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Common Property in Multi-Apartment Buildings: What It Is and How to Manage It?
Today we will talk about common property in the multi-apartment buildings. A gym in the basement: who made it, who services and according to what right? A kiosk in the courtyard: can the owners rent out their building territory? Below, you will find answers to these and other questions based on realistic examples.
Gym in Basement: Who Made It and Why
Kharkiskyi district is a residential district in Kyiv comparable in size to an oblast center. There are hundreds of huge standard buildings here, but one of them stands out. Own parking lot, security, video cameras on the front wall – all this is interesting but not surprising these days. While own mini-park on the shady side of the building really draws attention. But the main bonus here is in the basement. The matter is that a real gym was organized here.

It is free of charge for the local residents and it was made by the residents themselves. Because the basement, just like the attic, staircases, roof, courtyard and internal building networks, belongs to all owners of the apartments and non-residential premises.
In the past, there were piles of waste here. They were removed. Then the concrete floor was installed. The pipes were repaired and insulated. Then the walls were plastered and heat insulated. Part of the residents gave money to organize a sports club. They purchased sports equipment. Only members of this sports club have access, the doorman keeps the key. Looking at this gym raises a question: who gave a permission to people for these works?

Nobody, they did it themselves, they also adopted themselves a responsible decision at the homeowners association general meeting. "Why a homeowners association again?" – the ZhEK fans may ask.
Explanation: pursuant to the law, all owners of the apartments and non-residential premises own not only their apartments and offices. The basement, attic, roof, entrance hall, building territory and internal building networks – are all common property. And a homeowners association is a legal form allowing the residents to team up and manage their common property.
How a regular multi-apartment building of Soviet construction period developed its building territory
Majority of the buildings in Solomianka district date back to the Soviet time. But there are interesting exceptions among them.

The system of communication with the apartments, automated gate, fencing, cameras, LED spotlights with motion sensors – all this is found in the courtyard or a regular "cheshka". Some time ago, homeowners association was established here, and it put in order the building territory, more specifically, the land which is also common property.

The homeowners association was named "Lokomotyv-Kyiv". Back in 2013, it received the land act for its building territory and started its development, with achievement of significant success in this. And there really is something worth seeing here.
The land act indicates clear boundaries of the building territory, so a fence was installed around this area. Cost of the fence – UAH 25,000. As no paths to other building cross the courtyard, an automated gate was installed. One can open it either with the key or by the entry intercom in the apartment. Cost of the system – UAH 50,000. Near the entrance to the courtyard, a place for storage of waste containers was arranged for UAH 5,000. Now, the waste removal trucks no longer drive into the courtyard at 5 a.m.


A separate fund was established for the car owners. They chipped in together and arranged the parking spaces for themselves. Also, the spotlights and video monitoring system were installed. And a gazebo was also built here.
Kiosk in courtyard: can apartment owners make money on their building territory?

130, Lobanovskoho Avenue, Kyiv. There is a lot of space here: large separated courtyard and connection to a busy road. And most importantly – a year ago, a homeowners association was established here, it is just necessary to sort out the legal aspects in formalization of the building territory.

The building has quite a big courtyard and building territory. However, the question arises: how a homeowners association can precisely define the boundaries of its land plot. Where to go, which documents to ask for?

Natalia Hnatush, a lawyer specializing in work with the homeowners associations, consulted us on the land issue: "Just visit the public cadastral map and see, for example, if this section is included in the cadaster. You may see that it is not there, while in most cases you will see that it supposedly exists in the documents, it is actually being cleaned, but at the same time the whole land plot is not legally registered. This problem is caused by the fact that, actually, the procedure for registration of the building territories, identification of boundaries has not been regulated at the national level to date. All this is regulated by the decisions of the local self-government bodies."

When asked where to go in Kyiv to clarify the "land" issue of the Soviet-era buildings, the lawyer replied: "I would recommend to find the project documentation on the building in the archive, examine the decision on the plot allocation. There should be at least the size of the building territory in it, also check in the technical passport. But in any case, now it is not very beneficial from the material point of view to register the building territory in ownership, because it says in the legislation: "shall be given free of charge." Yes, there is the resolution of the Kiev City Council, it is adopted free of charge, but preparation of the required package of documents costs several tens of thousands Hryvnias."

The expert argues that in order to efficiently dispose of the building territory, for example, to install the lifting gate at the entrance, the fence, etc., it is necessary to obtain the land act: "It is better to have the documents, because then you will be sure that the fence is within your building territory, that is, you will not have claims from the neighboring houses believing that this is their building territory. In other words, the co-owners have a lot of questions when the boundaries are identified and there is a desire to use the building territory effectively."

All proceeds from statutory activities of the homeowners associations should be used for statutory activities. That is, you cannot buy an expensive car if you are homeowners association but you have the right to improve the condition of your common property from the lease payments.
Commenting on the possibility of installing a flower shop or a kiosk in the territory of homeowners association "Lobanovskoho, 130" – i.e., renting out their building territory for commercial activity, – Natalia Hnatush emphasized that this is the right of co-owners, because it is their building territory. Also, according to her, they can even place, for example, a paid parking lot for the guests.

As for avoiding possible tax problems, the lawyer added: "Non-profitability of the homeowners associations means that all proceeds derived from the homeowners association statutory activities should be used for statutory activities. That is, you cannot buy an expensive car if you are homeowners association but you have the right to improve the condition of your common property from the lease payments. Thus, the tax authorities will accrue a certain amount of land tax, and the homeowners association just pays it, that's it. And the rental relationship with a representative, for example, of the coffee shop or flower shop, is already the relationship between the homeowners association and that representative. The land tax is paid only when the land plot is properly registered, included in the land cadaster and is subject to taxation. Only then there is an obligation of the homeowners associations to pay a land tax," - summarized Natalia Hnatush.

Більше способів того, як можна урізати платіжку за утримання будинку та прибудинкової території завдяки створенню ОСББ, дізнавайтеся із нашої статті, написаної спеціально для порталу «Обозреватель»:
https://goo.gl/sFvND9

This and other stories – in full episode of YOUR HOME TV program, which is broadcast on TV channel UA:PERSHYI every Friday at 7:00 p.m. with the support of the USAID Municipal Energy Reform Project in Ukraine. In addition to the issues of common ownership in multi-apartment buildings, this episode is devoted to the problems of newly constructed buildings, in which the owners of the apartments established the homeowners associations in order to solve the problems accumulated by the developer and ZhEK.

If you are a fan of energy efficiency, section "YOUR HOME: Practice" will be the source of new ideas for implementation in your home.
In just two hours, your usual sleeping area can be equipped with a new decor element – a useful and energy efficient shelf. It will serve you as an energy saving lamp, charging station, and your phone and alarm clock will always be at hand.

We invite you to watch the full 1st episode of Season 3 of YOUR HOME program created with the support of the USAID Municipal Energy Reform Project in Ukraine.
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