On June 9, the Head of State, Kassym-Zhomart Tokayev, signed the Law “On Amending and Adding to Some Legislative Acts of the Republic of Kazakhstan on the Reduction of the Number of Housing Program Operators”.
According to the rules of the document, the existing housing program operators of "Kazakhstan Mortgage Company" JSC, "Baiterek Development" JSC, "Housing Construction Guarantee Fund" JSC, as well as a tool for subsidizing developers through "Damu" JSC are combined into a Single Housing Operator on the basis of "NMH "Baiterek" JSC.
This measure will save budget funds by reducing total administrative costs by more than 40%. The staffing will also be optimized, including the management link by almost 3 times.
At the first stage, the Single Operator will perform the following functions:
1) financing the construction of affordable housing, including through mechanisms for the redemption of akimat bonds;
2) ensuring the safety of shared deposits by guaranteeing the completion of construction;
3) subsidizing interest rates on commercial loans to private developers;
4) lending to authorized organizations under akimats, as well as legal entities engaged in housing construction under state programs;
5) financing and implementation of investment projects;
6) the provision of rental housing with the right to purchase for the waiting list of akimats;
7) the provision of mortgage loans and other services on the basis of a license from an authorized body.
These measures will allow "Baiterek" holding to more effectively implement the state program and begin the transformation to the model of the Singapore Housing and Development Board.