Providing housing for the most vulnerable population strata by providing them with support at the expense of grant resources

1. State specialised financial institution
“State Fund for the Promotion of Youth Housing Construction”
PROJECT IMPLEMENTATION CONCEPTION:
“Providing housing for the most vulnerable population strata by providing them with support at the expense
of grant resources”
Chairman of the board: Serhii Komnatnyi
The city of Kyiv, 2a Maksym Kryvonos
interel@fhb.kiev.ua
www.molod-kredit.gov.ua
044 275 14 37
044 275 01 39
PARTNERS:
Mingerion
MinTOT
Minmolodsport
Local self-government bodies
Civic organizations
International Organizations
PROJECT IMPLEMENTATION PERIOD: 24 MONTHS
PROJECT IMPLEMENTATION TERRITORY: ALL REGIONS OF
UKRAINE
COST OF THE PROJECT: 10 MIL EURO (316,59 MIL UAH)*
*According to Ukrdealing inter-bank exchange rate of EUR to UAH (buying rate) as of 06.12.2018
** © Translation into English was supported by the Council of Europe Project
«Internal Displacement in Ukraine: Building Solutions», 2019

2. GRANT RECEIVER
State specialised financial institution "Derzhmolodzhytlo"
Statutory capital - 10,4 mil EUR (331 mil UAH)
 Financial services licences
 Credit portfolio - 39,4 mil EUR (1 249 mil UAH)
 Families provided with housing - 115 007
 26 years of experience in housing projects implementation
FOR LEGAL ENTITIES
• Initiatives to improve legal framework in housing sphere
• Participation in preparation of drafts on making amendments to
regulatory legal acts currently in force
• Participation in drafting new regulatory legal acts
• Housing crediting at subsidized interest rates (youth, pedagogues, scientists, ATO
participants, internally displaced persons, doctors, public-sector employees etc)
• Compensation of a part of a housing cost
• Compensation of a part of a mortgage interest
• Crediting of legal entities, including Associations of co-owners of apartment
buildings to hold emergency efficiency and heat preservation activities
• Creation and maintenance of the Housing Building Financing Fund
EXPERIENCE
Regional offices in all
regions of Ukraine
17 regulatory legal acts were developed
during last two years with participation of Derzhmolodzhytlo:
6 - draft Laws of Ukraine, 12- resolutions of the Government
Adopted: 1 Law of Ukraine, 4 Resolutions of the Government,
12 regulatory legal acts - in progress

3. PROBLEM
OBJECTIVE
 Over 9 400 citizens registered in the open electronic register of Derzhmolodzhytlo - candidates to receive
state support to build (purchase) affordable housing, of them: 6 673 IDPs
 Insufficient funding of the Program of providing state support for building (purchasing) of affordable housing
and granting privileged loans to young families from state and local budgets
 6 850 candidates to receive subsidized loans which are registered in a unified information analytical record
keeping system of youth crediting of Derzhmolodzhytlo
To solve housing problem for the most vulnerable population strata (youth, IDPs) by
providing them with compensation of a part of housing value for citizens having own
savings to pay for a part of housing value

4. Providing state support for building (purchasing) of affordable housing -
a unified statutory mechanism to address
housing issue of IDPs
The Law of Ukraine "On Prevention of Negative Influence of the Financial Crisis on the Development of Construction
Sector and Housing Development"
Resolution of the Cabinet of Ministers "Some questions of providing citizens with affordable housing" dated 10.10.2018 № 819
Insignificant budgetary support which results in
insufficient level of addressing a housing issue
EXISTING PROJECTS. What exactly is necessary? Why our project?
MECHANISM OF PROVIDING SUPPORT (COMPENSATION OF A PART OF HOUSING VALUE) IS A
STIMULATING MECHANISM IN ADDRESSING HOUSING PROBLEM OF YOUTH AND INTERNALLY
DISPLACED PERSONS
 Providing housing for the most vulnerable social groups
 Integration of internally displaced persons to the community
 Decreasing the level of emigration from Ukraine (retention of human and labor potential inside the country)
 Stimulation of construction industry
 Positive demographic effect (around 57% of program participants have 2 and more children)
30% or 50% of value
state support
70% or 50% of value
own funds
+

