Partnership of owners is ... Definition and organization rules

A partnership of owners is a special non-profit organization created by the residents of one apartment building or several buildings. In short, it is called HOA. The main goal of creating such an enterprise is the management of the building. This form of management is approved exclusively at the meeting of apartment owners in the house. This partnership is vested with the right to solve various significant tasks for the entire structure. It can choose utility providers, open accounts, carry out repairs, or deal with other issues.

The concept of HOA

The partnership of owners is represented exclusively by a non-profit enterprise that does not receive profit for its work. Residents of the same building can create a condominium directly at the stage of building a house or after a few years. The procedure is regulated by the provisions of Art. 139 LCD It is allowed to reorganize this partnership into a housing cooperative.

The partnership of real estate owners is a legal entity, therefore, official registration with the Federal Tax Service is required. For this, it is important to prepare a charter in advance, choose a suitable legal address, purchase a seal and open a current account.

Members of such an HOA are required to make certain contributions intended to pay expenses. The size of such contributions depends on the area of the available apartment of each owner of the premises in the house. If any homeowner violates the requirements of the law or creates obstacles to the work of the HOA, then he can be excluded from this organization.

pros

The partnership of home owners allows citizens to independently manage this building. The creation of such an HOA has many advantages compared with the involvement of a management company. The main advantages include:

All owners of apartments in the house can directly participate in the management of this building.
The purpose of the organization is to profit for the whole house.
If it is used to manage the HOA, the rent and money for overhaul are transferred to a special account opened by this partnership, so they are spent only after the decision is made by the residents of the building.
The profit received by the organization is distributed among the founders.
The partnership may engage in entrepreneurial activity, if this is provided for in the charter documents, but the profit should be intended for the whole house, and not for individual residents.
This non-profit organization is exempt from VAT.

The main advantage for each apartment owner is that such HOAs really care about keeping the house in optimal condition. All funds received from residents are distributed solely on the basis of decisions taken at meetings.

Who can arrange?

Partnership of owners of an apartment building can be created by any tenants. It can manage only one building or several houses, but in the latter case it is required that the buildings have common utilities and a single infrastructure.

For the organization of HOA it is required to take an appropriate decision at a meeting of owners. At least 50% of the vote is required to organize such an association.

partnership of apartment building owners

Emerging issues

It is actually quite simple to open a housing partnership of owners, but future members of such an HOA should be aware of some of the problems that arise in the process of conducting business. These include:

The management of apartment buildings is significantly different from the management of any commercial company, so experienced businessmen do not always become chairmen.
If there are any disagreements between the members of this partnership, then all of them are resolved only at the meeting, which leads to the need to often hold such meetings.
The head of the HOA is the chairman, who must establish good relations with the residents, since the success and effectiveness of the partnership depends on this.
The Chairman cannot single-handedly make any serious decisions, and this does not always require a meeting. The presence of the audit commission and an experienced accountant is required.
The HOA management system cannot be flexible, therefore, even the simplest decision requires the participation of at least 6 people, otherwise such a decision can be recognized as illegal by the residents of the house, and often such features lead to a decrease in the effectiveness of the organization.
Another problem is that each apartment owner has his own concept of how to properly manage a large multi-apartment building, so often even with the help of a meeting it is not possible to come to a single solution.

During the existence of the HOA, special constituent documentation is certainly formed. It indicates the rules of the organization, and also sets a term for which chairpersons are elected. The selected citizen must submit accounting documentation to the Federal Tax Service, as well as enter into contracts with various utilities and other companies.

How does it work?

Most often, HOA is chosen by people who care about their apartment building. Partnership of homeowners works on a fairly simple principle. The rules of this process include:

management is carried out by the chairman and his assistants;
the most important issues are resolved only at the meeting of the owners;
if for various reasons there is no opportunity to choose a chairman, then management is taken by the manager, with whom an employment contract is concluded;
the partnership must take care of the operability of communication systems, budget organization, budgeting, communication with representatives of the local administration and work with debtors;
The organization monitors whether funds are paid by all residents of the house as a payment for utilities, and also monitors the repayment of arrears.

All rights, obligations and functions of the partnership of real estate owners are certainly enshrined in the charter documentation.

HOA Responsibilities

Managing a partnership of owners is a rather complicated process. This is due to the fact that this organization has many responsibilities to all residents of the house. The main ones include:

draw up a work plan for a year of work;
Partnership members are required to ensure that all residents of the building comply with legal requirements;
before each general meeting, reports are prepared that contain information about all the work done;
timely and full amount transferred funds for utilities;
the use of the building and the adjacent territory exclusively when taking into account fire and sanitary standards;
all participants must pay funds for the overhaul of the building;
workers and construction crews are hired for cleaning common property and repairs;
other duties are listed in the charter.

