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The government is preparing radical changes in the housing market in Ukraine

news.online.ua
Tue, 07 Jan 2025 20:01:05 +0200
The government is preparing radical changes in the housing market in Ukraine

What the draft law on affordable housing in Ukraine proposes

The draft law aims to introduce new housing policy norms in Ukraine and create conditions for providing affordable housing to every citizen.

The bill is expected to come into effect in 2026 and replace the Housing Code and a number of other outdated bills in this area.

A key innovation will be the introduction of a Unified Information and Analytical Housing System.

This will actually be a single electronic registry for collecting, recording, processing, and providing information on the housing stock.

The information in this registry will be open and publicly available.

It will contain data on homeowners with details of their passports and documents confirming special status, if they have one.

The register will indicate the place of residence, as well as the financial, property, and marital status of the homeowners.

Access to the system will be possible through the user's electronic account.

This will primarily apply to persons who are entitled to social and official housing.

Information on affordable housing from private, state, and territorial community funds will be collected into a single database.

It will also include information from the Register of Real Property Rights, the Unified Electronic System in the Construction Sector, and other systems.

Information from the registry can also be used to search for affordable housing.

How the new housing rental rules will work

According to the new rules, every citizen will have the right to rent affordable housing. Homeowners will be able to transfer it for use for a period and for a fee specified in the lease agreement.

The contract will be concluded in accordance with the provisions of the Civil Code, and the right to rent housing (except for social and official housing) will be subject to mandatory state registration.

Family members of the person renting the housing and other related persons who will live there with the consent of the landlord will have all the rights and will comply with the obligations stipulated in the contract.

The right to social housing will be granted to persons in need of social protection and those who have changed their place of residence for various reasons.

It must meet consumer quality requirements and be transferred for use on the basis of a lease agreement at an affordable fee, taking into account the level of income, benefits, guarantees, and subsidies.

Who will be entitled to social and official housing?

Social housing from the state fund or the fund of territorial communities is provided on the basis of a decision of a state authority, local government body or authorized entities.

The fee for such housing includes rent and utilities.

Official housing will be provided to persons who, due to the nature of their service or work, will be forced to live near the place where they perform their official or work duties.

It can be obtained under a lease agreement based on the decision of the authorities in whose jurisdiction or management they are located.

Tenants will pay their own rent and utilities.

The grounds for eviction may be termination of service or employment.

The list of categories that can be provided with official housing from the state fund is determined by the Cabinet of Ministers. From the fund of territorial communities — by local self-government bodies.

Private enterprises and organizations can also provide their employees with official housing.

How mortgage rules will work

Mortgage mechanisms will include:

  • preferential long-term loans for construction, reconstruction or purchase

  • payment of part of the cost of housing

  • payment of part of the share contributions (for members of cooperatives), loans or compensation of part of the interest on loans for payment of contributions

  • providing housing on preferential mortgage and financial leasing terms

  • transfer of housing under a lease with the right to buy out

The amount of state support is determined taking into account the number of family members and other standards.

At the same time, housing purchased under mortgage programs cannot be resold within 10 years from the moment of acquisition of ownership.

The sale will be possible only if the funds received as part of state support are returned.

Lease with purchase option will apply to housing from the state fund or the fund of territorial communities. The contract will be able to be concluded by persons who have lived in such housing for at least 10 years.

At the same time, redemption at reduced prices is not allowed. That is, redemption is carried out at a price not lower than the cost of social housing built to replace it.

Several categories of people are eligible for state support. In particular, those who:

  • needs social protection

  • does not own or use housing that meets the requirements

  • lost their housing due to emergencies, hostilities and other circumstances (if, taking into account their income and property status, they cannot independently exercise their right to housing)

Persons in need of social protection, internally displaced persons and other categories have the right to free housing, affordable rent or purchase through preferential credit mechanisms. Temporary housing does not deprive the right to state support.

Dormitories may be created for temporary residence of families and single individuals.

The bill guarantees the right to build, buy, rent, or receive housing.

How will eviction and deprivation of housing rights rules work?

No one may be forcibly deprived of their housing or evicted, except on grounds and in accordance with the procedure provided for by law and/or by court order.

There will also be a ban on using housing for purposes other than its intended purpose.

It is prohibited to evict persons who have received social or official housing from the state fund and the fund of territorial communities on legal grounds, have not lost it and have not previously received other suitable housing. Except in cases of voluntary eviction or by court order.

A person may be evicted if:

  • major repairs, reconstruction or restoration are necessary

  • The house is to be demolished, there is a threat of collapse.

  • the premises are transferred to the non-residential category

  • housing is declared emergency

Separate clauses in the draft law regulate persons who illegally occupy the housing of other owners.

Housing is considered to be illegally occupied if a person has moved in without legal grounds. Or continues to live in social or official housing without the right to use it.

Occupying a dwelling without proper legal grounds is prohibited.

Unauthorized occupied housing is subject to immediate return to the owners (or persons who use such housing legally).

The new bill states that those guilty of violating housing legislation will bear criminal, administrative, and other types of liability.

Persons who have caused damage to housing, building systems and equipment, adjacent areas, landscaping facilities, and green spaces are obliged to compensate for it.

Disputes related to the protection of housing rights (regardless of the form of ownership) are considered in court.

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