Additional Measures for Improving Mortgage Credit Mechanisms

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[ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.22.00.00 Lending / 07.22.06.00 Special Types of Lending / 07.22.06.03 Housing Construction Financing. Mortgage; 2. 08.00.00.00 Housing Legislation. Utilities / 08.02.00.00 Provision of Citizens with Housing. Use of Housing Fund / 08.02.08.00 Provision of Certain Categories of Citizens with Housing Buildings Belonging to the State Housing Fund] [ TSZ: 1. Socio-cultural Issues / Housing Legislation. Utility Services; 2. Finance / Banks and Other Credit Institutions. Credits]

Decree of the President of the Republic of Uzbekistan

On Additional Measures for Improving Mortgage Credit Mechanisms

Consistent measures are being taken in our country to expand the scale of constructing affordable housing and multi-apartment buildings, and to improve the living conditions of the population by introducing new architectural and technical solutions in the sector. In particular, over the past three years, 104,000 families have been provided with housing, which is one and a half times more than the number of houses built in the last ten years.

At the same time, further improvement of the population's housing conditions requires forming and developing a modern market system for granting mortgage credits to individuals, fully involving private contracting organizations in housing construction and transitioning completely to this system, gradually increasing financing by commercial banks, as well as strengthening targeting and transparency in state support for families in need of improved housing conditions.

In order to further expand the volume of granting mortgage credits, create conditions for the development of private contracting organizations, introduce new mechanisms for supporting persons in need of improved housing conditions, rationally use land resources, and activate urbanization processes in populated areas: [ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.22.00.00 Lending / 07.22.06.00 Special Types of Lending / 07.22.06.03 Housing Construction Financing. Mortgage]

1. A new procedure for providing the population with housing through mortgage credits based on market principles (hereinafter referred to as the new procedure) shall be introduced, according to which: See previous edition.

in order to ensure the mortgage market with long-term resources, the Ministry of Finance of the Republic of Uzbekistan places funds into commercial banks on market terms for a period of 20 years; (Paragraph 2 of Item 1 was edited in accordance with the Decree of the President of the Republic of Uzbekistan No. PF-6186 dated March 11, 2021 — National Database of Legislative Acts of the Republic of Uzbekistan, March 11, 2021, No. 06/21/6186/0200)

commercial banks provide mortgage credits to the population from their own funds and funds allocated by the Ministry of Finance of the Republic of Uzbekistan;

mortgage credits are provided from funds allocated by the Ministry of Finance of the Republic of Uzbekistan to commercial banks at market rates, with a limited amount established per borrower, and the right to independently choose the location and area of the housing is granted to the borrower; See previous edition.

subsidies (hereinafter referred to as subsidies) are paid from the funds of the State Budget of the Republic of Uzbekistan to certain persons, including those with low income and those in need of improved housing conditions (hereinafter referred to as certain persons), to cover part of the initial payment and/or interest on mortgage credits. (Paragraph 5 of Item 1 was edited in accordance with the Decree of the President of the Republic of Uzbekistan No. PF-6186 dated March 11, 2021 — National Database of Legislative Acts of the Republic of Uzbekistan, March 11, 2021, No. 06/21/6186/0200) [ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.22.00.00 Lending / 07.22.06.00 Special Types of Lending / 07.22.06.03 Housing Construction Financing. Mortgage]

2. The new procedure shall be introduced in the following cases: See previous edition.

in rural areas — in territories adjacent to cities of Karakalpakstan and regions and district administrative centers; (Paragraph 2 of Item 2 was edited in accordance with the Decree of the President of the Republic of Uzbekistan No. PF-6186 dated March 11, 2021 — National Database of Legislative Acts of the Republic of Uzbekistan, March 11, 2021, No. 06/21/6186/0200)

in Tashkent City, as well as in cities of Karakalpakstan and regions. [ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.22.00.00 Lending / 07.22.06.00 Special Types of Lending / 07.22.06.03 Housing Construction Financing. Mortgage]

3. It is established that in implementing the new procedure:

a) in rural areas:

construction of multi-apartment housing is carried out in the form of macro-arrays containing at least 200 apartments; See previous edition.

entrepreneurial entities carrying out construction of multi-apartment housing are determined based on the results of electronic online auction sales; (Paragraph 'a' of Item 3 was edited in accordance with the Decree of the President of the Republic of Uzbekistan No. PF-33 dated December 9, 2021 — , December 10, 2021, No. 06/21/33/1147) See previous edition. (Paragraph 'a' of Item 3 was issued based on the Decree of the President of the Republic of Uzbekistan No. PF-33 dated December 9, 2021 — , December 10, 2021, No. 06/21/33/1147) See previous edition.

land plots under construction of multi-story housing are sold to entrepreneurial entities in lots or as a whole on the basis of lease rights through an electronic online auction, in accordance with the Decree of the President of the Republic of Uzbekistan No. PF-6243 dated June 8, 2021; (Paragraph 'a' of Item 3 was edited in accordance with the Decree of the President of the Republic of Uzbekistan No. PF-33 dated December 9, 2021 — , December 10, 2021, No. 06/21/33/1147) See previous edition.

construction of multi-apartment housing is carried out by the entrepreneurial entity that won the electronic online auction sale using its own funds, credits obtained from commercial banks, and other sources not prohibited by legislation; (Paragraph 'a' of Item 3 was edited in accordance with the Decree of the President of the Republic of Uzbekistan No. PF-33 dated December 9, 2021 — , December 10, 2021, No. 06/21/33/1147)

preparation of the site and construction of internal water supply and sewage networks and automobile roads are carried out by regional governorates from centralized sources, including funds of international financial institutions and local budgets;

preparation of the site and construction of internal electricity supply and gas supply networks are carried out respectively by JSC "Regional Electric Networks" and JSC "Regional Gas Supply" from their own funds, and if necessary — from funds of the republican and local budgets;

b) in cities: See previous edition.

