Partnership of real estate owners. This is the interpretation of TSN. What are the legal features of this organization in Russia? What are the disadvantages of joining it? Is this a brand new entity different from HOAs, homeowners partnerships? Is there something in common between them, what are the differences? Finally, what is better to choose - HOA or TSN? You will receive comprehensive answers to these and other important questions in the article.
What is HOA?
Imagine once again the decoding of TSN. This is a partnership of real estate owners.
And what is HOA? This is the name of the homeowners partnership. Non-profit association of citizens owning personal property. The purpose of the association in such a partnership: the management of such property, the joint conduct of common economic activity.
What is TSN?
TSN (transcript - a partnership of property owners) is also a non-profit association of property owners. Its purpose: to exercise the powers of each of the owners in relation to common property assigned to it at the legislative level.
Members of a partnership of real estate owners can be both individuals and legal entities that own any kind of real estate. For example, an apartment, a land plot, a private house, a commercial building, etc.
The concept of TSN (the decryption is already known to you) appeared in Russian legislation relatively recently - in 2014. In fact, it replaced the HOA. However, the provisions on such substitution were not introduced into the housing legislation, which is why the HOA is still relevant today as one of the forms of government.
Legislative regulation
Let us turn to the Russian legislation:
- TSN. For the first time on this form of association of citizens was said in the Federal Law No. 99 (2014). Under this law, partnership was introduced as an independent form of legal entity.
- HOA. Partnership is referred to in Art. 135 Russian LCDs.
Common features
Two main features that combine these two types of partnerships:
- They are non-profit organizations.
- Joining partnerships is strictly voluntary.
What are the differences?
HOA and TSN: what is the difference? Consider the most defining differences between associations:
- In HOA, in contrast to TSN, the subject of management (in some cases, beautification) is necessarily specified. So, they can act as an apartment building or a private residential building. Homeowners associations may be owners of residential real estate only. And in TSN enter, in addition to them, the owners of non-residential (commercial) real estate and land plots.
- Composition of possible participants in the association. As we have established, HOA can be entered only by individuals, private individuals. TSN (partnership of real estate owners) also includes organizations.
- The rights and obligations of participants in these partnerships also vary slightly.
- The goals of creating organizations are again different. Homeowners' associations are mainly created by owners for the improvement of territories adjacent to their home. To meet the most important requests and needs of residents - for example, in conducting communications. TSN has slightly different goals. In general, the main reason for creating such an association is not the improvement of housing conditions, not the improvement of the yard, but the joint management and disposal of common property. So, TSN members can even rent it out if they consider it necessary. In the management of property in this context includes its content, preservation and augmentation.
- The activities of these non-profit organizations (partnership of real estate owners and partnership of homeowners) are conducted on the basis of the Charter. It involves the creation of a sole governing body. And here are the differences. In TSN it is permissible to create executive and supervisory bodies, in addition to the manager. In HOA this does not happen.
- Decisions regarding the fate of common property are taken in TSN only by individual members of the association. In HOAs, such issues are resolved only at the general meeting of owners.
- The taxation system of these non-profit associations of citizens is also different. So, the activities of HOAs may well be conducted on the simplified tax system. But to transfer TSN to "simplified" is no longer possible.
Pros TSN
Consider the advantages of this association of real estate owners (TSN):
- If a citizen or a commercial organization cannot independently resolve the issue related to managing, improving the quality of property, it is possible to seek help from TSN, which will significantly save the owner’s time.
- Property management in such a partnership is carried out by a limited circle of persons. Of course, this plus is relevant only if the owners have chosen experienced, professional and competent management.
- The main goal of such an organization is not only property management, but also its increase. That is, property owners who have joined TSN can hope that the profits earned from the competent management of common property will go towards improving its quality and meeting common needs for all residents.
- The economic activity of such an association is completely open. Each member of the partnership can track the movement of total funds, the literacy of spending by the board of these finances.
