CHARTER

APPROVED by order of the Minregion

dated January 27, 2020 # 18

CHARTER

of the State Specialized Financial Institution

“State Fund for Support of Youth Housing Construction”

1. General provisions

1.1. State Specialized Financial Institution “State Fund for Support of Youth Housing Construction” (hereinafter – the Fund) is established under resolutions of the Cabinet of Ministers of Ukraine dated April 14, 1997 # 334 on Measures of Execution of the Decree of the President of Ukraine dated December 4, 1996 # 1165 and dated June 2, 2000 # 885 on Organization of Granting Housing Loans to the Ukrainian Population

The Fund is founded by the state represented by the Cabinet of Ministers of Ukraine.

The Minregion is a management agent (hereinafter - the authorized body of management).

The Fund carries out its activities based on the principles of publicity, interacts with central and local executive authorities, local self-government bodies, legal entities, banks, credit unions, trade unions and civic organizations, individuals.

1.2. The Fund’s activities are guided by the Constitution and laws of Ukraine, acts of the President of Ukraine and resolutions of the Verkhovna Rada of Ukraine enacted according to the Constitution and the laws of Ukraine, acts of the Cabinet of Ministers of Ukraine, other legislative acts, as well as by this Сharter.

1.3. The Fund maintains operational record, accounting and other record of its activities’ results, operations record and submits reporting according to legislation.

2. The name and Location of the Fund

2.1. The name of the Fund:

In Ukrainian:

-         Full name– Державна спеціалізована фінансова установа «Державний фонд сприяння молдіжному житловому будівництву»

-         Abridged name– Держмолодьжитло;

In English:

-         Full name – State Specialized Financial Institution “State Fund for Support of Youth Housing Construction”;

-         Abridged name – State Youth Fund.

2.2. Location of the Fund: 03037, Kyiv city, 2a Maksyma Kryvonosa Street.

3. The aim of the Fund’s activities is:

3.1. The Fund is the successor of the Fund for the Promotion of Youth Housing Construction established under resolution of the Cabinet of Ministers of Ukraine dated April 14, 1997 # 334 on Measures of Execution of the Decree of the President of Ukraine dated December 4, 1996 # 1165. The Fund provides its activity in accordance with the legislation and this Statute.

3.2. The Fund is a legal entity of public law, which has the status of a non-profit institution (organization), has an independent balance sheet, bank accounts, stamp reflecting the State Coat of Arms of Ukraine and its name. 

3.3. The state and the authorized management body are not responsible for the obligations of the Fund. The Fund is not responsible for the obligations of the state and the authorized management body.

3.4. It is forbidden to share the income (profit) or part of it between founders, employees (except of their salary, assessment of a single social contribution), members of the governing bodies and other related persons

The Fund's revenue (income) and assets can be used only for financing the costs of maintaining the Fund, the achievement of the purpose (object of activity, goals and targets) and lines of activity.

In case of termination of the Fund's activities (as a result of liquidation, merger, division, accession or transformation), all assets will be transferred to one or more non-profit organizations of the relevant type or will be transferred  to the budget revenue.

4.1.The aim and object of the Fund’s activity

4.1.The aim of the Fund’s activities is: to facilitate the state housing policy implementation.

1) to fulfil the state programmes of providing young citizens with housing and other programmes within its powers;

2) to elaborate new financial lending programmes directed at solving of housing problems of families and solitary citizens by means of use of the mechanism of granting long-term state loans and loans at the expense of other financing sources for construction (reconstruction) and purchase of housing;

3) to lend funds, including on the terms of financial credit;

4) to participate in the development of projects and programmes of the involvement and receipt of foreign investments, including loans, for further granting long-term loans (up to 30 years) for the construction (reconstruction) and purchase of housing;;

5) to grant soft loans and to finance housing construction (reconstruction) and purchase expenses for families and solitary citizens

