What are the differences between organizations?

To find the difference between these organizations, you need to formulate a definition of the concepts, since the decoding of both abbreviations is not informative, since it does not reveal details.

The concept of TSN came into circulation relatively recently and some do not even know about its existence, since they can easily confuse it with HOA. As a separate legal form of existence of legal entities, TSN was introduced in 2014 with the adoption of Federal Law No. 99.

Reference! A real estate owners' association is an association of owners of any residential property, including not only apartments, but also buildings, as well as premises intended for commercial use and even land plots.

This association is concluded on a voluntary basis.

Such a legal form as the HOA has existed much longer, which explains its greater popularity.

In Article 135 of the Housing Code of the Russian Federation, an HOA is defined as a non-profit association of individuals, owners of residential premises in one specific apartment building or several specific residential buildings. The establishment of a homeowners' association is carried out at a general meeting and the approval of half the number of residents is sufficient for its creation.

Legislative framework of TSN

Like any other organizational and legal form, a partnership of real estate owners is directly enshrined in the legislative framework of the Russian Federation, by referring to which you can understand the ways of creating, functioning and monitoring its activities. Below are specific regulations and relevant sections that reflect the essence of TSN.

Since the TSN design appeared relatively recently, it still raises many questions. It is worth noting that there is no special regulatory act dedicated to TCH, therefore, property owners who decide to transform into this type of partnership must rely on the general legislative framework.

Pros and cons of a homeowners' association

The positive aspects inherent in HOAs include the following aspects:

1. Opportunity to influence the activities of the management company. Since all decisions in the HOA are made by a meeting consisting mainly of residents, if it, for example, does not approve the decision of the Management Committee to repair the entrance using expensive materials, then they will not be used in the repair work.
2. Possibility of choosing a management company. The HOA may refuse services offered by third-party contractors and hire specialists with the necessary qualifications.

   Subsequently, the HOA has the opportunity to form its own operating organization, which allows it to offer services also within other residential buildings and receive additional profit from this.

3. Landscaped courtyard areas. Residents, for the most part, are willing to invest financial resources in improving the area surrounding their habitat.

As for the negative aspects of the HOA, they consist of the following provisions:

1. Increased operating fees. Due to the fact that decisions are made by the general meeting, the possibility cannot be ruled out that residents with good material income will express a desire to improve the territory with the help of expensive devices.
2. Weak legislative support. This disadvantage is reflected in the fact that unscrupulous residents who do not pay utility bills can abuse their position, knowing that the management of the HOA is not able to collect debts from them in a short time.

   Another point is beneficiaries who pay utility bills not in the same amount as residents without benefits.

   Note! Although in reality this practically does not happen, in theory, city authorities are obliged to reimburse the HOA for beneficiaries who do not pay utility bills in full.

3. Weak initiative of residents. Due to misunderstanding of the actions of the HOA or other factors, residents often do not support even fairly rational decisions coming from the management of the HOA.

Pros and cons of two types of OPF

In terms of advantages and disadvantages, TSN gives managers great powers. They have the right to make decisions independently, without prior consultation with the participants of the partnership. In a situation requiring immediate action, management has all the necessary tools.

TSN unites owners of various types of real estate. These are not only garden plots, but also garages and apartments. Not only members of the organization can be elected to the governing bodies of TSN, making it possible to attract personnel from outside. SNTs often faced situations of staff shortages when participants refused to fill vacant positions.

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The rules are prescribed in the TSN charter, allowing management to resign in the event of gross violations, inability to cope with assigned responsibilities, and other serious circumstances.

Contributions may be levied not in the form of a fixed amount, but in proportion to the area occupied by the site or the number of such sites. TSN provides the opportunity to get rid of targeted contributions, freeing participants from paying for common property. They are relieved of property liability for the obligations of the partnership.

Note!

The disadvantage of the TSN form is the impossibility of simplified taxation.

Advantages and disadvantages of a property owners' association

The obvious advantages of TSN as a legal form are the following factors:

• Community of joint property. Unlike the HOA, the TSN includes not only residential premises, but also land plots, attics and basements, as well as all other possible forms of real estate.

  Thus, the management of TSN, in comparison with the managers of the HOA, has the opportunity to more effectively manage non-residential premises.

• Community and mass participation in decision making. This factor is especially noticeable in areas where new buildings predominate and houses share the same yard.

  Thus, the decision to build, for example, a paid parking lot, can be approved by residents of several houses at once, and at the same time, the number of people supporting the decision of the TSN management will be higher than the number of those who will not support the idea or will not take the initiative at all.

The following factors can be considered as disadvantages of TSN:

• Long lead times for resolving issues. In old houses, creating a TSN may simply be impractical - raising funds for repairs of premises can take a long time, which can lead to the house falling into disrepair.
• Risk of bankruptcy. Since TSN, in fact, is a legal entity, there is a risk of bankruptcy, which means that there are no guarantees of return of invested funds.
• There may be activities contrary to the interests of the owners. TSN is aimed at issues of managing housing assets, so decisions on renting out, for example, or resale of part of the common property may be made contrary to the interests of residents.
• Lack of proper legislative support. Such a disadvantage as weak legislative support, characteristic of HOAs, is also a disadvantage of TSN.

