Municipal Housing Sector Enterprises could be reorganized into condominium co-owners associations

The Municipal Housing Sector Managing Enterprises, almost all of which are now under insolvency, could be reorganized into condominium co-owners associations. This is one of the long-term measures proposed by the General Public Amenities Division for solving the problem of management of apartment buildings, IPN reports.

In a round table meeting, General Public Amenities Division deputy head Gennady Dubita said the Municipal Housing Sector Managing Enterprises No. 1-23, except for Enterprise No. 7, are now under insolvency. The process started in 2016-2017, when SA “Termoelectrica” submitted introductive applications by which it asked to declare the over 20 municipal enterprises insolvent for the reason that they didn’t fulfil their financial obligations in accordance with the contracts for the supply of heat of 2006 and the dispute prevention agreements concluded in the autumn of 2015 at the instruction of the mayor general.

Gennady Dubita noted the debts invoked by the supplier consisted of the debts of dwellers of apartment buildings that were already distributed among these through heat bills issued by IM “Infocom” and of the debts for heat used to heat water that was not distributed among the end-users. As a result, the readings of meters installed in apartments differed from those of block meters and large undistributed debts accumulated in 2002-2016.

The courts accepted the applications and all the enterprises were declared insolvent and administrators were named to manage the insolvency process. While in the insolvency and bankruptcy process, the enterprises continued to work, but deviations were identified in the cooperation between the insolvency administrators and the local authorities, the Division and the Chisinau City Hall.

Later, in the middle of 2017, the insolvency administrators announced the bankruptcy of the enterprises, which implies their liquidation. The enterprises repeatedly asked to transfer the blocks managed by the General Public Amenities Division to them by contracts. The Division, in cooperation with municipal councilors, drafted a decision that envisions the creation of condominium co-owners associations.

Among the proposals are to transfer the housing sector managing duties to municipal service enterprises for a period of two years by transferring also all the technical employees and to reorganize the cleanup duties in the municipality.

As to the classing of the debts of the municipal enterprises as debts of the founder, Gennady Dubita said there is no legal reason for doing so. Under the legal provisions, the founder does not bear responsibility for enterprises’ debts and any proposal to restructure the debts of the Municipal Housing Sector Managing Enterprises by ultimately recognizing these debts as of the municipality cannot be accepted.

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