6)  to participate in the elaboration and implementation of international investment projects, state, regional and local programmes of the improvement of housing, social and economic conditions for families and solitary citizen;

7) to compensate interest loan rates, granted for construction (reconstruction) or purchase of housing, including young families and solitary young citizens (hereinafter – partial compensation);

8) to manage property for financing of construction objects and/ or carrying out real estate transactions according to the Law of Ukraine on Financial and Credit Mechanisms and Property Management during Housing Construction and Real Estate Transactions;

9) to grant soft loans to legal entities, including unions of co-owners of multi-apartment buildings for reconstruction, major and current repairs of housing and municipal services objects, as well as granting loans to legal entities for housing construction;

10) to provide the state support by means of covering the part of construction (purchase) of affordable housing at the expense of state funds and/or local budget.

11) to prepare propositions concerning the scope of funds, necessary for granting a loan, partial compensation to borrowers from the state and local budgets and funds for their servicing;

12) keeps record and controls the use of funds allocated from the Fund and their return;

13) to prepare analytical materials re the execution of housing construction (reconstruction) works and reports on the use of the state credit resources;

14) to order construction (reconstruction) of housing for borrowers;

15) to provide services related to servicing of credits and partial compensation to individuals and legal entities within a contractual framework;

16) to organize insurance of risks for the housing construction (reconstruction) period and of credit return period risks;

17) to  prepare propositions concerning development and implementation mechanism of  lending to families and solitary citizens using the secondary housing market;

18) to create unified information and analytical system for quick information exchange with the Fund’s regional departments and the provision of the efficient execution of entrusted tasks;

19) to cooperate with enterprises, institutions and organizations;

20) to perform other functions according to entrusted tasks.

5. Rights and Responsibilities

5.1. The Fund is entitled:

1) to get and to use funds of state and local budgets, as well as other sources allocated to the Fund for certain purpose, for granting long-term (up to 30 years) loans for housing construction (reconstruction) and purchase to families and solitary citizens, partial compensation, as well as for their servicing;

2) to set up regional departments and other units of the Fund, necessary for the execution of entrusted tasks;

3) to conclude treaties with national and foreign individuals and legal entities for the execution of entrusted tasks;

4) to set up consultation centers in case of necessity;

5) to provide services directed at ensuring return of credits, giving partial compensation, consultative, information and representation services according to the entrusted tasks;

6) to direct income received by the Fund from housing construction for individuals and legal entities to granting loans to families and solitary citizens for housing construction (reconstruction) and purchase and loans’ servicing in a way prescribed by the Fund’s Supervisory Board;

7) to order housing construction (reconstruction) for borrowers or to delegate such powers to other legal entities;

8) to manage property for construction objects financing and/ or real estate transactions;

9) to commission to other legal entities the performance of other functions of management and/or its own mortgage assets servicing within contractual framework;

10) to create construction financing funds of A type and real estate transactions funds in a way prescribed by law.

5.2. The Fund is obliged to:

1) to submit monthly, quarterly, and annual reports on the subject of its activity to the authorized management body

2) to carry out an inventory  accounting of the assets assigned to the Fund in accordance with the legislation;

3) to keep records and control over the efficient use and preservation of the assets assigned to the Fund 

4) for procurement of goods, works and services, the Fund applies procurement procedures established by law

5.3. The Fund is obliged to carry out certain types of economic activities, the list of which is determined by law, after receiving a license.

6. Size and authorized capital of the Fund procedure of formation

6.1. The Fund's funds are formed by:

budgetary funds foreseen for the support of housing construction by means of granting long-term loans;

funds received from loan repayment and interest rate payment for using it;

funds of individuals and legal entities, customers’ funds, civic organizations’ funds, credit unions’, banks’, extra-budgetary funds;

charitable donations of individuals and legal entities;

budgetary funds foreseen for partial compensation;

funds foreseen for credits servicing;

centralized deductions of the Fund’s regional departments

budgetary funds foreseen for partial compensation;

non-budgetary funds, received for provided services;

funds transferred by the founder to the Fund’s charter capital;

funds received from repayment of requirements under bank deposits of participants of the State targeted social and economic programme of affordable housing construction (purchase) for 2010-2017 which were reimbursed at the expense of the Fund’s charter capital;

profit from financial and economic activities;

other revenues non-forbidden by law.

