August 11, 2021 Home page » Real estate » Apartment building management » HOA
When a citizen has a question about where to join: TSN or HOA and what is the difference between them? Then you should pay attention to the legal nature of the concepts, their pros and cons. As for TSN, this is a relatively new concept, introduced into the civil legislation of the Federal Law dated 05.05.14 No. 99-FZ and replacing the HOA, but only in terms of the organizational and legal form. In addition to TSN, many other organizational and legal forms of organizations have appeared. These changes came into force on 09/01/14.
No changes have been made to housing legislation, and therefore the HOA remains as a form of government, and it will also be possible to choose it. Existing HOAs (as an organizational and legal form) will retain their existence only until the first change is made to the constituent documentation.
What are the differences between organizations?
To find the difference between these organizations, you need to formulate a definition of the concepts, since the decoding of both abbreviations is not informative, since it does not reveal details.
The concept of TSN came into circulation relatively recently and some do not even know about its existence, since they can easily confuse it with HOA. As a separate legal form of existence of legal entities, TSN was introduced in 2014 with the adoption of Federal Law No. 99.
Reference! A real estate owners' association is an association of owners of any residential property, including not only apartments, but also buildings, as well as premises intended for commercial use and even land plots.
This association is concluded on a voluntary basis.
Such a legal form as the HOA has existed much longer, which explains its greater popularity.
In Article 135 of the Housing Code of the Russian Federation, an HOA is defined as a non-profit association of individuals, owners of residential premises in one specific apartment building or several specific residential buildings. The establishment of a homeowners' association is carried out at a general meeting and the approval of half the number of residents is sufficient for its creation.
Transformation Act
The law came into force in 2021, in September. According to him, only TSN can be organized. A license is now required to operate an apartment building. Main changes:
- Form of the charter, its provisions.
- The use of property and management activities are carried out on the basis of the Criminal Code of the Russian Federation.
- Changes in the rights and obligations of participants in a partnership association.
The advantage of the innovations that have occurred is amendments to the charter and the introduction of regulatory authorities.
ATTENTION! Important decisions will be made only by members of the organization, and not by all residents of the house.
Pros and cons of a homeowners' association
The positive aspects inherent in HOAs include the following aspects:
- Opportunity to influence the activities of the management company. Since all decisions in the HOA are made by a meeting consisting mainly of residents, if it, for example, does not approve the decision of the Management Committee to repair the entrance using expensive materials, then they will not be used in the repair work.
- Possibility of choosing a management company. The HOA may refuse services offered by third-party contractors and hire specialists with the necessary qualifications.
Subsequently, the HOA has the opportunity to form its own operating organization, which allows it to offer services also within other residential buildings and receive additional profit from this.
- Landscaped courtyard areas. Residents, for the most part, are willing to invest financial resources in improving the area surrounding their habitat.
As for the negative aspects of the HOA, they consist of the following provisions:
- Increased operating fees. Due to the fact that decisions are made by the general meeting, the possibility cannot be ruled out that residents with good material income will express a desire to improve the territory with the help of expensive devices.
- Weak legislative support. This disadvantage is reflected in the fact that unscrupulous residents who do not pay utility bills can abuse their position, knowing that the management of the HOA is not able to collect debts from them in a short time.
Another point is beneficiaries who pay utility bills not in the same amount as residents without benefits.
Note! Although in reality this practically does not happen, in theory, city authorities are obliged to reimburse the HOA for beneficiaries who do not pay utility bills in full.
- Weak initiative of residents. Due to misunderstanding of the actions of the HOA or other factors, residents often do not support even fairly rational decisions coming from the management of the HOA.
Contribution to the authorized capital: postings
Within 4 months from the date of registration of the Company, the founders must contribute their shares. 10,000 can be deposited only in money, and amounts exceeding the minimum amount of the authorized capital can be deposited with property. Funds are deposited into the cash desk or into the organization's current account, if it is already open.
Contribution of authorized capital to the cash desk, postings: Dt 50 Kt 75.01.
Contribution to the current account: Dt 51 Kt 75.01 - when transferred from an individual’s current account or when deposited through a bank branch.
Property contribution: Dt 01 (04, 10, 41, 58, 66, 76, 97) Kt 75.01 for the amount of property valuation.
When creating the entry “contribution to the authorized capital through the cash register,” you should take into account the cash limit and funds exceeding the limit that can be deposited into the LLC’s current account.
In the process of economic activity, the amount of the capital may change up or down by the decision of the founders.
Advantages and disadvantages of a property owners' association
The obvious advantages of TSN as a legal form are the following factors:
- Community of joint property. Unlike the HOA, the TSN includes not only residential premises, but also land plots, attics and basements, as well as all other possible forms of real estate.
Thus, the management of TSN, in comparison with the managers of the HOA, has the opportunity to more effectively manage non-residential premises.
- Community and mass participation in decision making. This factor is especially noticeable in areas where new buildings predominate and houses share the same yard.
Thus, the decision to build, for example, a paid parking lot, can be approved by residents of several houses at once, and at the same time, the number of people supporting the decision of the TSN management will be higher than the number of those who will not support the idea or will not take the initiative at all.
The following factors can be considered as disadvantages of TSN:
- Long lead times for resolving issues. In old houses, creating a TSN may simply be impractical - raising funds for repairs of premises can take a long time, which can lead to the house falling into disrepair.
