General Information
Program Description
The program is designed for the period 2026-2035 and provides for the creation of a social housing system in Ukraine through the implementation of local investment projects for construction, reconstruction, and major repairs initiated by local governments (hereinafter referred to as local governments), military administrations of settlements formed within the territories of territorial communities, the heads of which exercise the powers of the heads of local governments of the relevant settlement, and regional state (military) administrations.
The total target number of equipped apartments planned to be created within the program is 50,000 units, which will allow restoring or ensuring access to housing for about 130,000 women and men, children, including their vulnerable categories.
The implementation of the program will contribute to overcoming the consequences of large-scale internal migration caused by full-scale armed aggression, and will also lay the foundation for the modernization of state housing policy in accordance with the standards of the European Union countries.
Target groups of recipients of social housing:
- Internally displaced persons (IDPs);
- Medical workers of healthcare institutions;
- Pedagogical, scientific-pedagogical and scientific workers;Employees of housing and communal services enterprises;
- Social workers;Servicemen and war veterans;
- Members families of deceased Defenders of Ukraine; orphans and children deprived of parental care, after completing their stay in relevant institutions.
The list of groups of recipients of social housing is not exhaustive and will be improved with the gradual implementation of mechanisms for differentiating housing support by household income, in accordance with the principles of social justice and international practice.
The implementation of the Program is based on the principles of gradualism, transparency, economic efficiency and sustainability and is based on five fundamental principles that form the regulatory and institutional framework of the new state housing policy:
- Inalienability of social housing: Housing created within the framework of the Program is not subject to privatization, which ensures its long-term use as a public resource for the benefit of the community.
- Creation of social housing management companies (affordable housing operators): it is envisaged to form a network of enterprises or institutions that will perform the functions of operators: social housing management, accounting, maintenance, selection of tenants and provision of services to the population.
- Combination of various financial instruments: financing the implementation of the program involves the integration of funds from state and local budgets, preferential loans from international financial organizations, non-repayable technical assistance (grants), private sector investments, as well as public-private partnership mechanisms. This approach ensures flexibility, sustainability and optimization of the budget burden.
- Transparency of housing provision procedures: clear rules for accounting, prioritization and settlement of persons entitled to social housing are being introduced. All procedures are accompanied by digital accounting, monitoring and must be unified throughout the country.
- Socially balanced rental policy: the rental rate is determined as economically justified, but lower than the market rate, with the possibility of further subsidizing or compensating part of the cost for individual population groups in accordance with current legislation.
The program is implemented in three phases:
- Phase 1: Pilot (2026-2028): provides for the implementation of pilot projects in selected communities (6,620 apartments).
- Phase 2: Scaling (2029-2031): provides for the expansion of the geography of projects with the construction of at least 14,000 apartments, the use of typical social housing management configurations, the deployment of subsidy mechanisms and the improvement of infrastructure integration (transport, medicine, education).
- Phase 3: Institutionalization (2032-2035): involves the creation of full-fledged social housing (approximately 29,380 units), the integration of social housing into the state policy system, the formation of mechanisms for housing mobility, personnel placement and support for the population in regions with high demographic risks.
All housing facilities to be created within the framework of the Program must meet high requirements for quality and sustainable development. These include:
- compliance with energy efficiency standards in accordance with current legislation and European standards;
- barrier-free and inclusiveness: taking into account the needs of people with disabilities, low-mobility groups, women with children, and the elderly;
- climate resilience: adaptation to climate change and environmental safety of materials and technologies.
To ensure coordination and quality of the Program's implementation, it is planned to create a single institutional and regulatory architecture, which will include: centralized coordination by the authorized state authority, methodological and technical assistance from international partners; development of standardized management models and use of unified digital tools.
