Report on the Implementation of the Russian Officer Resettlement Certificate Program

Sample of Memorandum of Understanding, No. 2: 
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT
AND
THE INTERMINISTERIAL COMMITTEE ON THE REALIZATION OF
THE STATE PROGRAM HOUSING
OF THE RUSSIAN FEDERATION
AND 
THE OBLAST OF TVER
AND
THE MUNICIPALITY OF TVER
FOR
ISSUANCE OF CERTIFICATES FOR OFFICER HOUSING
ARTICLE 1. PURPOSE
The United States Agency for International Development ("A.I.D."), the Interministerial Committee for Realization of
the State Program "Housing" of The Russian Federation ("IMC"), the Oblast of Tver ("Oblast"), and the
Municipality of Tver ("Municipality") hereinafter referred to as the Parties, wish to cooperate in a mutual effort to
provide housing for demobilized Russian Officers principally from the Baltic States through a housing certificate
program.
This Memorandum of Understanding is entered into pursuant to the Project Grant Agreement between the
Government of The United States of America and the Government of the Russian Federation for an Officer Housing
Program dated July 29, 1994 ("Officer Housing Program Agreement"), and the Agreement Between the Government
of the United States of America and the Government of the Russian Federation Regarding Cooperation to Facilitate
the Provision of Assistance, dated April 4, 1992, and is governed by terms and conditions of those agreements.
In accordance with the Officer Housing Program Agreement, A.I.D. has agreed to provide housing certificates for
Russian military officers demobilized from the Baltics and elsewhere outside Russia, and to support reforms in the
Russian housing sector, and the IMC has agreed to coordinate and cooperate in the implementation of the Program. 
The purpose of this Memorandum of Understanding (hereinafter referred to as the "Memorandum") is to set forth
the agreed understandings and undertakings of the Parties named above with respect to the administration of the
Housing Certificate Program in Tver Oblast, Tver Municipality. 
ARTICLE 2.
UNDERTAKINGS OF THE PARTIES
Section 2.1
 A.I.D.  will furnish technical assistance and administrative direction for the Housing Certificate
Program, according to which _____ housing certificates for the demobilized Russian officers are allocated to the
Tver Oblast.  A.I.D. will supervise the distribution of housing certificates. 
A.I.D. assistance will be provided through a Housing Certificate Program management firm under contract
with A.I.D. (the "General Contractor") which, in turn, will negotiate with a bank to manage key aspects of the
Program and provide program manuals that specify certificate distribution procedures.
Section 2.2
The IMC will be responsible for coordinating the participation of all Russian Government entities
in the Program.  The IMC will:
(a)
In conjunction with Oblast and Municipality authorities and the designated representatives of the
Ministry of Defense of The Russian Federation, and in accordance with the criteria for beneficiary selection set forth
in the Officer Housing Program Agreement as clarified in this Memorandum, identify the eligible officers to be

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provided housing in accordance with Section 2.3 (b) of this Memorandum; and provide A.I.D. with the list of
proposed beneficiaries describing how each meets the above eligibility criteria;
(b)
Assist A.I.D. in the prompt resolution of problems arising during the course of the program under
this Memorandum, including : resolution of any problems which might arise between the Parties to this
Memorandum; resolution of problems encountered with any agencies of the Russian national, regional or local
governments assistance with any problems with local banks or other private, local implementing agencies;
assistance to assure that vouchers and beneficiary officers and their families are exempt from all national, regional
and local taxation pursuant to the Officer Housing Program Agreement;
Section 2.3
Responsibilities of the Oblast and Municipality.
(a)
The Oblast and Municipality agree that they will:  
(1) take overall responsibility for the administration of the certificate program within The Oblast.  The Oblast
will assist in obtaining the participation of municipal officials, developers, banks, and other parties needed for the
implementation of the program.  Tver Oblast will also work with the responsible parties in the Ministry of Defense to
ensure effective administration of the program; 
(2) allocate certificates for the issuance (including the 10% of certificates for those officers to be selected
from the municipal waiting list and the 90% to be nominated by the Ministry of Defense) to municipal governments
within the Oblasts;
(3) Guarantee the availability of the necessary housing units and provide housing recipients free resident
permits (propiskas).
(4) work to assist officers selected for the Program.  This includes:
(a) Assisting officers directly or indirectly by providing information to help them to reduce housing costs,
particularly if local housing prices exceed maximum provided through the program; (b) Encourage builders to make
newly completed units available for sale to the officers; 
(c) Assist officers with the information about new or existing housing available for purchase in the Oblast, to the
extent possible and appropriate; and 
(d) Assist to make procedures effective for the officers, including the possibility of participating in briefings for the
demobilized officers or their families currently located in the Baltic States.
(5) provide assistance in obtaining the cooperation of local government officials and private persons in
providing the information on housing costs and sales prices needed to establish pricing values for the certificates. 
The Oblast will be responsible for conducting the pricing analysis using a the pricing methodology provided by the
General Contractor. 
(6) cooperate with the General Contractor's efforts to interview participating officers in order to evaluate
their eligibility for the certificate program;
(7) cooperate with the bank selected by the General Contractor to provide program processing;   
(8) provide propiskas and other required residence permits to all beneficiaries who receive housing under
this program and insure that any registration and notary fee relating thereto will not exceed the normal standards of
the Russian Law;
(9) not demand any additional forms or registrations of officers beyond those required by the Russian Law
and the program manuals;
(10) in conjunction with the IMC and the designated representatives of the Ministry of Defense of the
Russian Federation, determine which demobilized military officers will be eligible to receive housing units; and