land plots for the construction of multi-apartment housing are provided to entrepreneurial entities on a paid basis through an electronic auction on the "E-AUKSION" electronic trading platform; ( Paragraph 'b' sub-item of Item 3 was edited in accordance with the Decree of the President of the Republic of Uzbekistan No. PF-67 dated April 19, 2024 — , April 27, 2024, No. 06/24/67/0307)

construction of multi-apartment housing is carried out by the entrepreneurial entity that won the electronic auction sale using its own funds, credits of commercial banks, and other sources not prohibited by legislation;

construction of engineering and transport communications is carried out by the entrepreneurial entity that won the electronic auction using its own funds and other sources not prohibited by legislation, and if necessary, from funds of the republican and local budgets.

The Ministry of Construction, together with interested ministries and departments, shall submit to the Cabinet of Ministers of the Republic of Uzbekistan within one month proposals for approving the mechanisms and criteria for conducting selection sales, as well as the qualification requirements imposed on entrepreneurial entities constructing multi-apartment housing in rural areas within the framework of the new procedure, including "value - quantity" criteria. See previous edition.

See previous edition.

[ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.22.00.00 Lending / 07.22.06.00 Special Types of Lending / 07.22.06.03 Housing Construction Financing. Mortgage]

4. It is established that within the framework of the new procedure, mortgage credits are provided for a period of 20 years from funds allocated by the Ministry of Finance of the Republic of Uzbekistan to commercial banks for the purchase of apartments sold in the primary housing market (including apartments constructed outside the framework of the new procedure and sold in the primary housing market) in an amount not exceeding the annually approved maximum amount of the mortgage credit, with an initial payment not less than 15 percent of the cost of the purchased apartment. (Paragraph 1 of Item 4 was edited in accordance with the Decree of the President of the Republic of Uzbekistan No. PF-33 dated December 9, 2021 — , December 10, 2021, No. 06/21/33/1147)

In this regard: See previous edition.

the maximum amount of the mortgage credit is determined annually by the Ministry of Economic Development and Poverty Reduction of the Republic of Uzbekistan in agreement with the Ministry of Finance and the Ministry of Construction, based on the calculated value of the housing, and is reviewed every six months; (Paragraph 3 of Item 4 was edited in accordance with the Decree of the President of the Republic of Uzbekistan No. PF-33 dated December 9, 2021 — , December 10, 2021, No. 06/21/33/1147) See previous edition.

if the cost of the purchased apartment exceeds the maximum amount of the mortgage credit, the remaining part of the cost is paid by the borrower from their own funds and other sources not prohibited by legislation;

if the key rate of the Central Bank of the Republic of Uzbekistan is lowered, the interest rates on funds allocated by the Ministry of Finance and mortgage credits of commercial banks decrease proportionally; if increased, they remain unchanged. (Item 4 was edited in accordance with the Decree of the President of the Republic of Uzbekistan No. PF-6186 dated March 11, 2021 — National Database of Legislative Acts of the Republic of Uzbekistan, March 11, 2021, No. 06/21/6186/0200) [ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.22.00.00 Lending / 07.22.06.00 Special Types of Lending / 07.22.06.03 Housing Construction Financing. Mortgage]

5. The Ministry of Finance of the Republic of Uzbekistan, together with the Central Bank, shall develop within two months a concept for granting mortgage credits for the purchase of apartments in multi-apartment buildings in accordance with the new procedure, as well as the requirements imposed on potential borrowers. See previous edition.

[ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.22.00.00 Lending / 07.22.06.00 Special Types of Lending / 07.22.06.03 Housing Construction Financing. Mortgage]

6. It is established that within the framework of the new procedure:

persons who received a notification about the provision of a subsidy form part of the initial payment for the mortgage credit equal to at least 5 percent of the cost of the housing from their own funds;

regardless of the location, cost, and area of the purchased apartment, subsidies for covering part of the initial payment for the mortgage credit are paid in a strictly defined amount of 32 million sums, and subsidies for covering part of interest payments are paid for the part exceeding 10 percentage points during the first five years of the credit term;

subsidies for covering part of the initial payment and interest payments are also paid if the price of the purchased apartment exceeds the maximum amount of the mortgage credit. In this case, if the price of the purchased apartment exceeds the maximum amount of the mortgage credit, the remaining part of the cost is paid by the borrower by increasing the initial payment amount from their own funds and other funds specified in legislation;

It is established that since March 1, 2020, applications for receiving subsidies are submitted through the Centers for Public Services of the Republic of Uzbekistan or the Single Interactive Public Services Portal. (Item 6 was edited in accordance with the Decree of the President of the Republic of Uzbekistan No. PF-33 dated December 9, 2021 — , December 10, 2021, No. 06/21/33/1147) [ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.05.00.00 Republican Budget / 07.05.01.00 General Rules; 2. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.22.00.00 Lending / 07.22.06.00 Special Types of Lending / 07.22.06.03 Housing Construction Financing. Mortgage]