Disadvantages TSN
Now imagine the disadvantages of joining a real estate partnership (TSN):
- When making serious decisions, one way or another, affecting the interests of all residents, the opinion of the majority of owners is not taken into account here. Also, in the process of TSN activities, its ordinary members can not always influence the measures taken by the board.
- The Federal Law on partnerships of property owners says that an organization is essentially legal. Therefore, she can at any time declare herself bankrupt with all the ensuing consequences.
- Creating TSN is impossible without obtaining the appropriate license. Licensing itself is regulated by Art. 192 Russian LCDs.
- Long deadlines for resolving issues. Even raising funds for redecorating the entrance can stretch out indefinitely.
- Weak legislative support. As with HOAs, the legislation here is still imperfect.
Benefits of HOA
We got acquainted with the rights of a partnership of real estate owners. Let's see what HOA stand out against their background:
- Not in all cases, property owners can independently resolve issues related to landscaping, improving living conditions. For help here, they can always contact the HOA. For example, on the issue of cleaning the territory adjacent to the house. It is sometimes inconvenient for the residents themselves to take on this responsibility. Homeowners Association may conclude an agreement with any organization to clean the yard. Another important plus here: HOA helps to resolve many conflicts with neighbors, without bringing the matter to court.
- Each HOA member can affect the vector of decisions taken by the partnership. After all, the majority opinion is taken into account when voting.
- The economic financial activity of such an association is open. Information of interest can be obtained by any member of the partnership.
- Homeowners Association is permissible to carry out their activities on the simplified tax system. This tax regime is the simplest among all represented in the Russian Federation.
- HOA is relatively easy to create, establish. The activities of such an organization do not require prior licensing.
- The ability to choose a management company for your partnership. HOA members have the full right to refuse the services provided by third-party organizations, to choose more conscientious performers.
- The ability to influence the decisions of your management company. For example, if the Criminal Code has decided to repair the entrances of the house using expensive coloring materials, and the residents do not agree with this, then it will be canceled.
Cons HOA
Now consider the disadvantages of this form of association of citizens:
- A rather substantial amount of membership dues is collected from the participants in the partnership. But it should be noted that it is significantly lower than the fee for landscaping in other associations of homeowners.
- The chairman of TSN, the management bodies of the partnership are responsible for the adoption of issues important to the whole association. In HOA, only the opinion of the majority of participants is decisive. And the disadvantage here is that the position of the minority is sometimes not even taken into account.
- Weak legislative support. The partnership is virtually powerless with respect to unscrupulous tenants, accumulating huge debts on rent. Legislatively, the HOA does not have the ability to demand the due utility payment on time.
Thus, HOA is one of the organizational forms of TSN with its advantages and disadvantages.
What is relevant today?
Federal Law No. 99 (2014) virtually abolished the existence of HOAs in the Russian Federation. He was replaced by the TSN association. But at the same time, as an organizational form, HOA continues to exist. If such a partnership was created before the adoption of the Federal Law, then it does not need to be re-registered in TSN. But as for associations of homeowners founded after the adoption of the Federal Law, it is possible to register them only in a new form.
Let's turn to practice. Although it is not necessary for HOAs to re-register as TSNs today, many partnerships will nevertheless re-register in a new legal form. Their members are also concerned about obtaining licenses for the activities of the association.
Why choose TSN?
Why is the transition made? The fact is that the HOA assumes the constant participation of homeowners in resolving issues related to common property, landscaping of the yard. Partnership members must attend meetings, take time to study agenda items, and vote.
In fact, few residents are happy to participate in such activities, which take a decent time. The majority considers it their direct duty only to pay utility bills on time and in full. With such a position, HOA works inefficiently.
Therefore, the TSN organization form is much more successful against its background. Directly to all tenants do not need to get together and solve pressing issues together. All of this is handled by the partnership body of their choice.
TSN - a new form of association of homeowners, which replaced the HOA. You now know the general and distinctive features of such non-profit civic organizations, their key advantages and disadvantages.