MY HOME IS MY CASTLE?

On 1 October this year, the new housing code comes into effect in Azerbaijan.  Some of our citizens do not attach much importance to this document, believing that it concerns only the state's rights and homeowners' obligations and that, "even if this opinion is wrong, the most 'advanced' clauses of the code are of no practical significance." The new Housing Code does, however, have some advantages compared with preceding documents, which were adopted as early as in the 1980s by the authorities of the Azerbaijani SSR, and laws and regulations which were in force in independent Azerbaijan.

Who is the boss here?!

Let us begin by saying that Azerbaijani homeowners have accumulated a great many complaints about the earlier documents, about the operations of the Housing and Utilities Departments, municipalities and about communal services.  For example, residents of apartment blocks encounter great problems when, say, the lift, the gas or water pipelines, sewage or heating systems are out of service.  As is known, communal services maintain all the appropriate infrastructure "to the house," and all the "in-the-house" problems are, by law, under the jurisdiction of the housing and utilities department, although these bodies do not have sufficient funds for repairs and (let us be blunt) for the maintenance of residential premises within the area of their supervision.

To address these kinds of problems, an initiative to create cooperatives in Azerbaijan, which in the United States are called condominiums and in Russia - associations of homeowners, was voiced long ago.  They would have the right to sign agreements with companies which would undertake all the required work.  Of course, the cooperative would pay for these services.  These types of associations have existed in some districts of Baku from early in the decade.  Let us stress again: only in some districts.  This is why residents of apartment blocks which were built in the 1980s often have to tackle emergencies in their buildings on their own or with the help of communal services.  And of course, they pay for this.

Needless to say, some residents of apartment blocks still want to redesign their apartments, which, in a number of cases, stands to result in the most tragic consequences.

And what if some "respected company" hangs a huge advertising poster on the fa?ade of your apartment block?  And it so happens that the poster, which is certainly high-quality and nice and is supposed to stimulate sales of goods or services and earn income for the businessmen involved, covers the only window in your room and produces alarming sounds at the slightest gust of wind and disturbs the sleep of your entire family?  What can you do if this happens?

And yet another painful aspect is the collection by communal services of fees for their services to residents.  It is no secret that it is relatively frequent these days for residents not to pay 100% of their electricity, gas, water, sewage, lift or ownership fees, so the governmental servicing organizations are forced to resort to "punitive measures" against chronic non-payers, involving the discontinuation of services.  In most cases, residents who pay their bills on time and in full also suffer in the process...

In addition, cases of violations of residents' rights by developers of new properties are not so rare...

Multilayered document

Does the Housing Code supply answers to all these questions?  Yes, it does.

Let us begin by saying that under the code all residential properties on the territory of Azerbaijan, regardless of form of ownership, fall into the same category of residential property objects.  Residential houses, apartments and rooms are considered residential premises.

Hostels and dormitories, service residential premises, residential premises in buildings which provide social services to the population, residential premises in which refugees and internally displaced persons live and residential premises for social aid to individual categories of citizens - all these belong to the category of special-purpose residential premises.  According to the code, residential premises which belong to the special-purpose fund cannot be privatized or rented out.

And here are the benefits of the new document.  First, the Housing Code defines the procedure for the reconstruction of residential premises and redesign of their floor plan; ownership rights for communal housing, ownership rights of residents of apartment blocks and, of course, the rights and duties of owners of residential premises.

In addition, the code defines the ownership rights of participants in cooperative housing, procedures for the creation of homeowners' associations (those same condominiums).  It has to be said here that the code describes three options for management owned apartments.  The first option is the signing by every resident individually of an agreement on housing and utilities services with an appropriate company.  The second option envisages the creation of condominiums, which can be formed by homeowners even from several buildings (these associations will require government registration).  Lastly, the properties may be managed by a so-called managing company, which the residents themselves will choose.

In other words, the state effectively withdraws completely from the residential property sector.  So the code envisages a major broadening of homeowners' rights and enables them to make some money, to boot.  For example, in Russia homeowners' associations received the right to work with firms and companies independently long ago.  There was an example when an association rented part of its building's attic to a mobile phone operator for the installation of a transmitter and received quite considerable revenues, which were then spent on repairs to the building and saved residents' money...

In addition, the code also specifies the procedure for payment for communal services in residential premises and the management of high-rise buildings, including management by municipalities.

