TSN and HOA - what is the difference: pros and cons of organizations; main advantages and disadvantages when choosing these forms for managing an apartment building

Each organization functions differently. It all depends on the type of real estate to which the right of ownership applies.

According to the rules established by current legislation, property owners can create partnerships to manage common property. However, such organizations have fundamental differences, since real estate can have different purposes. In this case we are talking about residential and technical premises. Accordingly, the owners unite into TSN and HOA.

What are HOAs and TSNs?

HOA (homeowners' association) is an association of individuals created for the purpose of managing common property, the property of residential building owners, as well as conducting unified business activities.
TSN (association of real estate owners) is an association of citizens and organizations that own real estate (including an apartment, a residential building, commercial premises, as well as land), in order to exercise all the powers of the owner in relation to a single property within the limits provided by law . The forms of TSN are considered to be HOA and SNT. That is, this concept is broader in meaning and includes, among other things, the first.

Both HOA and TSN are non-profit corporate organizations, membership of which is voluntary.

Forms of management of an apartment building

The Housing Code provides forms that allow for the management of property in multi-apartment buildings. They are listed in Article No. 161 of the RF Housing Code:

1. Conducting economic activities through the efforts of the residents themselves; No third parties are involved at all. Such control is possible with small house sizes, optimally with 6-8 apartments.
2. Homeowners' Association (HOA) - the owners, by voting, elect a chairman who is responsible for making decisions and their execution.
3. Housing cooperatives are rarely created, but as a form of management of an apartment building they have the right to exist.
4. Management companies - the owners select a suitable management company, for whose services each apartment owner pays monthly. The elder of the house is elected by majority vote to interact with the company.

Management companies are created for the purpose of generating income, and HOAs and TSNs are non-profit entities. Joining these formations is voluntary.

Legislators introduced the concept of a partnership of real estate owners to replace the HOA, but the changes were not made to the Housing Code. These communities are still possible, like the board of MKD.

Legislative regulation of the issue

Real estate owners association legislation:

• Civil Code of the Russian Federation (general provisions);
• Housing Code (provisions on HOAs);
• Federal Law No. 66 of 1998 (provisions on SNT, DNT and gardening partnerships).

Let's look at the difference between an HOA and a TSN. A real estate owners' partnership is a broad concept that includes HOAs, SNT, DNT and other partnerships. The main condition for creating a partnership is the association of citizens who own the same type of real estate.

Changes in legislation on the creation of TSN were included in 2014. However, the law did not oblige organizations to undergo re-registration. Thus, all HOAs, SNTs and other partnerships organized before 2014 did not receive partnership status, but must comply with the legislative norms provided for such legal entities.

Transformation Act

Federal Law No. 99 dated 05.05.14 made changes to the Civil Code of the Russian Federation. In accordance with these amendments, the activities of the HOA are cancelled. But re-registration in TSN is not required. The new rule applies to newly organized partnerships.

Legislative framework of TSN

Like any other organizational and legal form, a partnership of real estate owners is directly enshrined in the legislative framework of the Russian Federation, by referring to which you can understand the ways of creating, functioning and monitoring its activities. Below are specific regulations and relevant sections that reflect the essence of TSN.

Since the TSN design appeared relatively recently, it still raises many questions. It is worth noting that there is no special regulatory act dedicated to TCH, therefore, property owners who decide to transform into this type of partnership must rely on the general legislative framework.

Additional changes in legislation

In addition to the question of how one form of OPF differs from another and what is the difference between them, it is important to know who can dispose of the property of partnerships. According to Article 123.13 of the Civil Code of the Russian Federation, all public facilities must belong to TSN participants, since they represent shared ownership. In SNT, this property previously belonged to all participants of the partnership or to individual participants if it was purchased with funds received after targeted contributions were made.

The adoption of Federal Law No. 99 also influenced the method of alienation of a plot of land along with a share in general property. If a partnership participant sells a plot, after that he will not be able to dispose of part of the TSN property. This right will automatically pass to the person who buys the land and becomes its subsequent owner. Before the adoption of the law, a SNT participant could simultaneously conduct two transactions and transfer the rights to the plot to the buyer along with the transfer of rights to common property.