It is the members of the partnership of owners who are endowed with the above responsibilities.They get a certain reward for their work.

Partnership Rights

The main goal of creating HOA is to improve the condition of the house. The partnership of homeowners is endowed on the basis of the charter not only with some responsibilities, but also with numerous rights. These include:

independent determination of the optimal size of payments for utilities;
budgeting for next year;
use of the common property of the building;
the organization of various works on the basis of requests generated by the residents of the house;
performance of various legal actions with premises, which are the common property of the building;
the acquisition of various real estate, which is registered in the shared ownership of citizens included in the HOA.

When exercising its rights, the organization should be guided by the requirements of the law. Additionally, it is not allowed to violate the interests or rights of residents.

Rules for the creation of HOA

Organization of a partnership of homeowners is not a very complicated procedure. An initiative group, which includes the owners of the apartments of a particular house, should deal with it. To create an HOA, the following steps are performed:

An initiative group is being formed.
A general meeting is being held.
A charter is being created.
The partnership is registered.
A current account is opened.

Each stage has its own characteristics.

Creating an initiative group and holding a meeting

The initiative group should consist of residents of the building. They can be owners of both residential and non-residential premises in the building. They should be well versed in the provisions of the LCD and be aware of the advantages that HOA has. The following actions are performed:

Representatives of the initiative group carry out some work with other residents of the building to explain to them the main advantages of independent management of the house.
A preliminary vote is being taken to determine how many people will agree to organize a partnership.
A meeting of tenants is being held, for which statutory documentation is being prepared by the initiative group.
When transmitting a notification to citizens, the agenda is certainly indicated.
Voting is conducted, which can be in-person or in absentia.
By voting, a decision is made regarding the organization of the HOA.

The counting commission forms a protocol containing the voting results.

Rules for drawing up the charter

During the organization of a partnership of owners, a charter is compiled. It includes the following important information:

purpose of creating an organization;
features of the future activities of HOAs;
rights and obligations that the organization will have;
lists all members of the HOA;
it is indicated on what issues general meetings will be held, as well as how the most significant decisions will be made;
The powers vested in the chairman and the audit committee are given.

Additionally, various types of activities that an open partnership can engage in are included in this documentation. The methods and rules for the distribution of income are indicated. The term for which the chairman of the partnership of owners is given is given.

Registration of HOA

Creating a partnership of owners must certainly be an official process. Therefore, such an organization is subject to official registration with the Federal Tax Service. To do this, the following documentation is transferred to the tax office:

application for registration of the organization, compiled in the form of P11001;
the minutes of the meeting at which a decision is made by the tenants of the building on the creation of an HOA;
information about the persons who voted to open a partnership;
the charter in two copies, which is pre-numbered and stitched;
receipt confirming payment of duty.

The decision is made within a week, after which the applicant receives a certificate of registration of the partnership.

Opening a current account

Since the partnership is represented by a legal entity, it must have a bank account. It is with its help that settlements will be made with utilities and other organizations involved in the maintenance or repair of common property at home.

It is advisable to choose a bank offering the best conditions for cooperation. The following documentation is sent to the selected organization:

certificate confirming the state registration of the partnership;
statutory documentation;
print;
power of attorney for a specific member of the HOA who represents the interests of this organization;
documentation confirming the presence of the necessary authority for the chairman of the HOA;
certificate of registration with the Federal Tax Service;
minutes of the meeting at which a decision was made to organize this partnership.

A bank account is opened separately for transferring funds for major repairs. Additionally, you can send these funds to a regional operator, but it is most important to use a personal account.

The timing and cost of the process

Opening a HOA is quite simple, and usually the documentation submitted to the Federal Tax Service is checked within one week. If it is revealed that the necessary documentation is missing or there are errors in the application, the registration process may be delayed for a longer period.

A registration fee of 4 thousand rubles is paid.

Reasons and rules for liquidation

The elimination of HOAs may be due to several reasons. These include:

legal requirements are violated;
appropriate decision is made by the residents of the house;
members of the partnership do not wish to continue to engage in this activity;
there is a court decision.

In this case, the house passes to the management of the Criminal Code, which then deals with the maintenance of the building and raising funds for major repairs and utilities.

Conclusion

A partnership of owners is considered to be a popular and interesting organization, the purpose of which is to optimally maintain and maintain an apartment building. Creating a HOA is quite simple, as it’s enough to get permission from the residents of the house, as well as register a legal entity.

HOAs are endowed with both rights and obligations. The organization should act only in the interests of the owners of apartments in the house, as well as taking into account the requirements of the law. Otherwise, it may be forcibly liquidated.