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ensure that the recipients of the housing units fall within the eligibility categories set forth in the section 2.3 (b) of
this Memorandum;
(11)
guarantee that the sites on which the housing units are located have not been conveyed,
transferred, or assigned to any person or legal entity other than the eligible beneficiaries and are not subject to any
claims or rights to ownership or use by any persons or legal entities other than the eligible beneficiaries and, in the
event such claims or rights arise, defend and hold harmless the beneficiaries against such claims or rights and pay in
full any judgments, settlements or compensation based on them;
(12)
take all necessary steps and actions within the Law of Russian Federation to resolve any and all
matters arising that would delay implementation of this activity in accord with the schedule for provision of units to
the beneficiary demobilized military officers; and
(13)
provide information required by A.I.D. and the IMC to evaluate the progress of the program as
well as to determine the results and impact of the officer housing program on the beneficiaries and others;
(14)  inspect completed housing units with particular attention to the quality of the finishing of the units
and certify that they comply with all national and local building and occupancy requirements, codes, and standards
of Russian Federation;
(15)   assure expeditious transfer of title to such units to eligible demobilized military officers in accordance
with the Law of the Russian Federation "On Housing Privatization in Russia".
(16)  Recipients of housing provided under this Memorandum will be exempt from payment of:
A) income taxes for a period of three years on an amount equivalent to the dollar price of the certificate distributed to
the recipient for the acquiring housing; and
B) state notary fee for the notary certification of the contract for acquiring private property rights in the housing.
 The housing maintenance fee for the purchased housing units under the Project will be established at the same level
as for the free-of-charge privatized state and municipal housing.
(b)  The beneficiaries of the housing will be strictly limited to officers demobilized from military service in
the Baltics and other countries outside of Russia and their families and percentage of beneficiaries in each oblast by
beneficiary category as follows:
(1)  Russian military officers who were demobilized and departed from military service in the Baltics on or
after April 2, 1993, and continue to reside in the Baltics due to lack of housing in Russia - at least 80% of all
beneficiaries of Tver oblast;
(2)  Russian military officers who were demobilized and departed from military service in the Baltics prior to
April 2, 1993, - no more than 10% of all beneficiaries of Tver oblast;
(3)  Russian military officers who were demobilized and departed from military service in other countries
besides the Baltics on or after April 2, 1993 - no more than 10% of all beneficiaries of Tver oblast.
No more than 10% of the total number of beneficiaries across all three categories can be selected by local authorities.
(c)  Assumption of Claims.  The Oblast and Municipality acknowledge and understand that, pursuant to the
Officer Housing Program Agreement, the Government of the Russian Federation may be required by the Government
of the United States to assume certain obligations of the Government of the United States and/or any United States
Government contractor in the event that any Russian government national, regional, or local government agency or
any Russian private firm should fail to meet its obligations under any agreement with the Government of the United
States.  Should the Government of the Russian Federation be required to do so, the Oblast and Municipality agree to
accept the Government of the Russian Federation as a full successor in interest to the Government of the United

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States and agree that all terms and conditions of this Memorandum shall continue in full force and effect with regard
to those activities for which the Government of Russian Federation has assumed responsibility.
(d)  Taxation.  The Oblast and Municipality agree that:
(1)  all persons and their families (except citizens or permanent residents of the Russian Federation) who are
present in the Russian Federation in connection with the Officer Housing Program and who are employed by the
General Contractor or its subcontractors or other public or private organizations under contract with A.I.D., and the
employers of such persons, will be exempt from payment of:
    
(i)  all taxes on income received by such persons under the Officer Housing Program; and pension, medical,
employment and other social security taxes relating thereto; and
(ii) all value added, customs, personal effects, personal property or other taxes and charges upon personal
and household goods (including automobiles, equipment and materials) imported into, used in, or exported from the
Russian Federation for the personal use of such persons or members of their families.
(2)  all persons or organizations under contract with or financed by the Government of the United States or
the Government of the Russian Federation and providing goods and services for activities undertaken under this
Memorandum will be exempt from:
(i)  all taxes on profits received in connection with activities and transactions undertaken under this
Memorandum;
      (ii)  all taxes and similar charges on funds brought into, used in or taken out of the Russian Federation, including
the territory of the Oblast and Municipality, in connection with activities undertaken under this Memorandum;
     (iii)  all taxes on property(including leases of property) used in connection with implementation of activities under
this Memorandum;
      (iv)  all value added and other similar taxes on purchases of goods and services required to implement activities
undertaken under this Memorandum;
       (v)  all special taxes supporting the most important sectors of the national economy of the Russian Federation
and on financing of construction, reconstruction, repair, and maintenance of highways, and other taxes, fees and
duties.
 