The change in the OPF also affected the early termination of the actions of the company's leaders. Now they can be suspended at a meeting of participants after a collective decision has been made by property owners. The main reasons include gross violation of established norms and duties, as well as the inability to conduct business if there are serious reasons for doing so. In this case, the participants of the partnership elect a new chairman and members of the board of directors by voting.

Functions, tasks and goals of the organization

TSN is a partnership of real estate owners that operates as a legal entity. The organization must have a chairman (manager) and a board of trustees. The main body of TSN is the meeting of owners. All major issues are resolved through voting.

Only the owners have voting rights. Tenants, tenants, tenants of premises under a social tenancy agreement living in an apartment building are not given the right to vote.

An alternative to forming a partnership is a management company. This is an organization that independently carries out management functions, without involving a council of residents.

Main functions of the partnership:

• organization of collective property management;
• making decisions on major issues regarding common property;
• control over the implementation of decisions;
• control over the control apparatus.

The management apparatus at TSN consists of the chairman and the board of trustees. The Chairman is vested with the right to make sole decisions on issues established by the Charter of the organization.

Responsibilities of TSN

Along with the pre-existing HOA, the main document of the partnership of real estate owners must include similar legal frameworks for management - maintenance, operation and repair of the property, as well as those that were not included in the scope of the first - the construction of new joint real estate, its delivery to the arena. At the same time, the rental relations of TSN will be classified as the sphere of entrepreneurial activity that this organizational and legal form has the right to carry out, and the income received from this can be distributed at the discretion of the owners of the joint property.

What does TSN do?

The main task of TSN is to perform the functions of joint use of property of the members of the partnership, for which the organization is granted the right:

• Conclude various agreements. Including the maintenance, provision of utilities and repairs of common property owned by them.
• Make your own estimates of all expenses and income (keep accounting).
• Use bank loans, transfer material and monetary funds for services and work performed for TSN.
• Sell, exchange, transfer common property for temporary use.
• Represent the legitimate interests of all members of the partnership in relations with government authorities, including tax authorities.

And also, in case of compliance with the charter of the partnership and the laws of the Russian Federation, the partnership of real estate owners has the right to carry out development on land plots owned by the partnership on behalf and at the expense of members or to rebuild part of the common property.

At the same time, the association of real estate owners is also entrusted with a number of responsibilities, including: implementation of the charter and provisions of regulations, ensuring the necessary sanitary and technical condition of public property, accounting and payment of taxes, as well as compliance with the legal rights of each of the participants in the association.

Since TSN is a non-profit organization, all its business activities should be carried out only to achieve the goals specified in the organization’s charter, for the sake of which the partnership was created. All profits received cannot be divided among the participants of the organization, but are used to maintain the common property in proper condition.

TSN goals

Formally, TSN is created to increase the level of comfort of living owners. More specifically, the establishment of TSN is necessary to achieve the following goals:

• implementation of representative functions of property owners in interaction with authorities and other structures;
• concluding agreements for the purpose of maintenance, maintenance of common property, etc.;
• disposal of common property, etc.

Such a society is non-profit , that is, it does not have the goal of making a profit from its activities.

To form a correct idea of ​​how to manage the funds received, it is worth noting that as a result of the activities of the partnership, two types of income can be received - from the property of TSN and from property that is in the common shared ownership of the participants - owners of premises in the apartment building.

Only profits of the second type are subject to division between members; other funds must be directed to improvement, repairs and other general needs of TSN.

In addition, if any business activity is carried out, then in the event of debts arising, the partnership is liable with its existing property, without holding the participants liable.

Despite the wording “association of real estate owners,” property may also include movable property .

Regardless of the type, the property is recorded in accounting documents and tax reporting, since TSN may be liable with this property if an obligation arises to the creditor.

Procedure for organizing TSN

As mentioned earlier, only the owners can organize a partnership.

Accordingly, each member must have a document confirming his right in relation to any object.

In order to create it, it is necessary that the majority of owners make an appropriate decision to choose the specified form of management.

Any decisions in accordance with the requirements of the law must be documented in a written protocol.