6.2. The Fund’s funds are used for the execution of long-term programmes of granting loans to families and solitary citizens for housing construction and purchase, giving partial compensation, current and major expenditures of the Fund, its regional departments and consultative centres according to the law, as well as drafting and support of current and forward-looking programmes of the Fund’s activities.

6.3. Charter capital of the Fund is formed in amount of 388355000 (UAH three hundred eighty-eight million three hundred fifty-five thousand) at the expense of founder’s contributions.

The Fund’s charter capital is used for ensuring its statutory activities.

The amount of the Fund’s charter capital may by changed solely upon the authorized body of management decision.

7. Management bodies

7.1. The Fund’s management bodies are as follows:

the Fund’s Supervisory Board;

the Fund’s Board.

7.2. The composition of the Fund’s Supervisory Board is formed and approved by the authorized body of management.

The Fund’s Supervisory Board operates on a voluntary basis.

7.3. The Fund’s Supervisory Board oversees the Fund’s activities and its tasks’ performance, in particular:

1) it determines strategic directions of the Fund’s development and forwards the Fund’s activities to timely and full execution of measures to solve the problem of providing population with housing;

2) approves:

annual distribution of the  state budgetary funds among the Fund’s regional departments directed at crediting agreed with the main administrator of budgetary funds;

compiled cost estimate of the Fund to ensure its statutory activities upon submission of authorized body of management;

the procedure of internal auditing (control);

standard regulation on a regional department of the Fund;

approves applicants for the positions of the First Deputy and Deputies Chairman of the Fund’s Board;

3) appoints and dismisses the Chairman of the Fund’s Board upon submission of authorized body of management;

4) appoints auditing checks of financial and economic activities of the Fund when a revision is needed and considers the materials of such checks.

7.4. The organizational form of work of the Fund’s Supervisory Board is meetings conducted in case of necessity but not less than twice a year. Meetings are convoked by the Supervisory Board’s Head upon his/ her own initiative or upon the proposition of 1/3 members of the Supervisory Board and/ or of the Fund’s Chairman of the Board.

The Head of the Supervisory Board sends a draft agenda and information about time and location of the meeting two weeks before the date of the meeting to the Members of the Supervisory Board. Members of the Supervisory Board send propositions and remarks to the agenda to the Head in a three-day term before the date of the meeting.

The meeting of the Supervisory Board is rightful only if the majority the Fund’s Supervisory Board’s Members are present at it.

The decisions of the Supervisory Board are taken by a simple majority of the Fund’s Supervisory Board’s member votes at its meeting.

Supervisory Board’s decision is documented by the minutes signed by the Head of the Supervisory Board.

The Fund provides organizational measures for the work of the Supervisory Board.

7.5. The Board is the Fund’s executive body.

The Fund’s Board is accountable before and controlled by the authorized body of management and ensures the execution its decisions and Fund’s Supervisory Board.

The Fund’s Board:

1) organizational structure of the Fund, marginal quantity of the Fund’s employees, staff table upon submission of authorized body of management;

2) organizes granting of long-term loans (up to 30 years), including soft loans for housing construction (reconstruction) and purchase to families and solitary citizens, further servicing of credit resources, provides their targeted and effective use and timely return;

3) approves conditions, remuneration and financial incentive of the Fund’s employees;

4) takes decisions on the creation, reorganization and liquidation of regional departments and other Fund’s units with further approving by the Supervisory Board;

5) coordinates and controls activities of regional departments and other Fund’s units;

6) submits propositions to the Supervisory Board regarding the development of main activities’ directions, certain programmes and their financing;

7) prepares materials and organizes meetings of the Fund’s Supervisory Board;

8) decides on the establishment of construction financing funds of type A and real estate transactions funds;

9) agrees compiled cost estimate of the Fund for ensuring its statutory activities;

10) agrees the annual distribution of the state budgetary funds among the Fund’s regional departments being directed at crediting;

11) performs other functions foreseen by legislation and this  Charter.

