Management and Maintenance of Multi-apartment Residential Building: Guide

MANAGEMENT AND MAINTENANCE OF THE MULTI-APARTMENT RESIDENTIAL BUILDING PHASE 2 3 1

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The Urban Foundation for Sustainable Development

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EFFECTIVE MANAGEMENT OF THE RESIDENTIAL BUILDING FOR 40 REFUGEE FAMILIES IN GORIS PHASE II PROGRAM INFORMATION The Goal of the program is the provision of reliable management and maintenance to the residential building constructed in Goris City (Armenia) for 40 refugee families.

This will be done through the Condominium establishment based on preconditions developed in the program's first phase.

Beneficiaries are 40 refugee families selected by the United Nations High Commissioner for Refugees who were living before in temporary shelters in Goris and are now settled in the newly constructed building.

The program is funded by the Swiss Agency of Development and Cooperation.

Partners: The United Nations High Commissioner for Refugees, RoA Ministry of Territorial Administration, Migration Agency, Syunik Region Administration, the Municipality of Goris, as well as non-government organizations.

The program is implemented by the Urban Foundation for Sustainable Development.

Ownership Title Submission Ceremony

URBAN FOUNDATION FOR SUSTAINABLE DEVELOPMENT

Address: 0070 Republic of Armenia, Yerevan, 9 Alex Manoogyan Street, room 508 Tel: 374 10 51 20 70 Fax: 374 10 51 20 76 E-mail: ufsd@aua.am Website: www.urbanfoundation.am

Manager

Revision Commission (Reviser)

The Manager organizes Condo work and signs on the Condo's behalf contracts with organizations providing various services.

The Condo Revision Commission:

The Manager is accountable to the Constituent Meeting, the Board and Chairperson.

The Manager: > Performs duties of building management as authorized and required by law > Organizes Condo accounting records > Represents Condo interests in court, state and other public agencies > Enters into treaties, financial transactions, as well as other such activities as authorized by law and the Charter

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Controls Condo financial activity

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Evaluates the multi-apartment building previous year budget implementation, as well as the current year budget

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Provides an opinion on the annual balance

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Implements other obligations mentioned in the Charter

CONDOMINIUM CONDOMINIUM MANAGEMENT STRUCTURE CHAIRPERSON CONSTITUENT MEETING OF CONDO MEMBERS

MANAGER

Revision Commission members are elected in a General meeting.

Revision Commission members cannot serve simultaneously as members of the Board, as the Chairperson or Manager.

BOARD

The management of a Condo includes the following bodies: the Constituent Meeting, the Board, the Chairperson, and the Manager.

Constituent Meeting The Constituent Meeting is highest management body of the Condominium Management Structure. Each Condo member has one vote in Constituent Meeting's decisions.

The Manager is liable for damages raised because his activity in accordance with the law.

Constituent Meeting Powers (are specified by the law and the Charter of Condo)

The Manager can be authorized by the Charter or a Labor Agreement to perform other functions.

> Making changes in the Charter > Setting the main direction of Condo activity

Founding Meeting of Condo-Opening

> The Board and the Chairperson elections, as well as suspension of their authorities

> Separate Condo divisions development, the Charter approval and selection of management, provided these authorities are not assigned to the Board by the Charter

> Appointment of the Manager and suspension of his/her authorities

> Decisions about either creating new or joining existing organizations

> The Revision Commission elections and suspension of its authorities

> Approval of large contracts

> Condo annual balance approval

> Decisions about audit implementation, as well as an auditor selection

> Approval of annual reports of the Chairperson or the Chairperson and the Revision Commission

> Decisions about Condo reorganization and liquidation

> Approval of the previous year Condo budget implementation report

URBAN FOUNDATION FOR SUSTAINABLE DEVELOPMENT

> Setting the number of paid employees as well as their salaries, provided these authorities are not assigned to the Board by the Charter

> Decision making related to Condo activity regulation, provided these authorities are not assigned to the Board by the Charter

> Appointment of a liquidation commission > Decision about alienation of Condo > Other decisions required either by law or the Charter

The Board

Calling of a Constituent Meeting Regular Constituent Meeting is called just by the Chairperson.

