New 'Fundamentals of Housing Policy' Law Enacted
President Volodymyr Zelenskyy has signed the 'Fundamentals of Housing Policy' law, which permanently repeals the Soviet Housing Code of 1983. This move fulfills part of Ukraine's commitments under the Ukraine Facility program. The new legislation modernizes rules for housing allocation, introduces social rental and rent-to-own schemes, and mandates the digitalization of housing waiting lists. This reform represents a significant shift away from the legacy Soviet system that has governed housing for decades.
The law stipulates that government-provided housing is temporary and cannot be privatized. Occupants must vacate such housing after their employment ends, except for individuals who become disabled while performing their official duties. Furthermore, the legislation establishes that individuals can gain ownership of a property after ten years under a rent-to-own agreement, a right that can be exercised only once in a lifetime.
Payments from rent-to-own agreements will be directed into a revolving fund for constructing new social housing. Rent for social housing will be capped at 30% of a family's income. To streamline housing processes, a unified housing information and analytics system will be created as part of the new policy's implementation.
One-Time Aid for War-Damaged Housing
On February 10, the Kyiv City Council approved a measure to provide one-time financial aid to residents whose homes were damaged due to utility failures caused by shelling. This assistance applies to residents who have suffered burst pipes, loss of heating or water, or flooding in their apartments. The shelling incidents that caused these utility failures began on January 1, 2026.
The new law also defines two new housing categories: affordable housing and social housing. It establishes two types of managing operators:
- A social housing operator — a municipal non-profit organization.
- An affordable housing operator — a business entity offering rent-to-own agreements or sales.
Under the new policy, local communities will be empowered to provide free land for development, offer low-interest loans, or issue local guarantees, all aimed at reducing housing costs.
The adoption of this law is a crucial step in modernizing Ukraine's housing policy to meet contemporary needs. The introduction of new housing forms and support mechanisms, particularly under wartime conditions, aims to improve living standards and ensure housing accessibility for various social groups. Implementing these changes is expected to significantly impact Ukraine's housing market, promoting its stabilization and development.