Eight communities have successfully completed the first stage of evaluation within the framework of a pilot project to provide municipal (social) housing for rent. These are the communities of Lviv, Zhytomyr, Poltava, Mykolaiv, Kremenchuk, Bucha, Obukhiv, and Drohobych. These communities will continue to participate in the selection process from among the 25 communities that submitted applications.

The project, coordinated by the Ministry for Development of Communities and Territories of Ukraine, aims to build housing that will remain the property of the communities and be let at below-market rates, as defined in Government Resolution No. 796. Such housing will primarily be available to internally displaced persons, veterans, families of fallen defenders, as well as teachers, doctors, and critical infrastructure workers.

The pilot phase is financed with the support of the European Investment Bank and the European Commission. Its current budget amounts to EUR 100 million – an equal split between loans and grants from the total package of EUR 400 million allocated to the initiative. Participation in the project also entails financial responsibility on the part of the communities, specifically their ability to service the loan.

‘We are developing a new model under which communities will be able to build housing for the most vulnerable groups – internally displaced persons, veterans, and professionals whom we need to retain locally. This is not about temporary solutions, but about decent living conditions for years to come. Following the pilot, this social rental housing system can be scaled up across the country. We are working systematically at all levels: together with communities, we are preparing and launching specific projects; today, over 50 initiatives to create social rental housing are already under evaluation through the DREAM ecosystem. Parallel to this, we are drafting a draft law on social rental housing and collaborating with international partners to establish sustainable financial and legal mechanisms,’ emphasised Oleksii Kuleba, Deputy Prime Minister for Restoration of Ukraine – Minister for Development of Communities and Territories of Ukraine.

Special commission, comprising representatives from the Ministry for Development, the Ministry of Finance, the Agency for Restoration, and the Reform Support Team at the Ministry for Development, is responsible for evaluating proposals from communities. Representatives from the European Commission and the EIB are involved as independent observers. In the first stage, the assessment focused on whether the community had a plot of land, appropriate social infrastructure, the number of IDPs, readiness for co-financing, and experience in implementing investment projects.

The next step is to present development concepts and financial models for project implementation. Eight communities must present their detailed plans: design solutions, location, access to infrastructure and the capacity to carry out construction. Presentations of the concepts and financial models will take place in early March. Following this, the commission will conduct site visits and select several communities for the pilot implementation.

Approximately 2,000 families are expected to receive new housing under the project.