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According to the proposed amendments to the Code on Administrative Offenses presented by the Government, it is expected to impose administrative responsibility for not opening a bank account in order to pay mandatory and other payments defined by the Law on Management of Blocks of Flats in a non-cash manner. The draft law was debated at the sitting of the NA Standing Committee on Territorial Administration, Local Self-Government, Agriculture and Environment Protection on September 7.

The purpose of the draft is to increase the vigilance of the management bodies of blocks of flats, the transparency of the work, the accountability, the efficiency of spending the collected money, as well as the possibility of forming a reserve fund for unforeseen works.

The Chairman of Urban Development Committee Armen Ghularyan reminded the Prime Minister’s decision in 2019, according to which, an interdepartmental working group was created in order to regulate the existing problems in the field of management of blocks of flats. An inventory was made, the problems of the sphere were recorded. “The issues to be regulated are included in the activities of the Government Programme,” Armen Ghularyan noted and added that a number of measures aimed at improving the management system of a block of flats are planned. Due to them, the National Assembly adopted the amendments and addenda to the Laws on Management of Blocks of Flats and on Condominium on January 24, 2020.

The owners should pay the mandatory and other payments defined by law in a non-cash manner, separately for each blocks of flats, by making a transfer to the bank account opened for the management body of a block of flats. The directions for managing receipts of bank accounts, money transferred to that account, and the possibility of forming a reserve fund were fixed. The means of the fund are subject to spending in case of building maintenance and the elimination of unforeseen damages, in particular, accidents. The Chairman of Urban Development Committee noted that 4.140 of the 19.183 blocks of flats in the Republic did not open bank accounts based on the results of 2021, and 1.316 opened accounts not in separate blocks of flats, but in 8 accounts in the condominiums.

Administrative responsibility is imposed in the amount of ten times the minimum salary in case of circumvention of the regulations. If the same act is committed a second time, the fine will be doubled.

According to the members of the Committee, the draft can provide positive results from the viewpoint of management of blocks of flats. The draft was endorsed in the Head Committee.