Condominium Associations (OSBB) in Ukraine: How to Create One and Manage Your Building

When you buy an apartment, you become not only the owner of your square meters but also a co-owner of the building's common property: the roof, basement, entrances, elevators, utilities and grounds. Who decides when to repair the roof, how much to pay for cleaning and whether to install a generator? The answer depends on how the building is managed. A condominium association (OSBB, an association of co-owners of an apartment building) is the model in which residents make these decisions themselves. Here's how to create one and run it effectively.

Legal Framework

OSBB activities are governed by the Law on Associations of Co-owners of Apartment Buildings. Co-owners' rights and obligations are set by the Law on Specifics of Exercising Ownership Rights in an Apartment Building, and relations with service providers by the Law on Housing and Communal Services.

Forms of Building Management

1. An OSBB — co-owners create a legal entity that manages the building itself or hires a manager.
2. A manager chosen by the co-owners — without an OSBB, co-owners elect a management company at a meeting and sign a contract with it.
3. A manager appointed by the local government — if the co-owners haven't chosen a form of management, the community holds a tender and appoints a manager.

An OSBB gives the most control over money and decisions but requires residents to be active.

Benefits of an OSBB

• Control over money. You see the budget, know where fees go and can change contractors.
• Residents set priorities. Repairing the roof or replacing the elevator is decided by the meeting, not the manager's schedule.
• Access to energy retrofit programs. State support programs for thermal modernization are aimed precisely at OSBBs.
• The ability to earn. Renting out non-residential premises or roof space for advertising or antennas adds to the building's budget.
• A legal entity. An OSBB can sign contracts, open accounts, raise loans and grants and go to court.

Step-by-Step: Creating an OSBB

Step 1. An Initiative Group

An initiative group can be formed by at least three co-owners of apartments or non-residential premises. The group:

• finds out who owns the apartments (data can be obtained from the State Register of Property Rights);
• prepares a draft charter;
• organizes the founding meeting.

Step 2. Preparing the Charter

The charter sets the purpose, governing bodies, decision-making procedure, fees and how they're paid, and members' rights and obligations. You can base it on the model charter approved by the relevant ministry and add provisions important for your building.

Step 3. The Founding Meeting

All co-owners are notified of the founding meeting in writing at least 14 days in advance — in person against signature or by post. The meeting decides to create the OSBB, approves the charter and elects a person authorized to register it.

The decision is adopted if a majority of co-owners vote for it. Each co-owner's votes are, as a rule, proportional to the area of their apartment or non-residential premises. If there aren't enough votes at the meeting, a written poll of co-owners who didn't vote is held within the period set by law.

Step 4. State Registration

The authorized person submits documents to the state registrar of legal entities — at a TsNAP or online. Registration is free. After it, the OSBB receives an EDRPOU code and appears in the Unified State Register.

Step 5. First Organizational Steps

• elect the board, chair and audit committee;
• open a bank account;
• approve the budget and fees;
• take over the building's technical documentation from the previous manager;
• sign service contracts: cleaning, elevators, waste collection, emergency service;
• set up accounting and bookkeeping.

OSBB Finances

Fees

• Building maintenance fees — cover running costs: cleaning, lighting of common areas, elevator servicing, minor repairs, bookkeeping.
• Repair fund contributions — accumulated for capital repairs: roof, facade, elevators, utilities.
• Special-purpose contributions — for a specific project by decision of the meeting, such as a generator or shelter.

Fees are calculated per square meter and approved by the general meeting according to the budget.

Transparency

Publish the budget and spending reports in the building chat or on the OSBB website, and hold annual general meetings with a board report. Transparency is the main tool for building co-owners' trust.

Debtors

An OSBB can recover unpaid fees through the courts and charge penalties provided by the charter. But prevention works best: timely reminders and clear explanations of costs.

A Sample Budget for a Small OSBB

To understand the cost structure, consider an illustrative nine-story building with 72 apartments and about 4,000 m² in total. Monthly costs may include:

• cleaning entrances and grounds;
• maintenance of elevators and in-building systems;
• emergency dispatch service;
• electricity for common-area lighting and elevators;
• bookkeeping and banking;
• minor routine repairs;
• contributions to the repair fund.

