THE COST OF HOUSING UNDER THE PROJECT “HOUSING FOR IDPs” IS THE LOWEST AMONG ITS KIND
As of 15 November 2022, the families of IDPs have already received 475 loans for the purchase of housing within the framework of the soft mortgage lending program to IDPs at the expense of a grant provided to Ukraine by Germany through the Credit Institution for Reconstruction (KfW).
Only ready-made and put-into-operation housing can be taken as a soft mortgage under the program “Housing for IDPs”. At the same time, there is no imposition of a list of sellers. The position of the program's developers and its executor – the SFYH, is to provide the opportunity for citizens to choose housing to be purchased on soft terms independently. Citizens purchased 90 % of housing under the program from physical persons (429 apartments), and 46 apartments were purchased from construction developers through financial companies.
The cost of housing purchased under the program is the lowest among other state housing programs active in Ukraine. Apartments under the Ukrainian-German project cannot cost more than the average cost of housing, as set by the Ministry of Reintegration of the Temporarily Occupied Territories, with a coefficient of 1.75%, while the coefficient for other housing programs constitutes 2.5%.
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On 1 November 2022, the 13th random draw of soft mortgage loan winners under the program “Housing for IDPs” occurred at the State Fund for Support of Youth Housing Construction.
According to the random draw's results, another 500 families could get a loan for housing on unique conditions for Ukraine today – at 3% per annum.
The project was launched in July 2021, but its implementation was suspended in February 2022, with the beginning of russian military aggression, and resumed in August of this year. This is already the fifth round of the program, which took place under martial law imposed by the Order of the President of Ukraine.
More than 30,000 applications have been registered in the open register of candidates to potentially receive soft loans under the program.
The “Housing for IDPs” program is financed by a grant from the German Government, provided as part of an intergovernmental agreement through the KfW Reconstruction Credit Institution, Frankfurt am Main. The SFYH and the Ministry of Reintegration of the Temporarily Occupied Territories jointly implement the project.
Loans are granted for up to 30 years at 3% per annum, based on the standard housing area of 52.5 square meters of total area per person or family of two and an additional 21 sq. m. for each subsequent family member.
Lending objects may be chosen only on the secondary market, and they must have been commissioned no longer than 50 years ago or reconstructed no longer than 35 years ago.
Following the Government's amendments, participation in the program was allowed to citizens who have housing in settlements where hostilities are ongoing or are under occupation or encirclement. The list of such communities was approved by the Order of the Ministry of Reintegration of the Temporarily Occupied Territories.
In order to reduce the financial burden on borrowers in the event of a decrease in their solvency, the debt restructuring procedure has been established.
One may register to participate in the program through the portal of state services “Diia” or in one of the regional offices of the SFYH.