Law Information System CIELA

LAW OF THE HOUSING ASSOCIATIONS

Prom. SG. 55/14 Jul 1978, amend. SG. 102/29 Dec 1981, amend. SG. 45/8 Jun 1984, amend. SG. 75/30 Sep 1988, amend. SG. 46/16 Jun 1989, amend. SG. 21/13 Mar 1990, amend. SG. 60/24 Jul 1992, amend. SG. 104/6 Dec 1996, amend. SG. 117/10 Dec 1997, amend. SG. 59/26 May 1998

Chapter one.

GENERAL PROVISIONS

Art. 1. (1) Housing association shall be formed for supplying of its members with own homes, garages and studios by organising of construction activity.

(2) According to the approved development plan in a building of a housing association apart from homes, garages, studios can be constructed also premises, designated for economic, administrative and other public needs.

Art. 2. The organising of the citizens in housing associations shall be voluntary.

Art. 3. The housing associations shall be supported by the state.

Art. 4. (1) (amend. SG 60/92) The municipal councils shall support the housing associations by:

1. determining every year the terrains for cooperation housing, which shall be announced at a public place till the end of the previous year;

2. (amend. SG 60/92) rendering to the housing associations development right on state or municipal land by an order, determined by the Council of Ministers;

3. (revoked – SG 60/92);

4. (revoked – SG 60/92);

(2) The departments and the organisations shall render co-operation to the housing associations, formed by their workers and employees. They can concede departmental homes for temporary accommodation of the rightful dwellers of the building, which are subject to vacation in connection with the construction.

Art. 5. The housing association shall be a corporate body.

Chapter two.

ESTABLISHING OF HOUSING ASSOCIATION

Art. 6. (1) A housing association shall be formed for construction of at least six independent properties. For its establishing shall be necessary at least six members.

(2) A housing association shall be formed at foundation meeting, which shall take decision for its establishing, approve its statutes and elect management and control council.

(3) The record of the foundation meeting shall be signed by all founders.

(4) The statutes of the housing association must be complied with this law and it shall contain:

1. the name and the headquarters of the housing association;

2. the members of the management and the control council, their rights and obligations, the term of their mandate and the way of taking decisions by them;

3. the way of payment of the sums, due by the association members and the consequences of not paying them;

4. the order and the conditions for rendering personal labour by the association members and their families;

5. the ways for notification of the associates about the decisions taken by the bodies of the housing association;

6. the reasons, due to which can be terminated the housing association before the finishing of the construction.

(5) The statutes of the housing association can contain also other provisions, as far as they do not contradict with the law.

Art. 7. (revoked – SG 21/90)

Art. 8. (amend. SG 46/89) (1) The housing association shall be considered established when it is registered at the regional court of its headquarters. The application for registration shall be submitted by the management council. To it shall be attached:

1. copy of the record from the foundation meeting;

2. copy of the approved statutes of the housing association;

3. document from the people’s council that the decision for establishing of the housing association and its members are approved by the order of art. 7;

4. certificate of conviction of the members of the management and the control council.

(2) At registration shall be noted: the name and the headquarters of the housing association, the names and the addresses of the chairman, the secretary and the other members of the management and the control council and by whom it is represented.

(3) At change of the data of the previous para and of the statutes, as well as at termination of the housing association the management council shall be obliged in seven days term to require their registration. The changes of the statutes shall enter into force after the registration.

Chapter three.

MEMBERS OF THE HOUSING ASSOCIATION

Art. 9. (amend. SG 21/90) The members of the housing association shall be accepted on the basis of written application, submitted to the management council.

Art. 10. (amend – SG 60/92) Members of the housing association by right shall be:

1. the owners of alienated immovable properties for cooperative housing and for other measures under the Law of territorial and urban development when upon their wish they are indemnified with conceding of home in the building of the housing association;

2. (amend. SG 60/92) corporate bodies, for which is obligatory provided in the approved architectural plan of the building of the housing association the construction of premises, designated for economic, administrative and other public needs.

Art. 11. (amend. SG 60/92) (1) In a housing association cannot be accepted members, for whom there is no free property.

(2) (revoked SG 60/92)

(2) (prev. (3) – SG 60/92) Several persons can participate in a housing association to acquire property in co-ownership.

Art. 12. (revoked – SG 21/90)

Art. 13. (amend. SG 60/92) New members of the housing association shall be accepted with a decision of the general meeting.

Art. 14. (1) New member of a housing association at the place of an excluded one can be accepted only after the decision for excluding enters into force.