Finally, the document clarifies the procedure for the allocation of government-owned and municipal residential premises for underprivileged residents and the creation of lists of citizens who need municipal housing.

The code also provides criteria for the categories of individuals who are eligible for so-called social rental housing.  These are individuals recently released from penitentiary institutions, returning from military service or who have completed their education in orphanages.  For example, if citizens who belong to this category have no housing, the state or municipally may provide them with housing from residential funds.

According to Azerbaijani President Ilham Aliyev's decree, "On the approval and coming into effect of the Housing Code of the Republic of Azerbaijan and issues of the legal regulation of related issues," the cabinet was instructed to prepare proposals within two months on bringing laws and regulations into conformity with the new code.  And within three months, the cabinet must prepare proposals on categories of citizens who must receive housing from the state apartment fund, and also create regulatory rules in accordance with the code.

Filling the gaps

You must agree that, after reading the clauses of the document, it is certain that from now on, the housing and utilities departments will at least start doing something, the long-awaited condominiums will be created and utilities companies will become extremely strict with chronic non-payers.  In fact, the code was in development for a very long time.  It was developed by a working group which included experts from standing parliamentary committees on social policy, economic policy, legal policy and state development.  And considering the great public interest in this matter, letters and requests received from citizens were also taken into account during the development of the document.  Suggestions and recommendations which were voiced when the first and second reading of the document were discussed by Milli Maclis of Azerbaijan were studied thoroughly by experts and specialists.  As a result, the draft document for the third reading included most of the suggestions in the document and a number of important amendments were made.  These mainly concerned issues of the insurance of residential premises, terms for transfer to a non-residential category, the reconstruction and changing of floor plans of residential properties etc.

Chairman of the Milli Maclis Social Policy Committee Hadi Racabli said that the Housing Code "protects the interests of all strata of society.

"In recent years, housing in Azerbaijan has increased fivefold.  Property relations and forms of ownership have diversified.  At present, there are state, private, cooperative and municipal forms of ownership.  After the first reading, a large number of amendments were made to the draft law, and many of them were made to protect the interests of citizens," said Racabli.

For his part, Ali Huseynov, chairman of the parliamentary committee for legal policy and state development, maintains that, from now on, the appropriate executive bodies will be renting out housing from the state-owned fund for social rent.  In addition the state will pay compensation to repair housing damaged by natural disasters.  The code also postulates that if the owner of residential premises which are in dire condition cannot afford repairs, the apartment will be auctioned off.  And residential premises which are situated in areas required for government purposes will be valued at market prices and, if necessary, the owners will be given temporary housing until they are moved to new apartments.

Ali Masimli, member of the Azerbaijani Milli Maclis standing commission for economic policy, notes that, at present, Azerbaijan has a number of problems in the field of construction, which stem from controversies over legal rights to properties.  "The Housing Code will resolve these problems," said the Member of Parliament.

In the opinion of most Azerbaijani economic experts, the Housing Code does tighten government control of the housing and utilities sector.  For example, if the owner of a residential property changes the status of the property to non-residential, he or she must first receive permission.  The same is true for owners who want to use their housing for professional activities - an appropriate licence must be obtained.

Of course, there are still many questions about the Housing Code.  For example, are funding sources identified for the construction of housing for people on the affordable housing waiting list?  What is the space allowance per person when government housing or social rental housing is distributed?  And if the person who lives in social rental housing does not pay the rent, will he or she be evicted?  And if so, where will he or she live?  What measures will be used against homeowners who break the law?  According to available information, the code does not include provisions specifying the timetable for completing the process of housing privatization in Azerbaijan.  And so forth.

Of course, it is too early yet to talk about how effective the new law will be, if only because there is no enforcement practice in place yet.  All the gaps in the document will become manifest when the law is enforced, stress Milli Maclis members.

"Despite the fact that the code will come into effect on 1 October 2009, a number of shortcomings might be found when the provisions of the law are enforced, and this must be monitored appropriately.  One year on, when the results of monitoring are summarized, we will be able to introduce some amendments and additions to the Housing Code of Azerbaijan," said Masimli.

In other words, work on the document will continue.

But one important conclusion must be drawn:  the Housing Code can fill a huge legal gap which has existed in housing law ever since the Soviet period.  And only a few people realize today how important an instrument for the protection of homeowners' rights the law gives us.  We only have to learn how to use it properly...