7.6. The Supervisory Board appoints and dismisses the Chairman of the Fund’s Board upon submission of the authorized body of management

The Chairman of the Board has First Deputy and two Deputies being appointed to the position and dismissed from it upon his/ her submission by the Fund’s Supervisory Board

The Chairman of the Board and his/her Deputies participate in the Fund’s Supervisory Board’s meetings.

7.7. The Chairman of the Fund’s Board:

1) organizes the work of the Board, central office of the Fund and its regional departments, takes decisions on the Fund’s activities and ensures the execution of decisions of the Fund’s Supervisory Board, represents the Fund in all state authorities without a commission, as well as in relations with other legal entities and individuals, gives commissions to legally act on behalf of the Fund, has the right of first signature on all financial and economic documents of the Fund;

2) organizes the work connected with

development and implementation   measures that are necessary and justified to prevent and counteract corruption in the Fund's activity;

3) manages Fund’s property in the framework determined by law;

4) decides on the issues of organizing economic activities, financing, accounting, compiling reports etc.    

5) determines the organizational structure of the Fund, marginal quantity of its employees and makes propositions concerning their approving by the authorized body of management;

6) decides the issue of employing, appointing, training and improving qualifications of the Fund’s employees, appoints employees of the Fund’s central office, Chief Accountant, Head of the Legal Department, directors of regional departments and other units, distributes functional responsibilities between them, takes measures to promote them and imposes disciplinary sanctions;

7) determines terms and amount of salaries and financial incentive of the Fund’s employees, submits propositions regarding their approval by the Fund’s Board;

8) guides and controls the activities of regional departments and other Fund’s units, ensures the execution of entrusted tasks;

9) approves staffing table and cost estimate of the central office of the Fund, staffing tables and cost estimates of the Fund’s regional departments;

10) considers reports of leaders of regional departments and other units of the Fund on results of work of departments and units and takes relevant decisions;

11)makes reports to the authorized management body about financial and economic activity of the Fund, about objects of state property, including corporate rights, the efficiency of state property management;

12) considers reports of leaders of regional departments and other units of the Fund on results of work of departments and units and takes relevant decisions;

13) distributes duties among Deputies Chairman of the Board;

14) approves the regulation on regional departments and other Fund’s units;

15) approves the regulation on Fund’s interior units;

16) agrees annual report and balance sheet of the Fund and submits them for approving by the Fund’s Supervisory Board;

17) performs other functions upon commission of the Fund’s Supervisory Board according to legislation and this Charter.

The Chairman of the Board within his/ her powers issues orders and directives regarding the Fund’s activities.

8. Authorized management body

The authorized management body in accordance with the tasks assigned to it:

exercises the authority to enforce  the rights of the State as the owner of the property assigned to the Fund by the economic right, transferred to the Fund, related with the possession, use and disposal of it within the limits specified by the legislation.

approves  Fund`s staffing table and organizational structure

approves  compiled cost estimate of the Fund to ensure its statutory activities

approves appointment and dismissal  of  the Chairman of the Fund’s Board

maintains records of state-owned objects under its management, controls the efficient use and storage Fund`s such objects;

approves in a prescribed manner the lease of land property assigned to the Fund under the right of economic management;

ensures state property management functions in accordance with the law;

agrees derecognition not fully depreciated fixed assets, as well as accelerated depreciation of fixed assets;

exercises other powers in accordance with the legislation and this Charter.

9. The reorganization and liquidation

The reorganization and liquidation of the Fund is effectuated according to law.