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Building funds in OSI accounts: could they be frozen and what changes are proposed?

An OSI chair talks with residents in the courtyard of an apartment building in Astana. An everyday scene in natural light, with no text.

Photo: Aibek Skakov / Pexels

Apartment building accounts could be frozen because of disputes or problems involving their property owners’ association, known as an OSI. MPs want to clarify the status of these accounts to protect residents’ savings. MP Yekaterina Smyshlyayeva outlined the changes under discussion (inbusiness.kz). The details of how the funds would be protected are still being worked out.

Why building funds could be frozen

According to Smyshlyayeva, building accounts could be frozen because of disputes or problems involving the OSI. MPs want to clarify the legal status of the accounts and the money owners collect for their building’s needs.

“If the managing entity is a business, the accounts opened for buildings are still about people, not business,” Smyshlyayeva stressed.

The proposed changes are intended to help protect owners’ savings. Kazakhstan has more than 60 thousand multistorey residential buildings, the MP said, so the issue affects a large number of residents.

Who decides how OSI funds are spent

The chair cannot decide alone whether to carry out major repairs or allocate money for specific work. These decisions require owners’ approval at a meeting.

According to Smyshlyayeva, some of the current wording defining the chair’s duties is too broad. For example, the requirement to ensure comfortable living conditions covers issues the chair cannot resolve alone.

MPs therefore propose defining chairs’ duties more precisely and bringing them into line with their actual powers. When work requires funding, the OSI chair depends on owners’ decisions.

Proposed changes when an OSI chair is replaced

When a new chair takes over, problems arise with the transfer of identification credentials and the electronic signature from the outgoing chair. MPs intend to clarify this procedure.

They are also looking at payment deadlines. According to Smyshlyayeva, these do not always align with the deadlines for paying utility bills and wages.

Another issue is professional training for building managers. The MP links difficulties in developing this field to a shortage of certification centres and changes to the professional qualifications system.

What makes debt collection difficult

Aliya Raisova, who chairs an OSI in the capital, says there are too few effective ways to get debtors to pay. In her assessment, collecting debts through notaries takes a long time, and the recovery itself can be challenged.

“OSI chairs have no truly effective means of getting debtors to pay,” Raisova said. She proposes developing more effective ways to deal with arrears.

Raisova also points to the lack of clearly defined working hours for chairs. Residents may call them at night, at weekends or while they are on holiday, she said.

What to do if your apartment is flooded

Raisova advises contacting the upstairs neighbours first to find out what caused the flooding. If they are not home or specialist help is needed, contact the OSI or an emergency service.

According to Raisova, residents often message the chair immediately and expect them to handle the situation personally. Yet the chair cannot take the place of every service or resolve every household problem.

In plain terms

Protections for money in building accounts are still under discussion. Replacing a chair can cause problems with the transfer of the electronic signature and identification credentials, and MPs also propose clarifying this procedure.

If you want a say in your building’s spending, attend the owners’ meeting. Decisions on major repairs and allocating money for work require owners’ approval.

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