Special (out of the order) Constituent Meeting is called in the following ways:

In the Constituent Meeting each Condo member has one vote, which is adjusted by his portion of the common share property.

> By the Chairperson > By the Board decision > By the Revision Commission (Reviser) decision > By at least a 1/3 vote of all Condo members According to the period and agenda suggested by the initiators The initiators can call a Constituent Meeting themselves, provided the Chairperson fails to do so within 10 days after receiving proposed solutions or suggestions.

The Constituent Meeting is considered authorized if the number of participants is at least 2/3 of all Condo members.

The Constituent Meeting decisions are adopted through a simple majority of votes, provided nothing else is assumed for their adoption.

Additional issues can be included in the agenda if agreed by at least 1/3 of all Condo members.

Is selected:

During the Constituent Meeting where the number of members is more than 20 keeping the proportion of the owners number in the building

Number of members:

At least 3

Meetings are authorized:

If more than half of the Board members participate

Each member has:

1 vote

The meetings are called:

Once per quarter

Decisions are made:

By a simple majority vote of all members, provided the Charter doesn't assume more votes

Chairperson The Chairperson: >

Calls and leads both the Constituent Meeting and meeting of the Board

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Organizes the Board work

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Prepares documents for discussion during the Constituent Meeting and the Board meeting

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Signs with the Manager an agreement on behalf of the Condo, provided this is authorized by the Charter

The Board:

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Controls the Manager activity

>Implements Condo management in the period between Constituent Meetings

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>Considers Condo member complaints and suggestions

Considers Condo member applications and suggestions

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Records the Registration Book of Condo membership

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Informs community on Condo establishment or dissolution, Manager hiring or discharge.

Board Only Condo members can serve on the Board.

The Board members work on a voluntary basis, unless the Charter provides otherwise.

applications,

>Appoints and discharges the Manager, suspends his/her authorities, as well as assigns his/her authorities to commercial organizations and entrepreneurs, provided such assignments are authorized by the Charter >Approves documents regulating Condo internal activity, provided these authorities are granted to the Board by the Charter. >Provides conclusion about the multi-apartment building budget, as well as to the previous year's budget implementation report.

The Chairperson works on a voluntary basis, unless the Charter provides otherwise.

Founding Meeting of Condo-Recording votes

The Chairperson can combine his position with that of Manager, provided this is permitted by both the law and the Charter.

WHO IS THE FOUNDER OF A CONDOMINIUM? Article 9: ESTABLIHSMENT OF A CONDOMINIUM 1.

A Condo is established by founding.

2.

Founders of a Condo may be citizens, legal entities, as well as the Republic of Armenia and communities.

3.

A Condo can be established in one or several multi-apartment buildings.

4.

In multi-apartment buildings, a Condo can be established if the share of the membersowners of the structure for each building is at least 50 and more percent in the common share ownership of the building.

HOW DO YOU OBTAIN STATE REGISTRATION OF YOUR ESTABLISHED CONDO? Condo registration is obtained from the state registration department of juridical persons (State Register).

The below documents must accompany an application by an authorized person of a Condo: > A Protocol of the Constituent meeting of the organization, where there is a decision on accepting the Charter, Application to the State Register department, as well as a decision on the Chairperson selection, founder and authorized person passport information. > Constituent Agreement. > Charter (at least 2 copies). > Payment receipt of state registrationfees.

The state registration department must consider your application and either accept or decline it within 5 calendar days of receiving your documents.

In case of registration, an appropriate certificate must be issued within one day of the expiring deadline.

In case of a declined registration, the reasons for rejection must be provided in written form within 2 days.

URBAN FOUNDATION FOR SUSTAINABLE DEVELOPMENT

Management Body of Sandi Dzor Condo

CONDOMINIUM ESTABLISHMENT YOU ALREADY KNOW WHAT A CONDOMINIUM IS! IT IS A TYPE OF MULTI-APARTMENT BUILDING MANAGEMENT. IT IS PROPOSED THAT YOU ESTABLISH A CONDOMINIUM FOR YOUR BUILDING! Who would be the likely initiator of the condominium establishment for your building?