Strategic Case
Program Goal
Strategic Relevance of the Program
Program Objectives
Economic Case
Program Components
Component ID
DREAM-2
Institutional development and management
Justification
The objective of the component is to create a sustainable, effective and professional architecture for social housing management in Ukraine. The implementation of this component will ensure long-term financial capacity, transparency, accountability, and increase trust in the new state housing policy. The final result should be the launch of the Program management system through the creation and functioning of program management structures at the central, regional (if necessary) and local levels, including the Program Office (PMU) and Project Implementation Units (PIU) in regions and communities. Expected changes: 1) formation of a legal framework for the systemic functioning of the social housing sector in Ukraine; 2) formation of new institutional capacities in communities for social housing management; 3) creation of a unified rental policy based on fairness, transparency, long-term stability and economic efficiency; 4) introduction of clear standards for tariff formation, access to housing and protection of tenants; 5) proper management, coordination, monitoring and involvement of regions and communities in all stages of the Program implementation. The social value of the component is to improve the quality of governance, reduce the risk of abuse in the rental sector, transparent accounting of social housing, as well as increase citizens' trust in local authorities. It will contribute to the introduction of good governance standards in housing policy. The economic benefit of the component is not in creating a product, but in ensuring an effective, controlled and economically justified process of implementing the entire Program. It minimizes the risks of losses, improves the use of resources and builds trust in the investment environment. Justification for choosing a program approach: alternative formats, such as the implementation of individual institutional development projects in individual communities, do not allow for a single regulatory and management framework, which makes it impossible to form a systemic approach. The program approach ensures: 1) synchronization of regulatory regulation, piloting, management, monitoring and training at all levels; 2) coordination of key activities; 3) consistent implementation of best practices in communities, with the possibility of scaling up pilot models. The component's activities are financed through international technical assistance.
Year
Amount
1
22'400'000 UAH
2
32'000'000 UAH
3
46'000'000 UAH
4
55'000'000 UAH
5
56'000'000 UAH
6
57'000'000 UAH
7
65'000'000 UAH
8
65'000'000 UAH
9
65'000'000 UAH
10
65'000'000 UAH
Component ID
DREAM-1
Capital investments in residential properties
Justification
This component provides for the implementation of projects aimed at creating social housing intended for rental to certain categories of women and men, children, including their vulnerable categories. The main areas are: new construction of apartment buildings; reconstruction of unfinished or abandoned facilities; overhaul of the housing stock with subsequent adaptation to social housing standards. As a result of the implementation of the component, it is expected: 1) an increase in the supply of affordable housing; 2) reduction of social tension and improvement of housing conditions; 3) formation of sustainable social housing; 4) increase in employment and development of the construction sector. Social and state value: the component creates a lasting social effect that strengthens the ability of territorial communities and regions to ensure housing rights of the population, reduces inequality, supports labor mobility, reduces poverty, reduces demographic risks, and helps rebuild trust in the state and local governments. Economic benefits: activation of the construction industry and related industries; creation of new jobs at the local and regional levels; potential growth in local budget revenues; optimization of housing compensation costs, as social housing becomes an asset of the community. Alternative approaches and justification for choosing the program format: An alternative could be the implementation of individual projects at the initiative of individual communities. However, such an approach does not provide: systemic coordination at the national level; ensuring uniform standards and mechanisms for selecting, implementing and monitoring investment projects; proper control over the effectiveness of spending; large-scale effect on the market and speed of solving the housing problem. The format of a single program with a set of investment projects allows: to ensure piloting of new approaches and scaling up successful practices; to centrally manage processes taking into account Ukraine's limited experience in the field of social housing; to use digital tools for transparent management of the project portfolio; to coordinate policy with international partners and achieve the goals set by strategic documents.
Year
Amount
1
3'336'480'000 UAH
2
8'341'200'000 UAH
3
5'004'720'000 UAH
4
8'820'000'000 UAH
5
11'340'000'000 UAH
6
15'120'000'000 UAH
7
17'892'000'000 UAH
8
21'420'000'000 UAH
9
18'144'000'000 UAH
10
16'581'600'000 UAH
Financial justification
Total estimated program cost
126'528'400'000 UAH
Estimated cost of program components
126'528'400'000 UAH
Component
Amount, uah
Institutional development and management
₴528'400'000
Capital investments in residential properties
₴126'000'000'000
Sources and mechanisms of financial support for the implementation of programs.
Status
Funding mechanisms
Coverage, %
Investment
Non-repayable financing. Grant financing from existing international support projects, international technical assistance programs, and grants. Direct expenditures.
25%
Reimbursable financing. Debt financing. Loans borrowed by the state from foreign governments, foreign financial institutions, and IFIs
25%
Non-repayable financing. Direct budget financing. Funded from the general fund of the state budget.
