Housing for internally displaced persons

The problem of internally displaced persons (hereinafter - IDPs) appeared before Ukraine after the Russian annexation of Crimea and the development of the conflict in part of the territory of Donbas, from where approximately 1.5 million people were forced to relocate. Many citizens who have lost their homes decide to stay for long-term or permanent residence in new territorial communities. To provide housing for IDPs, with the support of the Government of Germany, the project "Residential premises for internally displaced persons" was introduced. The direct executor and beneficiary of the project is State Youth Housing. In order to implement the KfW project, the Credit Institution for Reconstruction (KfW) carried out a series of measures to determine the executing organization. In particular, an audit/official assessment of State Youth Housing was conducted for the possibility of cooperation within the framework of German financial cooperation with Ukraine for the purpose of financing the KfW project. In June 2020, based on the results of the audit, the Credit Institution for Reconstruction (KfW) concluded that State Youth Housing meets the requirements and has all the tools to perform the functions of the implementing organization of this Project. On June 3, 2020, an Agreement on Financial Cooperation was signed between the Cabinet of Ministers of Ukraine and the Government of the Federal Republic of Germany  (On December 2, 2020, the Agreement was ratified by the Verkhovna Rada of Ukraine (Law of Ukraine dated December 2, 2020, No. 1037-IX). To ensure the implementation of the above Agreement, a number of legal acts were adopted and a tripartite Grant and Project Agreement was signed between the Cabinet of Ministers of Ukraine, State Youth Housing and the Credit Institution for Reconstruction KfW, Frankfurt am Main for the provision of grant funds, a separate agreement to the Grant and Project Agreement (between State Youth Housing and the Credit Institution for Reconstruction (KfW)), a separate financing agreement (between the Ministry for the Reintegration of Temporarily Occupied Territories of Ukraine and Youth Housing) on April 28, 2021, the Cabinet of Ministers of Ukraine adopted Resolution No. 451 "Issue of providing preferential mortgage loans to internally displaced persons at the expense of the grant provided by the Credit Institution for Reconstruction (KfW)". in the amount of 42.5 million euros, which is equivalent to 1  653.8 million UAH (exchange rate for the years 2021-2023 and January-July 2024 - according to the actual expenses on the date of sale of the currency, for the expenses of future periods: for August-December 2024 &ndash ; the course taken into account in the calculations for the passport of the budget program for 2025-2027 - the course in accordance with the indicators of the Budget Declaration for 2025 – 2027 years). Within the framework of the Project, the provision of soft loans for IDPs is financed.  It is planned to provide 989 loans at the expense of grant funds. In addition, at the expense of reverse financing (repayment of the loan body and payment of part of the interest for the use of the loan (1.6%)) during the years 2021-2027, it is planned to direct UAH 610.1 million to the provision of loans, which will make it possible to provide 277 loans. Due to reverse financing, it is planned to provide loans in the following years as well.

The average size of the loan is approximately EUR 43.7 thousand or UAH 1,717.9 thousand.

The second phase of the Project is currently being implemented. The first phase involved financing in the amount of 25.5 million euros. The second phase involves financing in the amount of EUR 17.0 million. The second phase of the project will be completed by the end of 2024.

As of August 1, 2024, 736 IDP families have been provided with housing.

The use of grant funds is provided in the following directions:

- provision of preferential mortgage loans to internally displaced persons for the purchase of housing in the total amount of 40.455 million euros or 1,567.5 million UAH, including for the audit of the Dispositional Fund 0.034 million euros or UAH 1.6 million;

- expert services for the implementation of related technical assistance measures to assist State Youth Housing in improving its credit standards and credit processes – 2.045 million euros or 86.3 million hryvnias (goes to pay for the services of a financial consultant - in the amount of 1.35 million euros or 55.1 million hryvnias and for IT modernization - in the amount of 0.695 million euros or 31.2 million hryvnias).