Damaged Building and Lack of Utilities: Who Makes Decisions and What Co-Owners Should Do - Leshchenko & Partners

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Damaged Building and Lack of Utilities: Who Makes Decisions and What Co-Owners Should Do

Damaged Building and Lack of Utilities: Who Makes Decisions and What Co-Owners Should Do
Damaged Building and Lack of Utilities: Who Makes Decisions and What Co-Owners Should Do

After massive shelling, a significant number of apartment buildings in Ukraine have been left without electricity or heating, or have suffered serious damage. In such circumstances, the issue of restoration is no longer merely technical — it becomes a matter of management and responsibility. And the key question is: who exactly makes decisions and how quickly can they be implemented?

The UNIAN article raises the issue of the possibility of establishing an ACMH as a building management tool, especially in a situation where centralized services are overloaded and cannot always respond promptly to residents’ needs. In such circumstances, co-owners are increasingly looking for an alternative — a mechanism that allows them to independently make decisions on restoration, financing, and cooperation with contractors.

LESHCHENKO & PARTNERS partner Anastasiia Blyndu notes in her comment that today, establishing an ACMH is not just a form of management, but an instrument of real influence over the condition of the building and the speed of decision-making. An ACMH allows co-owners to independently determine repair priorities, control the use of funds, enter into contracts directly with contractors, and participate in state and municipal restoration programs. In addition, this form of management provides legal certainty in relations with service providers.

“Today, an ACMH is an instrument of self-organization for co-owners in a situation where the speed of decisions directly affects the comfort and safety of residents,” Anastasiia Blyndu emphasizes.

In fact, this is about a change in approach: from waiting for action by municipal services to independent building management. In wartime conditions, this is especially critical, since delays in restoration may directly affect not only comfort, but also the safety of living conditions.

What this means in practice and what co-owners should do if the building is damaged or utilities are unavailable:

  1. Record the condition of the building
    It is necessary to document the damage: photos, videos, inspection reports. This is important both for further restoration and for participation in compensation programs.
  2. Initiate a meeting of co-owners
    The decision to establish an ACMH or change the management model is made by a majority of co-owners. It is important to properly notify all residents and record the voting results.
  3. Decide on the establishment of an ACMH
    At the meeting, the charter is approved, the board is elected, and the building management model is determined.
  4. Complete state registration
    The ACMH is registered as a legal entity. This makes it possible to open accounts, conclude contracts, and officially represent the interests of co-owners.
  5. Open an account and determine the financial model
    After registration, a budget is formed, co-owner contributions are determined, and mechanisms for financing the works are established.
  6. Conclude contracts and begin restoration
    The ACMH may work directly with contractors, order repair works, and monitor their performance without intermediaries.
  7. Join restoration programs
    The existence of an ACMH significantly simplifies participation in state and international compensation and reconstruction programs.

This algorithm allows co-owners to move from passive waiting to taking control of the situation. At the same time, it is important to take into account the legal nuances of establishing an ACMH, the procedure for decision-making, and the responsibility of the board in order to avoid further conflicts.