7. The Ministry of Finance of the Republic of Uzbekistan:

ensures the payment of subsidies within the limits of funds approved in the annual parameters of the State Budget of the Republic of Uzbekistan;

within one month submits proposals to the Cabinet of Ministers on improving the procedure for paying subsidies from the State Budget and off-budget funds of ministries and departments for paying the initial payment for mortgage credits to citizens, including military servicemen of the Ministry of Defense, National Guard, Ministry of Emergency Situations, State Security Service, Presidential Security Service of the Republic of Uzbekistan, and employees of internal affairs bodies, taking into account the requirements of the second paragraph of Item 9 of this Decree;

together with the Ministry of Economy and Industry, the Ministry of Justice, and other ministries and departments, submits within one month a draft government resolution on approving the procedure and criteria for selecting persons to whom subsidies are paid to the Cabinet of Ministers of the Republic of Uzbekistan. [ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.22.00.00 Lending / 07.22.06.00 Special Types of Lending / 07.22.06.03 Housing Construction Financing. Mortgage]

8. The following:

target indicators for the construction of multi-apartment housing in rural areas in 2020 in accordance with the new procedure and the payment of subsidies are attached as Appendix 1 ;

target indicators for the construction of multi-apartment housing in cities in 2020 in accordance with the new procedure and the payment of subsidies are attached as Appendix 2 ; See previous edition. (Paragraphs 4–6 of Item 8 were issued based on the Decree of the President of the Republic of Uzbekistan No. PF-6186 dated March 11, 2021 — National Database of Legislative Acts of the Republic of Uzbekistan, March 11, 2021, No. 06/21/6186/0200) [ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.22.00.00 Lending / 07.22.06.00 Special Types of Lending / 07.22.06.03 Housing Construction Financing. Mortgage]

9. It is established that within the framework of the new procedure: See previous edition.

for 2020, the existing conditions for lending and paying the initial payment established in previously adopted legislative acts for military personnel, including military servicemen of the Ministry of Defense, National Guard, Ministry of Emergency Situations, State Security Service, Presidential Security Service of the Republic of Uzbekistan, and employees of internal affairs organs, are preserved; (Paragraph 2 of Item 9 was edited in accordance with the Decree of the President of the Republic of Uzbekistan No. PF-6126 dated December 7, 2020 — National Database of Legislative Acts of the Republic of Uzbekistan, December 7, 2020, No. 06/20/6126/1608) See previous edition.

selection of land plots for the construction of multi-apartment housing and engineering-transport communications is carried out by the Council of Ministers of Karakalpakstan, governorates of regions, and the Mayor of Tashkent City in agreement with the Ministry of Economic Development and Poverty Reduction, the Ministry of Construction, the Center of Hydrometeorology under the Cabinet of Ministers, and the Cadastre Agency under the State Tax Committee of the Republic of Uzbekistan; (Paragraph 3 of Item 9 was edited in accordance with the Decree of the President of the Republic of Uzbekistan No. PF-6126 dated December 7, 2020 — National Database of Legislative Acts of the Republic of Uzbekistan, December 7, 2020, No. 06/20/6126/1608)

vacant land plots located in densely populated areas, having access to external engineering-transport communications, and not belonging to irrigated agricultural lands and forest fund lands are allocated for the construction of multi-apartment housing.

The State Committee for Land Resources, Geodesy, Cartography, and State Cadastre of the Republic of Uzbekistan, together with the Urbanization Agency under the Ministry of Economy and Industry, shall form within three months a database of information on vacant and inefficiently used land plots having access to external engineering-transport communications ("Land Bank"). [ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.22.00.00 Lending / 07.22.06.00 Special Types of Lending / 07.22.06.03 Housing Construction Financing. Mortgage]

10. A republican commission for introducing a new procedure for housing construction and sale based on market principles shall be formed in the composition specified in Appendix 6 , and the following shall be defined as its main tasks:

coordination of activities and ensuring mutual cooperation of state bodies, local executive authority bodies, and other organizations participating in the implementation of the new procedure, including construction of multi-apartment housing, granting mortgage credits, and payment of subsidies;

systematic analysis and monitoring of the execution of the new procedure, development of specific measures aimed at solving problematic issues based on results;

ensuring the application of a single practice in granting mortgage credits and subsidizing based on the new procedure implemented in locations;

ensuring the introduction of an effective system for selecting persons to whom subsidies are paid;

preparing proposals for making changes and additions to the target indicators for the construction of multi-apartment housing and payment of subsidies in accordance with the new procedure, including due to delays in construction in certain areas or failure to carry out construction within specified deadlines;

hearing reports from heads of state bodies, local executive authority bodies, and other organizations on the work performed on implementing the new procedure.

11. Consent is given to the proposals of the Council of Ministers of Karakalpakstan, governorates of regions, and the Mayor of Tashkent City regarding the implementation in 2020-2021 of:

the program for constructing affordable housing in rural areas with the participation of LLC "Qishloq Qurilish Invest" IC; See previous edition.

the program for constructing multi-apartment affordable housing in cities with the participation of LLC "Uzshahar Qurilish Invest" IC (hereinafter referred to as targeted state programs). (Paragraph 3 of Item 11 was edited in accordance with the Decree of the President of the Republic of Uzbekistan No. PF-6186 dated March 11, 2021 — National Database of Legislative Acts of the Republic of Uzbekistan, March 11, 2021, No. 06/21/6186/0200)

12. The following:

main parameters for the construction of multi-apartment affordable housing in rural areas in 2020 with the participation of LLC "Qishloq Qurilish Invest" IC are approved as per Appendix 7 ;

main parameters for the construction of multi-apartment affordable housing in cities in 2020 with the participation of LLC "Uzshahar Qurilish Invest" IC are approved as per Appendix 8 . [ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.22.00.00 Lending / 07.22.06.00 Special Types of Lending / 07.22.06.03 Housing Construction Financing. Mortgage]

