Hundreds of thousands of internally displaced people have found refuge in communities across Ukraine. Sustainable solutions are now needed: housing, employment, schools and healthcare, transport and infrastructure. At the same time, communities have to rebuild damaged homes, support the local economy, and address the new needs of their residents.

Housing policy is therefore concerned with more than just construction or renovation. It determines the return of Ukrainians, the integration of displaced persons, the development of the local economy, and the ability of communities to plan for the future. The first annual housing conference in Ukraine “Housing reconstruction, community revival: Scaling up housing solutions for Ukraine’s recovery and development” explored how to turn national priorities into such solutions for people and communities.

The conference was organised by the Ministry for Communities, Territories and Internally Displaced Persons of Ukraine and the World Bank Group.

 

The strategy needs to deliver practical results

In his opening address, the Speaker of the Verkhovna Rada of Ukraine Ruslan Stefanchuk emphasised that housing policy must meet people’s needs and be backed by adequate resources.

‘We do not need dozens of strategies that do not change people’s lives. We do not need programmes that are said to be open to participation but are, in reality, inaccessible. We need simple, clear, and adequately funded mechanisms,’ said Ruslan Stefanchuk.

Mr Stefanchuk spoke of the needs of military personnel and their families, teachers and doctors, internally displaced persons, veterans, families who have lost their homes, and young Ukrainians. Addressing these challenges requires joint efforts by the Parliament, the Government, local governments, financial institutions, the construction sector, and international partners.

Minister for Communities, Territories and Internally Displaced Persons of Ukraine Vitalii Bezgin emphasised that the housing strategy until 2033, which is due to be adopted by the end of the year, needs to be underpinned by practical solutions. He added that the Parliament and the Government have to take the necessary decisions, whereas local governments have to implement them on the ground with adequate resource support.

Nataliia Kozlovska, Deputy Minister for Communities, Territories and Internally Displaced Persons, stressed that the housing issue is linked to economic development, jobs, access to education and healthcare, and people’s ability to build a future in Ukraine. The state already has experience with compensation for damaged housing, housing vouchers, and temporary accommodation. The next task is to move from individual programmes to a comprehensive policy and its practical implementation.

According to Nataliia Kozlovska, the law on the fundamental principles of housing policy has already been adopted, and the national strategy was developed with the participation of over 50 national and international partners. To implement its priorities, realistic planning, coordinated action by the state and communities, and stable funding are required.

The Ambassador of the Republic of Austria in Ukraine, Robert Martin Müller, shared the experience of developing social and affordable housing in Austria. In his words, there are around 200 housing associations in the country, some of which grew out of the co-operative movement. They provide housing on a cost-recovery basis and reinvest the funds in construction.

While the Austrian model cannot be mechanically replicated in Ukraine, noted Robert Martin Müller, it is worth examining some of its key principles: clear rules, the involvement of private investment, auditing, construction quality, and energy efficiency.

In a video message, Regional Country Director for Eastern Europe at the World Bank Bob Saum urged the participants to focus on the urgency, scale of needs, and partnership. He emphasised that people cannot wait, and that housing reconstruction is linked to job creation and market development.

 

Housing, demographics, and the economy

First Deputy Speaker of the Verkhovna Rada of Ukraine Oleksandr Korniienko outlined several interrelated areas of housing reform: legislative frameworks for social housing, more accessible financial instruments, management of the housing stock, and infrastructure development, particularly in rural areas.

According to Mr Korniienko, over a million families are homeless. Meanwhile, financing housing solutions remains challenging: loans are expensive, and the development of the mortgage market requires a broader capital market, insurance mechanisms and public confidence in financial instruments. The experience of the yeOselya programme, noted Oleksandr Korniienko, has shown that Ukrainians are willing to invest in housing if the terms are acceptable.

He also emphasised the role of condominium associations in maintaining and managing residential buildings. In the face of energy and security challenges, these associations take on significant responsibility; it is therefore important to support residents’ self-organisation and to continue national and local energy efficiency programmes.

For rural communities, housing solutions are linked to roads, lighting, water supply and sewage. People may own their own homes, but without basic infrastructure, it is difficult for communities to retain residents and to develop.

‘We have to build housing not because we have to build it and the industry needs to make a profit, but because we want to address the demographic situation and make Ukraine a country that develops its economy more intensively,’ said Oleksandr Korniienko.

He also emphasised the principle of local self-government participation in decision-making: “Nothing about local self-government without local self-government.”

 

Comprehensive recovery of communities

Serhii Derkach, Deputy Minister for Recovery, Infrastructure and Transport of Ukraine, pointed out that housing needs to be planned alongside transport, utility networks, social infrastructure, and jobs.

‘Our task is to restore people’s normal lives, not simply to rebuild their homes,’ said Serhii Derkach.

Before building a specific house or housing complex, he said, it is necessary to assess how many people will live there, what jobs exist or will be created, whether there will be sufficient water, heating and electricity, and what schools, kindergartens and transport are needed.

Serhii Derkach gave Borodianka, Yahidne, and Posad-Pokrovske as examples of comprehensive reconstruction. In Borodianka, housing projects are combined with the reconstruction of roads and utility networks, schools and kindergartens, as well as improvements to transport links. In Posad-Pokrovske in Kherson region, electricity networks and municipal infrastructure are built alongside housing.

Reconstruction needs to take security risks into account. Provisions have to be made for the protection of critical infrastructure and alternative power supplies for water and heating systems. The DREAM ecosystem is used to coordinate projects, helping to ensure their transparency and prioritisation. At the same time, it has to be clear in every region who is responsible for specific projects and how they meet the community’s needs.