5. IMPLEMENTATION MECHANISM
GRANT RESOURCE RECEIVERS
Channelling 10 mil EUR (316,59 mil UAH)* to implementation of mechanism of compensation of a part of housing
value will allow to provide housing to 1 004 families
30% or
50% of
value -
compensation
70% or
50% of value
-
own funds of
citizens
CONDITIONS:
+
*According to Ukrdealing inter-bank exchange rate of EUR to UAH (buying rate) as of 06.12.2018
agreement agreement
construction
investment

6. DEADLINES, IMPLEMENTATION STAGES
ACTIVITY EXECUTORS, PARTNERS IMPLEMENTATION
DATE
RESULT
Determination of criteria for selection of
citizens who may receive compensation of a
part of housing value
Grantor
Derzhmolodzhytlo
Before concluding
agreements on providing
compensation of a part
of housing value
List of citizens
Citizens notification on possibility of
receiving compensation of a part of housing
value
Derzhmolodzhytlo
Citizens
After a grant resource is
received
Submission of necessary
documents by citizens to
Derzhmolodzhytlo
Conclusion of Agreements on providing
compensation of a part of housing value
Citizens
Derzhmolodzhytlo
As far as the documents
are submitted by citizens
Receiving a title to ownership of
housing by citizens
Servicing of agreements Derzhmolodzhytlo
Citizens
Permanently
Reporting to the donor on the use of grant
funds and other information
Derzhmolodzhytlo
Grantor
Permanently Exchange of information
Establishing further cooperation

7. BASIC CALCULATIONS
Attracted grant EUR 10 mil (316,59 MIL UAH)*
AVERAGE INDICATORS ON PROVIDING COMPENSATION OFA PART OF
HOUSING VALUE (PER 1 AGREEMENT)
ESTIMATED VALUE (PER 1 AGREEMENT)
AVERAGE VALUE OF INVESTMENT OBJECT EUR 24 891
(788 014 UAH)*
AVERAGE AMOUNT OF STATE SUPPORT EUR 9 956
(315 205 UAH)*
AVERAGE AMOUNT OF PARTICIPANT'S OWN CONTRIBUTION EUR 14 934
(472 808 UAH)*
COMPENSATION OF EXPENSES OF DERZHMOLODZHYTLO FOR CONCLUDING
AGREEMENTS ON PROVIDING COMPENSATION OFA VALUE PART** (expenses
for labor remuneration based on planned timing for conclusion of 1 agreement; purchase of
goods, materials; payment of services including communal, telecommunication; software and
hardware administering; purchase of capital assets)
EUR 373
(11 820 UAH)*
*According to Ukrdealing inter-bank exchange rate of EUR to UAH (buying rate) as of 06.12.2018
** To be paid to Derzhmolodzhytlo

8. RESULTS
1004 FAMILIES WILL RECEIVE TITLE TO OWNERSHIP OF HOUSING
DECREASE OF SOCIAL TENSION
INTEGRATION OF INTERNALLY DISPLACED PERSONS TO THE COMMUNITY
DECREASE OF OUTFLOW OF HUMAN AND LABOR POTENTIAL INSIDE FROM THE COUNTRY
OVER 56.8 THOUSAND M2 OF BUILT (PURCHASED) HOUSING
25 MIL EUR (AROUND 791,5 MIL UAH) OF ATTRACTED INVESTMENTS FOR HOUSING
CONSTRUCTION (including own contributions of investors)
IMPROVEMENT OF DEMOGRAPHIC SITUATION
*According to Ukrdealing inter-bank exchange rate of EUR to UAH (buying rate) as of 06.12.2018