Changes have been made in the law on the management of apartment buildings; they relate to repair, rehabilitation, reconstruction, etc.
The law “on the management of apartment buildings” was amended and supplemented, which came into force on July 26.
According to this law, the modernization of an apartment building is considered the implementation of energy conservation measures, leading to long-term energy or water savings, as well as increasing the value of the apartment building and continuous improvement of its condition.
The law is supplemented by a new article 10.1, which establishes works and activities aimed at the modernization of an apartment building.
By the decision of the meeting of owners, in addition to the mandatory standards established by Article 10 of this Law (mandatory standards include fire protection, sanitation, urban planning, utilities, maintenance of subscriber mail cabinets and other activities), works and activities aimed at modernization of the building may also be provided.
The works specified in Point 1 of this Article shall be carried out without fragmentary changes changing the appearance of the building, in compliance with the requirements of norms and rules established by the legislation of the Republic of Armenia, and may not result in reduction of the common share ownership in the building.
At the same time, if the modernization of the building creates a new property unit, which entails an increase of the common joint ownership in the building, the owners of the premises shall not be obliged to bear the additional expenses arising from it, except in cases when they will use these improvements: In other cases, the compulsory payments for the added portion of the common share property established by this Act shall be made at the expense of the owner of the property created with the improvements to the building.
If the works stipulated in Paragraph 1 of this Article have been performed without the procedure established by this Law or without the consent of the owners, the expenses incurred in part of these works shall not be reimbursed by the owners.
The provisions of Part 1 of this Article shall not apply to emergency apartment buildings subject to demolition, damaged to the fourth degree.
Article 11 of the Law – management of common shared property – reads as follows.
The supreme management body of the common shared property is the meeting of premises owners (hereinafter – the meeting), which has the right to solve any issue in the field of management of the common shared property in an apartment building, except for the issues that are considered the exclusive authority of the management body under this law.
The meeting for the election of the building management body or the termination of its powers shall be convened at the initiative of one third of the premises owners in the building or the head of the respective municipality.
Each owner of the premises is endowed at the meeting with a number of votes equal to his or her share.
If more than one person has the right of common share or common joint ownership of the premises in an apartment building, one of the co-owners of the premises may act on their behalf in proportion to their share with the consent of the others based on a power of attorney issued by the latter in accordance with the Civil Code of the Republic of Armenia.
The decision prescribed by this law, adopted by the meeting within the limits of its authority and with appropriate votes, shall be binding on all premises owners in an apartment building, including those who, regardless of the reasons, did not participate in the voting or voted against the decision, except for cases where the latter were not duly notified and in case of proper notification, their decision might not be adopted.
Decisions of a meeting by notice shall be taken only in the cases provided for in this Act.
The powers of the meeting are.
a) selection of the form of management of the apartment building, the management body;
b) termination of powers of the apartment building management body;
c) approval of the list of other powers issued to the management body, except for implementation of mandatory norms stipulated by this Law;
d) making decisions on alienation or pledging of immovable property in common shared ownership;
e) taking decisions on allocation of a part of immovable property in common shared ownership, its alienation or pledge;
f) taking decisions on alienation, use, pledging of movable property being common share property;
g) approval of the conclusion of a loan or credit agreements, as well as the conclusion of major transactions in order to carry out works and activities aimed at the modernization of the apartment building;
h) making a decision on the transfer for a gratuitous use of the allocated part of the immovable property in common shared ownership;
i) making a decision on the transfer for use of the allocated part of the immovable property in common shared ownership;
j) taking decisions on the realization of the necessary works and measures aimed at the modernization of the apartment house;
k) decision-making on the acquisition of property rights (use, lease etc.)
m) deciding on the place of advertising on the common shared property or the use of the property for commercial purposes, informing and notifying;
H) determining the amount of the fee charged for the issuance of certificates to building owners or the provision of other services stipulated by this law, which may not be greater than the amount spent on these actions;
o) establishment of the amount and terms for the payment of the obligatory and other fees, established by this Law, to be collected from the owners of the premises;
o) establishment of the procedure for the use of the common shared property by the owners of the premises and the residents of the building;
P) establishment of the procedure for the use of the common shared property by the owners of the premises and the residents of the building;
c) approval of the annual budget for the management of the common shared property in the apartment building;
T) carrying out an audit of the management body at the expense of the budget;
y) taking other decisions on the management of the common shared property, including the conclusion of contracts between the building management body and the providers of communal services
Decisions on the issues mentioned in subparagraphs “d” and “e” of Paragraph 7 of this Article shall be adopted unanimously by the owners, while decisions on the issues mentioned in other subparagraphs shall be adopted by more than a half of votes.
Decisions on the issues mentioned in Part 7 of this Article can be made by convocation or by poll, while those mentioned in sub-paragraphs – also by notification.
In the cases stipulated by law, the adopted decisions or issued powers of attorney (authorities) on matters outside the implementation of mandatory norms must be notarized.
If in order to adopt an appropriate decision on the management of the common shared property in a building, the initiators have collected more than half of the votes, but have not collected the required number of votes provided for in this Article, and if the decision is aimed at preserving the common shared property or arises from the interests of all owners of the premises, the initiators have the right to resolve the issue in a court of law.
Agreements to change the decisions of the meeting shall be carried out by the same ratio of votes as the adoption of decisions.
An owner who has been duly notified of the day, time and place of the meeting may not claim to invalidate the decision adopted at the meeting, regardless of the reasons for his non-participation or nonvoting.
Article 31 of the Law which defines the basic directions of the state or municipal support in the field of management and protection of an apartment house is also changed.
The main directions of state (municipal) support in the field of management and protection of an apartment building are:
a) formation of a favorable legal field;
b) financial and investment assistance, provision of guarantees and development of target programs aimed at elimination of danger threatening life, health, property or environment of persons;
c) assistance in implementation of grant and investment programs in the region with assistance of foreign states and international organizations;
d) Assistance in introduction of innovative technologies and modern technologies, passportization of apartment buildings and information systems;
e) Assistance to the creation and development of the institutional system and infrastructures;
f) Assistance in the formation of a system of training and retraining;
g) Creation of simplified statistical reporting and accounting systems;
h) information and consulting assistance and public awareness of the reforms implemented in the field:
Assistance programs specified in paragraph, b “of part 1 of this article may be implemented only with the mandatory participation of the owners of premises in an apartment building:
The conditions, specifics, procedure of implementation of the targeted programs specified in Point, b “of Point 1 of this Article, the size and manner of participation of the state (municipality), as well as the owners of premises in the building in state targeted programs shall be defined by the Government of the Republic of Armenia, and in case of municipal targeted programs – by the Municipal Council.
The improvements made within the framework of the targeted programs specified in Point, b “of Part 1 of this Article shall not entail the right of common ownership for state or local self-government bodies, except in cases where the Republic of Armenia or a municipality is the owner of the premises in an apartment building.