In Ukraine, the draft law No. 12377 “On the Basic Principles of Housing Policy” is being prepared for its second reading, aimed at significantly updating the approaches to providing citizens with housing. The document was already approved in the first reading in the Verkhovna Rada back in July, and is currently undergoing further refinement.
This is reported by Finway
Key Changes: Rent-to-Own and Elimination of Waiting Lists
The main goal of the draft law is to address the issue of outdated housing stock and the long-standing waiting lists for apartments. In particular, it is proposed to introduce a new type of housing rental – rent-to-own. This mechanism will apply to social housing. However, only those tenants who have lived in the apartment for at least 10 years will be able to take advantage of the buyout option. During this period, monthly rental payments will be credited towards the cost of the housing, and after the rental term expires, the individual will be able to become the full owner of the apartment.
At the same time, the buyout amount will not be less than the price of new social housing, as these funds will be directed to a special fund for the construction of new social apartments. Thus, residents of old buildings who take advantage of the buyout option will effectively be investing in the creation of housing for other citizens.
European Requirements and Financial Support
Draft law No. 12377 is expected to be adopted this fall, as it is one of the requirements of the European Union under the Ukraine Facility program. Meeting this indicator will grant Ukraine access to 400 million euros in funding, of which 200 million euros will be a loan and another 200 million will be grant assistance.
Moreover, it is for meeting this program indicator that Ukraine will receive 400 million euros. 200 million euros in loans and the same amount in grants, – explained the head of the parliamentary Committee on State Governance, Local Self-Government, Regional Development, and Urban Planning, Olena Shulyak.