JUST YOU, OWNERS OF THE RESIDENTIAL AND NON-RESIDENTIAL UNITS LIVING IN THE BUILDING, SHOULD BE THE INTERESTEDAND INITIATING GROUP! WHAT STEPS ARE REQUIRED TO ESTABLISH A CONDOMINIUM FOR YOUR BUILDING? 1. Initiating owners of residential and nonresidential units in your building should call a Constituent meeting of owners where the idea of Condominium establishment is discussed.

2. The more informed initiators should present to meeting participants the reason for the Condo, its organizational structure and financial principles.

3. Condominium awareness education for building residents should take place a few days before the meeting in order to make it more effective. Especially, information flyers or published brochures might be developed and distributed to residents.

4. Positive aspects of Condo organization should be emphasized during the meeting.

However, don't withhold the financial and organizational hardships that might be faced during the initial period of Condo operations. Please, be forthright with the meeting participants and you will likely have their unanimous support.

5. S i g n a n A g r e e m e n t o n C o n d o establishment based on the Constituent meeting decision.

6. Apply to the state for registration of your Condo.

WHAT KIND OF INFORMATION SHOULD BE GIVEN TO DONORS? Donors should be informed about the following: > The true needs of people who are being considered for assistance > Whom and how you are going to help

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What results will be achieved due to

How can strategic planning methods be used? > > > > >

Develop a vision of your organization Understand the mission of its activities Formulate clear, measurable goals and supporting objectives Develop definite steps for goals achievement and objectives implementation Determine expected results

Strategic planning of fund raising (for 3-5 years period) Vision Interested parties Mission Strategic positioning Values and culture Situation assessment Main objectives Important goals Strategy Donor benefits

Why are some resources involved?

Who is interested in our success?

What is our purpose? Why do we exist?

Where do we fit in the fund raising community?

What do we stand for? What principles guide us?

What's going on?

What objectives are foremost?

At what are we aimed?

What is our blueprint for success?

Why do donors help us? Their expectations?

What are the obstacles to success in fund raising? > > > > >

Unclear objectives, treating donors negatively Low-quality proposals Poor planning, taking a casual attitude, relying on luck Internal strife among staff members Fear of requesting donor financial support

URBAN FOUNDATION FOR SUSTAINABLE DEVELOPMENT

Which financial resources can be involved? > > > > > > >

Partner grants Government contracts Other organization grants and support Income received from the organization's activities Payments for provided services Income from various events Contributions from private individuals

GENERAL RECOMMENDATIONS FOR FUNDRAISING Attention!

The below recommendations will be more successful with constancy and continuous implementation How does one raise funds effectively? ? ? ? ? ? ?

Become familiar with the internal culture of fundraising Use strategic planning methods Become skillful in developing quality proposals, where goals, objectives and results are clearly stated Involve as much as possible those who donate financially Create sustainable relations with an ever-expanding network of donors Develop an appropriate, regular reporting process to donors and owners

How does one become proficient in the internal culture of fundraising?

The internal culture of fundraising presumes: > Attentive and polite relations not just to the greatest contributors but also to owners whose monthly payments provide a financial base for meeting normal ongoing expenses > Skills that encourage people to make investments, contributions or donations > Availability of conscientious donors, investors and active residents.

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DON�T BE ASHAMED TO MAINTAIN POLITENESS! Be courteous when you are speaking by phone or messaging and require the same from your staff members and volunteers Immediately respond to all questions from residents or donors Express your gratitude for any donation or assistance

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Register all funds received by developing an electronic data base Remind all concerned of important events, especially anniversaries, celebrations, etc.

HOW DOES ONE STIMULATE AN INTEREST IN MAKING AN INVESTMENT OR DONATION? Invite donors to cultural and other > events organized by you Schedule at regular times meetings > with residents and donors to showcase achievements made possible by their financial support.

Periodically meet with donors not just > to request further support but also to provide information Send to donors in writing brief > updates on your activities

FREQUENTLY ASKED QUESTIONS ON CONDOMINIUM

BY RESIDENTS What is a Condo?