(2) (amend. SG 60/92) In the cases of art. 11, para 2, when some of associates leaves voluntary or is expelled, new member shall not be accepted if another associate in two weeks term after the notification declares in writing before the management council that he wishes to acquire his rights, related to his participation in the housing association.

Art. 15. (1) Upon termination of the matrimonial community of property, if both of the spouses are members of the housing association, as well as if one of them is member and to the other spouse is adjudicated part of housing saving deposit or of the payments in the cash office of the housing association, the court shall, upon request by the interested spouse, presented in one month term after the termination of the community of property, decide who of the two spouses to continue the membership, taking into consideration the interests of the children, the residential needs and the health status of the spouses.

(2) In the cases of the previous para the court can decide the membership of both of the spouses to continue if there are independent properties for each of them or the property can be subdivided into two independent ones.

(3) The provisions of the previous paras shall not apply when the spouse has become by right member of the housing association for his alienated property, not included in the matrimonial community of property, unless the proprietary participation of the other spouse in the housing association is significant.

Art. 16. (1) A member of a housing association can with his consent be substituted entirely or partially by his spouse, and also with decision by the general meeting – by his children.

(2) The application for entering into membership rights and the consent of the associate shall be presented to the management council in written form with signatures, certified by a notary.

Art. 17. Each member of a housing association shall have right to:

1. acquire as ownership home or other property, constructed by the housing association.;

2. participate with right to vote in the general meeting;

3. elect and be elected in the management and the control council;

4. require revoking of decisions of the management council and of the general meeting;

5. require summoning of the general meeting in the cases, provided in the law.

Art. 18. Each member of the housing association shall be obliged to:

1. pay to the housing association within the defined term affiliation fee and share contribution, as well as other payments, defined by the general meeting;

2. co-operate for achieving of the objectives of the association and fulfil the provisions of this law, of the statutes and the decisions of the bodies of the housing association.

Art. 19. The membership in a housing association shall be terminated due to:

1. voluntary leaving;

2. discharging by decision of the general meeting;

3. expulsion;

4. decease.

Art. 20. (1) The discharge from membership in a housing association shall be admitted in the following cases:

1. when the approved architectural plan of the building provides less homes and other properties than the number of the members of the housing association. In these cases shall be discharged from membership the associates, which are accepted last. If some associates are accepted simultaneously, the discharge shall be implemented with a lot among them;

2. when after the distribution of the properties by the general meeting the architectural plan is changed and the number of the properties is reduced and due to this there are no properties for all of the associates. In these cases shall be discharged from membership the associates, for whom have been designated the properties, fallen out of the architectural plan.

(2) In the cases of item 2 of the previous para, when a property of a member by right is affected, he shall choose another property, corresponding to the one fallen out, and the general meeting shall implement redistribution of the remaining properties.

Art. 21. Excluding from the housing association shall be admitted when the co-operation member does not pay in time his share instalment or systematically does not fulfil his obligations under this law or under the statutes, with which he hinders the achieving of the objectives of the co-operation.

Art. 22. The decisions of the general meeting for discharge and excluding of members shall enter into force after elapse of the term for appealing them and when they are appealed – after their confirmation by the court.

Art. 23. Upon disease of a co-operation member his membership rights and obligations shall pass to the members of his family, who have right to acquire the property. When the members of the family refuse membership in the housing association or when there are no such the membership rights can be entered by his descendents in direct line and when there are no descendents – the ascendants in direct line up to first degree, if in one month term after the disease of the legator, respectively after the refusal of the members of his family, notify in writing the management council and present the documents of art. 12.

Art. 24 (1) At termination of the membership the former co-operation member, respectively the heirs of the diseased co-operation member, shall have right to receive the resources, input in the housing association by him or by their legator.

(2) The housing association shall be obliged to pay the resources of the previous para as follows:

1. upon not started construction – in two weeks term after termination of the membership;

2. upon started construction – after the co-operation member, accepted at the place of the former member pays the sums, but not later than three months after termination of the membership.

Chapter four.

BODIES OF THE HOUSING ASSOCIATION

Art. 25. Bodies of the housing association shall be:

1. the general meeting;

2. the management council;

3. the control council.

Art. 26. (amend. SG 60/92) (1) The general meeting shall be summoned by the management council. It may also be summoned by the control council if the management council does not do this after being asked by it.

(2) The general meeting may also be summoned on request by one third of the members of the housing association. The request shall be directed in writing to the management council. If the management council does not summon the meeting in two weeks time after the request it shall be summoned by the control council in a new two weeks time.