Difference with the management company

To better understand the advantages and disadvantages of a homeowners’ association, the analogue of which is also a real estate owners’ association, one should compare its activities, for example, with a management company. This organization is engaged in cleaning the local area, common areas inside an apartment building, timely removal of garbage and carrying out repair work. All this is carried out even if there are persistent defaulters among the residents.

The partnership has very limited resources; you just have to pay attention to the charter, therefore, due to non-payment, the provision of certain services may be temporarily suspended. However, in comparison with the management company, the activities of the HOA are transparent. Residents know how much money goes into their current account and how much, when, and what it is spent on. Despite the fact that, by law, residents have the right to familiarize themselves with the budget of the management company, in practice this is rarely used.

In addition, the management company hires contractors who charge less for their work, which affects the quality of the services provided. By organizing a partnership, residents have the opportunity to hire workers themselves, choosing the best option for themselves in terms of cost and quality of their services.

Main goals and objectives

The purpose of existence of partnerships of real estate owners is to promote the improvement and maintenance of public property, to which community members have every right, enshrined in law.

The main task of TSN is to regulate issues related to the operation and maintenance of real estate.

All activities of TSN are regulated by the internal Charter, and the method of managing it is related to the corporate type.

The homeowners association regulates issues related to the maintenance and operation of common real estate. The task of the HOA is to make decisions regarding the disposal of common property.

Thus, it can be noted that the functional differences between the two organizations under consideration are largely insignificant.

If the activities of the HOA are mainly related to the management and operation of common property, then the TSN, to a greater extent, focuses on issues related to the disposal of common property, in particular, leasing it.

Attention! The main difference between TSN and HOA is that members of TSN can be both individuals and legal entities, as well as various symbiotic associations of individuals and legal entities, and only individuals can be members of HOA.

What is TSN in gardening and how does it differ from SNT

TSN (real estate owners' partnership) was introduced as an organizational and legal form of Law No. 99 “On licensing of certain types of activities.” At the same time, changes were made to Chapter 4 of Part I of the Civil Code of the Russian Federation. From this moment on, organizations of owners of vegetable and horticultural real estate are registered as TSN.

Prior to this, the organizational and legal form was SNT (horticultural non-profit partnership), operating on the basis of Law No. 66. It was preserved for all gardening organizations registered before September 1, 2014. However, all associations created after this date are registered as TSN. SNT participants retain the right to re-register and switch to a new organizational and legal form.

TSN initially assumes:

1. Larger range of powers.
2. Simplified control method.
3. Extended format. SNT can join the existing TSN.
4. Association of owners of various real estate. These are not only garden plots, but also garages and apartments.

Note!

The difference between the 2 OPFs is insignificant. Participants resolve general issues related to waste removal, infrastructure issues, and current issues. Partnerships have a charter, governing bodies, and gardeners regularly pay membership fees.

What's better?

It is difficult to give an unambiguous answer to the question of what is better, HOA or TSN. However, based on the data presented in this article, we can conclude that the HOA is better in cases where the house is old, since it is possible to carry out repair work in a relatively short time.

TSN is more suitable for areas with dense buildings , since in modern residential buildings on the first floors premises for commercial use are often allocated, the owners of which are legal entities, and for them TSN is a more convenient form.

To summarize, it is worth noting that, as with any dilemma, each of the solutions has weaknesses and strengths. Such forms as HOA and TSN were no exception. They can acquire more advantages, but for this, each of these forms needs to improve the legal framework.

What are the differences between HOA and TSN

Homeowners' Association and Real Estate Owners' Association are similar concepts, but have significant differences. In both the first and second cases, the activities of organizations are not aimed at making a profit. But their goal is the successful management of the property owners.

The main differences between HOA and TSN include:

• type of property. If under an HOA only residential premises are under management, then in the second case the organization operates in relation to all real estate owned by the owners, for example, private houses and adjacent courtyard buildings, including garage territory;
• Participants in an HOA can only be individuals, while enterprises can also organize a HOA. This is convenient when several organizations collaborate. However, firms cannot make a profit from the creation of TSN;
• The goals of HOAs and TSNs are slightly different from each other. The activities of the HOA are aimed at servicing the common property and its maintenance. TSN not only tries to preserve and provide a decent physical appearance to the property, but also manages it. For example, TSN leases premises, issues permits for the construction of buildings on land, can order the sale of territories, and so on;
• Undoubtedly, the name of the organization's charter will change. After all, in fact, partnerships are of a different nature. Some points of the document have significant differences;
• type of management. When organizing an HOA, the main managers become the owners. Decisions are made based on a general decision through voting. Under TSN, the following are created: a management body, a control body, and an executive department.

Previously, the difference between TSN and HOA was the ability to choose a simplified taxation system. The right belonged exclusively to the HOA. But in 2015, thanks to Letter of the Ministry of Finance of the Russian Federation N 03-11-03/2/14958 dated March 19, 2015, and N 03-11-03/2/14938 dated March 19, 2015.