In Ukraine, a compensation mechanism for IDPs and residents of front-line territories has entered into force
On September 10, within the framework of the Oselia program, the compensation mechanism for internal displaced persons (IDPs) and residents of the frontline areas. It provides for state coverage of 70% of the first mortgage payment, 70% of monthly payments during the first year of crediting, as well as compensation of up to UAH 40,000 for related expenses when issuing a mortgage.
“We understand how difficult it is to independently solve the housing issue for people who lost their homes due to occupation or hostilities in the front-line territories. Therefore, the state assumes part of the costs to make mortgages more affordable for them. This is not only about social support, but also about the economy – we are creating demand for housing, which in turn stimulates the construction industry and related industries, – noted the Minister of Economy, Environment and Agriculture of Ukraine Oleksiy Sobolev.
The compensation mechanism within the framework of the eOsel program for IDPs and residents of the front-line territories will begin to operate after the settlement of the interaction between the Pension Fund and the partner banks of the program.
The new rules provide for: coverage of 70% of the first mortgage payment (but no more than 30% of the housing cost); 70% compensation of monthly payments during the first year of lending (but not more than UAH 150,000 in total); up to 40,000 hryvnias for the reimbursement of related costs when issuing a mortgage, including commissions, fees and insurance payments.
The program can be used by citizens who have the status of IDPs or are registered in the front-line territories, provided that neither they nor their family members own housing in the territory controlled by Ukraine and have not alienated it during the last 36 months. An exception is housing located in areas where hostilities continue, in occupied territories or in war zones where government electronic services are available.
Under the terms of the program: IDPs can get a mortgage at 7%; representatives of privileged categories (military servicemen of the Armed Forces under contract, employees of the security sector, doctors, teachers, scientists) who are registered in the front-line territories – under 3%; other citizens from these regions – under 7%.
Frontline territories are settlements included in the official list approved by the Ministry of Community Development, Territories and Infrastructure. These are areas where hostilities are or were being waged, are under the temporary occupation of the Russian Federation, and for which the date of the end of hostilities or occupation has not been determined.
Requirements for housing: the maximum cost is up to UAH 2 million. For IDPs, it should not be older than 20 years. For residents of the front-line territories, the current rules of the eOsel program apply: not older than 20 years for privileged categories and veterans in Chernihiv, Sumy, Kharkiv, Zaporizhzhia and Kherson regions; no older than 3 years — for housing in other regions and for citizens using the 7% program. All applicants must meet the conditions of participation in the eOsel program.
