Ukraine Takes Major Step Forward in Housing Reform with UNECE Support
The Government of Ukraine has taken a significant step forward in housing reform by adopting the Law "On the Basic Housing Policy Framework" on January 3, 2025. This milestone achievement, supported by UNECE through the UN4UkrainianCities project, lays the groundwork for modernizing Ukraine's housing sector. Following government approval, the draft law will now proceed through parliamentary approval by the Verkhovna Rada and, upon successful voting, will require the President's signature for final enactment.
Project Background
The UN4UkrainianCities project has provided crucial expert and advisory support throughout 2024, facilitating over 25 meetings of the Ministerial Working Group and organized extensive public consultations with Ukrainian authorities, civil society, and international financial institutions. The European Commission has also endorsed the draft law, reinforcing its alignment with international standards.
Key Provisions of the Draft Law
The new framework introduces significant innovations to improve housing accessibility and sustainability in Ukraine. Central to the reform is the establishment of affordable housing operators and sustainable rental housing stocks. The law promotes public-private partnerships while introducing safeguards for financial mechanisms, including mortgages and leasing.
Digital transformation forms another cornerstone of the reform. An integrated housing database will enable electronic applications and agreements, reducing administrative burden and improving access to housing information. This digital shift aims to minimize official interference and reduce corruption risks while ensuring services remain fully accessible to all citizens.
A key innovation of the law is the establishment of transparent social rental housing funds. Currently, Ukraine's private rental market operates largely informally. The new framework will foster a competitive environment for private landlords while ensuring social housing remains designated for social use, even if sold by the owner. The system will provide affordable rent for all, with subsidies available for those with insufficient income, promoting social mix within residential buildings.
State Support and Strategic Planning
The government will facilitate affordable housing development through several support mechanisms, including favorable land allocation terms and long-term loans. Both state and local budgets will contribute to these efforts, supplemented by international assistance funds.
To guide implementation, a State Housing Strategy will be developed by the Ministry for Communities, Territories and Infrastructure Development of Ukraine, in collaboration with partners and other ministries, for final approval by the Government. This strategy, covering the next 5-7 years, will establish clear policy directions, funding mechanisms, performance indicators, and monitoring frameworks. It will outline:
Clear policy directions and objectives
Funding mechanisms and sources
Performance indicators
Monitoring frameworks
Regional housing strategies will align with this national framework to ensure coordinated development across Ukraine.
Looking Ahead
UNECE will continue supporting Ukraine's housing reform through the UN4UkrainianCities project. The next phase will focus on drafting social housing legislation and developing the State Housing Strategy. These reforms mark an important step toward ensuring equitable access to housing and promoting sustainable urban development across Ukraine.
The success of this initiative demonstrates the value of international cooperation in advancing crucial reforms. Through continued collaboration between UNECE, Ukrainian authorities, and international partners, this comprehensive housing reform will help create more sustainable and inclusive communities across Ukraine.