Reference. There is no separate special law on TSN; the concept itself was introduced as an amendment to Chapter 4 “Legal Entities”, Part 1 of the Civil Code of the Russian Federation (Federal Law dated May 5, 2014 No. 99-FZ).

TSN Charter

The information specified in the TSN charter must necessarily contain information about the name, location of the organization, legal status and composition of the management bodies of the partnership, the subject and purposes of such activities.

It is important to say that at the legislative level there are no clear requirements for such a document; it just must not contradict the norms of the Housing Code and the Civil Code of the Russian Federation.

Founders of TSN

Members, as well as founders of TSN, can be individuals who have the right of ownership of real estate, which is an object of public use, as well as legal entities to which the above-described property belongs by right of ownership, economic management, and operational management.

You can become a member of the organization through an application. It is necessary to indicate reliable and complete information about yourself, which will subsequently be entered into the appropriate register.

Monitoring and management of TSN

Participants in a partnership of real estate owners do not bear either shared, joint or subsidiary liability for its debts, since this legal entity has separate property with which it is able to answer for the obligations that have arisen.

Each TSN is assigned the responsibility to form control and management bodies that coordinate issues between members of the organization and third-party legal entities.

Control and management functions are carried out by:

• general meeting of property members;
• Chairman – sole executive body;
• the board is a collegial executive body;
• The audit commission is a body that monitors all activities of the management apparatus.

Incorrect accounting of fixed assets acquired through contributions

If a fixed asset was acquired through contributions, it is a common property. When registering such a fixed asset, you need to reflect the use of target funds:

• Dt 08 Kt 60;
• Dt 01 Kt 08;
• Dt 86 Kt 83 (86/Targeted funds used for the acquisition of fixed assets).

Depreciation is not charged on such fixed assets. Instead, depreciation is charged on off-balance sheet account 010.

When such fixed assets are disposed of, the following entry is made:

• Dt 83 (86/Targeted funds used for the acquisition of fixed assets) Kt 01.

Rights and obligations

Let’s take a closer look at the pros and cons of a real estate owners’ association. The owners and the organization are not liable for each other's debts. TSN is exempt from liability for the owner's debts. In this case, the owner of the property is not liable for the debts of the organization.

The main document that consolidates data about the organization and its legal capacity is the Charter. The document determines the ability of TSN to bear responsibilities and have legal rights. The charter includes the ability of the organization to own property that is its property.

In the event of debt obligations, the organization is liable with personal property. The property of homeowners is not included in the list of property of the organization.

The Partnership, on its own behalf, enters into contracts for the provision of utility services and for construction work. TSN issues invoices to homeowners for the use of services, independently collects funds and transfers them to contractors.

The law gives a partnership the opportunity to carry out entrepreneurial activities in the following cases:

• profit is the property of TSN and is not subject to division between homeowners;
• The organization's charter must contain the possibility of carrying out such activities;
• activities must meet the goals of the organization.

Any actions of the organization must correspond to its tasks and goals. Partnership rights:

• receive loans from banking organizations on your own behalf;
• carry out work and provide a certain range of services for owners;
• enter into agreements for the purchase and sale, lease or exchange of common property of the partnership;
• receive and transfer funds for service providers in accordance with concluded agreements;
• enter into contracts to provide services required by property owners.

In order for TSN to exist, the owners pay membership fees. They are paid in accordance with the estimate, which is prepared annually by the organization. The contribution is calculated based on the citizen’s share in the right of common ownership.

The law gives TSN the right to demand fulfillment of obligations from owners. The responsibilities of the owners are contained in the agreement with the organization. If a citizen refuses to fulfill his obligations, TSN may go to court. Such actions are possible if a citizen refuses to pay contributions or causes damage to the property of the partnership.

Responsibilities of TSN:

• fulfill contractual obligations;
• comply with the Charter;
• monitor the sanitary condition of the property;
• conclude contracts for the execution of work;
• conduct activities in accordance with the law.

Joining TSN is voluntary. The citizen must submit a written application addressed to the head of the partnership. To leave the organization, you must also submit an application. The document must include information about the owner, including personal data.

