Ukraine to Ban Privatization of State-Owned Housing: New Rules and Eligibility Explained

Major Overhaul for State-Owned Housing in Ukraine

According to Главком: A new law awaiting the president's signature, Bill No. 12377, will fundamentally reform Ukraine's system of state-owned housing. This legislation abolishes the outdated 1983 Soviet Housing Code, permanently bans the privatization of such properties, and establishes a system of temporary occupancy at a preferential rent. This reform aims to ensure fairer access and prevent widespread abuse of the system.

Key Provisions and Their Impact

Under the new rules, it will no longer be possible to gain ownership of state-owned housing through privatization. Occupancy will be strictly temporary and tied to a specific official purpose, designed to protect the rights of citizens who genuinely need improved living conditions. These changes were detailed by Olena Shuliak, head of the parliamentary committee on state governance and local self-government.

Olena Shuliak stated that the previous 'denationalization' mechanism had turned state housing into a tool for free privatization and dishonest acquisition in Ukraine.

She cited examples of abuse, including the allocation of housing from the Ministry of Internal Affairs academy to judges and their assistants who already owned private property. Meanwhile, citizens with legitimate work-related needs for such housing were left without it. This reform is part of a broader effort to modernize Ukraine's institutions and combat corruption.

A crucial aspect of the new framework is that state housing will be ineligible for privatization and provided only for the duration of an individual's official duties. The Cabinet of Ministers will define eligibility criteria for the national housing fund, while local communities will set rules for municipal properties.

For context, the reform looks to international models for inspiration. In Germany, for example, the state manages over 62,000 apartments through a single public operator. This experience could prove valuable for Ukraine as it develops new management mechanisms.

The upcoming changes are expected to significantly impact housing accessibility for those in genuine need while curbing systemic abuses. Implementing these new norms represents a critical step in reforming Ukraine's state housing system, drawing on established international practices like the German model to create a more transparent and effective framework that serves the public interest.