Government approves draft bill on main principles of housing policy

Government approves draft bill on main principles of housing policy

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The Cabinet of Ministers of Ukraine has approved a draft bill that introduces a new system of providing Ukrainians with housing through the mechanisms of social and corporate housing, affordable mortgage lending, and creating special housing funds.

The relevant statement was made by Regional Consultant of the United Nations Economic Commission for Europe Serhii Komnatnyi in a commentary to Ukrinform.

According to Komnatnyi, the above document will replace the obsolete Housing Code of 1984 and the 1992 Law on the Privatization of State Housing Fund, as the commitment of the state to provide free housing to all citizens is socially and economically unjustified.

The draft bill introduces four main instruments to provide citizens with housing, such as social housing for internally displaced persons (IDPs) exceeding more than 4.6 million and public sector employees on reduced rental terms; corporate housing for employees who need to live near their workplace; affordable mortgage lending for economically active citizens; and creating housing funds with the involvement of public and private capital.

The document lays the legislative framework for housing stock modernization by establishing the minimum requirements for housing quality, introducing modernization programs for old buildings, and launching pilot renovation projects.

Additionally, the draft bill provides for the housing sector to be digitalized by creating a unified information and analytical system and an electronic register of applications and funds of affordable housing.

“This is a step towards eliminating the influence of bureaucracy on the housing sector and significantly reducing corruption risks,” Komnatnyi noted.

The draft bill takes into account the recommendations of the European Commission and the best practices of EU countries, in particular those related to minimum housing quality standards. Its adoption is part of Ukraine’s commitments under the Recovery Plan and European integration agreements.

Currently, the document has been submitted to the Verkhovna Rada of Ukraine. Upon approval, the document is expected to come into effect in the fourth quarter of 2025.

A reminder that the draft bill was developed by the Ukrainian Communities and Territories Development Ministry in cooperation with the European Commission, the World Bank, the European Investment Bank (EIB), the United Nations Economic Commission for Europe (UNECE), the Office of the United Nations High Commissioner for Refugees (UNHCR), the Norwegian Refugee Council (NRC), the International Organization for Migration (IOM), and other reputable international organizations.

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