The concept and legal status of a partnership of real estate owners is enshrined in the Civil Code. Members of the organization are granted a certain list of rights. They are fixed by the Charter of the partnership. Member rights:

• request information about activities;
• become the head of TSN or a member of the board of trustees;
• appeal the organization's decisions in court;
• receive quality work and services from TSN;
• familiarize yourself with the Charter.

Lack of information from minutes of meetings and boards

The accountant must be aware of the decisions made by the general meeting and the board. For example, if the chairman of the HOA cannot enter into agreements above a certain amount without the approval of the board, then the accountant needs to know about this so as not to miss such an agreement.

Also, the accountant must have the right to vote in order to correctly evaluate decisions made from the point of view of tax legislation. Almost the only source of financing is contributions from owners. And if the owners consider themselves offended, they begin to write complaints to all authorities. One such owner with his complaints can paralyze the work of the HOA.

Homeowners Association

An HOA is created within one house or several at once. To do this, apartment owners are required to fill out applications for participation.

The goals of the partnership are as follows:

• manage and dispose of property jointly;
• distribute the income received for maintenance and improvement of the house;
• keep the apartment building in order, ensure good condition according to sanitary and technical standards.

Residents are increasingly choosing self-management.

The partnership has the right to rent out common premises to generate income. It is allowed to be used exclusively for house and yard maintenance.

Pros and cons of HOAs

Advantages

• Where a citizen cannot independently carry out certain actions to improve the area or manage common property, an HOA will come to the rescue. After all, sometimes it is much easier to pay for cleaning to an organization with which the HOA has an agreement than to do it yourself. When organizing a business independently, conflicts may still arise between neighbors. So, this not only saves time and reduces the burden on the residents of the house, but also ensures peace of mind and organization.
• A definite advantage of the organization is the common decision-making, and the possibility of influence of each member of the HOA on the outcome of the decision. For example, the choice of a management company that will collect utility bills is carried out on the basis of voting, where the opinion of at least half of the organization’s members is taken into account.
• The undoubted advantage of the HOA is the application of a simplified system for collecting tax payments. The financial and economic activities of the organization are open to all participants - this is also a definite plus.
• The absence of a requirement to license the activities of this organization is provided for in Article 161 of the RF Housing Code dated December 29, 2004 No. 188-FZ. This makes it easier to create.

Flaws

• The disadvantage of HOAs is the high amounts of fees charged. But these amounts do not differ significantly from average utility bills. Another disadvantage is the presence of a large number of contributions.
• Another disadvantage is the subordination of the minority to the majority. So, if at least half of the participants vote for a certain decision, then those who did not vote for it will be forced to obey it.

Disadvantages of HOAs

Accordingly, partnerships also have certain disadvantages:

• Financial costs for major repairs increase significantly, as they fall entirely on the shoulders of residents. If, when managing housing and communal services or a management company, deductions are made every month, and at the same time the repair itself is planned in thirty years, this is not as noticeable as the decision to carry out major repairs in the HOA, when almost everything needs to be paid at once. The state does not provide any subsidies. Accordingly, for each house this may or may not be a minus if the solvency of the residents of the house is high enough;
• Difficulties in registering an HOA due to the fact that in the minutes of the constituent meeting the number of “for” votes must exceed fifty percent;
• Significant expenses for using the building. This does not affect utilities, but disagreements usually arise between HOA members;
• There is a problem with making contributions if among the residents there are people who receive government benefits to pay for utilities. The difference between accrued and paid payments is returned to the beneficiaries by the partnership, after which it is necessary to contact government authorities, which are obliged to return the same amount to him;
• Housing management depends on the literacy of HOA members.

Lack of separate accounting of target contributions

If the HOA collects money from residents for specific needs, for example, for the construction of a playground, it is necessary to draw up a separate estimate and approve it at a general meeting. It is necessary to organize separate accounting of the expenses of targeted contributions. Based on the results of the execution of this estimate, a report is drawn up, which displays information about savings or overspending of the target contribution. If savings are achieved, the rest of the money must be returned to the owners or a decision must be made at a general meeting to offset this amount against any item in the current budget. If there is an overspending, then it is necessary to make a decision at the meeting to raise the missing amount. If you do not keep separate records, tax authorities can recognize all receipts as income and tax them.