Serhii Derkach mentioned the state budget, grants, loans and public-private partnerships as sources of funding. Well-prepared projects and clear rules are needed to attract private investment.

 

Housing for IDPs: data and long-term solutions

Vitalii Bezgin noted that housing support for IDPs has to be linked to the opportunity to work, send kids to school, and access services. People’s needs vary: some IDPs can find accommodation on their own, but others – particularly older people and socially vulnerable groups – require ongoing support.

‘When we delegate additional powers to communities in this field, we are obliged to provide them with the necessary financial resources,’ said the Minister.

To plan solutions, Vitalii Bezgin proposed inventorying the existing housing stock. In particular, communities raise the issue of using buildings that remain empty following the optimisation of the education network to meet the needs of IDPs. The Ministry supports this approach, as without determining the future use of these premises, they risk falling into disrepair.

The Minister also mentioned the creation of a housing register for internally displaced persons. According to the Minister, the relevant decisions are due to be taken in 2027. The transition from temporary accommodation to long-term solutions requires systematic data on people, their needs, and available housing.

Ellen Hamilton, Lead Urban Specialist for the Urban, Resilience and Land Global Practice – Europe and Central Asia Region of the World Bank, also emphasised the importance of data and different ways to increase the housing supply.

‘No state can subsidise everyone. We need to make the system more efficient so that as many people as possible can secure housing for themselves,’ said Ellen Hamilton.

She named the following as possible solutions: renting out existing housing, repairing damaged buildings, refurbishing suitable buildings, investment and new construction. Renting and minor repairs can yield results more quickly than building new homes, whereas restoring buildings enables people to return to their homes. Ellen Hamilton also highlighted the economic contribution of the housing sector and its role in job creation.

 

Social housing: legislation, funding, and management

Nataliia Kozlovska spoke about a pilot project to establish a municipal housing stock for social rental, which the Ministry is implementing with the support of the European Investment Bank. The project aims to test the financial and management mechanisms of social housing in the Ukrainian context.

According to Nataliia Kozlovska, the Ministry is preparing a draft law on social housing and is in the final stages of finalising its proposals. To launch the system, it is necessary to define management models, sources of funding, and the delineation of responsibilities.

Kristina Mikulova, Head of Regional Hub for Eastern Europe at the European Investment Bank, shared examples from Austria, the Netherlands, and Denmark. She spoke about non-profit housing operators, public oversight, funding, maintenance and the modernisation of the housing stock.

‘The choice lies with Ukraine and the Ukrainian people. We can support the legislative process and the development process. The development of the system has to take place in parallel with attracting investment,’ noted Kristina Mikulova.

Pilot projects in Zhytomyr, Kremenchuk, Kropyvnytskyi, and Mykolaiv are intended to determine who can manage social housing, how to finance the repair and maintenance of buildings, and how to align rent with management costs. Such programmes should take into account the needs of young people, veterans, people with disabilities, large families, and other groups.

 

Community resources and project preparation

Executive Director of the Association of Ukrainian Cities Oleksandr Slobozhan identified the main obstacles for communities: the scale of housing needs exceeds their capacity; local budgets lack resources; projects are not always ready for funding; and models for managing social housing and the delineation of powers require clear definition.

He drew attention to the fact that, once funding becomes available, it may transpire that project documentation is missing, an inventory of the property has not been made, or the boundaries of the land plot have not been defined. Communities therefore need support in preparing documentation and financial models. The Association of Ukrainian Cities, together with its partners, is working on the Small Projects Fund, which is intended to help communities prepare such documents.

Oleksandr Slobozhan provided examples of funding that combines local resources, regional-level funds, and private investors, in particular local revolving funds in Vinnytsia region.

He also raised the issue of reverse subsidies. According to Mr Slobozhan, the draft budget covers 218 communities, 152 of which are rural or settlement-level. Oleksandr Slobozhan believes that leaving these funds at the local level could help communities finance housing programmes and related infrastructure. This is the position of the Association of Ukrainian Cities on budgetary policy.

As an example of cooperation between state, regional, and local authorities, the business sector, and internally displaced persons, Oleksandr Slobozhan referred to a housing estate project for Mariupol residents in Bila Tserkva. The Kyiv and Donetsk Regional Military Administrations, local authorities, the business sector, and the Mariupol residents themselves have all joined the project. The project provides housing for 1,300 people.

Oleksandr Slobozhan also stressed the need for clear rules governing the use of communal property. In particular, buildings that communities use for housing purposes have to be used for their intended purpose and remain the property of the community.

Summing up the discussion, Nataliia Kozlovska highlighted that the new powers granted to communities have to be accompanied by adequate resources, support mechanisms, and ongoing dialogue with the state. Housing policy needs to take into account the experience of communities, their financial, human and organisational capacities, as well as people’s access to work, education, healthcare and transport.

The discussion reveals a common challenge for the state and communities: to shift housing policy from isolated programmes to a system in which it is clear who is responsible for decisions, where funding comes from, how the existing housing stock is used, and who manages the newly built housing. This requires reliable data on people’s needs and communities’ capabilities, well-prepared projects, and a combination of state, local, international, and private funding.

Local housing solutions have to be planned alongside jobs, transport, schools, healthcare, and public services. And the powers granted to communities have to be proportionate to their resources and capabilities. The practical outcome of housing policy will be measured by whether people are provided with decent housing, whether they can work, access the services they need, and build a future in their own community.