The Cabinet of Ministers of Ukraine approved the draft resolution “On the implementation of a pilot project - the creation of a Municipal (Social) Rental Housing Fund and its provision for rent”.

The draft resolution was developed by the Ministry for Development of Communities and Territories of Ukraine. It provides for the creation of a Municipal Housing Fund, which will be provided for rent on affordable terms. This is a new model for providing social housing to certain categories of citizens, in particular IDPs, by creating a system of rental housing that will be owned by communities.

The project envisages the construction of housing in participating communities within two years. First of all, municipal housing will be provided to internally displaced persons, veterans, relatives of fallen defenders, military personnel, orphans, teachers, doctors, and municipal workers.

“People who have lost their homes or do not have access to full-fledged housing must receive a clear and understandable answer from the state. We are launching a model that allows communities to build housing and support those who need it most. This is not a temporary solution, but decent living conditions,” said Oleksii Kuleba, Deputy Prime Minister for Restoration - Minister for Development of Communities and Territories of Ukraine.

Financing will be implemented at the expense of local budgets and the grant and loan component from the European Investment Bank. It is also possible to attract funds from other international partners, Ukrainian banks and investors.

Within the framework of the project, communities will act as construction customers. The Agency for Restoration will coordinate implementation on the ground and provide standard projects. The Ministry for Development provides full organization of the process: from the development of a regulatory framework to methodological support.

When selecting communities to participate in the project, the number of registered IDPs, the availability of land and social infrastructure, and the experience of local governments in attracting grant funds will be taken into account.

Among the criteria for selecting recipients:

• absence of housing or its area is smaller, based on 13.65 sq. m. / person,
• the average monthly total family income is less than the amount determined by the formula,
• the availability of official income for able-bodied persons during the last six months.

Housing will be available for rent at prices below market prices.

After the completion of the experimental phase, taking into account the results obtained and amendments to the legislation, it is planned to scale this model to the entire country.