Ministry for Communities and Territories Development comments on the launch of housing reform: what’s changing for people, communities, and investors
The bill “On the Fundamentals of Housing Policy,” approved by the Verkhovna Rada on January 13, paves the way for a comprehensive reform of the housing sector. The focus is on making housing more affordable, enabling the combination of various housing provision instruments, modernizing the housing stock, and creating transparent conditions for attracting investment and developing the market.
Why is this important
For decades, Ukraine has lived within the framework of outdated approaches laid down in the 1983 Housing Code. The document had not met modern needs and challenges and had actually hindered the development of the housing sector.
Today, as a result of russian aggression, about 13% of the housing stock has been either destroyed or damaged (RDNA4 data), more than 2.5 million households have been affected, and 4.6 million IDPs have been forced to leave their homes. The cost of rebuilding the housing stock is estimated at approximately USD 84 billion. The launch of a new housing policy will allow these issues to be addressed more systematically and modern approaches to housing development to be implemented.
The law shall serve as the basis for:
- developing a State Housing Strategy;
- introducing new mechanisms for financing and managing housing;
- attracting investment in the construction and modernization of the housing stock;
- abolishing outdated regulations and transition to European standards.
What is going to change with the law coming into effect:
- improved housing conditions for millions of citizens, including IDPs;
- the launch of various support mechanisms — from social housing to affordable rent and mortgage programs;
- effective management of housing policy through the introduction of digital technologies. Creation of a transparent system for registering citizens' housing needs to ensure a rapid response at the local level;
- attracting private capital to housing projects;
- legal basis for the introduction of municipal housing rentals and municipal housing rentals with the right of redemption;
- housing policy will comply with EU best practices.