The total is divided by the total area of apartments and non-residential premises — that gives the fee per square meter. It's useful to keep a separate reserve line: an accident or pump replacement shouldn't require urgent special collections.

How to Run Effective General Meetings

• Prepare the agenda in advance and circulate it with materials: the budget, quotes and draft decisions.
• Choose a convenient time and place — a weekday evening in the courtyard or a nearby school.
• Use a written poll for those who can't attend.
• Record decisions in minutes with voting results and signatures.
• Keep meetings short — no more than an hour, focused on decisions.
• Publish the results in the chat and on notice boards in the entrances.

Energy Retrofits

Insulating the facade, replacing windows in entrances, modernizing the heat substation with weather-based control and replacing elevators significantly reduce residents' costs. OSBBs can get partial reimbursement through programs of the Energy Efficiency Fund. Building energy-efficiency requirements are set by Law No. 2118-VIII, and heat metering by the Law on Commercial Metering of Heat and Water.

The typical path:

1. An energy audit of the building.
2. A works design.
3. A general meeting decision and a program application.
4. Competitive selection of a contractor.
5. Works carried out under technical supervision.
6. Receiving the reimbursement.

More on insulation and windows in apartment insulation and window replacement.

Building Safety and Backup Systems

The war has given OSBBs new tasks:

• setting up a shelter in the basement or parking garage;
• a generator for elevators, pumps and entrance lighting;
• rooftop solar panels for common systems — see solar panels for home;
• backup water supply;
• repairs after damage — see compensation for damaged and destroyed housing.

Community and international donor support programs also exist for these projects.

Risks and Challenges

• Passive co-owners — it's hard to reach a quorum and find people to serve on the board.
• Board liability — the chair and board members are responsible for financial decisions.
• The previous manager's debts — it's important to take over the building and documents properly.
• Conflicts between residents over spending priorities.
• Legal know-how — bookkeeping, taxes and contracts require professionalism; it's often worth hiring a manager or outsourcing bookkeeping.

The OSBB and Renovations in Your Apartment

An OSBB doesn't regulate renovations inside your apartment, but you must not violate other co-owners' rights or damage common property. Interfering with load-bearing structures, risers, ventilation shafts and the facade requires approval. More in apartment redevelopment and our apartment renovation guide.

The OSBB When Buying an Apartment

When buying an apartment, ask about the OSBB: fee levels, the repair fund, the building's debts and capital repair plans. An active OSBB with savings and a retrofitted building adds to the apartment's value. See our pre-purchase checklist.

Frequently Asked Questions

Is joining the OSBB mandatory? Membership is voluntary, but general meeting decisions bind all co-owners, and all pay building maintenance fees.

Can an OSBB be dissolved? Yes, by a general meeting or court decision, with the building passing to another form of management.

How many apartments are needed to create an OSBB? There's no minimum, but administrative costs are more noticeable in small buildings. Several buildings can create a joint OSBB or an association.

Can an OSBB hire a manager? Yes, an OSBB can contract a professional manager while keeping control through the board and general meetings.

Can foreign owners take part in an OSBB? Yes. Ownership, not citizenship, determines voting rights, so foreign owners vote in proportion to their area and can be elected to the board.

Who pays land tax for the plot under the building? The plot under an apartment building can be transferred to the OSBB's ownership or use — then land payments depend on the plot's legal status.

Conclusion

An OSBB is a tool that gives residents control over their building. Creating one takes a few weeks, while the benefits — transparent spending, energy retrofits, backup systems and higher apartment values — are felt for years. What matters most is an initiative group, a transparent financial policy and regular communication with neighbors.

Sources

• Law of Ukraine on Associations of Co-owners of Apartment Buildings.
• Law of Ukraine on Specifics of Exercising Ownership Rights in an Apartment Building.
• Law of Ukraine on Housing and Communal Services.
• Law of Ukraine on Energy Efficiency of Buildings.
• Law of Ukraine on Commercial Metering of Heat and Water.
• Energy Efficiency Fund of Ukraine.

Read Also

• Apartment insulation inside and out
• Solar panels for home
• Compensation for damaged and destroyed housing
• Apartment redevelopment and legalization