Uzbekistan abolishes requirement to insure mortgage housing

From May 1, when issuing mortgage loans for the purchase of apartments on the primary housing market, the requirement to insure the subject of the mortgage against insurance risks is canceled. The head of state noted that the abolition of insurance for mortgage housing transferred as collateral would allow citizens to save about 5 million soums.

In addition, the government has been instructed to develop a draft document to improve the mechanism for attracting money from individuals and legal entities for housing construction (equity participation).

The project should provide for the introduction of a procedure for mandatory notarization of agreements for participation in shared-equity construction of residential buildings. Also, the Transparent Construction system will provide for maintaining a list of contractors who raise money from individuals and legal entities for housing construction, liability measures for contractors who have begun shared construction without electronic registration, as well as a procedure for monitoring shared construction.

In addition, the right to build multi-storey residential buildings is also granted to construction organizations that have an electronic rating of “C” and “SS” in the “Transparent Construction” system. Before this, companies with a rating of CC and higher could build apartment buildings under the new order, and in the Yangi Uzbekistan estates – with a rating of CCC and higher, that is, the rating requirements are slightly relaxed.

At the same time, developers with a “C” rating are allowed to build housing with no more than 5 floors, with a “SS” rating – housing with no more than 9 floors.

To replenish the working capital of construction companies involved in the construction of multi-storey residential buildings in the Yangi Uzbekistan areas, 500 billion soums will be allocated from the republican budget.

At the same time, the Ministry of Economy and Finance places these funds in banks for a period of 18 months, including a grace period of 12 months, at the main rate of the Central Bank, and banks allocate money as loans to construction organizations using a 2% margin.

The list of developers who will be able to receive these loans is compiled by the Ministry of Construction and Housing and Communal Services and the Central Bank based on their rating.

Work on the construction of pedestrian paths, lighting systems and parking lots in the “New Uzbekistan” areas, landscaping and landscaping of territories, including planting trees, is carried out by administrations and the Council of Ministers of Karakalpakstan at the expense of local budgets and the own funds of industry organizations.

To reduce the cost of housing and meet demand in the primary market, it was ordered to take measures to identify 20 hectares of non-agricultural land in Karakalpakstan and the regions, 60 hectares in Tashkent, and then put them up for auction for the subsequent construction of multi-storey buildings.

Until January 1, 2025, customs duties will be zeroed out when importing hoists (winches) driven by an electric motor and lifting devices (jacks).