13. It is established:

construction of multi-apartment affordable housing in rural areas with the participation of LLC "Qishloq Qurilish Invest" IC is carried out only in densely populated areas in the form of micro-arrays containing at least 100 apartments;

starting from the targeted state programs of 2020, the construction of single-story affordable housing is stopped, except for unfinished housing buildings, as well as housing buildings whose construction has not yet begun but for which relevant contracts have been signed;

financing the construction of multi-apartment affordable housing in cities with the participation of LLC "Uzshahar Qurilish Invest" IC is carried out after forming a list of potential borrowers, using their initial payments, mortgage credits of commercial banks, own funds of LLC "Uzshahar Qurilish Invest" IC, and other sources not prohibited by legislation. [ OKOZ: 1. 07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.22.00.00 Lending / 07.22.06.00 Special Types of Lending / 07.22.06.03 Housing Construction Financing. Mortgage]

14. The Council of Ministers of Karakalpakstan, governorates of regions, and the Mayor of Tashkent City, together with LLC "Qishloq Qurilish Invest" IC and LLC "Uzshahar Qurilish Invest" IC, shall select vacant land arrays for the construction of multi-apartment affordable housing by January 1, 2020. [ OKOZ:

07.00.00.00 Legislation on Finance and Credit. Banking Activity / 07.22.00.00 Lending / 07.22.06.00 Special Types of Lending / 07.22.06.03 Housing Construction Financing. Mortgage]

15. The Ministry of Construction of the Republic of Uzbekistan shall ensure state architecture-construction supervision over the quality of execution of construction and installation works and project solutions in the construction of multi-apartment housing and engineering-transport communications, as well as compliance with urban planning norms and rules.

16. The Prosecutor General's Office of the Republic of Uzbekistan shall establish effective control over the timely and targeted allocation of land for the construction of multi-apartment housing, as well as preventing irrational and unauthorized use thereof. See previous edition.

17. The Committee for the Development of Competition and Protection of Consumer Rights of the Republic of Uzbekistan shall take measures to prevent anti-competitive behavior of participants in electronic auctions and selection sales conducted in accordance with this Decree, as well as to protect the rights of buyers of housing in relations with entrepreneurial entities engaged in the construction of multi-apartment buildings. (Item 17 was edited in accordance with the Decree of the President of the Republic of Uzbekistan No. PF-108 dated July 6, 2023 — , July 7, 2023, No. 06/23/108/0460)

18. The Ministry of Finance of the Republic of Uzbekistan:

searches for additional sources for placing funds in commercial banks for the purpose of granting mortgage credits at market rates, specifically funds of the State Budget of the Republic of Uzbekistan and state targeted funds, including credits and loans of international financial institutions and foreign government financial organizations attracted for budget support and issuance of state international bonds, and other sources not prohibited by law;

together with the Ministry of Investment and Foreign Trade of the Republic of Uzbekistan, conducts negotiations on making relevant amendments to previously signed loan agreements with the Asian Development Bank, Islamic Development Bank, and Saudi Development Fund, based on the requirements of this Decree.

19. It is established that starting from January 1, 2020:

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a) "Qishloq Qurilish Invest" CJSC and "Uzshahar Qurilish Invest" CJSC shall place the following on a special information portal when purchasing construction materials and equipment for delivery to general contractors in a centralized manner for housing construction by selecting the best offers within the framework of targeted state programs (hereinafter - purchasing materials and equipment):

• a notice containing the final deadline for accepting participants' offers, which shall not be less than fifteen days, as well as information provided for in Article 52 of the Law of the Republic of Uzbekistan "On State Procurement";

• a minutes of the procurement commission on the results of selecting the best offers for public discussion - no later than two working days after its official registration;

• information on contracts concluded on the results of selecting the best offers - no later than three working days from the date of their conclusion; See previous edition.

b) The Accounts Chamber of the Republic of Uzbekistan and the Committee for the Protection of Competition and Consumer Rights of the Republic of Uzbekistan shall continuously conduct remote analysis of the efficiency and effectiveness of the purchase of materials and equipment by visiting locations, publishing the results of their analysis on the special information portal for state procurement and on their respective official websites. (Sub-paragraph "b" of paragraph 19 in the edition of the Decree of the President of the Republic of Uzbekistan dated July 6, 2023 No. PF-108 - , 07.07.2023, 06/23/108/0460)

20. The following shall be assigned:

To the First Deputy Prime Minister of the Republic of Uzbekistan - Minister of Transport A.Zh. Ramatov - for coordinating the process of constructing multi-apartment housing in accordance with this Decree, and for attracting qualified contracting construction organizations to participate in electronic auction sales for the provision of land plots; See previous edition.

To the Deputy Prime Minister of the Republic of Uzbekistan - Minister of Economic Development and Poverty Reduction Zh.A. Kuchkarov - for ensuring transparency and openness in the selection of persons to whom subsidies are paid, including by actively involving applicants themselves, the broad public, and institutions of civil society in this process; (The third subparagraph of paragraph 20 in the edition of the Decree of the President of the Republic of Uzbekistan dated March 11, 2021 No. PF-6186 - National Database of Legislation, 11.03.2021, 06/21/6186/0200)

To the Chairman of the Central Bank of the Republic of Uzbekistan M.B. Nurmuratov - for taking measures to ensure the rights and legitimate interests of citizens in obtaining and servicing mortgage credits in accordance with the new procedure, as well as monitoring the activities of participating commercial banks; See previous edition.

