Ukraine Halts State-Housing Privatization: New Rules for Waitlists and Emerging Housing Models

Ukraine's New Housing Policy Direction

According to Главком: Ukraine intends to end the privatization of state-provided housing allocated through official warrants, as outlined in draft law No. 12377 'On the Fundamental Principles of Housing Policy'. This move aims to establish a social rental housing fund and launch a comprehensive housing reform to replace the outdated Housing Code enacted in 1983. The new policy will introduce several housing models, including affordable, social, and rent-to-own options. This reform represents a significant shift from the post-Soviet system, aiming to address chronic housing shortages.

Addressing Waitlist Gridlock and New Eligibility

The draft legislation targets the long-standing issue of housing waitlists, which currently include approximately 1.2 million citizens. However, the state currently allocates no more than 100 apartments annually to those on these lists, creating a situation where the queues are effectively stagnant. MP Olena Shuliak explained the core problem:

“They don't move because the state lacks the housing stock needed to advance these queues.” - Olena Shuliak

She further emphasized that 'the state cannot build that volume of housing every year,' creating a vicious cycle where the few apartments granted are immediately privatized and removed from the public stock.

Under the new rules, only four population categories will be eligible to receive housing as outright property:

• military personnel
• emergency service workers
• police officers
• orphaned children

Payments for social rent will be capped at no more than 30% of a household's income. The rent-to-own scheme will allow tenants to acquire ownership after 10 years of renting, with this right being exercisable only once.

According to Olena Shuliak, 'affordable housing' refers to properties that individuals on housing improvement waitlists can purchase on preferential terms. Various mechanisms will be introduced to facilitate this, including subsidized mortgages, a revamped housing cooperative system, and leasing. Social housing, in turn, will be available for temporary use under social rental agreements.

Consequently, the implementation of draft law No. 12377 could fundamentally reshape housing policy in Ukraine, creating new pathways for those in need of better living conditions. However, executing these changes will require substantial state effort to secure the necessary housing stock and resolve the existing waitlist crisis. If successful, this could mark a pivotal step toward improving housing accessibility for many Ukrainians facing difficulties in securing a home.