New Law on Housing Policy: How the Rules for Obtaining, Renting, and Using Housing in Ukraine Are Changing. Part 2

The new law introduces an innovation – the Unified Information and Analytical Housing System, which is being created so that people can exercise their right to housing, and the housing stock is used effectively and rationally. The system also helps to take into account the interests of state authorities, individuals and legal entities, territorial communities and local governments in the field of housing policy. Its main function is to provide complete, reliable and up-to-date information about the housing stock of Ukraine and about persons who can use state support to exercise their right to housing.

The Unified Information and Analytical Housing System is being created to ensure the collection, accumulation, accounting, processing, storage and protection of information and documents about:

1) persons who can use state support to exercise the right to housing, the status of the exercise of such a right;

2) mechanisms of state support for the implementation of the right to housing, in particular, the conditions of local, regional, state target and other programs that provide for financial and credit mechanisms to support the construction, purchase and rental of housing;

3) housing (including a list of housing and communal services provided in the house and their prices (tariffs), informing consumers about the intention to change prices (tariffs) for communal services with justification for such a need, information about routine work and maintenance work on internal building systems and structural elements, energy consumption);

4) operators of affordable housing, operators of social housing;

5) housing and construction (housing) cooperatives, members of such cooperatives, as well as about the houses of such cooperatives;

6) financial institutions;

7) places of registration (residence or stay) of homeless persons.

Taking into account the situation with IDPs, the law stipulates the following norms, which were not previously in the current legislation. Persons who can use state support to exercise the right to housing, information about whom is entered into the Unified Information and Analytical Housing System, can build housing, purchase it into ownership or acquire it for use with the support of the state or local government through the use of financial and credit mechanisms to support the construction, purchase and rental of housing.

Financial and credit mechanisms to support the construction, purchase and rental of housing are implemented at the expense of state and/or local budget funds, international technical assistance funds, other sources not prohibited by law, and provide for:

1) provision of a preferential long-term loan for new construction, reconstruction or purchase of housing into ownership with state support;

2) payment of part of the cost of housing, payment of compensation for the housing premises required for receipt;

3) payment of part of the share contribution of a member of a housing and construction (housing) cooperative, provision of a preferential long-term loan or payment of compensation for part of the interest on the loan for the payment of such contribution;

4) provision of housing under financial leasing;

5) transfer of housing under a lease agreement, including with the right to buy out.

Legislation may also establish other mechanisms for supporting the construction, purchase and rental of housing. The amount of support provided within the framework of the implementation of financial and credit mechanisms for supporting the construction, purchase and rental of housing is calculated taking into account the number of family members, household and other standards determined in the procedure for implementing the relevant mechanism, which in the case of attracting state budget funds is approved by the Cabinet of Ministers of Ukraine, and in the case of attracting local budget funds – by the relevant local government body.

It should be noted that state support for the implementation of the right to housing using financial and credit mechanisms to support the construction, purchase and lease of housing is provided to a person for the construction or purchase of housing only once, unless otherwise provided for by law. The right to receive state support for the implementation of the right to housing is considered to be used from the moment the person acquires ownership of such housing.

A lease agreement with the right to purchase housing (except social) from the state housing fund and the housing fund of territorial communities may be concluded by persons who have lived in such housing for at least 10 years. At the same time, the purchase of such housing at a reduced price is not allowed and is carried out at a cost that cannot be less than the cost of newly built housing to replace it.

We would like to separately highlight Article 28 of the new law, which defines persons who can use state support for the implementation of the right to housing. State support for the implementation of the right to housing may be used by persons who do not have access to housing that meets the general requirements for consumer quality of housing, persons in need of social protection, and other categories of persons defined by this Law and other laws of Ukraine.

Persons who do not have access to housing are considered persons who do not own, use or otherwise have housing that meets the general requirements for consumer quality of housing, or who do not have the actual opportunity to use or dispose of such housing as a result of:

1) destruction or damage to housing as a result of military actions, terrorist acts, emergencies, temporary occupation of the territory in which the housing is located;

2) denial of access to housing by third parties who impede the legal possession, use or disposal of housing;

3) other circumstances that make it impossible to live in housing, confirmed by relevant documents.

Information about persons who can use state support to exercise the right to housing is entered into the Unified Information and Analytical Housing System. At the same time, the criteria for classifying persons as persons who can use state support to exercise the right to housing are approved by the Cabinet of Ministers of Ukraine in accordance with the requirements of this Law and other laws of Ukraine.

Another interesting category of housing stock that is being introduced is social housing. Persons in need of social protection and other categories of persons defined by law are provided with social housing. Such housing must meet the requirements for consumer quality of housing.

Social housing from the state housing stock or the housing stock of a territorial community is provided to persons under a social housing lease agreement based on a decision by a state authority or local government body, respectively. The payment for social housing includes: payment for the rental of social housing and housing and communal services. The amount of the fee for renting social housing is established taking into account the benefits and guarantees defined by law, social assistance payments to which a person (family), household is entitled in accordance with the legislation, and depending on the level of income and property of the person (family), household.

