Draft Law ‘On the Fundamental Principles of Housing Policy’
Housing destruction in Kharkiv. Photo credits: Kharkiv City Council.
Draft Law of Ukraine ‘On the Fundamental Principles of Housing Policy’
Why Policy Reform?
Developed in 1983, the Housing Code of Ukraine - despite having been amended several times - is outdated and unable to address the large-scale housing destruction and internal displacement of citizens caused by the ongoing conflict in Ukraine.
The Code stipulates that the state must provide free housing to all citizens regardless of their social or financial status. However, the percentage of citizens who have received such housing over the years has been limited due to the lack of financial capacity of the state. Following the fall of the Soviet Union, almost 600,000 inhabitants needed housing and were unable to gain access to it.
Given the ongoing conflict in Ukraine, providing free access to housing is even more challenging. The number of officially registered internally displaced persons (IDPs) - most of whom require housing - has risen to over 4.9 million according to the Ukrainian Ministry of Social Policy.
The proposed draft Law is supposed to replace the Housing Code of 1983 and was developed keeping in mind the need to:
Develop large territories as well as small towns and rural areas (i.e., through implementation of housing programs in all areas);
Prioritize socially vulnerable citizens;
Provide modern, transparent, and open digital approaches to housing policy implementation.
The draft Law aims to ensure that those in need can be the recipients of loans, social housing or temporary housing (for IDPs). Depending on the income of the individual, the draft Law identifies different types of state subsidy. For instance, rent can be subsidized while the individual is required to contribute to services such as electricity and water.
This article describes the drafting process and key stakeholders involved in Ukraine’s housing policy reform, the gaps in existing legislation, key aspects and principles of the law, and next steps.
The drafting process: key stakeholders
To facilitate the discussion on the draft law "On the Fundamental Principles of Housing Policy," the Ministry of Recovery organized a series of public consultations between 13 July and 20 November 2023. These discussions welcomed participation from all stakeholders and were announced on the Ministry's website and through social media platforms. Civil organizations, local government bodies, central executive authorities, scientists, and experts across different fields contributed to these discussions.
In addition, a working group was established and convened on a weekly basis starting on 18 May 2023, to the present day. It comprises of over 40 members representing civil society organizations, local government bodies, associations of local authorities, central executive agencies, the advocate for IDP rights, members of parliament and their subordinates. The meetings are focused on the detailed, article-by-article drafting of the proposed legislation.
Experts and specialists from the United Nations Economic Commission for Europe (UNECE), the Norwegian Refugee Council (NRC), the International Organization for Migration (IOM), the United Nations High Commissioner for Refugees (UNHCR), and the Council of Europe, have also contributed to drafting of the Law.
Exchange of best practices
A seminar was held on 28 November 2023, by the Ministry of Infrastructure, the Nationwide Association of Communities, and the Association of Small Cities. It intended to engage local government associations in the process and featured presentations and discussions on the concept of the draft Law.
The concept of the draft Law was also introduced in three Committees of the Parliament of Ukraine (Verkhovna Rada):
the Committee on Social Policy and Protection of Veterans' Rights;
the Committee on the Organization of State Power, Local Self-Government, Regional Development and Urban Planning;
the Committee on Youth and Sports.
As the draft Law will regulate housing policy across sectors, this exchange gave each Committee the opportunity to consider and review issues that fall within their area of expertise. Once the Committees review developments on the draft Law, only then can it be submitted to the Verkhovna Rada.
A series of educational workshops were also conducted to focus on examples from the region. On 14 August 2023, a workshop was held on Finland's approach to ensuring affordable housing, an online workshop on experience exchange “Housing Cooperatives in the UNECE region” was held on 25 October 2023, and a seminar on “Housing management models for Ukraine: Estonian Experience” took place on 1 December 2023.
Recommendations
Based on an analysis (conducted by members of the working group) of Ukraine's current housing legislation, European practices in housing policy, and international legal standards, the following recommendations were developed by the working group and through public consultations.
The new housing policy framework should ensure conditions that enable every citizen, considering their financial means, social status, and health, to address their housing needs. The state must also establish mechanisms to provide housing to specific minorities or vulnerable groups.
Establishing a centralized system to provide information on housing support programs is crucial for Ukraine due to the existence of multiple state and local initiatives aimed at assisting citizens in purchasing housing. However, the lack of a unified platform leaves citizens without easy access to information regarding the available options to meet their housing needs.
Creation of an electronic digitized system that combines data across state registers. The system will analyze citizen data (income, social status etc.) to determine what housing options are available. The system will provide digital record on housing funds, interactions with state registers, information and communication systems, and sources of available housing and their financial terms.
Special attention should be paid to IDPs, those who have lost their homes due to the ongoing conflict, and those with low incomes, particularly in the creation of social housing funds.
Housing policy formulation and its subsequent implementation should be informed by a thorough analysis of current needs and should involve planning of future policy measures.
Key principles
The new draft Law aims to fulfil citizens' constitutional rights to housing by taking into account one’s legal, economic and social status. As such, the following principles were proposed:
Sustainable development: housing policy should be implemented on a strategic basis, considering realistic tasks and priorities, available financial resources, and the gradual achievement of goals.
Forecasting: funding, decisions on housing policy should be based on foresight and outlooks on future housing needs.
Non-interference: the state should not intervene in how citizens manage their housing (ex. selling, leasing etc.), or restrict their right to purchase housing, except in cases provided for by law, for example, seizure of housing as a measure of liability.
Transparency: information on housing policy should be as open and accessible as possible, in particular through the aforementioned centralized online database.
Accessibility: ensuring economic affordability and physical accessibility to housing, so that the needs of all individuals are adequately met.
Equity and equal access: ensuring non-discriminatory access to housing for all, regardless of personal circumstance.
Next steps
Once the final draft version of the Law "On the Fundamental Principles of Housing Policy" is prepared, the next step involves submitting it to international financial institutions, including the World Bank. This submission aims to solicit expert recommendations on the draft law's alignment with international regulatory frameworks and European Union legislation.
Subsequently, the draft will be revised based on the feedback of international partners and then be submitted to the Verkhovna Rada of Ukraine no later than July 2024.
This article was written by Nataliia Korochenko and Anya Magotra.