ARTICLE 3.  GENERAL PROVISIONS
Section 3.1.
Consultation.
The Parties will cooperate to assure that the purpose of this Memorandum will
be accomplished.  To this end, the Parties, at the request of either, will exchange views on the progress of the
performance of obligations under this Memorandum, the performance of contractors implementing activities under
this Memorandum, and other matters relating to the implementation of this Memorandum.
Section 3.2.
Utilization of Commodities, Funds, Certificates and Services.  Unless otherwise agreed by A.I.D.
and the IMC, all commodities, funds, certificates and services provided under this Memorandum and financed by
A.I.D. will be used only for the housing certificate program as specified in this Memorandum.
Section 3.3.
Reports, Accounting Records, Audits and Inspections. The Oblast and Municipality will furnish
to A.I.D. and the IMC such information and reports relating to assistance provided under this Memorandum as
A.I.D. or the IMC may reasonably request.
The Oblast and Municipality shall maintain, or cause to be maintained, as appropriate, records relating to the
assistance adequate to show use and receipt of assistance furnished to the Oblast and Municipality pursuant to this

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Memorandum and that the Oblast and Municipality has taken actions as required under this Memorandum.  Records
shall be maintained for a period of three years after completion of assistance by A.I.D. under this Memorandum.
The Oblast and Municipality shall afford representatives of A.I.D. and the IMC, or their designees, the opportunity
at all reasonable times to inspect locations where activities related to the Housing Certificate Program are taking
place(including housing units purchased by officers receiving certificates under the Program) and all records relating
to the assistance provided under this Memorandum. 
Section 3.4.
Information. The Oblast and Municipality will give appropriate publicity to the activity undertaken
under this Memorandum as a project to which the United States of America has contributed.
Section 3.5
Amendment and Modification.  This Memorandum may be amended or modified by written
agreement of the Parties. 
Section 3.6
Suspension and Termination.
(a)
Suspension. In the event that:
(1)
the IMC, Oblast or Municipality fails to comply with any material provision of this Memorandum;
(2)
A.I.D. and IMC determine that an extraordinary situation has occurred which makes it improbable
either that the purpose of this Memorandum will be attained or that the, Oblast or Municipality will be able to comply
with provisions of this Memorandum; or
(3)
A.I.D. assistance is suspended or terminated pursuant to the terms of the Officer Housing Program
Agreement;
A.I.D. may, at its option, take steps to suspend, in whole or in part, provision of assistance under this
Memorandum and provide written notice of its actions to the IMC, the Oblast and the Municipality.  In the event of
partial suspension, such notice shall specify affected activities.  If, after sixty (60) days from the date of such notice,
A.I.D. determines that the cause or causes for the suspension have not been corrected, A.I.D. may, notwithstanding
the provisions Section 3.6(b), immediately terminate assistance and provide written notice of this action to the IMC,
Oblast and Municipality.
(b)
Termination.
(1)
This Memorandum may be terminated if:
(i)
the Officer Housing Program Agreement is terminated;
(ii)
A.I.D., the IMC, or the Oblast and Municipality jointly determine that any other party has failed to
meet its obligations under this Memorandum; provided that, the party seeking to terminate has provided written
notice to all other parties of the alleged default and allowed thirty (30) days from the date of such notice for such
default to be remedied;
Termination of this Memorandum will terminate any obligations of the Parties to provide financial or other resources
as required by this Memorandum, except for payment which they are committed to make pursuant to noncancellable
commitments entered into with third parties prior to the termination of this Memorandum. 
Section 3.7.
Refunds. If any failure on the part of the Oblast or Municipality to comply with any of its
obligations under this Memorandum has the result that commodities, funds, certificates or services financed by
A.I.D. are not used in accordance with this Memorandum, A.I.D. or the IMC may require the Oblast or Municipality
to refund all or part of any amount of the financing provided by A.I.D. for such commodities, funding, certificates or
services in U.S. Dollars within sixty (60) days after the request for refund is made.