The amount of the fee for renting social housing for military personnel and members of their families is established taking into account the Law of Ukraine “On Social and Legal Protection of Military Personnel and Members of Their Families”. At the same time, in accordance with the legislation, individuals may be provided with a subsidy for renting social housing, taking into account the criteria for assessing the financial and property status of a person (family), household in accordance with the procedure established by the Cabinet of Ministers of Ukraine.

Persons using social housing on the basis of a lease agreement shall pay for housing and communal services in accordance with the Law of Ukraine “On Housing and Communal Services”. The provision of benefits and subsidies for the payment of housing and communal services shall be carried out in accordance with the legislation.

Provision of persons with social housing may also be carried out by a person concluding a lease agreement for social housing from a private housing fund. In this case, payment of payments for the lease of social housing from a private housing fund, depending on the income level of the person (family), household and taking into account the benefits and guarantees specified by law, shall be carried out on the basis of a lease agreement for social housing in accordance with the law. Time will tell whether there will be willing owners of housing to give it away as social with all the consequences, including the amount of rent.

Information on social housing of the state housing stock and the housing stock of territorial communities, as well as on housing of the private housing stock, the owners of which intend to conclude a social housing lease agreement, is entered into the Unified Information and Analytical Housing System. Information on persons who can use state support to exercise the right to housing and, in accordance with the law, have the right to receive social housing, is also entered into the same Unified Information and Analytical Housing System.

The provision of social housing is carried out taking into account the number of members of the tenant’s family or household, in compliance with the requirements for the consumer quality of housing. Providing people with social housing and providing subsidies for paying for the rent of social housing are carried out in accordance with the legislation.

It is quite interesting that the law specifies guarantees regarding housing, especially regarding eviction, resettlement, etc. No one may be evicted from occupied housing or restricted in the right to use housing other than by court decision and on the grounds and in the manner established by law.

Please note that the eviction, relocation and resettlement of persons covered by this Law who, in accordance with the legislation, were provided with housing from the state housing fund or the housing fund of the territorial community and who actually live in such housing are prohibited, if the circumstances that were the basis for providing them with such housing persist, and/or they have not lost the right to use such housing, and in cases established by law – the right to receive housing for permanent residence or ownership free of charge, without prior provision of such persons (their families) by the entities carrying out the eviction, relocation or resettlement, of other housing suitable for habitation, except in cases where the eviction is carried out voluntarily or on the basis of a court decision.

Eviction, relocation and resettlement of persons from housing in the private housing fund are carried out only by court decision and on the grounds and in the manner established by law. How this rule will work in practice will be shown by time, because in fact it existed before this law, but the judicial system works so slowly that ordinary citizens have found 101 ways to circumvent this current rule.

What is also new in the law is that eviction, relocation and resettlement of persons who are parties to a dispute about the grounds for their eviction and/or their residence in housing, and/or eviction from housing are prohibited – until such a dispute is resolved in a pre-trial or judicial procedure in accordance with the law, except for cases of resettlement specified by law in connection with the elimination of the consequences of accidents, fires, other emergencies, armed aggression. In fact, according to the CPC, this could be requested as a security for the claim, but the legislator took care of the judges’ time and established a direct norm-prohibition.

Eviction from housing in the state housing stock or the housing stock of a territorial community with the provision of other housing in accordance with the procedure specified in the relevant lease agreement is carried out on the following grounds:

1) reconstruction, restoration or major repairs of housing, if the relevant work cannot be carried out without evicting the tenant (user);

2) demolition of housing based on the results of an inspection of the condition of residential buildings in accordance with the procedure approved by the Cabinet of Ministers of Ukraine;

3) emergency condition of housing that creates an immediate threat of collapse or poses a danger to the life and health of residents, as confirmed by the results of a technical inspection conducted in accordance with the legislation;

4) conversion of residential premises into non-residential due to its technical condition, reconstruction or other circumstances that make it impossible to further use it for living due to the fact that residential functions have been lost;

5) recognition of housing as unfit for living in accordance with the procedure established by law;

6) on other grounds specified by law.

In the event of the tenant (user) refusing to move to another dwelling, his forced eviction shall be carried out on the basis of a court decision.

Housing shall be considered illegally occupied if a person moved into the dwelling without proper legal grounds, the circumstances that were the basis for providing him with such dwelling have ceased to exist, and/or the person has lost the right to use such dwelling. Moving into the dwelling without proper legal grounds is prohibited.

Unauthorizedly occupied housing shall be subject to immediate return to its owner or a person who uses the dwelling on legal grounds. An individual or legal entity that has illegally occupied the dwelling shall be obliged to bring it into a condition suitable for use and compensate the owner or user of the dwelling for the damages caused.

And finally, disputes related to the protection of the right to housing, regardless of the form of ownership, shall be resolved in court in accordance with the law.

This Law applies to housing relations that arose after its entry into force. The legislation in force at the time of their conclusion shall apply to transactions on the settlement of residential premises, service housing and residential premises in dormitories valid on the date of entry into force of this Law.

Therefore, we advise you to follow the procedures established by the new law, defend your rights and use all legal mechanisms to protect them.