(3) (amend. SG 60/92) When the general meeting is not summoned in the terms of the previous paras it shall be summoned with a decision of the district court.

(4) The general meeting shall be summoned with written invitation, handed over to all members at least seven days before the meeting. The invitation must contain the agenda, the date and the place of the meeting.

Art. 27. (1) The sessions of the general meeting shall be lawful if more than half of the co-operation members are present.

(2) Each co-operation member shall have right to one vote regardless in how many properties he is included.

(3) When several persons participate in a housing association in order to acquire in co-ownership one property, they shall have right to one vote.

Art. 28. (1) The general meeting shall:

1. accept, discharge and exclude members of the housing association;

2. determine the extent of the instalments and the approximate value of the homes and the other properties;

3. determine the kind and the amount of the construction and approve the design of its architectural plan.

4. determine the way for implementing the construction – by assigning or in economic way;

5. (amend. SG 21.90) distribute the properties among the members of the housing association on the basis of the approved architectural plan;

6. approve the ultimate price of the properties and the due ideal parts from the common parts of the building and the plot, respectively from the development right;

7. elect the chairman, the secretary and the other members of the management and the control council;

8. take decision for exemption of the management and the control council and of the members of the housing association from responsibility for damages, caused by non fulfilment of their obligations, if they do not ensue from crime as well as for full or partial remittal or deferring of their liabilities;

9. approve the account of the management council and the report of the control council for the activity, the operations, the accounts and the balance sheet of the co-operation;

10. take decisions for amendment and supplement of the statutes of the housing association.

(2) In the statutes of the housing association may be provided exclusive competence of the general meeting for other issues also.

Art. 29. (amend. SG 60/92) (1) The decisions of the general meeting shall be taken with simple majority of the votes of the present co-operation members unless this law or the statutes provide other.

(2) The decisions of the general meeting of art. 28, para 1, items 5, 6, 8 and 10, as well as the decisions for expelling of members of the co-operation shall be taken with majority not less than 2/3 of the votes of all members.

(3) (revoked – SG 60/92)

(3) (prev. (4) – SG 60/92) The general meeting can implement changes in the distribution of item 5, para 1 of the previous art. only upon written consent of the affected co-operation members and if the lawful requirements are met.

Art. 30. The decisions of the general meeting for accepting new members shall be void when:

1. as member is accepted a person, who does not meet the conditions for participation in the housing association;

2. as member of the housing association is accepted a person, for whom there is no free property;

3. at the place of expelled member has been accepted a person as member of the housing association before the decision for expelling has entered into force.

Art. 31. (1) The management council shall consist of three to seven members.

(2) In the management council cannot be elected persons:

1. deprived from right under art. 37, item 6 of the Penalty Code;

2. who by force of normative provisions cannot take managerial, accounting or financially liable position;

3. who are in marriage, in kinship of direct line or lateral line up to second degree

with members of the control council.

(3) The provisions of the previous para shall also refer respectively to the members of the control council.

Art. 32. (1) The management council shall organise the fulfilment of the decisions of the general meeting, solve the operational issues and represent the housing association.

(2) The members of the management council, who have caused damages to the housing association, shall be jointly and severally liable for them.

Art. 33. (1) Each member of a housing association can dispute decision of the management council before the general meeting in seven days term after coming to know it.

(2) The management council shall be obliged to summon the general meeting for considering the appeal in seven days term after receiving it. If the management council does not do this, upon request of the appellant the general meeting shall be summoned by the order of art. 26, para 1 and 3.

Art. 34. (1) The control council shall be comprised of three members. It shall exercise supervision over the activities and the decisions of the management council.

(2) Upon establishing of breaches, with which are affected the interests of the co-operation the control council shall summon immediately the general meeting of the housing association.

(3) The members of the control council can participate in the sessions of the management council with advisory vote.

Chapter five.

TERMINATION OF THE CO-OPERATION

Art. 35. (1) In one month term after determining the prices of the properties in the building of the housing association the management council shall be obliged to summon the general meeting, which shall, on the basis of the distribution of art. 28, para 1, item 5, accept the ultimate price of the properties and determine the due ideal parts from the common parts in the building and from the plot, respectively from the development right.

(2) On the basis of the decision of the previous para, entered into force, and after presenting of the necessary documents the notary shall supply the members of the housing association with notarial acts. The right of ownership in the property and the ideal parts from the common parts of the building and the plot, respectively from the development right, shall be acquired with the issuing of the notarial act.

(3) The housing association shall be terminated after all members are supplied with notarial acts.