Property Owners Association

This is an association of owners of different types of real estate, both buildings and plots of land. A partnership is created to determine the procedure for owning, maintaining and using housing in accordance with the law. Such a community can exist on the basis of the right of the owners to improve the common area owned by all participants in the partnership.

Even enterprises can participate in the creation of TSN if they own various real estate: premises in an apartment building, an office building, a plot of land, and other objects.

Pros and cons of TSN

Advantages

• The advantages of TSN are in many ways similar to the advantages of HOA, with some amendments. A possible advantage of TSN is the independent work of a certain part of the organization’s members, the so-called managers. This will be a plus provided that these managers carry out their work competently and professionally.
• Considering the primary focus of TSN on property management, including its increase, we can assume that this will bring large profits, which will be directed to general needs. In this connection, it can be assumed that the contributions of participants will be less.
• The activities of TSN are open, including from a financial point of view - this is the advantage of the Law Firm. Faces.

Flaws

• One of the disadvantages of TSN: when making some decisions, the opinion of the majority will not be taken into account. Although this has its advantage. Since in the activities of HOAs, often not all residents have the opportunity to participate.
• The disadvantage is the need to obtain a license for management purposes. This requirement was established by Federal Law No. 255-FZ dated July 21, 2014 and became mandatory from May 1, 2015. Compulsory licensing was also enshrined in the Housing Code of the Russian Federation (Articles 161 and 192).
• Being a legal entity, TSN may be declared bankrupt.

What's better?

Here everyone makes a choice independently and taking into account their priorities. There are no significant differences between organizations. And HOA is essentially a type of TSN.

Wrong choice of taxation system

Taxes are imposed only on the HOA's business activities, which typically constitute a small portion of the association's overall activities. This mainly involves the leasing of space, penalties for late payment of housing and communal services, or the provision of services to owners by full-time employees of the HOA. As a rule, the most profitable option for taxing such activities is the simplified tax system. Therefore, already when creating an HOA, you need to take care to switch to the simplified tax system on time, otherwise you will have to keep complex accounting on the general system, pay more taxes and submit more reports. Of the two options for the simplified tax system for HOAs, it is better to choose the “Income” simplified tax system, because the expenses in the commercial activities of the HOA are insignificant.

TSN or HOA: what is the difference?

Unlike the TSN, the HOA specifies the nature of the managed property, namely: an apartment building, a residential building or several similar buildings. Thus, the first difference emerges, related to the subject of management or improvement.

In the first case, these are residential buildings, non-residential premises and extensions, land plots, and in the second - only residential buildings.

The second difference between non-profit organizations is the composition of participants, where both individuals and legal entities can participate in TSN. While in HOAs there are only individuals or citizens. Not only the composition has changed, but also the rights and responsibilities of the participants.

The purpose of the HOA is to improve the surrounding area and satisfy the important operational needs of housing, for example, communications, as well as property maintenance.

TSN has slightly different goals , relating, first of all, to property management, for example, renting it out if necessary. At the same time, management means its formation, maintenance, preservation, and also increase.

Both the first and second association of owners are a non-profit corporate organization operating on the basis of a charter.

In the TSN Charter, only the name changes, which includes a mandatory indication of the organizational and legal form. The rights and responsibilities of the organization itself have not changed.

Both organizations provide for the formation of a sole body and board. Control and executive bodies are still being introduced into TSN. Even in TSN, certain important decisions will be made by some members of the organization, and not by the general meeting by determining a majority of votes, as happens in the HOA.

In addition to the above, TSN and HOA have different taxation systems. For the second, a simplified system is provided, which is not provided for TSN.

Which is better: TSN or HOA

If you plan to create a public association, you should study the difference in the concepts of TSN and HOA.

They are distinguished by the inclusion in the management of TSN, along with residential real estate, garages and land plots.

HOAs are often created to manage one house, and TSNs to manage several real estate properties.

When only an apartment building is available, then it is preferable to organize an HOA; It is more appropriate to create a TSN if you need to maintain several objects at once.

