The state program for housing rent subsidies for internally displaced persons (IDPs) is under threat of cancellation. This may be due to the ineffective implementation of the initiative, which is hindered by the shadow rental market for real estate.
This is reported by Finway
Main Obstacles to the Program’s Implementation
According to the Minister of Social Policy, Oksana Zholnovich, the majority of Ukrainians who rent out housing do so illegally, failing to declare their income and pay taxes. This significantly complicates the implementation of the European model of subsidies that was introduced to support displaced persons.
“We have introduced a European model – housing subsidies. However, its implementation, so to speak, has stumbled upon the fact that today the overwhelming majority of people who rent out housing do so in a ‘grey’ manner, not declaring their income and not paying taxes,” Zholnovich noted.
During the forum Human Capital Dimension at the URC 2025, the minister also added that if the state program does not operate as planned, its funding may be redirected to other, more effective social initiatives. Which specific programs may receive this funding has not yet been specified.
Conditions for Receiving Subsidies for Displaced Persons
The possibility of applying for a housing rent subsidy for IDPs became available on January 29, 2025. The program can be utilized by those displaced persons who:
- have left regions occupied by Russia or areas of active hostilities, do not own housing in relatively safe regions of Ukraine, and their housing is destroyed or uninhabitable;
- wish to rent individual housing but do not have sufficient funds for this (expenses exceed 20% of their income);
- are already renting housing and spending a significant portion of their income on it.
An important condition for participation in the program is the absence of other financial assistance for IDPs and the presence of an official rental agreement for the property.
Such agreements could be formalized through a simplified procedure at the offices of the Pension Fund of Ukraine, via the official online service on the PFU website, or at Administrative Service Centers. Compensation for tax payments was even provided for property owners; however, most landlords are reluctant to legalize their income.
The head of the Association of Young IDPs, Arkadiy Petrosyan, noted that the reluctance of landlords to come out of the shadows significantly limits the opportunities for displaced persons to benefit from state support. As a result, many people remain without the necessary assistance, and the program risks being canceled due to a lack of proper effectiveness.