To the Minister of Finance of the Republic of Uzbekistan T.A. Ishmetov - for timely allocation of necessary funds from the State Budget of the Republic of Uzbekistan and attracting other financial resources for the implementation of measures provided for in this Decree; (The fifth subparagraph of paragraph 20 in the edition of the Decree of the President of the Republic of Uzbekistan dated March 11, 2021 No. PF-6186 - National Database of Legislation, 11.03.2021, 06/21/6186/0200)

To the Minister of Construction of the Republic of Uzbekistan B.I. Zakirov - for ensuring the quality performance of construction and installation works and the timely commissioning of multi-apartment housing and engineering-transport communications;

To the Chairman of the Cabinet of Ministers of the Karakalpakstan Republic, Governors of regions and the city of Tashkent - personal responsibility shall be assigned for organizing the construction of multi-apartment housing and engineering-transport communications at the required level, including timely provision of land plots for the construction of these housing, achieving target indicators for their construction, ensuring the effective work of regional selection commissions for identifying contracting organizations for housing construction in rural areas, and ensuring transparency and openness of their activities.

21. Deputy Prime Ministers of the Republic of Uzbekistan A.Zh. Ramatov and Zh.A. Kuchkarov shall, within one week, approve a plan of measures for the effective and uniform implementation of the new procedure by local executive authority bodies and other participating organizations for 2020, as well as measures for extensive explanation to the population on issues of purchasing housing, including conducting thematic and mobile TV shows and radio broadcasts.

The plan of measures shall provide for the monthly workload of each governor on selecting land plots, attracting contracting construction organizations for housing construction, and ensuring the timely commissioning of housing and engineering-transport communications. [ OKOZ: 1. 21.00.00.00 Comprehensive documents on amendments and additions / 21.02.00.00 Decrees and Resolutions of the President of the Republic of Uzbekistan]

22. Amendments and additions shall be made to certain documents of the President of the Republic of Uzbekistan in accordance with Appendix 9.

23. The Ministry of Finance of the Republic of Uzbekistan, together with the Ministry of Economy and Industry, the Ministry of Justice, and other interested agencies, shall submit proposals to the Cabinet of Ministers on amendments and additions to legislative acts arising from this Decree within two months.

24. Control over the implementation of this Decree shall be assigned to the Prime Minister of the Republic of Uzbekistan A.N. Aripov, Deputy Prime Ministers of the Republic of Uzbekistan A.Zh. Ramatov and Zh.A. Kuchkarov, and Advisor to the President of the Republic of Uzbekistan R.A. Gulyamov.

President of the Republic of Uzbekistan Sh. MIRZIYOYEV

Tashkent city,

November 28, 2019,

No. PF-5886 See previous edition.

Appendix 1 to the Decree of the President of the Republic of Uzbekistan dated November 28, 2019 No. PF-5886

TARGET INDICATORS for the construction of multi-apartment housing and payment of subsidies in rural areas in 2020 in accordance with the new procedure *

No.	Region Name	Total Number of Apartments in Multi-Apartment Buildings	Estimated Cost of Expenses (billion UZS)	Of which: Number of Persons to Whom Subsidies are Paid for Partial Compensation of Interest Rates from State Budget Funds	Initial Payments (billion UZS)	Resources Allocated to Commercial Banks for Future Lending to the Population (billion UZS)	TOTAL
							4,000
1.	Andijan Region	700	143.5	14.4	129.2	700
2.	Bukhara Region	500	102.5	10.3	92.3	500
3.	Namangan Region	700	143.5	14.4	129.2	700
4.	Samarkand Region	900	184.5	18.5	166.1	900
5.	Surkhandarya Region	500	82.0	8.2	73.8	180
6.	Fergana Region	700	143.6	14.4	129.2	700

Note:

• In case of necessity, amendments may be made to the target indicators for the construction of multi-apartment housing and payment of subsidies in rural areas in 2020 in accordance with the new procedure, upon the proposal of the Republican Commission on Introducing a New Procedure for Housing Construction and Sales Based on Market Principles, by the Cabinet of Ministers of the Republic of Uzbekistan. (Appendix 1 in the edition of the Decree of the President of the Republic of Uzbekistan dated August 5, 2021 No. PF-6274 - , 06.08.2021, 06/21/6274/0766) See previous edition.

Appendix 2 to the Decree of the President of the Republic of Uzbekistan dated November 28, 2019 No. PF-5886

TARGET INDICATORS for the construction of multi-apartment housing and payment of subsidies in cities in 2020 in accordance with the new procedure *

No.	Region Name	Total Number of Apartments in Multi-Apartment Buildings	Of which for:	Estimated Cost of Expenses (billion UZS)	Of which from: Number of Persons to Whom Subsidies are Paid for Compensation of Initial Payments and Mortgage Credit Interest Rates **	Families in Need of Improving Housing Conditions	Labor Migrants	Young Families Showing Special Merit	Women in Hard Social Situations	Military Personnel of the Ministry of Defense	Military Personnel of the National Guard	Employees of Internal Affairs Bodies	Initial Payments (billion UZS)	Of which: Resources Allocated to Commercial Banks for Future Lending to the Population (billion UZS)	Subsidies from State Budget Funds for Payment of Initial Payments	Funds Allocated from the State Budget of the Republic of Uzbekistan for Payment of Initial Payments to Military Personnel of the Ministry of Defense, National Guard, and Employees of Internal Affairs Bodies	Number of Apartments	Amount (billion UZS)	Number of Apartments	Amount (billion UZS)

b) In the framework of implementing the program for building affordable housing according to model projects in rural areas in 2020, for a term of 20 years (15 years for affordable multi-apartment buildings constructed for specific categories of citizens), with a one-year grace period, and during the first 5 years, at a rate that increases uniformly each year from a strictly fixed 7% to the level of the Central Bank of the Republic of Uzbekistan's refinancing rate, and in the subsequent period at the Central Bank of the Republic of Uzbekistan's refinancing rate, where the initial payment of homebuilders constitutes the following amounts:

