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ISSN: 2306-1774 (Online)

ISSN: 2079-7958 (Print)

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Methodical Aspects of Condominium Associations Performance Evaluation


UDC 332.8

DOI: 10.24411/2079-7958-2018-13416

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Abstract


Such a form of housing stock management as an owners’ association is now distributed in the Republic of Belarus. The effectiveness of the activities of the owners' associations attracts the increased attention of various users. At the same time, economic science and practice does not have a systemic integrated approach to assessing the effectiveness of functioning these organizational and legal forms of organizations.

The aim of the study was to develop an integrated methodology for assessing the effectiveness of owners’ associations from the point of view of all stakeholders – state, population and directly the association itself as an institutional unit of the national economy.

In this paper, the authors proposed an integrated assessment to assessing the effectiveness of activities of owners’ associations, in which frameworks such concepts as "economic effectiveness", "social efficiency", "budget efficiency".

From the point of view of economic effectiveness, the activities of the owners’ associations will be effective if the maintenance costs are fully reimbursed by the revenues received. Consequently, the economic effectiveness for owners’ associations is the ratio of the income received and expenses related to the maintenance of an apartment house.

On the other hand, the owners’ associations are called upon to meet the needs of the population to the greatest extent. Social efficiency is defined as the correspondence of the results of the economic activities of the owners’ associations to the basic social needs and goals of society, to the interests of the individual.

Taking into account that the owners’ associations receive budget subsidies as a reimbursement of part of the maintenance and housing maintenance costs, one can not ignore the budgetary component of the evaluation of the effectiveness of their activities, which can be defined as an indicator of the budget burden as a result of the participation of budget subsidies in the formation of the income of the owners’ associations.

The developed indicators on all aspects of the effectiveness assessment make it possible to comprehensively analyze the activity of the owners' associations and determine the reserves for improving the  efficiency of the functioning of such organizations. For the generalized estimation of efficiency, an integral coefficient is developed and variants of its interpretation are proposed under different conditions.

Methodical Aspects of Condominium Associations Performance Evaluation

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Kasayeva, T. Methodical Aspects of Condominium Associations Performance Evaluation / T. Kasayeva, E. Chakhovich // Vestnik of Vitebsk State Technological University . ─ 2018. ─ № 1(34). ─ P. 123. DOI:10.24411/2079-7958-2018-13416

Accepted to publication on May 30, 2018