50%
What potential funding sources can be mobilized on the basis of prior agreements or intentions to cooperate (if any)
The potential sources of financing for the program at the moment are: 1) attracting framework mixed financing in the amount of 400 million euros: a loan from the European Investment Bank (EIB), which will account for 50% of the amount, and an investment grant from the European Commission, which will also account for 50%. The EIB has confirmed its readiness to support the implementation of the project. 2) the program “Municipal Infrastructure for Sustainable Territorial Development (MISTO)” supported by the Agence Française de Développement with an estimated amount of funds for social housing projects in the amount of 80 million euros.
Management Case
Organizational Measures
The institutionalization stage (2032-2035) - involves the completion of the Program and the construction of 29,380 apartments.
48 months
The scaling stage (2029-2031) - provides for a significant expansion of the geography and scale of the Program's implementation and the construction of 14,000 apartments.
36 months
The piloting stage (2026-2028) involves the launch of the main mechanisms for implementing the Program and the construction of 6,620 apartments.
36 months
Risk Assessment
Risk
Probability
Degree
Strategy
Risk
Delays in adopting the necessary regulatory documents.
Probability
Medium
Degree
Critical
Strategy
Reduction
Risk
Low quality of construction and installation work.
Probability
Medium
Degree
Considerable
Strategy
Reduction
Risk
Labor market instability in the construction sector (staff turnover)
Probability
High
Degree
Considerable
Strategy
Reduction
Risk
Decreased activity of international partners due to changing priorities
Probability
Low
Degree
Considerable
Strategy
Reduction
Risk
Delay in construction work.
Probability
Medium
Degree
Considerable
Strategy
Reduction
Risk
Reduced availability of credit resources.
Probability
Medium
Degree
Considerable
Strategy
Reduction
Risk
Discrepancy between actual costs and the approved project budget.
Probability
Medium
Degree
Considerable
Strategy
Reduction
Risk
Insufficient co-financing from local budgets.
Probability
Medium
Degree
Critical
Strategy
Transfer
Risk
Low solvency of residents.
Probability
High
Degree
Considerable
Strategy
Acceptance
Risk
Low level of transparency in the management of residential facilities.
Probability
Medium
Degree
Critical
Strategy
Reduction
Risk
Delay in receipt of funds from international partners or the state budget
Probability
Medium
Degree
Considerable
Strategy
Reduction
Risk
Insufficient access to basic services (education, medicine, social services).
Probability
Medium
Degree
Considerable
Strategy
Reduction
Risk
Lack of professional staff at the regional and local levels.
Probability
Medium
Degree
Considerable
Strategy
Reduction
Risk
Currency fluctuations when servicing a loan in foreign currency.
Probability
Medium
Degree
Critical
Strategy
Transfer
Risk
Insufficient availability/availability of construction materials in local or regional markets
Probability
Medium
Degree
Considerable
Strategy
Reduction
Risk
Problems with connection to engineering infrastructure.
Probability
Medium
Degree
Considerable
Strategy
Reduction
Risk
Change of leadership at one of the levels of public administration involved in the implementation of investment projects.
Probability
Medium
Degree
Considerable
Strategy
Acceptance
Risk
Delay in approval of technical documentation or issuance of necessary permits.
Probability
Medium
Degree
Considerable
Strategy
Reduction
Risk
Escalation of military actions affecting the security of project implementation in specific regions and communities
Probability
High
Degree
Critical
Strategy
Avoidance
Risk
Fluctuations in prices for construction work and materials due to speculative market behavior
Probability
High
Degree
Critical
Strategy
Reduction
Risk
Stigmatization of social housing residents in communities.
Probability
Low
Degree
Considerable
Strategy
Reduction
Risk
Change in tariff policy for electricity, heat supply, water supply, sewage, waste management.
Probability
High
Degree
Considerable
Strategy
Acceptance
Risk
Insufficient level of coordination of the Program implementation between different levels of public administration.
Probability
Medium
Degree
Critical
Strategy
Reduction
Risk
Disruptions in building materials supply chains.
Probability
Medium
Degree
Considerable
Strategy
Reduction
Risk
Lack of contracting organizations with sufficient capacity.
Probability
Medium
Degree
Considerable
Strategy
Reduction
Risk
Declining market interest in private sector participation in the implementation of investment projects.
Probability
Medium
Degree
Considerable
Strategy
Reduction