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State program of housing and communal development "Nurly Zher" for 2020-2025

By the Decree of the Government of the Republic of Kazakhstan dated December 31, 2019 No. 1054, the State Program for Housing and Communal Development “Nurly Zher” (hereinafter referred to as the Program) was approved, combining new mechanisms to support housing construction and operating according to previously adopted state and industry programs: State Program for Infrastructure Development Nurly Zhol for 2015-2019, Regional Development Program until 2020.

The aim of the program is to increase the availability and comfort of housing and the development of housing infrastructure.

To achieve this goal, Baiterek NMH JSC within the framework of the Nurly Zher state program is a single operator and participates in the implementation of the following program areas:

1) financing the construction of credit housing MIO through the mechanism of redemption of bonds MIO;
2) increasing the availability of mortgage lending;
3) stimulation of construction by private developers;
4) support for shared housing.

Program Summary

Program Name

State program of housing and communal development "Nurly Zher" for 2020-2025

Base
for development

The Strategic Plan for the Development of the Republic of Kazakhstan until 2025, approved by Decree of the President of the Republic of Kazakhstan dated February 15, 2018 No. 636;

The forecast scheme of the spatial development of the country until 2030, approved by Decree of the President of the Republic of Kazakhstan dated October 9, 2019 No. 185;

Message from the Head of State to the people of Kazakhstan dated October 5, 2018, “Growing Welfare of Kazakhstanis: Raising Incomes and Quality of Life”;

Message from the Head of State to the people of Kazakhstan dated September 2, 2019 “Constructive public dialogue - the basis of stability and prosperity of Kazakhstan”;

Decree of the President of the Republic of Kazakhstan dated June 19, 2019 No. 27 “On measures to implement the election program of the President of the Republic of Kazakhstan“ Well-being for all! Continuity. Justice. Progress ”and proposals received during the nationwide “Birge” campaign.

Program Developer

Ministry of Industry and Infrastructure Development of the Republic of Kazakhstan

State bodies and organizations responsible for the implementation of the Program

Central state and local executive bodies, quasi-public sector entities

Program Purpose

Improving accessibility and comfort of housing and development of housing infrastructure

Program Objectives

Task 1. Implementation of a unified housing policy

Task 2. The rational provision of the population with high-quality drinking water and sanitation.

Task 3. Modernization and development of the housing sector

Task 4. Overhaul and renovation of the housing stock

Task 5. Improving architectural, urban planning and construction activities

Terms of implementation

2020 - 2025 years

Target indicators

achievement of the following target indicators:

1) by 2025, an increase in the annual volume of housing commissioned by all sources of financing - 20.7 million square meters. meters;

2) by 2025, housing provision - 26 square meters. m per resident;

3) by 2025, 100% access by the population to water supply services in cities and villages;

4) by 2025, the depreciation of heat, water and wastewater networks is 47%;

5) by 2025, the reduction in the share of facilities, condominiums requiring major repairs - 18.1%;

6) for 2020-2025, the creation of 60 thousand jobs.

Sources and volumes of financing

Financing of the State program will be carried out at the expense and within the limits of the republican and local budgets, as well as other sources not prohibited by the legislation of the Republic of Kazakhstan.

The volumes of financing of the State program are:

billion tenge

 

2020

year

2021

year

2022

year

2023

year

2024

year

2025

year

Total

RB*

652,6

637,2

592,5

505,6

394,2

388,3

3 170,4

NB*

32,6

32,6

32,2

28,9

29,1

28,9

184,3

Extrabudgetary
funds

494,5

322,9

280,9

200,4

200,2

202,0

1 700,9

Overall

1179,2

992,7

905,6

734,9

623,4

619,2

5 055,6

*The amount of funds will be clarified as the republican and local budgets are approved and specified for the corresponding financial years in accordance with the legislation of the Republic of Kazakhstan.

Program Implementation

INFORMATION
ABOUT THE IMPLEMENTATION OF THE STATE PROGRAM "NURLY ZHER»
(as of july 1, 2020)

1) Redemption of LEA’s bonds for construction of loan housing

Since 2017, Baiterek NMH JSC has completely switched to market mechanisms from direct financing of housing construction to financing exclusively through the repurchase of LEA bonds.

The operator is JSC "DB". All financial resources, as well as the functions of selecting projects, identifying developers, mastering and monitoring the progress of construction, were transferred to the LEA’s.

Financing the construction of credit housing through the mechanism of redemption of bonds of LEA’s allows you to wrap up funds on a “revolving” basis every 2 years and re-direct them to new construction without additional allocation of resources.

For reference: Local executive bodies finance the construction and sale of credit housing at fixed prices per 1 m2: up to 180 thousand tenge in years. Nur-Sultan, Almaty, Shymkent, Atyrau, Aktau, up to 140 thousand tenge in other regions.

