In Ukraine, the old Housing Code has been annulled – the lawyer pointed out the main innovations

Draft Law No. 12377 proposes a modern concept of housing policy: the development of social and rental housing, housing programs, transparent registers and the new role of the state

Adoption by the Verkhovna Rada in the second reading of draft law No. 12377 is undoubtedly one of the most significant reforms in the field of housing law in the entire history of independent Ukraine. In essence, the state is trying to completely move away from the Soviet model of housing relations, which formally existed for decades, but has long since failed to meet current social and economic realities. Tetyana Ternavska, a real estate and construction lawyer at Prykhodko and Partners JSC, informed the Informant about this.

The need for such changes is fully justified. The Housing Code of 1983 took into account neither the market economy, nor mass private ownership, nor internal population migration, nor the challenges provoked by the war. Draft Law No. 12377 presents the modern idea of ​​housing policy: expansion of social and rental housing, housing initiatives, open registers and a new mission of the state — not as a housing manager, but as a regulator and guarantor of basic housing standards. At the same time, the very concept of reform does not exclude the legal risks that it entails.

The issue of free ownership of state and municipal housing remains quite sensitive. For many years, this method was the main method of obtaining housing ownership for a large number of citizens. Although the draft law does not cancel privatization instantly, it essentially creates legal prerequisites for a gradual abandonment of this model. After the end of martial law and the transition period, conditions may change significantly, even before the complete end of free privatization.

“The actual result of this approach is obvious: citizens who have been living in non-privatized housing for a long time get a limited opportunity to exercise their right. Any problems with documentation, the number of family members, registration or housing status in the future may lead to the loss of the opportunity to privatize. As a result, the risk of legal uncertainty is actually transferred from the state to citizens, which will inevitably provoke an increase in the number of court proceedings. Among the possible positive results of the reform, it is possible to note the formation of a coherent and more logical housing policy, the development of the rental market and social housing, the abandonment of outdated and corrupt mechanisms, as well as the gradual integration of European requirements into housing law,” said Ternavska.

At the same time, there are also significant threats: legal uncertainty for residents of non-privatized apartments, growing social tensions, especially among vulnerable segments of the population, a likely jump in lawsuits regarding the right of use and ownership, as well as the danger that the state will sooner abandon past obligations than implement effective alternative ways to provide housing.

“To sum up, draft law No. 12377 is neither an unambiguously positive nor an unambiguously negative decision. It is a strategic change in the system of housing relations. It can serve as the basis for modern housing policy, but at the same time it carries the threat of serious social and legal contradictions if its practical implementation is not balanced and consistent. In terms of privatization, the state’s position seems quite clear: the law still formally exists, but time is running out for its implementation less. For this reason, the coming years will be decisive both for citizens and for local self-government bodies and lawyers working in the field of housing law,” added Ternavska.

The Verkhovna Rada of Ukraine adopted the Law on Basic Principles of Housing Policy On January 13, 2026, the Verkhovna Rada of Ukraine adopted in the second reading and as a whole the draft Law on the basic principles of housing policy, reg. #12377. According to the law:

• key legal, economic and organizational foundations of housing policy are established; principles, priorities and goals of the state in the field of housing relations; requirements for consumer characteristics of housing; mechanisms of state support for the construction, purchase and rental of housing; procedure for formation and use of state, communal and private housing funds; powers of state authorities and local governments in the field of housing policy;
• basic concepts are defined (housing, housing funds, affordable and social housing, housing for temporary stay, operators of affordable and social housing, revolving fund); methods of implementing the right to housing; the list of persons who can benefit from state assistance; the procedure for providing social and official housing; operating conditions of affordable and social housing operators; rules of management, maintenance and renewal of the housing stock;
• the Unified Information and Analytical Housing System is being implemented; financial and credit tools to support the construction, purchase and rental of housing; revolving funds for financing housing programs; means of public-private partnership in housing construction; tools for complex renovation of outdated housing stock; new approaches to strategic planning of housing policy (state, regional and local strategies).

In addition, the provisions of the Law determine the basis for the formation of housing policy, taking into account the criteria and provisions of the governing documents of the European Union and Article 47 of the Constitution of Ukraine, as well as form a favorable legal basis for attracting the help of international organizations and donors for the formation of housing funds. The Housing Code of Ukraine and the Law of Ukraine “On Privatization of the State Housing Fund” are recognized by law as having lost their validity.