10 percent — for four-story multi-apartment (2 and 3-room) buildings;

25 percent — for five-story affordable multi-apartment (2 and 3-room) buildings constructed for specific categories of citizens";

b) The second sub-paragraph of paragraph 6 shall be worded as follows:

"based on the requests of participating commercial banks, open credit lines in national currency for persons residing in rural areas for a term of 20 years, and for specific categories of citizens for a term of 15 years, with a two-year grace period (with a one-year grace period in the framework of implementing the Program in 2020 and subsequent years, and during the first 5 years, at a rate that increases uniformly each year from a strictly fixed 4% to the level of the Central Bank of the Republic of Uzbekistan's refinancing rate, and in the subsequent period at the Central Bank of the Republic of Uzbekistan's refinancing rate, taking into account that during the first 5 years the rate is 4% per annum, and in the subsequent period the margin of participating commercial banks is 3% per annum), and direct these funds purposefully for the construction of affordable housing";

c) Paragraph 12 shall be worded as follows:

"12. Within the framework of the Program:

a) until January 1, 2020:

contracting organizations — from payment of all types of taxes for the volume of works on the construction of houses, water supply facilities, and automobile roads in arrays under contracts concluded with LLC "Qishloq Qurilish Invest" IC, on the condition of turnkey delivery;

subcontracting organizations — from payment of the single tax payment for the volume of works performed by them under contracts concluded with general contracting organizations that have concluded contracts with LLC "Qishloq Qurilish Invest" IC for the construction of houses, water supply facilities, and automobile roads in arrays;

organizations producing construction materials and equipment, as well as organizations transporting them — from payment of the single tax payment for the volume of realization of construction materials and equipment and their transportation (including imported materials) to LLC "Qishloq Qurilish Invest" IC and general contracting organizations that have concluded contracts with LLC "Qishloq Qurilish Invest" IC for the construction of houses on the condition of turnkey delivery;

LLC "Qishloq Qurilish Invest" IC — from payment of all types of taxes;

JSC "Uzsanoateksport" — from payment of customs duties (excluding customs clearance fees) for wood-based materials, roofing metal sheets imported from abroad that are not produced in the republic, as well as for other construction materials included in the list approved by the Cabinet of Ministers of the Republic of Uzbekistan;

LLC "Tashkent Rural Construction Service" and transport organizations — from payment of the single tax payment for the volume of works on the processing of roofing metal sheets and their delivery to LLC "Qishloq Qurilish Invest" IC;

b) until July 1, 2020, the following shall be exempted from value-added tax in the implementation of the Program in 2017–2019:

contracting organizations — for the volume of works on the construction of houses, water supply facilities, local sewage facilities, and automobile roads in arrays under contracts concluded with LLC "Qishloq Qurilish Invest" IC, on the condition of turnkey delivery;

organizations producing construction materials and equipment, as well as organizations transporting them — for the volume of realization of construction materials and equipment and their transportation to LLC "Qishloq Qurilish Invest" IC and general contracting organizations that have concluded contracts with LLC "Qishloq Qurilish Invest" IC for the construction of houses on the condition of turnkey delivery;

LLC "Qishloq Qurilish Invest" IC — for the realization of goods (works, services), including apartments (apartments in multi-apartment buildings);

LLC "Qishloq Qurilish Loyiha" — for the volume of design and survey works performed on the construction of houses, engineering and transport communications, and infrastructure facilities under contracts concluded with LLC "Qishloq Qurilish Invest" IC;

LLC "Tashkent Rural Construction Service" and transport organizations — for the volume of works on the processing of roofing metal sheets and their delivery to LLC "Qishloq Qurilish Invest" IC.

The State Tax Committee of the Republic of Uzbekistan shall establish strict control over the correct application of the tax and customs exemptions provided for in this decision".

5. In the Russian language text of the Decision of the President of the Republic of Uzbekistan dated November 22, 2016, No. PQ-2660 "On Additional Measures for the Implementation of the Program for the Construction and Reconstruction of Affordable Multi-Apartment Housing in Cities for 2017–2020":

a) in paragraph 4:

the second sub-paragraph shall be supplemented with the words "in the framework of the implementation of the Program for 2019" after the word "otkryvat";

the fourth sub-paragraph shall be supplemented with the words "(starting from the implementation of the Program for 2020 with a one-year grace period, with an interest rate that increases uniformly each year from a fixed 7 percent to the level of the refinancing rate of the Central Bank of the Republic of Uzbekistan during the first 5 years)" after the words "pervykh 5 let";

b) paragraph 17 shall be worded as follows:

"17. Exempt:

a) for a period until July 1, 2020, natural persons (borrowers) from payment of property tax on purchased apartments until they repay the mortgage credit provided within the framework of the implementation of the Program by AKIB "Ipoteka Bank", AKB "Uzpromstroybank", and AKB "Asaka Bank";

b) for a period until January 1, 2020, within the framework of the implementation of the Program:

general contracting and subcontracting organizations — from payment of all types of taxes in respect of the volume of works carried out by them on the construction and reconstruction of multi-apartment housing facilities on a turnkey basis;

organizations-manufacturers of construction materials, equipment, construction machinery, and motor vehicles (within the territory of the republic) — from payment of value-added tax and single tax payment in respect of the volumes of construction materials, equipment, construction machinery, and motor vehicles realized to IC "Uzshahar qurilish invest" and contracting organizations for the construction and reconstruction of multi-apartment housing facilities on a turnkey basis;

IC "Uzshahar qurilish invest" and general contracting organizations — from payment of customs duties (excluding customs fees) for imported raw materials, products, units, structures, construction materials, construction machinery, and equipment, as well as spare parts to them, motor vehicles, including road construction machinery, according to lists approved in the established order;

importing organizations — from payment of customs duties (excluding customs fees) for imported construction materials, raw materials, products, units, and structures, including lumber and roofing metal sheets, passenger elevators, individual boilers, equipment, and spare parts to them, including components and materials for their production (or assembly), as well as from value-added tax and single tax payment in respect of the supply of imported goods to the address of IC "Uzshahar qurilish invest" and general contracting organizations;

organizations performing works (services), including non-residents of the Republic of Uzbekistan — from payment of value-added tax and single tax payment in the part related to the implementation of the Program;

IC "Uzshahar qurilish invest" — from payment of all types of taxes;

c) for a period until July 1, 2020, from value-added tax, the turnover of realization by IC "Uzshahar qurilish invest" of residential buildings (apartments in multi-apartment buildings) built within the framework of the Program for 2017–2019";

c) the text of Appendix 1 shall be worded as follows:

"MAIN PARAMETERS Program for the Construction of Affordable Multi-Apartment Housing in Cities for 2017–2020*

No.

Name of Region

2017

2018

2019

2020

number of

buildings

number of

apartments

number of

buildings

number of

apartments

number of

buildings

number of

apartments

number of

apartments

TOTAL:

191

7,919

335

13,917

355

14,757

4,250

Republic of Karakalpakstan

7

315

10

450

10

450

244

Andijan Region

7

294

14

588

14

588

268

Bukhara Region

6

252

10

420

10

420

216

Jizzakh Region

5

210

15

645

15

645

268

Kashkadarya Region

7

315

14

630

14

630

256

Navoi Region

5

210

8

336

8

336

210

Namangan Region

8

336

14

588

14

588

216

Samarkand Region

9

405

16

720

16

720

256

Syrdarya Region

5

225

10

450

10

450

210

Surkhandarya Region

5

210

10

420

10

420

414

Tashkent Region

15

624

40

1,680

40

1,680

216

Fergana Region

5

210

14

600

14

600

296

Khorezm Region

5

225

10

450

10

450

300

Tashkent City

102

4,088

150

5,940

170

6,780

880

• The parameters for the construction of multi-story buildings will be clarified upon approval of the general plans of the corresponding cities".

6. In the Decision of the President of the Republic of Uzbekistan dated October 23, 2017, No. PQ-3350 "On Additional Measures for the Effective Implementation of the Program for the Construction and Reconstruction of Affordable Multi-Apartment Housing in Cities for 2017–2020":

a) The second sub-paragraph of paragraph 6 shall be supplemented with the words "in the framework of the implementation of the Program in 2019" after the word "muvoqiq,";

b) in paragraph 7:

the third sub-paragraph shall be supplemented with the words "(in the framework of the implementation of the Program in 2020 — with a one-year grace period, and during the first 5 years, at a rate that increases uniformly each year from a strictly fixed 4% to the level of the Central Bank of the Republic of Uzbekistan's refinancing rate, and in the subsequent period, taking into account the margin of participating commercial banks at 3% per annum)" after the words "yillik 3 foizli stavka bo'yicha";

the fourth sub-paragraph shall be supplemented with the words "in the framework of the implementation of the Program in 2019" after the words "Ipoteka bank" ATIBga";

c) the Russian language text of Appendix 1 shall be worded as follows:

"MAIN PARAMETERS Program for the Construction and Reconstruction of Affordable Multi-Apartment Housing in Cities for 2018–2020

No.

Name of Region

2018

2019

2020

number of

buildings*

number of

apartments**

number of

buildings*

number of

apartments**

number of

apartments**

TOTAL:

335

13,917

355

14,757

4,250

Republic of Karakalpakstan

10

450

10

450

244

Andijan Region

14

588

14

588

268

Bukhara Region

10

420

10

420

216

Jizzakh Region

15

645

15

645

268

Kashkadarya Region

14

630

14

630

256

Navoi Region

8

336

8

336

210

Namangan Region

14

588

14

588

216

Samarkand Region

16

720

16

720

256

Syrdarya Region

10

450

10

450

210

Surkhandarya Region

10

420

10

420

414

Tashkent Region

40

1,680

40

1,680

216

Fergana Region

14

600

14

600

296

Khorezm Region

10

450

10

450

300

Tashkent City

150

5,940

170

6,780

880

** The number of affordable multi-apartment buildings will be clarified upon approval of the general plans of the corresponding cities (development arrays).

*** The number of apartments will be clarified following the determination of the number of floors of buildings and the adaptation of standard projects to the terrain";

d) the Russian language name of Appendix 3 shall be supplemented with the words ", in the framework of the implementation of the Program for 2019" after the word "usloviy".