Since 2016, bonds of LEA’s for 570.9 billion tenge were purchased, of which:

- in 2016, with a plan of 38.2 billion tenge, 38.2 billion tenge (100%) was purchased;

- in 2017, with a plan of 71.8 billion tenge, 71.8 billion tenge (100%) was purchased;

- in 2018, with a plan of 98 billion tenge, 98 billion tenge (100%) were purchased;

- in 2019, with the plan of 108.8 billion tenge, 108.8 billion tenge (100%) were purchased;

In 2020, the general plan for the acquisition of LEA’s bonds is 101.2 billion tenge, today 27.1 billion tenge will be redeemed in 3-4 quarters as the LEA’s orders are issued.

The National Bank of the Republic of Kazakhstan for 2020 additionally allocated 180 billion tenge for the purchase of bonds of local executive bodies, purchased in full or 100% of the plan.

 

2) Зcompletion of problem objects of shared construction in the city of Nur Sultan through LLP "Elorda Krylys Kompaniyasy" under Akimat

In accordance with the Protocol of the SUNF of the Republic of Kazakhstan dated December 22, 2018 and the Nurly Zher state program, 40 billion tenge is provided for the completion of the construction of problem facilities in Nur-Sultan (in 2018 - 20 billion, in 2019 - 20 billion .).

In 2018, JSC “DB” provided a loan to EKK LLP in the amount of 20 billion tenge (04.04.2018 - 4 billion tenge, 12/29/2018 - 16 billion tenge) or 100% of the plan.

In 2019, a loan of 20 billion tenge was provided (12/30/2019 - 20 billion tenge), or 100% of the plan.

 

3) Lending to depositors of JSC "HCSBK"

As of July 1, 2020, there are 1,622 million contracts in the HCS system with the accumulated amount of 876 billion tenge.

For 6 months of 2020, 15.4 thousand soft loans were issued to the population for a total of 172 billion tenge, of which 1.9 thousand loans were issued in the amount of 14 billion tenge under the Nurly Zher state program.

 

The program “Bakytty Otbasy” through JSC “HCSBK”

The plan for 2019 is 50 billion tenge, funds were received by "HCSBK" JSC on July 22, 2019. "HCSBK" JSC issued 5,028 loans for 50 billion tenge.

The plan for 2020 is 100 billion tenge. In connection with the clarification of the Republican budget, the allocation of 49 billion tenge was approved. The funds were received in June 2020. As of July 1, 2020, HSSBK JSC accepted 3,918 loans for 40.9 billion tenge, approved 2,751 loans for 29.3 billion tenge, issued 1,054 loans for 10.4 billion tenge.

In accordance with the Address of the Head of State, starting from 2020 - 2023. the annual plan for issuing at least 10 thousand applications.

 

Information on accepted and approved applications 
within the framework of the "Bakytty Otbasy" at the end of the 1st half of 2020

Region name

Received

Approved

Issued

number

billion tenge

number

billion tenge

number

billion tenge

Akmola

163

1,51

76

0,70

86

0,80

Aktobe

158

1,41

114

1,03

36

0,31

Almaty

492

4,80

350

3,41

136

1,32

Atyrau

254

3,05

206

2,50

37

0,44

East Kazakhstan

230

2,19

126

1,19

101

0,98

Jambyl

365

3,44

257

2,41

107

1,01

West Kazakhstan

216

2,04

178

1,68

36

0,34

Karaganda

338

3,13

225

2,10

98

0,89

Kostanay

152

1,27

88

0,72

63

0,54

Kyzylorda

256

2,37

192

1,78

46

0,41

Mangystau

179

2,00

116

1,29

62

0,71

Pavlodar

248

2,26

151

1,39

95

0,86

North Kazakhstan

146

1,42

67

0,65

78

0,76

Turkestan region

102

0,96

90

0,86

9

0,07

Branch in the city of Almaty

227

3,36

188

2,79

32

0,47

Branch in the city of Nur-Sultan

227

3,33

202

2,97

14

0,20

Branch in the city of Shymkent

165

2,38

125

1,79

18

0,26

The overall result

3 918

40,92

2 751

29,26

1 054

10,39

 

 

 

Program "Askeri mortgage" through JSC "HCSBK"

Since January 1, 2018, legislative amendments have been introduced to allow military personnel to accumulate in HCSBK JSC due to received housing payments

As of today, military personnel and employees of the State Security Service have opened 92 thousand special accounts with a total amount of receipts of 260 billion tenge.

HCSBK JSC issued 7,044 loans for 110.7 billion tenge, of which:

- in 2018 2,015 loans for the amount of 30.7 billion tenge;

- in 2019, 4,577 loans in the amount of 69.28 billion tenge;

- from 24.02.2020 to 30.06.2020 452 loans in the amount of 10.7 billion tenge;

For reference: Loan conditions: 8% per annum for up to 25 years. Down payment from 15%. Acquisition of housing in the primary and secondary markets.

 

2) Completion of previously adopted programs

According to the Nurly Zher state program, KIK JSC and BD JSC fully completed in 2018 the construction of housing for direct financing in the framework of previously adopted programs (Nurly Zhol, Regional Development Program until 2020).