- Risk of bankruptcy. Since TSN, in fact, is a legal entity, there is a risk of bankruptcy, which means that there are no guarantees of return of invested funds.
- There may be activities contrary to the interests of the owners. TSN is aimed at issues of managing housing assets, so decisions on renting out, for example, or resale of part of the common property may be made contrary to the interests of residents.
- Lack of proper legislative support. Such a disadvantage as weak legislative support, characteristic of HOAs, is also a disadvantage of TSN.
Reorganization by transformation
Re-registration is a change of organizational and legal form by the participants of the partnership. The process is carried out in several stages:
- The main meeting of the partnership participants, confirming the decision to change the organizational and legal form.
- Appointment of persons responsible for the reorganization.
- Amendments to the charter. Most often, only the type and name are edited.
- Adoption of the updated charter by the general meeting of the partnership.
- Collection of documentation for transmission to government agencies. Package includes.
- A notarized application to change the legal entity, charter (2 copies), minutes of the general meeting, receipt of payment of state duty, form P11001 (creation of a legal entity), document confirming the new location of the organization;
- The package of documents is submitted to the Federal Tax Service at the location of TSN;
- Replacing the seal.
Main goals and objectives
The purpose of existence of partnerships of real estate owners is to promote the improvement and maintenance of public property, to which community members have every right, enshrined in law.
The main task of TSN is to regulate issues related to the operation and maintenance of real estate.
All activities of TSN are regulated by the internal Charter, and the method of managing it is related to the corporate type.
The homeowners association regulates issues related to the maintenance and operation of common real estate. The task of the HOA is to make decisions regarding the disposal of common property.
Thus, it can be noted that the functional differences between the two organizations under consideration are largely insignificant.
If the activities of the HOA are mainly related to the management and operation of common property, then the TSN, to a greater extent, focuses on issues related to the disposal of common property, in particular, leasing it.
Attention! The main difference between TSN and HOA is that members of TSN can be both individuals and legal entities, as well as various symbiotic associations of individuals and legal entities, and only individuals can be members of HOA.
On exclusion from members of the partnership and terms of office for managing the partnership
From January 1, 2021, a procedure has been established for exclusion from a partnership due to non-payment of contributions for more than two months from the moment this obligation arises, unless a longer period is provided for by the charter of the partnership.
The decision to expel from the partnership can be appealed in court. It has been established that the supreme body of the partnership is the general meeting of the members of the partnership. The partnership creates a sole executive body (chairman of the partnership) and a permanent collegial executive body (board of the partnership). In addition, an audit commission (auditor) must be formed.
The chairman of the partnership, members of the board of the partnership, the audit commission (auditor) are elected at the general meeting of members of the partnership for the period established by the charter of the partnership, but not more than for five years from among the members of the partnership by secret or open voting. The same person can be re-elected an unlimited number of times to positions in the bodies of the partnership.
It should be noted that until January 1, 2021, the governing bodies were the general meeting, the board and the chairman of the board.
Moreover, the board was elected by direct secret vote from among the members of the association for a period of two years by the general meeting of members of such an association (meeting of authorized representatives), unless otherwise provided by the charter.
What's better?
It is difficult to give an unambiguous answer to the question of what is better, HOA or TSN. However, based on the data presented in this article, we can conclude that the HOA is better in cases where the house is old, since it is possible to carry out repair work in a relatively short time.
TSN is more suitable for areas with dense buildings , since in modern residential buildings on the first floors premises for commercial use are often allocated, the owners of which are legal entities, and for them TSN is a more convenient form.
To summarize, it is worth noting that, as with any dilemma, each of the solutions has weaknesses and strengths. Such forms as HOA and TSN were no exception. They can acquire more advantages, but for this, each of these forms needs to improve the legal framework.
Decrease in capital
A change in the size of the capital company downward is made either by decision of the owners or as required by law. In both cases, this operation is formalized by a decision of the general meeting of founders with the subsequent submission of documents to the registration authority.
The law requires a reduction in the size of the capital in the event of:
- late payment by the founders;
- if the value of net assets is lower than the authorized capital, that is, in case of unprofitable activities.
If part of the capital is not paid on time, accounting entry Dt 80 Kt 81 “Own shares (shares)” arises for part of the unpaid contribution of the founders. The posting date is the next day after the expiration of the 4-month period from the date of registration of the LLC.
In case of unprofitable activities, part of the capital is directed to repay the loss: Dt 80 Kt 84 “Retained earnings”. The posting date corresponds to the date of the decision to reduce capital to the amount of net assets.
The owners decide to reduce the size of the management company:
- upon withdrawal of a participant from the LLC and payment of his share of participation - Dt 80 Kt 75 “Calculations for contributions to the authorized capital”;
- when the Company redeems part of the capital shares into ownership - Dt 81 “Own shares (shares)” Kt 75.01 “Settlements on contributions to the authorized capital” - with subsequent cancellation of the purchased shares - Dt 80 Kt 81 “Own shares (shares)”;
- with a proportional decrease in the share of participants or the par value of shares. The resulting difference may become the Company’s income - Dt 80 Kt 91.01 “Other income” or paid to participants - Dt 80 Kt 75.01 “Settlements on contributions to the authorized capital”.
The posting dates for capital reductions correspond to the date the registration changes are recorded.
