Dovhobudi will be rebuilt for social housing: Olena Shulyak about the new Housing Code

Ukraine is currently going through a difficult period in its history, which requires deep changes and decisive actions from society, the government and all citizens. One of the most urgent problems facing the country concerns housing policy. During the times of the Soviet Union, the Housing Code was in force in Ukraine, which, despite numerous changes, has long been out of line with modern realities. Hundreds of thousands of Ukrainians remain without proper housing, waiting for their queues, which can stretch for decades. The war that broke out in February 2022 only exacerbated this problem, forcing millions of people to leave their homes and seek refuge in other regions or even abroad. Against the background of these challenges, the authorities are preparing for a radical rewrite of the Housing Code in order to provide new approaches to solving the housing issue in Ukraine.

For in words Olena Shulyak, head of the Verkhovna Rada’s Committee on the Organization of State Power, Local Self-Government, Regional Development and Urban Planning, this process is long overdue, and the new Housing Code should have been adopted 15-20 years ago. In the conditions when Ukraine is facing two large-scale challenges — a full-scale invasion of Russia and a course of European integration, updating the housing legislation becomes an urgent task.

Despite the war, Ukraine continues to carry out reforms, and obtaining full membership in the EU is one of its key priorities. These circumstances only highlighted the problem: the current Housing Code does not fulfill its function and does not solve the issue of providing housing to those who need it. As of today, hundreds of thousands of Ukrainians are waiting in line for housing. Before the war, about 68,000 people were waiting for housing in Kyiv, the capital, almost 28,000 in Lviv, 16,700 in Odesa, and 15,000 in Kharkiv. These queues have only increased in wartime conditions, and the provision of housing needs a new approach.

Olena Shulyak believes that even if the new law is adopted, it will not lead to an immediate increase in the housing stock. However, it will create conditions for attracting financing from international institutions, such as the European Investment Bank. This bank is already ready to provide loans under state guarantees for the construction of social housing at very low interest rates. Municipalities will be able to use these funds to build social housing, which will be rented out to those who need it. Rent for such housing will be affordable, as the price will be determined according to the capabilities of families in need of assistance.

In the European Union, the practice of providing social housing, which is managed by operators from the private sector, has been in place for a long time. Ukraine does not yet have such a mechanism, and this creates significant difficulties in providing housing to those who need it. For example, if a house was destroyed as a result of a missile attack by Russian troops, the city has no way to quickly resettle the victims, at least temporarily, for a month or two. This once again emphasizes the need to reform the housing policy.

One of the current state housing programs is “eOselya”, which was created to support certain categories of citizens, including military personnel, educators, scientists, etc. However, according to statistics, this program does not fully satisfy the needs of everyone who needs a solution to the housing issue. A total of 211 internally displaced persons used it during the entire existence of YeOseli. This shows that the housing policy needs a comprehensive approach and the adoption of a new legislative framework.

Since March 2022, the possibility to report the destruction or destruction of property as a result of military operations has been launched through the “Diya” service. These reports became the basis of the register of damaged and destroyed property and the planning of compensation mechanisms. As of today, there are almost 670,000 such messages. The total estimated loss in square meters exceeds 50 million, which corresponds to hundreds of thousands of destroyed homes in the private sector and entire blocks of high-rise buildings. Before the war, up to 10 million square meters of housing were built annually in Ukraine, that is, during the two years of the war, Russia destroyed what we had built for five years. And this number is still not final, since not all victims were able to file a report.

Internally displaced persons make up more than 6 million of our citizens, another 20% are abroad. To solve the housing issue of these people, a new model of housing policy is needed, which will take into account their needs and capabilities.

Olena Shulyak notes that, as of today, 600,000 Ukrainians are in the housing queue, of which 100,000 are families of military personnel and those living in emergency housing. However, even before the war, getting an apartment in line was an extremely rare case. The housing queue is a separate topic for journalistic investigations and inspections by law enforcement agencies. It’s no secret how the lands of the Ministry of Defense were used when entire military towns disappeared on the territory of Kyiv, and new residential complexes appeared in their place. Educational institutions also did not stand aside from such schemes.

