Serhii Komnatnyi has taken part in an international conference on affordable housing

On 18 June 2020, Serhii Komnatnyi, Chairman of the Board of the State Fund for Support of Youth Housing Construction, took part in a web conference “National Housing Policy in Albania: Financing Affordable Housing and the Role of Housing Agencies”.

This professional dialogue was organized by the United Nations Economic Commission for Europe (UNECE) and the Ministry of Economy and Finance of Albania in cooperation with Housing Europe and UN-Habitat. The conference was about challenges and opportunities for financing housing construction and national best practices in this area. In addition to practical assistance to Albania, the conference will facilitate the exchange of experience in providing affordable housing in an international context.

The conference participants were welcomed by the Albanian authorities and the Secretary of the UNECE Committee on urban planning, housing and land management, Gulnara Roll. Two sessions were held — one on financing affordable housing and that on the role of housing agencies in providing affordable housing.

Representatives of Housing Europe, Albania, Spain, Portugal, Ireland, Slovenia, Croatia and Ukraine spoke at the event.

In his speech, Serhii Komnatnyi, as the head of a unique instrument of state housing policy in this country - the State Fund, outlined the situation in Ukraine regarding access to adequate, affordable and decent housing and shared experience in implementing mechanisms to provide affordable housing for various categories of citizens.

The right to housing is one of the basic socio-economic human rights, he said. At the same time, the financial capabilities of the majority of Ukrainians and the level of interest rates of commercial banks do not allow people to gain free access to the housing market and solve the housing issue without state support.

The Foundation runs a number of tried and tested housing programs that provide housing for various segments of the population. They can be divided into three categories:

1)                    the State Fund lending directly at preferential interest rates,

2)                    bank lending when the State Fund reimburses part of the interest on such a loan,

3)                    compensation of part of the cost of housing that the program participant buys at their own expense.

The first group of programs includes the provision of long-term state loans with preferential interest rates to young people, scientists and teachers, ATO participants, internally displaced persons, and employees of budgetary institutions. The interest rate on such loans, depending on the category of program participants, is set at the level of 0 per cent per annum up to the interest rate in the amount of the discount rate of the National Bank of Ukraine (today it is 6 per cent per annum).

The second category is loans from a bank — while the State Fund reimburses part of the interest rates on such a loan.

The third category of programs provides for the possibility of providing at the expense of State budget funds non-refundable compensation of the cost of housing purchased by a program participant. ATO participants and IDP’s are entitled to compensation of 50% of the cost of housing. Other citizens who need state support in resolving the housing issue can benefit from compensation of 30% of the cost of housing.

The sources of funding for all the programs are the State budget of Ukraine, local budgets (currently there are 118 local programs) and the authorized capital financed by the Government of Ukraine, which role is lending to young people. The peculiar feature of the State Fund is that all funds paid to repay loans are used to form a "revolving fund" and used to provide new loans.

In recent years, local authorities have been most active in addressing housing affordability for the population. In 2019, there was a significant increase in funding for housing programs from the budgets of all levels. In general, the growth was 135% compared to 2018. According to the results of 2019, as many as 1,647 families became participants in affordable housing programs.

Now the world is going through difficult times, and Ukraine is no exception. The COVID-19 pandemic has affected the development of affordable housing programs in Ukraine. The institution is working hard to maintain funding, as it  forecasts a reduction in funding for this year's programs.

The Foundation works with program participants openly and transparently. It has recenty become possible to apply online for registration to participate in the programs, through the websites of regional offices of the State Fund. Open registers of program participants and potential customers are there on the websites as well: in the open register, everyone can see their position in the queue to participate in the program.

"The housing problem has been and remains one of the most acute social problems in the world. We are looking for new sources of funding for housing programs provided by law, and at the same time - new efficient mechanisms to ensure access of Ukrainians to affordable and sufficient housing," - concluded in his speech Serhii Komnatnyi.

Click here if you want to know more about this conference:

http://www.unece.org/index.php?id=54613