Housing reform launched: VR supported framework law to resolve apartment queues

The Verkhovna Rada adopted and voted in principle, with improvements, for the draft law on the basic principles of housing policy, which initiates a large-scale housing reform in Ukraine. For the adoption of this draft law, the state will receive 300 million euros as the fulfillment of one of the indicators of the Ukraine Facility program, according to which Ukraine receives 50 billion euros from the EU. This was announced by Olena Shuliak, Head of the VR Committee on State Building, Local Self-Government, Regional Development and Urban Planning, and Head of the “Servant of the People” party, as reported by UNN.

DetailsThis refers to draft law No. 12377, submitted to parliament back in January. This is a basic document that opens the door to large-scale housing reform. Its goal is to finally solve the problem of hundreds of thousands of people who have been waiting in housing queues from the state for decades, often without any hope of moving forward. The main goal and the main change, Shuliak added, is to abolish the outdated Housing Code of 1983. Not because it is outdated, not because it is Soviet, but because it has long been ineffective and does not solve any problems.

More than 600,000 Ukrainians have been in housing queues for decades, and this data is only for 2015. And the war has significantly deepened this problem, as we have a colossal number of IDPs who also need improved housing conditions.

Shuliak also reported that to finalize the draft law, a series of broad public consultations were held at her initiative jointly with partners, with the participation of public organizations, relevant experts, international organizations, and direct service recipients – citizens. In total, more than a thousand interested people from all over Ukraine took part in the consultations. At that time, key problems of housing policy were identified – inaccessible and low-quality housing, lack of housing for IDPs and veterans, and an unregulated rental market. Recommendations were also developed, which were compiled into a report and submitted to the Cabinet of Ministers.

At the same time, she noted that the urgency of adopting this draft law now is the fulfillment of one of the many indicators of the Ukraine Facility program, which provides Ukraine with 50 billion euros until 2027. The fulfillment of the “housing indicator” – the final adoption of draft law No. 12377 by the 4th quarter of this year will bring Ukraine 300 million euros.

The new housing policy, Olena Shuliak emphasized, begins to be implemented from the moment draft law No. 12377 is adopted in the second reading. At the same time, for the full start of the housing reform, two more important draft laws will be created and adopted – “On the Social Housing Fund”, as well as a draft law on the management of this fund. Work on the first has already begun, as the deadline for its adoption under the Ukraine Facility is the 4th quarter of 2026.

What the housing policy reform entailsInstead of standing in housing queues that have not moved for many years, as no more than a few hundred apartments are issued annually by the state, people who need improved housing conditions will be provided with effective tools to finally obtain this housing. This will include a number of affordable financial and credit mechanisms, the relaunch of the housing and construction cooperative instrument, and public-private partnerships. This refers, the parliamentarian explained, to so-called affordable housing operators.

This applies to obtaining housing in ownership. For those citizens whose incomes do not allow this, two formats of temporary housing will be introduced – social rent and rent with the right to buy. Both mechanisms have been effectively working in the EU for many years, and we are adapting them as much as possible to Ukrainian realities so that they really work and effectively meet housing needs. In particular, there will also be temporary service housing.

Who will provide housing for social rentHousing that can be taken for social rent will be provided from state and municipal social housing funds. Currently, there are none in Ukraine at all, which is a consequence of the privatization of the 90s. But this fund will be created and it must be, Shuliak emphasized, for millions of square meters.

This will include new housing built at state expense, and public-private partnerships, but the main thing is that in this way we will finally be able to complete all our long-term constructions — a consequence of the activities of unscrupulous developers and not only. The draft law on the social housing fund, where all this will be prescribed, is already being prepared. The next, final, will be the draft law on the management of this fund.

AdditionOn January 7 of this year, draft law No. 12377 was registered in the Verkhovna Rada, which initiates a large-scale reform of the housing sector. This is the first draft law aimed at it. There will also be separate draft laws, in particular, on the social housing fund and the management of this fund.

In April, Shuliak reported that the adoption of the draft law “On the Basic Principles of Housing Policy,” which is designed to help solve the housing problems of Ukrainians, should take place by the end of this year.