7. In the Decision of the President of the Republic of Uzbekistan dated July 18, 2018, No. PQ-3863 "On Additional Measures on Improving Mechanisms for the Implementation of Programs for the Construction of Affordable Housing According to Updated Model Projects in Rural Areas and Affordable Multi-Apartment Housing in Cities in 2018":

The first sub-paragraph of paragraph 1 shall be worded as follows:

"1. Mortgage credits of the Ministry of Economy and Industry of the Republic of Uzbekistan, the Ministry of Finance, ATB "Qishloq Qurilish Bank", National Bank for Foreign Economic Activities of the Republic of Uzbekistan, ATIB "Ipoteka Bank", ATB "Xalq Bank", ATB "Asaka", and ATB "Uzsanoatqurilishbank" (hereinafter referred to as participating commercial banks) for a term of 20 years, with a two-year grace period, and during the first 5 years at an annual rate of 7% (with a one-year grace period in the framework of implementing the programs in 2020, and during the first 5 years, at a rate that increases uniformly each year from a strictly fixed 7% to the level of the Central Bank of the Republic of Uzbekistan's refinancing rate), and in the subsequent period at the level of the Central Bank of the Republic of Uzbekistan's refinancing rate:";

The second sub-paragraph of paragraph 2 shall be worded as follows:

"based on the requests of participating commercial banks, open credit lines in national currency for families in need of improving their living conditions to build affordable housing for a term of 20 years, including with a two-year grace period, and during the first 5 years at an annual rate of 4% (in the framework of implementing the programs in 2020 — with a one-year grace period, and during the first 5 years, at an interest rate that increases uniformly each year from a strictly fixed 4% to the level of the Central Bank of the Republic of Uzbekistan's refinancing rate), and in the subsequent period at the level of the Central Bank of the Republic of Uzbekistan's refinancing rate, with the margin of participating commercial banks at 3% per annum deducted, directing the funds of the credit line purposefully for the construction of housing within the framework of the Program for the Construction of Affordable Housing According to Updated Model Projects in Rural Areas".

8. In the Decision of the President of the Republic of Uzbekistan dated November 24, 2018, No. PQ-4028 "On Additional Measures on Expanding the Construction of Affordable Housing in Rural Areas and for Certain Categories of Citizens":

Paragraph 2 shall be worded as follows:

"2. The proposal of the Ministry of Construction of the Republic of Uzbekistan, the Ministry of Finance, and the Ministry of Economy and Industry on the construction of affordable housing (hereinafter referred to as affordable housing) according to the following new model projects within the framework of the Program is approved:

four-story affordable multi-apartment (2 and 3-room) houses in populated areas included in the "Obod Qishloq" program, as well as in areas with high population density and equipped with necessary engineering and transport communications;

five-story affordable multi-apartment (2 and 3-room) houses in cities for military personnel of the Ministry of Defense of the Republic of Uzbekistan, the National Guard, and employees of internal affairs bodies (hereinafter referred to as specific categories of citizens)";

Paragraph 4 shall be worded as follows:

"Approved jointly with the Cabinet of Ministers of the Republic of Karakalpakstan, regional khokimiyats, LLC "Qishloq Qurilish Invest IC", participating commercial banks, and other interested ministries and departments by the Ministry of Economy and Industry, the Ministry of Finance, and the Ministry of Construction of the Republic of Uzbekistan:

aggregate indicators for the construction of affordable housing in rural areas and for specific categories of citizens in 2019 in accordance with Appendix 1;

main parameters for the construction of affordable housing in rural areas in 2019 in accordance with Appendix 2;

main parameters for the construction of affordable multi-apartment houses for specific categories of citizens in 2019 in accordance with Appendix 3;

aggregate indicators for the construction of external engineering networks, facilities, and transport communications in affordable housing arrays in 2019 in accordance with Appendix 4";

The third sub-paragraph of paragraph 10 shall be worded as follows:

"based on the requests of participating commercial banks, open credit lines in national currency for persons residing in rural areas for a term of 20 years, and for specific categories of citizens for a term of 15 years, with a two-year grace period, and during the first 5 years at an annual rate of 4% (in 2020 and subsequent years in the framework of implementing the Program — with a one-year grace period, and during the first 5 years, at an interest rate that increases uniformly each year from a strictly fixed 4% to the level of the Central Bank of the Republic of Uzbekistan's refinancing rate), and in the subsequent period, taking into account the margin of participating commercial banks at 3% per annum, at the level of the Central Bank of the Republic of Uzbekistan's refinancing rate, and direct these funds purposefully for the construction of affordable housing".

The first sub-paragraph of paragraph 11 shall be supplemented with the words "(in 2020 and subsequent years in the framework of implementing the Program — with a one-year grace period, and during the first 5 years of using the credit, at an interest rate that increases uniformly each year from a strictly fixed 7% to the level of the Central Bank of the Republic of Uzbekistan's refinancing rate)" after the words "7 foiz stavkasi bilan";

Appendices 1.1, 2.1, 3.1, and 4.1 shall be considered to have lost their force. (National Database of Legislative Acts of the Republic of Uzbekistan, 29.11.2019, No. 09/19/5886/4133; 07.12.2020, No. 06/20/6126/1608; 11.03.2021, No. 06/21/6186/0200, 17.03.2021, No. 06/21/6188/0216, 06.08.2021, No. 06/21/6274/0766, 10.12.2021, No. 06/21/33/1147; 07.07.2023, No. 06/23/108/0460; 27.04.2024, No. 06/24/67/0307 )