Kyiv, Ukraine. The implementation of the first pilot projects for the construction of social housing will begin in five Ukrainian cities — Kropyvnytskyi, Kremenchuk, Lviv, Mykolaiv, and Zhytomyr. Financing is provided by the European Investment Bank (EIB), which has already allocated €100 million to Ukraine from a total loan volume of €400 million.

This was announced by Yelena Shulyak, Chair of the Verkhovna Rada Committee on State Power Organization, Local Self-Government, Regional Development, and Urban Planning, in an interview with RBC-Ukraine.

Implementation Mechanism and Selection Criteria

Initially, 25 local communities submitted applications to participate in the pilot project. Following a multi-stage selection process, five cities reached the final round. At the current stage, the financial models of these communities are under review by the Ministry of Finance of Ukraine. Experts are assessing their financial stability, after which the EIB will proceed with active financing of construction.

A key feature of the project is that the housing under construction will remain the property of the respective local communities rather than being transferred to private hands. This will allow municipalities to independently manage the social housing fund.

Who Will Receive Apartments

Priority rights to social housing will be granted to the most vulnerable categories of citizens. According to Yelena Shulyak, this primarily includes:

  • Larger families;
  • People with disabilities;
  • Families of military personnel and fallen defenders;
  • Orphans and children deprived of parental care.

Special attention is being paid to internally displaced persons (IDPs), for whom housing rent often becomes a critical financial burden.

Rent Costs and Conditions

It is important to note that decisions regarding specific conditions for providing housing, including rent costs, will be made independently by each community during local council sessions. However, there are general guidelines: rent for social housing should not exceed 25–30% of a family's total income on average.

Calculations will be conducted individually. For certain categories of citizens or families with extremely low income levels, rent may be provided free of charge.

Difference Between Social and Affordable Housing

Experts emphasize the need for a clear distinction between the concepts of "social" and "affordable" housing, which is enshrined in the framework law "On the Basic Principles of Housing Policy".

  • Affordable housing is offered to families who have sufficient income to utilize preferential mortgages or other tools for acquiring real estate.
  • Social housing is provided for rent to those who cannot afford to purchase even with state support.

Legislative Framework and Future of the Project

Construction of the first social housing will proceed in parallel with the preparation of a draft law on the creation of a social housing fund. The document is planned to be adopted next year. However, given the acuteness of the housing crisis, European partners have agreed to start financing even before the law comes into force.

In addition to new construction, relevant ministries are discussing the possibility of forming the fund through the purchase of existing apartments or allocating a portion of housing from developers. Implementing the pilot project in five cities will allow for testing an effective model, which is planned to be scaled to other regions of Ukraine in the future.