Major Overhaul of Ukraine's Housing Policy
Ukraine's parliament, the Verkhovna Rada, has passed Law No. 12377 'On the Basic Principles of Housing Policy,' which abolishes the Soviet-era Housing Code of 1983 and terminates the free privatization of state-owned housing. This marks a pivotal shift in a policy that has been in place since 1992. The new legislation introduces models for social rental and affordable purchase-option housing, with a transition period for current state apartment residents. This reform aligns Ukraine's housing system more closely with European models, moving away from its post-Soviet legacy.
Under the new rules, residents of non-privatized apartments who fail to complete ownership transfers during the transition period will become social tenants. It is important to note that social rental housing cannot be inherited. The law also ends the possibility of privatizing service housing after 10 years of service for military personnel, police, and judges; such housing will now be provided only for the duration of employment. An exception is made for those who become disabled during their service.
Impact on Dormitories and Housing Access
The changes also affect dormitories: if a dormitory is reclassified as 'social housing,' privatizing individual rooms will become impossible. Paper-based waiting lists will be digitized and transferred to the Unified Information and Analytical System. The right to access affordable housing with a rent-to-own option can be used only once in a person's lifetime.
Iryna Polyakova, a housing policy expert, stated: 'Behind the seemingly simple title lies a plain and harsh truth: no more free apartments for ownership, no more free privatization.'
According to the new law, social housing will be available to the most vulnerable groups, such as pensioners with minimal income and persons with disabilities. Rent will be nominal, but purchasing this housing will not be an option. Affordable housing with a purchase option will be accessible to working citizens like teachers and doctors who cannot afford to buy a home outright. This mechanism involves a 10-year rental period with a subsequent right to purchase, but it can be utilized only once.
The adoption of this law is a significant step in reforming Ukraine's housing policy, aiming to adapt it to modern socio-economic conditions. The end of free privatization and the introduction of new social rental models may affect housing accessibility for various population groups, particularly vulnerable ones. The new mechanisms are expected to stimulate the rental market development and improve conditions for those unable to purchase their own homes.