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Types of Monetization in Ukraine’s Shelter/NFI Sector
The Shelter/NFI Cluster views cash as a modality to meet certain sectorial needs created by the humanitarian crisis in Ukraine. The following are the most prominent monetization used within the Shelter/NFI sector in Ukraine.
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Cash for rent - A conditional cash program by which a family or an individual receives cash for the use of payment on a rental agreement with the landlord. Some agencies refer to this type of monetary program as “non-owners support.” As the majority of IDPs do not have formal rental agreements with their landlord , the Shelter Cluster in Ukraine recommends a tripartite agreement between landlord, beneficiary household, and implementing agency. Monitoring is required at least once per month in order to verify shelter conditions and monitor protection risks. Protection mainstreaming is essential in order to mitigate property owner (landlord) exploitation, tensions with neighbours who may not be receiving financial assistance, and to monitor issues of ownership. In Ukraine, beneficiary IDP households have used this assistance for financial support after resource exhaustion, renovation of an existing accommodation, and for moving to an accommodation with better conditions. In 2016, partners learned that the program had a stronger success for IDPs not residing in collective centres due to beneficiary willingness to participate in such type of programming.
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Cash for heating and utilities - The conflict has made it particularly more difficult for IDPs to afford rising costs of heating and other utilities, particularly during the winter months and in light of subsidy reforms made in April and July of 2016. Because the Government of Ukraine provides subsidies based on household income, size, and utility cost, it is important to ensure that provision of cash should not take the place of these subsidy programs.
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Restricted cash for winterization fuel/NFIs - The objective of this humanitarian assistance is to enable beneficiaries to secure and maintain adequate temperature during the winter and ensure that beneficiaries are able to purchase basic winterization goods such as socks, thermal underwear, boots, gloves, hats, and winter jacket. This type of program works particularly well to support internally displaced persons living further away from the contact line in Donetsk and Luhansk Oblasts. The restriction is applied to target the specific and precise needs of the beneficiaries and facilitate an earlier path to recovery, as agencies are better able to measure the outcome of the assistance.
Vouchers/Cash for repairs (excluding corrugated roofing slate)- Cash or voucher for repair work can be a way to stimulate ownership of shelter projects and facilitate the recovery process. Vouchers or a cash restriction ensures that repairs are adhering to local and international building standards and beneficiaries are receiving technical support for the recovery effort. Such programming requires a high degree of engineering and on the site construction skills. BoQs are compulsory and a qualified engineer should supervise all works. The implementing agency is responsible for ensuring that the beneficiary is able to provide all appropriate documents required for tenure and will be liable for purchase of inappropriate materials such as asbestos, which pose significant health risks to those who are living in the house. Payments per instalment are required according to the volume of repairs (minimum 2 instalments per BoQ). Prior to delivery of the instalment, a monitoring and evaluation team alongside qualified engineers should assess the works to ensure that they comply with safety, construction, and technical standards. Particularly for disabled people, extra construction works may be required for easing their ability to reside in the accommodation, and these works should respect Ukrainian legislation. In these cases, direct implementation by the agency may be an appropriate modality both for transportation of materials and for construction of the disability
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Cash for repairs to existing housing stock (accommodation for IDPs) - Prior to the start of the crisis, the majority of Ukraine’s housing stock was old (with only 7% of housing constructed prior to 1991) and 51.1% of the housing stock had never received capital repairs.13 Between 260,000 to 500,000 IDPs have decided to settle in communities alongside and not return to their place of origin home, and thus require accommodation sometimes in old and decaying homes. Humanitarian agencies have thus provided small cash grants to IDP families to repair housing stock not damaged by the conflict so that an IDP can accommodate his or her family in a new but in need of repair home. Repairs require the same type of monitoring as the “cash for repairs” description above, but cooperation with local authorities and ensuring that ownership documents are in order to facilitate integration within the community are required.
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Cash for work - To link shelter interventions with early recovery and to involve nonaffected neighbours (host community) into repair works, cash-for-work can be employed. Cash for work is designed to create temporary work opportunities to vulnerable segments of the population (able-bodied unemployed individuals) through small-scale projects. Smaller scale work projects can include the removal of rubble (provided that workers are provided with the appropriate safety gear and have minimum exposure to asbestos) and light repair works. For structural repairs and reconstruction, more-able bodied individuals can be involved alongside experienced engineer and shelter personnel.