Art. 36. (1) (amend. SG 60/92) When the management council does not summon the general meeting of the housing association in the term of para 1 of the previous art., it shall be summoned with decision of the district court upon request by any member of the co-operation.

(2) If the general meeting does not take decision on the issues, pointed out in para 1 of the previous art., decision on them shall be taken by the district court upon request by some of the members of the co-operation.

Art. 37. The housing association can be terminated before starting or finishing the construction with decision of the general meeting, which shall determine the way of settling of the proprietary relations.

Art. 38. (1) When the housing association is terminated and its resources are not sufficient to satisfy the creditors, for its liabilities shall be responsible the persons, who have received properties or for whom properties have been designated according to their value.

(2) If the housing association is terminated before staring of the construction, its members shall be responsible for the liabilities equally.

Art. 38a. (new – SG 21/90) Each member of a housing association can lay claim for taking out anybody, who is without ground in the home, determined for him with the distribution record.

Chapter six.

COURT CONTROL

Art. 39. The decisions of the general meeting of the housing association, taken in breach of the law or the statutes, shall be revoked by the district court.

Art. 40 (1) The application for revoking shall be submitted in two weeks term after the day of taking the decision, respectively its approval, and for the not invited – from the day of coming to know.

(2) Each of the rest members can join to the submitted application and maintain it even if the sender withdraws it.

(3) The district court can stop the fulfilment of the decision of the general meeting till the pronouncing on the case.

Art. 41 (1) The general meeting cannot re-decide issues, resolved by the court, except upon newly occurred circumstances,

(2) When the general meeting does not comply with the provision of the previous para the court, upon application by a co-operation member, submitted in the term of art. 40, para 1, shall revoke the decision of the general meeting. In this case the court can decree not to be opened or to be stopped the financing of the construction for a term up to three months.

Art. 42. (1) (amend. SG 59/98) The decision of the district court shall be subject to appellate review before the regional court, which decision shall be ultimate.

(2) (revoked – SG 59/98)

(3) (amend. SG 59/98) When the court in the cases of para 1 revokes the decision for expelling of a member of the housing association, the one accepted on his place shall be considered discharged and the co-operation shall be obliged in one month term to pay him the instalments made.

Chapter seven.

ADMINISTRATIVE PUNITIVE PROVISIONS

Art. 43. (amend. SG 60/92) A member of management or control council of a housing association, who does not fulfil or breaches decision of the court, entered into force, under this law, shall be punished with fine from 0.50 to 2 levs.

Art. 44. (amend. SG 60/92) An official, who does not determine within the established term the ultimate price of a property in a building of housing association, shall be punished with fine from 0.50 to 2 levs.

Art. 45. (1) (amend. SG 75/88, SG 60/92) The acts for establishing the breaches of art. 43 and 44 shall be compiled by the respective municipal administration and the punitive decrees shall be issued by the mayor of the respective municipality.

(2) The compiling of the acts, the issuing, the appealing and the fulfilment of the punitive decrees shall take place by the order, determined by the Law of the administrative offences and sanctions.

Additional provisions

§ 1. (1) In a "family" in the context of this law shall be included the spouses and their children not rounded fill age, if they are not married.

(2) (revoked – SG 21/90).

§ 2. "Properties" in the context of this law are the homes, the garages, the studios and the premises of art. 1 and 2 in the building of the housing association.

§ 3. (amend. SG 75/88, revoked – SG 60/92)

§ 4. (amend. SG 104/96, revoked – SG 117/97)

§ 5. The bodies for price formation shall determine the ultimate prices of the separate properties in the building of the housing association in term up to six months after the presenting of the necessary documents.

§ 6. The indemnification of owners of alienated immovable properties by the order of art. 83, para 4 of the Law of territorial and urban development with homes in newly constructed buildings of housing associations can be implemented till the cession of the development right to the co-operation.

Concluding provisions

§ 7. This law shall revoke:

1. art. 48 of the Law of ownership;

2. art. 10, para 2 and art. 11, para 1, second sentence of the Law of co-operations.

§ 8. (1) This law shall also be implemented with regard to the housing associations, registered till it enters into force, for the activities, which must be implemented after that.

(2) For the members of housing associations, to whom by April 1, 1978 have been ensured by the established order terrains and approved architectural plans, the norms of residential satisfaction of art. 28, para 1, item 5, shall not be obligatory.

§ 9. (amend. SG 102/81, SG 45/84) The fulfilment of the law is assigned to the Minister of Construction and Urban Development and to the Minister of Justice.




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