Azerbaijani Mortgage and Credit Guarantee Fund discloses number of apartments rented by citizens

Business Materials 4 June 2020 14:55 (UTC +04:00)

BAKU, Azerbaijan, June 4

By Matanat Nasibova – Trend:

The Azerbaijani Mortgage and Credit Guarantee Fund continues the process of registration and transfer of apartments upon a rental mechanism with the right for purchase, a source in the Fund told Trend.

"From February 2020 up till now, 115 out of 233 citizens who have received the Fund’s decision about an agreement on the transfer of apartments, have drawn up the rental agreements with the further right for purchase,” a source in the Fund said. “So far, 541 apartments have been allocated in the housing stock.”

“Taking into account the requirements of citizens, the Fund expanded the list of residential areas and added another residential complex to the housing stock in May,” the source said. “The new complex is located on Boulevard Street (Seaside Park) in Sumgayit city. Seventy-four apartments are offered to the citizens in this complex.”

“All apartments have been repaired and equipped with a combined heating system (including thermal power plants), water meters, gas meters and electricity meters,” the source said.

President of Azerbaijan Ilham Aliyev signed a decree on the formation of a mechanism for renting apartments with an obligation to further sell them on January 25, 2019.

The procedure for the rental of residential areas of the Azerbaijan Mortgage and Credit Guarantee Fund with an obligation for sale has been approved upon the decree.

The apartments are rented with an obligation for purchase in Azerbaijan for a period from three through 25 years, which has been indicated in the contract.

Such a condition has been envisaged in the procedure of renting the Fund’s residential premises with an obligation for sale, approved by President Aliyev.

According to the procedure, the Fund receives the right to acquire housing for its further rent with the right for purchase.

At the same time, the Fund may purchase such housing through its own equity and income from the issuance of bonds.

There is no age requirement for concluding a rental agreement.

The rules allow the tenant to transfer his/her rights under the rent agreement to a third party, and also allow the tenant to transfer his/her rights under the rental agreement to heirs following the tenant's death.

As for the requirements for tenants, the cost of renting residential premises with an obligation for sale must not be lower than the market price and housing must be insured by the Fund. This is one of the main requirements.

Moreover, the Fund is entitled to provide tenants with additional requirements.

In accordance with the terms of the rental agreement, the address of the living space, building, floor, area and number of rooms are determined by the Fund; then it is offered to the population through an electronic system by indicating the cost of housing and monthly payments.

In turn, the residents may also use the right to connect to the electronic system.