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This brochure is issued on the Project “The Bill on the management of
housing cooperative buildings (condominiums) - a threat to the interests of Bulgarian citizens and an instrument of corporate interests. Legal regulation of condominiums in Bulgaria. Proposal for amendments and supplements in accordance with the changes occurring in public relationships and urban environment”. Financed by the Bulgaria Fund, period 2008–2009. (Download) (548kB) 
Civil Association against Corruption and Illegal Construction
INVITES YOU
On July 14 2009 at 10.00 to 12.30
in Grand Hotel Bulgaria - the "Red Lounge"
to
Round table on topic
"Condominium in Bulgaria and other European Union member states - similarities and differences"
The Agenda shall include:
1. Conclusions from the comparative study of the legal framework and practices in Italy, Austria and Finland
2. Presentation of results from the sociological research for current condominium issues, performed by Alpha Research
3. Law for Condominium Management in Bulgaria
Moderator: Tania Milusheva
Please confirm your participation at tel.+359 885869252
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Civil Association against Corruption and Illegal Construction˙
INVITES YOU
on 23 April 2009 at 8:30 - 12:00
in Radisson SAS Grand Hotel Salon 1
to
Round table on the topic
1st Panel - Management of condominiums in Bulgaria and Italy, Austria ,Canada - similarities and differences"
- Relations between the owners in the condominium and the suppliers of utilities /hot water, gas, central heating, electricity/
- The role of the Municipality in the relations with the owners in the condominium
Participants: representatives of Vienna Municipality - Austria -
Mr. Wolfgang Forster and Mr.Andre Bourusa - Canada
2nd Panel - Management of condominiums in Bulgaria - a change in the legal regulation in the Republic of Bulgaria
1."Does the Bill on Condominiums regulate urban cohabitation in accordance with European culture".
Moderator: Maria Radmilova
Please confirm your participation at tel.+359 885869252
12.01.2009
OPEN LETTER
AN ACT ESTABLISHES CONDITIONS FOR THREATENING THE PROPERTY OF BULGARIAN CITIZEN
DEAR SIRS AND MADAMS,
Against that background, there are persistent attempts to be observed in Bulgaria at restricting Bulgarians’ title of property on their dwellings, which will inevitably result in prerequisites for even seizure of their property. The most flagrant manifestation of that pressure is the bill of condominium to be passed soon by the Bulgarian Parliament.
The bill was tabled by the Council of Ministers without broad public discussion with the argument that there is a requirement of the European Union for a transition to a condominium management form – a legal entity, so that European Funds money could be utilized with respect to building retrofitting. The justifications to the bill specify that “foreign organizations which expressed desire to participate in building retrofitting want to have a legal entity as their partner”. That argument, which still remains unclear and unproved, introduces a new form of condominium management entirely different from the one effective so far, and respectively inapplicable to the public relations pertaining to condominium as existing in Bulgaria. There is imposed the idea according to which the management of common areas is carried out by incorporating legal entities on part of condominium owners. Nowhere in European countries is there a legislative resolution raising condominium to a legal entity and no reference to examples of such countries is possible.
The Ministry of Regional Development and Public Works, which is the initiator of the bill, avoids answering the following specific questions: Will there be financing by European Funds, and if there is such financing, to what value will the financing amount, how will financing be managed, under what conditions will financing be provided and what the final amount of financing will be for the individual buildings. That lack of clarity gives rise to doubts. It is quite probable that the European Union itself is totally unaware of the fact that it has such a requirement for "bringing Bulgarian legislation in conformity” with European requirements.
The report of the Legal Matters Commission with the Bulgarian Parliament, which united around the idea instead of 100% percent consent of all owners to propose a reduction in the number of owners to be members of the association, gives rise to perplexity. It is therefore logical to arrive at the conclusion that there will occur a paradox when within a building there will be a legal entity of some of the owners and a general meeting of owners who are not members of the association.
The opinion of the Consultative Council with the Chairperson of the Bulgarian Parliament is that the bill is “incorrect”, “speculative”, “with ill-defined criteria”, “with purely anti-constitutional provisions”, “amending the Property Act in an inadmissible manner”, “with badly balanced structure”, “of non-precise wording”, as well as that the bill is not suitable to serve public relationships pertaining to condominium. Reality demonstrates a need of change in the legal regulations on condominium,” is stated in the opinion, “but the one offered is not the change needed for the legal regulations. The justifications to the bill are not convincing with respect to the reason for passing a new act”. The role of the Consultative Council is to provide a qualified opinion on proposed bills.