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Section 3.8.
This Memorandum is prepared in both English and Russian, the texts in both languages being
equally authentic.  In case of difference between the two versions, the English language version will be used for the
purposes of interpretation.
Section 3.9.
This Memorandum is effective on the date of signing by all Parties.
The Parties, each acting through their duly authorized representatives, have caused this agreement to be signed in
their names and delivered as of this        day of November, 1994.
THE AGENCY FOR INTERNATIONAL
THE OBLAST OF               
DEVELOPMENT
TVER
 _________________________
___________________
THE INTERMINISTERIAL COMMITTEE
THE MUNICIPALITY OF
FOR REALIZATION OF THE STATE
TVER
PROGRAM "HOUSING"
___________________________
_________________________

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200
Sample Amendment to the Memorandum of Understanding: 
Amendment No.1
MEMORANDUM OF UNDERSTANDING
BETWEEN
THE UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT
AND
THE INTERMINISTERIAL COMMITTEE ON THE REALIZATION OF
THE STATE PROGRAM HOUSING
OF THE RUSSIAN FEDERATION
AND 
THE MUNICIPALITY OF ST. PETERSBURG
FOR
ISSUANCE OF CERTIFICATES FOR OFFICER HOUSING
The Memorandum of Understanding of February 28, 1995 between the  United States Agency for International
Development ("A.I.D."), the Interministerial Committee for Realization of the State Program "Housing" of The
Russian Federation ("IMC") and the Municipality of St. Petersburg ("Municipality") for issuance of certificates for
officer housing is hereby amended to expand the Officer Housing program in St. Petersburg.
1. 
Section 2.1 is amended by increasing the number of housing certificates allocated to St. Petersburg from
three hundred (300) to six hundred (600).
2.
This Amendment to the Memorandum is effective on the date of signing by all Parties.
The Parties, each acting through their duly authorized representatives, have caused this amendment to be signed in
their names and delivered as of this        day of _______, 1995.
THE AGENCY FOR INTERNATIONAL
THE MUNICIPALITY OF
DEVELOPMENT
ST. PETERSBURG
_________________________
_______________________
THE INTERMINISTERIAL COMMITTEE        
FOR REALIZATION OF THE STATE          
PROGRAM "HOUSING"
___________________________

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201
Sample Request for Proposal: 
Mr. Vladmir Gulemko
Vice-President
Pskovakobank
Gogol Street, 2
Pskov, Russia
Dear Mr. Gulemko:
We are pleased to select Pskov  Oblast for participation in the Voucher Housing Program for Demobilized Russian
Military Officers which our firm is implementing on behalf of the United States Government, Agency for International
Development under contract CCN-008-C-00-4097-00.  Having met with Oblast and local government officials about
this program, your bank has been selected as one of several candidates for the fiduciary agent of this program in the
Pskovkaya Oblast.
To qualify as the fiduciary agent of this program, your bank must submit a proposal to perform the functions of sole
administrator in the Pskovkaya Oblast as described in the Bank Administrative Procedures and Guidelines for
Implementation of  the Russian Military Housing Certificate Program.
Specifically, the Bank will be responsible for certificate registration, evaluation and review of the presales agreement,
updating certificate funding values, providing notices to oblast administration, municipalities, program reviewer,
officers and sellers; collecting all the prerequisite documents prescribed in the manual for redeeming the vouchers
issued under the program, and making a preliminary assessment of whether the voucher redemption should be
approved.  The Bank will submit these documents to Price Waterhouse, our Program Reviewer - the company  which
has the responsibility to review these documents and establish the eligibility of the officer (buyer), the property, and
the seller in the program.  After eligibility of each element is established under the guidelines of the manual and the
proposed sales transaction is approved by the Program Reviewer, the Bank, upon receipt of Abt's authorization, will
disburse to the voucher holder the funds equal to the total value of the voucher, or the sales price of the housing
unit, which ever is less.
As this program is being sponsored by the U.S. Government, we are required by U.S. law to seek proposals from
responsible Banks to accomplish the work described in the Bank Manual.  Accordingly, we ask you to submit a
proposal demonstrating your bank's ability to undertake the work described in the Bank Manual. Your proposal
should also include a proposed administrative cost for processing each housing voucher which should be between
$800 and $1,000 per housing voucher.  When calculating these costs, keep in mind that the bank will only receive
compensation for each successfully redeemed certificate.  No partial payment will be made in case that transaction is
not completed in its entirety.  Your proposal will be evaluated both on your demonstrated capability and your
proposed cost.
This request for proposals is issued by Abt Associates Inc. -  the only point of contact for this procurement. Please
submit your proposal within four  days  to Abt Associates Inc. To eliminate delays caused by the mail system,
please submit your proposal by fax to [phone], attention James C. Schafer.  Proposals may be in Russian or
English.
Your proposal will be evaluated based on the criteria listed below and therefore you must address each of the items
below.  Please note that the criteria below are listed in order of their importance to the program.

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1.