It is often inconvenient for residents to attend mandatory general meetings of premises owners in apartment buildings, so it is better for them to attend TSN, where decisions are made by authorized people.

If the building contains apartments used for non-residential commercial purposes, then the owners register TSN to receive official income from the rental of premises. For example, shops on the ground floor are common.

Difference with the management company

To better understand the advantages and disadvantages of a homeowners’ association, the analogue of which is also a real estate owners’ association, one should compare its activities, for example, with a management company. This organization is engaged in cleaning the local area, common areas inside an apartment building, timely removal of garbage and carrying out repair work. All this is carried out even if there are persistent defaulters among the residents.

The partnership has very limited resources; you just have to pay attention to the charter, therefore, due to non-payment, the provision of certain services may be temporarily suspended. However, in comparison with the management company, the activities of the HOA are transparent. Residents know how much money goes into their current account and how much, when, and what it is spent on. Despite the fact that, by law, residents have the right to familiarize themselves with the budget of the management company, in practice this is rarely used.

In addition, the management company hires contractors who charge less for their work, which affects the quality of the services provided. By organizing a partnership, residents have the opportunity to hire workers themselves, choosing the best option for themselves in terms of cost and quality of their services.

Difference with co-op

Housing and construction cooperatives are represented by individuals and legal entities who unite with a common goal - to satisfy the needs of citizens for housing and manage an apartment building. Today, more than twenty percent of new buildings are implemented with the help of housing cooperatives. In essence, citizens join this cooperative, pay share contributions in proportion to the cost of future living space, build a house, and then distribute the housing.

A cooperative differs from a partnership primarily in its voting rules. In a cooperative, a decision is made only after a unanimous vote, but in a partnership, as its charter states, fifty percent plus one vote is enough.

Advantages of a cooperative:

• Temporary residence of unauthorized persons is possible only with the permission of all members of the cooperative. If someone is absent at the time the decision is made, then written notification is sent to him. This allows you to avoid social tension, violation of the rules of living in an apartment building and prevents illegal income-generating schemes.
• Availability of an audit commission. She is elected for a term of one year. Its main goal is to analyze the financial and economic activities of housing cooperatives.
• Income distribution. All profits received from the operation of the property of the house are distributed among the members of the cooperative. The number of cooperative members must be at least five.

Disadvantages of a cooperative:

• The right of ownership arises after payment of the share. Until then, alienation of the property is practically impossible.
• Expenses for maintaining the audit commission.

After paying the shares, residents can take ownership and reorganize into an HOA, approving their own charter.

Advantages and disadvantages

Residents of apartment buildings have two options for resolving the issue of maintaining common real estate: create a TSN, enter into an agreement with the Management Company. Each of these options has its own strengths and weaknesses. Today, not everyone wants to cooperate with the management company. This is due to high costs and the inability to track where the collected money is spent.

Also, management companies often do not perform their functions properly. With all these disadvantages, there are also advantages to this form of home management. For example, residents do not need to delve into issues of maintenance and upkeep of common property. The solution to all problems falls on the shoulders of the management company.

It's helpful to know the pros and cons of a homeowners' association. This will help you avoid making mistakes in choosing the form of management of the MKD.

The advantages of creating a TSN include the following:

• community of joint property. The Association of Real Estate Owners manages and maintains not only residential buildings, but also commercial properties, land plots, basements and attics. This makes it possible to more effectively manage various assets;
• saving time for owners of apartments in MKD (subject to the presence of a competent TSN board);
• The partnership conducts open business activities. Residents of an apartment building have access to financial statements;
• possibility of increasing property. Owners of MKD apartments can count on the fact that the profit received through competent property management will be used for general needs, to improve the condition of the house or the surrounding area.

TSN also has its disadvantages, these include the following:

• Resolving issues takes a lot of time. Therefore, it is not advisable to create TSN in old houses. For example, collecting money for repairs can take a long time. This is fraught with the transition of the MKD into an emergency state;
• probability of bankruptcy. Since TSN is a legal entity, it can become insolvent and liquidate at any time. In this case, there is no guarantee of return of funds invested in this organization;
• lack of good legislative support;
• decisions of TSN members may contradict the interests of MKD residents. Issues are resolved by a council headed by the chairman of the partnership. TSN can rent out part of the common property or sell it. The owners of an apartment building are unlikely to like such changes;
• To create a TSN, you must obtain a license. This is an additional cost of money and time.

