a period not exceeding 3 years. The number of members included in its composition is prescribed in the Charter of the cooperative. The members of the Audit Commission may not occupy leadership positions in the Housing and Construction Cooperative, as well as being registered in other governing bodies of the construction cooperative.
The chairman of the audit commission is elected by its members from the existing composition. The responsibilities of the auditors include:
- annual audit of economic and settlement activities of the cooperative;
- preparation of conclusions on the budget, targeted use of funds, annual report and assessed contributions;
- Report to members of the general meeting on their activities.
The auditors have the right to check the financial and settlement activities of the construction cooperative at any time and have free access to all internal documentation of the housing cooperative. The order of work and the powers of the audit commission are prescribed in the Charter of the cooperative.
Membership in HBC
To become a member of the housing cooperative, it is necessary to submit an application to the board of the housing cooperative. One calendar month is allocated for its consideration. The decision is made at the general meeting of participants and is recorded in the corresponding document (protocol). The status of a member of the HBC is acquired after paying the entry fee. A member of the housing cooperative can confirm his participation in the housing cooperative with a certificate (statement), which is issued according to his application.
The mechanism of housing construction using housing cooperatives
After the Charter is approved at the general meeting of the members of the housing cooperative, the housing construction cooperative must undergo mandatory state registration in order to acquire the status of a legal entity. Further, the construction according to the HBC scheme occurs in stages:
- Stage 1 - execution of documents on the rights to a land plot for construction. ZhSK should receive in accordance with the legislation the urban development plan of the land and prepare design documentation. After that, they must be submitted to the authorized bodies that issue the building permit. This document is a legal confirmation that the project documentation meets the urban development plan of the land and allows you to start the construction of multi-apartment buildings.
- Stage 2 - design of a residential building, execution of approvals and examination. The duration of the procedures is 4-12 months. It is better to entrust their implementation to a third-party organization that has experience working with housing cooperatives.
- Stage 3 - construction of residential apartment buildings. A cooperative has the right to independently engage in the process of building a building: hire contractors, monitor the progress of work, and hold tenders. However, it is rather difficult for people without specialized education. Now in the services market there are many companies that provide qualified assistance to such cooperatives.
- Stage 4 - putting the house into operation. At the end of all work, the building cooperative must obtain permission to put the house into operation. Only after that all members of the housing cooperative can draw up ownership of the housing.
Possible risks associated with participation in HBC
Becoming a member of the HBC, a person may face certain risks:
- The main risk is that the main goal of creating a housing cooperative for some reason may not be achieved (refusal to issue permits, financial difficulties and others).
- Inflation and appreciation of building materials and work.
- The risk of disruption of the deadlines for putting the house into operation. Moreover, HBC to its members will not be responsible for this.
- Developers or investors do not guarantee the housing provided.
- Control over the expenditure of funds and economic activity is carried out by the revision committee, which is elected at the general meeting. There is no state specialized body.
- The distribution of apartments between members of the housing cooperative occurs at a general meeting and does not depend on the desires of the cooperative participant itself.
- Moscow developers, for example, form the final price of an apartment taking into account advertising costs, staff maintenance and other payments. For all this, you have to pay the buyer. In addition to the foregoing, a citizen cannot control the expenditure of funds for the construction of housing and the progress of construction itself.
Benefits of joining the HBC
1. It is believed that the construction of residential buildings through the HBC system is a significant cost savings. According to statistics, thanks to the organization of a housing cooperative, you can save about 50% on the purchase of housing.
2. Construction cooperatives have full transparency in attracting and spending money. In addition, construction can be financed in stages, and installments can be given not only for the period of construction of the house, but also for a while after the construction is completed.
HBC in the modern world
Today, the voluntary association of like-minded people with the goal of erecting residential buildings is extremely rare. Despite the fact that legislation does not impede the creation of housing cooperatives, the construction of multi-storey buildings according to this scheme is more popular among large enterprises that are interested in providing apartments for their employees.
Thus, organizing a housing cooperative makes sense to employees of organizations with appropriate management support. At the same time, they can save on the difference between the market price and the cost of housing, which the developer takes.
In the case of the acquisition of apartments by the HBC mechanism, citizens are more protected from various unforeseen situations. If the developer has declared bankruptcy, the shareholders are entitled to independently engage in the construction of the building.
More recently, the number of construction companies working on the principle of housing cooperatives has not exceeded 15%. At the moment, a third of housing in the Russian market is sold according to this scheme.
What you should pay attention to when buying apartments by HBC
According to statistics, one of the main factors that affect the choice of housing is not the form of the contract, not the availability of infrastructure in the neighborhood of the house, but the reputation of the developer, his experience in the construction of multi-apartment buildings, and the conditions for paying for an apartment.
However, if an individual has decided to join the HBC, you need to pay attention to several important points:
- Check the investment agreement between the construction company and ZhSK. It is better if the cooperative itself acts as a builder. In this case, ZhSK bears full responsibility for the construction of multi-storey buildings.
- Examine the rest of the documents of title: building permit, land lease agreement or land ownership.
- Familiarize yourself with the Charter of ZhSK. Particular attention should be paid to the conditions of entry and exit from the cooperative. As well as the procedure for paying contributions and receiving an apartment.
If all of the above documents are clear and transparent, you can safely conclude an agreement with the cooperative.