Given a negative opinion of the Consultative Council, it would be logical for bills to be at least revised and not to rush with their passing. In this case five million Bulgarians would be directly affected by the application thereof.
The national ombudsman of the Republic of Bulgaria Mr. Ginyo Ganev made objections to the bill defining it as «a bill of bad philosophy opening widely “the doors” for the supremacy of the economically stronger party, not guaranteeing efficiently the interests of individual owners, and containing texts which restrict in an inadmissible manner the title of ownership of individual owners». He appealed that the bills on condominium management and energy efficiency be not passed. He took a stand against the texts providing for an obligation of citizens residing in blocks of flats to create associations and to pay collective bills for central heating and warned that if those were passed, he would approach the Constitutional Court.
Prof. Vladimir Petrov, who is a member of the Consultative Council and one of the best international experts in the field of proprietary law, states that one of the main dangers in the bill of condominium is the transformation of condominium into a legal entity as “..that is a way for certain circles to acquire cheap property. That is the reason why the draft of the Condominium Management Act was subjected to brutal dialectics with serious gangster and mob tinge. The state belongs to the well-off, citizens are a dying down element.”
With reference to this bill, the Civil Association against Corruption and Illegal Construction addressed by name in personal letters each of the 240 Members of Parliament of the 40th National Assembly, and appealed to them that they become familiar with the negative opinion of the Legislation Consultative Council on the bill of condominium management.
With the fast passing at first reading of the bill, the Members of the 40 Parliament demonstrated total disregard of both the opinion of specialists and the standpoint expressed by civil society representatives.
Actually the bill of condominium to be passed at second reading in its final version as an act by the Bulgarian Parliament is a product of economic lobbying of heat supply, electric power supply and water supply companies and building retrofitting construction companies.
If the request of those companies is satisfied, the Bulgarian state will turn out again to be a body servicing corporate interests and it will in no cases protect ordinary Bulgarians’ interests. Utility companies are traders as all other companies and their interests may have in no way more priority than those of their customers – Bulgarian citizens.
The pressure exercised by the energy lobby was evidenced by the proposal of the chairperson of the Energy parliamentary commission and a Member of Parliament of the Rights and Freedoms Movement Ramadan Atalay, which became known as “one block of flats – one bill”. The idea originated from the Minister of Economy Petar Dimitrov, and Atalay introduced the proposal between first and second reading to the condominium act. It stipulated that in case of outstanding bills of 2/3 of owners in a block of flats, the central heating be stopped, and consequently that they be able to connect again to the system of Central Heat Supply only provided that they incorporate an association. Following the negative public response, Atalay withdrew his proposal.
On 07.04.2008 the Executive Director of Central Heat Supply Sofia stated that Central Heat Supply Sofia was the biggest creditor of capital residents and that he was not willing to deal with individual persons but “to have a collective contractor on the other side too”, i.e. there to exist a collective responsibility for the payment of bills of all owners within a building. Milevsky announced his intention to request a legal change (i.e. the draft of condominium management act) to provide an opportunity to the company to secure its accounts receivable with a procedure similar to the one available to bank institutions. That includes an opportunity for distraint of accounts and securing debts with property. His threat was partially fulfilled with the adoption of amendments to the Energy Act pursuant to which with respect to the liabilities of individual consumers or of a legal entity – condominium (article 154) the heat transmission enterprise has the privilege to collect amounts due by its customers through quick proceedings notwithstanding the value of such amounts. The same rights are available to the public provider, the electric power system operator, public suppliers, end suppliers, the transmission enterprise and the distribution enterprises (article 107). Thus, the collective liability of the entire building to service providers has already been legally regulated. At the same time individual owners within a condominium have no rights.
The next step of placing consumers under economic dependence on such companies is the incorporation of a legal entity of owners within a condominium by virtue of the new condominium management act.
Passing the condominium management act, the Bulgarian Parliament will provide another low quality product in service of economic interests and to the detriment of Bulgarian citizens.
CIVIL ASSOCIATION AGAINST CORRUPTION AND ILLEGAL CONSTRUCTION