Registration procedure

The document regulating the activities of TSN is the Charter. The law does not contain specific requirements for its registration. The main condition is compliance with the law. The document must contain the following information:

• Name of the organization;
• legal status;
• location;
• composition of the partnership (list of property owners);
• the type of property in respect of which the partnership is created (garden plots, apartments in an apartment building);
• rights and duties of the chairman;
• rights and obligations of the board of trustees;
• rights and obligations of owners;
• list of issues resolved by the chairman;
• a list of issues resolved collectively;
• responsibility of the organization.

The partnership may include both individuals and legal entities. Moreover, any person can be a member of the organization and its founder.

For-profit or non-profit organization?

In accordance with current legislation, a Real Estate Owners Association is a non-profit form of corporate organizations. It brings together owners of various types of real estate. TSN is a legal entity.

The company has its own Charter, which reflects all its rights and obligations, seal and bank account. It has the right to enter into agreements with utility companies and engage contractors to carry out the necessary work.

Its main goal is not to make a profit, but to solve problems that affect the quality of life of property owners. All money collected from the owners of an apartment building (MKD) and non-residential properties can be used by TSN exclusively for the maintenance and servicing of common property.

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Alternative to TSN: practical analysis

The need to form an association and subsequent management of joint property most often arises in relation to residential space, since this area is the most extensive, and its owners are always interested in creating the best conditions for themselves.

Thus, according to the Housing Code of the Russian Federation, management in an apartment building can be carried out:

• directly, through the personal efforts of the owners of such apartments, provided that the total number of rooms in the house is no more than sixteen;
• association into a HOA, housing cooperative or other consumer cooperative with special legal capacity;
• management through a management company.

From the above, it becomes objectively clear that managing the affairs of an apartment building on your own is a very unstable structure, since it often becomes difficult to organize a general council, collect contributions to solve a common problem, many lose initiative and do not have a competent approach.

Management with the help of a third-party organization - a management company - causes a lot of dissatisfaction, due to the fact that abuses on the part of such a company occur everywhere, requests from owners are ignored, the results of general meetings are falsified, tariffs are unreasonably inflated, fraud and waste of money from owners occurs.

However, this can be prevented through TSN, which is a good help, an effective and highly competitive organizational and legal form.

What is housing cooperative

Housing cooperative is understood as a housing construction cooperative. This is the official decoding of this term. The legislation established that it is not a for-profit company engaged in the joint management of consumer resources. A cooperative is created with the aim of pooling the financial resources of citizens for the construction of houses, dachas, etc. All citizens participate in this association by making a share contribution. Ownership of the building will arise only in a situation where the share is fully paid for.

Subsequently, this office can be transformed into a TSN or into a HOA. This occurs at the request of the owners by holding a general meeting and registering a new legal entity to replace the existing one.

How to create a real estate owners' association: step-by-step instructions

Creating a TSN is a painstaking and multi-stage procedure. In order not to get confused in all the subtleties, to stay within the legislative framework, and to establish the limits and scope of powers as accurately as possible, you must follow the step-by-step instructions with a description of the procedure and a list of accompanying documents.

You can register TSN using the following algorithm:

1. Creation of an initiative group (unification of individuals or legal entities into a coalition with an interest in TSN).
2. Conducting the first meeting of real estate owners in person to resolve issues on the creation of TSN, appointment of authorized persons, approval of the charter with the obligatory reflection of the entire procedure in the minutes (considered to have taken place if the number of those present was at least 50% of the total number of owners). Stages: Determination of persons whose competence will include functions to ensure the operation of TSN:
   chairman;
3. governing body;
4. secretary;
5. auditor or control commission.
6. Establishing the size of the membership fee, the rights and responsibilities of executive bodies.
7. Determination of the name, legal address (specific apartment, office or house as a whole) and the purpose of existence of TSN.