Some of the apartments in the new residential complexes were indeed distributed on a first-come, first-served basis, but only a few units received free housing. This became one of the reasons why there is such a huge housing queue in Ukraine. People stand in line for 10-20 years, and even today it is difficult to say that they have any prospect of getting housing in the near future. Therefore, it is time to admit that the old Housing Code no longer works. It is necessary to take an example from European models and change the housing legislation of Ukraine.

Last year, the relevant ministry invited international organizations with experience in this field to work on the new housing legislation. These organizations proposed a general framework that should form the basis of housing policy in Ukraine. After receiving these developments, large-scale discussions were held with the participation of condominiums, local authorities, deputies, citizens standing in line for housing, scientists dealing with housing policy, as well as representatives of financial organizations. The result was numerous recommendations, which were handed over to the Prime Minister with the aim of taking them into account when preparing the government draft law. The committee in the Verkhovna Rada will consider this bill and accompany its consideration in the session hall.

According to Shulyak, one of the main innovations in the new Housing Code will be the provision on social housing, which will be provided to people in need of social protection. To date, the legislation does not specify how such a housing fund should work, to whom social apartments should be provided and at what price. The new law will provide for social rent with the right of redemption, specifics of obtaining office housing, as well as an expanded list of credit instruments. For example, along with the existing “eHome” and “eRecovery” programs, housing leasing, which is successfully operating in many European countries, can be introduced.

In addition, the new legislation will provide for the creation of a legislative framework for the activities of private operators of affordable housing, which will be able to build and then manage such housing. This will allow the private sector to be involved in solving the housing issue and ensure more efficient use of resources.

Another important innovation, according to Shulyak, will be the creation of a large program “Unified Information Housing System”. People who need a solution to the housing issue will be able to register in this system. All entered information will be verified, and the system will be able to analyze the income level of each family, social status (person with a disability, disabled person, IDP, etc.), availability of own housing and, based on this data, offer options for solving the housing issue. These can be local programs, municipal housing assistance, social housing, service housing or other options.

As Shulyak reports, the issue of long-term buildings that can be rebuilt into social housing deserves special attention. Before the war, the government initiated the collection of information about such objects in order to form a basis for their use. The war destroyed these plans, but recently at a committee meeting the matter was raised again. It was decided to intensify work to understand which objects can become the basis for creating a social housing fund. In addition, in the conditions of post-war reconstruction, new housing will have to be built from scratch. International partners have already expressed their readiness to help Ukraine in solving the housing issue, in particular, regarding internally displaced persons.

There are already examples when local communities solve housing issues on their own, without waiting for the adoption of a new law. For example, in the Kirovohrad region, one of the communities transferred the old state-owned longhouse into communal ownership, brought it into order, and handed over apartments to military personnel. This became possible thanks to the decision of the community, but the new law should simplify all procedures so that local authorities do not have to overcome many bureaucratic obstacles.

At the same time, Olena Shulyak notes that social housing will be provided temporarily, and not owned (although this option is also possible by decision of local communities). When the family’s financial situation improves, it will have to vacate the social apartment so that it can be obtained by another family in need of housing.

Shulyak also emphasizes that social housing should not only be a place to live, but also be accompanied by the creation of jobs so that people can work and provide for their families. In this context, cooperation with business is possible. For example, a program has already been implemented in Transcarpathia, according to which housing for employees of relocated businesses was built with the joint financing of the region, community and business. This approach made it possible not only to provide housing for workers, but also to stimulate economic activity in the region.

Ukraine is facing an important task of renewing the housing policy, which should provide modern living conditions for millions of citizens. Reforming the Housing Code is a necessary step on the way to solving housing problems that have worsened during the war. The new legislation should take into account the best European practices, involve international institutions and the private sector in solving the housing issue, as well as provide a comprehensive approach that will include job creation and regional economic development. Only in this way will Ukraine be able to provide its citizens with decent housing and create conditions for the sustainable development of society.