Since 2015, the contracts for the construction and purchase of 1.1 million m2 (18,583 apartments) were signed on rental housing of KIK JSC, of which:

- in 2015, with a plan of 401 thousand m2, 425.5 thousand m2 (7,234 apartments) were commissioned;

- in 2016, with a plan of 326 thousand square meters, 328 thousand square meters were commissioned (5,993 apartments);

- in 2017, with the plan of 165 thousand square meters, 203.8 thousand square meters were commissioned (3,622 apartments);

- in 2018, with an annual plan of 80 thousand square meters, 97.3 thousand square meters were commissioned (1,734 apartments).

All funds have been disbursed 100% and the objects have been completed.

Since 2016, contracts for 589.4 thousand m2 (9,831 apartments) were signed on rental and credit housing of BD JSC, of which:

- in 2016, with a plan of 124 thousand square meters, 128.8 thousand square meters were commissioned (2,036 apartments);

- in 2017, with a plan of 389.3 thousand m2, 425.5 thousand m2 (7,207 apartments) were commissioned;

- in 2018, with an annual plan of 34 thousand m2, 35.1 thousand m2 (588 apartments) were commissioned.

All funds have been disbursed 100% and the objects have been completed.

 

4) Share housing construction through JSC FGZHS

JSC FGHS began to guarantee equity contributions in housing construction from October 10, 2016 (the new Law entered into force). For these purposes, in 2016 - 2017 from the Republic of Belarus capitalization of JSC FGS was carried out in the total amount of 20 billion tenge.

According to the Nurly Zher state program, the overall plan of the guaranteed projects should be at least 65.8 billion tenge. FGZHS JSC issued 57 guarantees totaling 224.4 billion tenge, of which:

- in 2017, with a plan of 9.4 billion tenge, guaranteed for 9.4 billion tenge;

- in 2018, with a plan of 40.1 billion tenge, it was guaranteed for 56.6 billion tenge;

- In 2019, with a plan of 50.0 billion tenge, it was guaranteed at 88.8 billion tenge;

- in 2020, with the plan of 65.8 billion tenge, 69.6 billion tenge was guaranteed.

For reference: JSC FGHS provides guarantees to equity holders on completion of the construction of a residential building in case of failure by an authorized company to fulfill obligations for the construction of a residential building (including violation of the deadline for commissioning a residential building; misuse of money; insolvency of the developer, which has entered into force court decision).

 

5) Subsidizing mortgage loans population through JSC "KIK"

The operator is KIK JSC, which, starting in May 2017 (from the moment the mechanism was launched), subsidizes for 10 years up to 6% per annum on a market mortgage issued by STBs up to 16% per annum.

In total, the second-tier banks approved applications from the population in the amount of 36.2 billion tenge.

At the same time, in connection with the introduction of the 7-20-25 mortgage program, this direction was excluded from the Nurly Zher state program from June 22, 2018.

Applications for subsidizing mortgages approved by KIK JSC are retained until full fulfillment of obligations for 10 years. For these purposes, 1.6 billion tenge is allocated annually from the republican budget.

 

6) Subsidizing loans to developers through Damu JSC

The operator is Damu JSC, which, starting in May 2017 (from the moment the mechanism was launched), subsidizes for 3 years 7% per annum for loans to private developers issued by second-tier banks up to 14.25% per annum.

To date, Damu JSC has signed contracts totaling 118.4 billion tenge (in 2017, by 30.1 billion, in 2018 by 24.5 billion, in 2019 by 49.6 billion. , in 2020 by 14.2 billion).

The plan for 2020 is 20 billion tenge.

 

7) Rental housing for teachers and doctors through KIK JSC

Total funding for 2019-2020 is 40 billion tenge. At the expense of these funds in 2019 - 2020. it is planned to provide rental housing for 3 thousand teachers and doctors.

For reference: The Nurly Zher state program provides for a mechanism for JSC KIK to use incoming rent payments and mix with market borrowing to finance the construction and purchase of rental housing for doctors and teachers.

To date, contracts have been concluded for the purchase of apartments for a total amount of 10.8 billion tenge, with an area of 55.5 thousand m2 (1,007 apartments) in the years. Almaty (288 apartments, 16.5 thousand m2), Karaganda (113 apartments, 5.9 thousand m2), Nur-Sultan (494 apartments, 27 thousand m2), Aktau (58 apartments, 3.5 thousand m2 ), Kostanay (54 apartments, 2.6 thousand m2).

Also announced tenders for the purchase of 185 apartments in the years. Nur-Sultan, Aktau for the amount of 3 billion tenge. The results will be announced in August.

For reference: Earlier announced tenders for the purchase of finished housing (apartments) in the amount of 32 billion tenge in the cities of Nur-Sultan, Almaty, Atyrau, Turkestan, Aktau, Kokshetau, Kostanay, Karaganda, Ust-Kamenogorsk with a total area of 126.2 thousand m2 (1 854 apartments) - declared invalid.

Rental Conditions:

  • rental period with repurchase - up to 20 years
  • rate - 3.1% per annum
  • down payment - no
  • KIK JSC purchases housing only in the primary market

The target audience is doctors and teachers, the lists of applicants are provided by the Ministry of Education and Health within the framework of the signed Memorandums in June 2019.

Information on the implementation of the "Nurly Zher" state program (as of December 31, 2019)

Information on the implementation of the "Nurly Zher" state program (as of December 31, 2019)