Ukraine

DRC-DDG Legal Alert: Issue 63, April 2021 [EN/RU/UK]

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1. Cabinet Adopts Framework for KfW Preferential Housing Loans Provision

Background: Back in November 2020, the Cabinet approved a German Federal Government Grant and project agreements, titled ‘Housing for IDPs’ project with KfW . With a total budget of 25.5 million EUR, the project foresees the provision of preferential housing loans to 680 IDP families in 2021-2022.
However, the government still had to adopt the necessary framework to implement the project.

Recent Developments: On 28 April 2021, the Cabinet issued Resolution No. 451 providing two procedures necessary to launch the programme: i) Program Participation Terms – procedure for the provision of preferential housing loans to IDPs; ii) Procedure for the programme funds use ( the paper-work necessary to operationalise the programme).

Key Programme Terms:

 Initial loan contribution – from 6%, with 3% annual interest rate, term of the loan – up to 20 years, unless the applicant reaches the retirement age sooner;

 Eligibility exclusively for IDPs who do not have habitable housing within GCA and meet the income criteria;

 Income criteria: the joint monthly family income after the loan instalment deduction must exceed the level of a living wage (depending on age and health status – from 1,769 UAH to 2,395 UAH) per family member.

 Programme participants will be selected among candidates meeting the abovementioned eligibility criteria by a random computer selection;

 Programme participants select preferred housing slots on their own – within certain eligibility criteria.

Programme Registration: Programme registration is open until 17 June 2021. Applications can be submitted online via the ‘Diia’ application or in paper form to the State Fund for Support of Youth Housing Construction regional offices. IDPs who have previously registered in the preferential housing mortgage loan programme for IDPs and veterans under Cabinet Resolution No. 9802 will automatically register for the KfW programme.