Rada Launches Major Housing Reform with Social Rent and Buyout Initiative

The Verkhovna Rada has passed the draft law “On the Basic Principles of Housing Policy,” paving the way for a comprehensive housing reform across Ukraine.

This was announced by Olena Shulyak, head of the Parliamentary faction of the Sluga narodu.

“Over 600,000 Ukrainians have been waiting in housing queues for decades, and this figure only accounts for data from 2015. The war has further exacerbated the problem, as numerous internally displaced persons (IDPs) also require improved housing conditions,” Shulyak noted.

She added that the key issues in housing policy include unaffordable and poor-quality housing, a shortage of accommodation for IDPs and veterans, and an unregulated rental market.

“Instead of waiting in stagnant apartment queues that have not advanced for many years, people in need of better housing conditions will be provided with tools to access housing. These will include accessible financial and credit mechanisms, the revival of housing and construction cooperatives, and public-private partnerships,” Shulyak explained.

She also mentioned that for citizens whose incomes do not allow them to buy or rent on the market, two forms of temporary housing will be introduced — social rental and rental with the option to buy.

These mechanisms have been effective in the EU for many years, and Ukraine is adapting them to its current realities.

How will new housing be financed?

Shulyak stated that housing available for social rent will come from state and municipal social housing funds.

Currently, such facilities do not exist in Ukraine, but they will be created. The Slugae’s Deputy added that these will include “millions of square meters.”

She further explained that new housing will be built at public expense and through public-private partnerships. The head of the Parliamentary faction of the Sluga narodu noted that this approach will ensure the completion of all “long-term construction projects.”

“A draft law on the social housing fund, which will detail all these provisions, is already being prepared. The next, final step will be a draft law on the management of this fund,” Shulyak emphasized.
Previously, the Ministry of Social Policy reported that Ukrainian military personnel who defend or have defended the state have the legal right to significant benefits when paying for housing and communal services.

It is worth recalling that the EU announced the signing of agreements for Ukraine for 2.3 billion euros, which will be used to repair critical infrastructure and housing.

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