Ukraine Prepares to Modernize Its Housing Policy: Parliament Moves Toward Second Reading of Key Bill

Ukraine is preparing to overhaul its housing policy framework. In July, the Verkhovna Rada approved in the first reading the government’s draft law No. 12377, “On the Fundamental Principles of Housing Policy.” The bill is now being prepared for a second reading. Its main goal is to create a modern housing management system and address the issue of outdated and deteriorating housing stock.

Key Reforms

Among the proposed changes are the elimination of outdated waiting lists for public housing and the resolution of long-delayed construction projects. The bill also introduces a new form of rental — social housing with an option to purchase. However, this mechanism will apply exclusively to state-supported social housing. Tenants will have the right to purchase their apartments only after living in them for at least ten years.

According to Olena Shuliak, Head of the Parliamentary Committee on State Governance, Local Self-Government, Regional and Urban Development, monthly rental payments made during the ten-year period will count toward the total cost of the apartment. Once the full term is completed, tenants will be able to become legal owners of their homes.

How the Purchase Price Will Be Determined

The redemption price of such apartments will not be lower than the market value of new social housing. In practice, this means that residents of older buildings will be purchasing their homes at prices comparable to new developments.

As Shuliak explained, the funds received from these buyouts will be directed to a special state housing fund. The fund will then finance the construction of new social housing projects, creating a self-sustaining cycle — citizens buying homes will simultaneously contribute to providing housing for others.

When the Bill Is Expected to Pass

The Verkhovna Rada is expected to adopt draft law No. 12377 in the autumn session. The legislation also fulfills one of the European Union’s requirements under the Ukraine Facility support program.

“Fulfilling this benchmark will enable Ukraine to receive €400 million — half as a loan and half as a non-repayable grant,” said Olena Shuliak.