Condo is a form of management of a multi-apartment residential building (or a group of buildings). The management is executed by the resident-owners of residential and non-residential structures of a building. In general, the term “Condo” is used to mean a name of a building or group of buildings, which have officially registered such form of building management.

In the building (s) where a Condo is established, do the residents, who are not owners of apartments and non-residential structures, become members of Condo?

No. Members of Condo can be only owners of residential and non-residential structures of a multi-apartment building (s).

Is a notion “apartment rent” maintained after establishing a Condo in a building (s).

No. If a Condo is established, instead of “apartment rent,” residents shall make a monthly payment, which is foreseen for covering expenses for carrying out mandatory requirements for management and maintenance of a multiapartment building (s) common share ownership as prescribed by the Law and the Charter of a Condo. Payment for mandatory requirements includes expenses for: 1. Cleaning Condo area, 2. Garbage collection 3. Deratization and Disinsection 4. Cleaning and regulating air/smoke ventilation system, 5. Emergency repairs activities 6. Operating and preventive repairs.

What kind of monthly payments shall the resident living in a Condo make?

If a condo is established in a building or group of buildings, members of a Condo make the following monthly payments: >

Payments for implementing mandatory requirements aimed at managing and maintaining of common share ownership.

Which sections of a residential building are included in the common share ownership of a Condo?

Whom shall the members of a Condo and other residents of a building (who are not Condo members) make monthly payments?

Common share ownership of a condo includes: Land plot allocated for the construction of residential > building Carrying structures of the building > Covers between the building floors (ceilings and > floors) > Basements and mansards > Technical floors (spaces ) > Roof > Entrances foreseen for the maintenance of more than one spaces and for unified and compete maintenance of a multi-apartment building > Stairwells > Stairs > Elevators > Elevator and other wells > Mechanical, electric, sanitary, and technical or spaces, which are not the ownership of other entities by the law.

The members of a Condo make monthly payments to cashdesk (cashier, accountant) of a Condo. Other owners of the building (residential and non-residential areas) make payments to a Condo for meeting mandatory requirements of a building. Residents who are tenants of building apartments, pay lease amount to the owner of the apartment based lease agreement, from which amount the latter make payments to a Condo for meeting mandatory requirements of a building.

Who sets monthly amount subject to payment for implementing mandatory requirements of a building management and maintenance?

The amount of monthly payment aimed at implementing mandatory requirements of a building common share ownership management and maintenance is calculated in a specified manner by the Condo Board and is approved by the Constituent Meeting.

Whom should be made a payment for the maintenance of a common share ownership of the multi-apartment building- to Condo, local selfgovernment, or other organizations (for instance, Zhek-Housing Management Department)?

All payments are made directly to Condo.

Whom shall the resident of Condo apply for removing deficiencies in the systems of sewerage, water, gas, and electricity supply, and telephone connection of the building?

Removing all deficiencies in the system, equipment, pipes and any property of common use (within the walls of the building) as a whole, is an obligation of owners, therefore, they should apply to Condo.

Whom shall the resident of Condo apply for removing deficiencies in the systems of sewerage, water, gas, and electricity supply, and telephone connection inside his/her apartment?

Removing all deficiencies in the system, equipment, pipes inside one's apartment is an obligation of the owner of a given apartment.

Who is obligated to remove, because of the fault of a resident of the building (or an owner), jam in a common sewerage system or repay for the caused material damage as a result of the jam?

A resident of the building who is at fault, thus causing the damage, is obligated to remove jam at his/her own expenses and repay for the caused material damage as a result of the damage.

Does Condo have the right to provide services to the residents residing in the building which does not belong to condo?

Yes, if Condo received respective authorities from its apartments owners. The list of such authorities is approved by the Condo Constituent Meeting.

Tenants of non-privatized apartments also are obligated to make those payments to Condo (upon agreement with the owner of an apartment) and pay the apartment lease directly to the owner of the apartment.

URBAN FOUNDATION FOR SUSTAINABLE DEVELOPMENT