Vouchers, sanatoriums, mortgages: How will the housing problem for refugees be addressed?
The ideal solution to the housing issue is to distribute vouchers to the affected people.
Due to fighting and the destruction of their homes, nearly 2,1 million Ukrainians have been forced to flee their villages and towns, as Deputy Head of the Presidential Office Kyrylo Tymoshenko reported in late April. However, since then, the number has grown, with tens of thousands more people registering as internally displaced persons. Even with the initial figure, 600 apartments are needed to provide housing for this category of people. We explored where to find them, what options are available, and when people can expect to own their own homes. Vesti.ua.
Housing without choice
According to the "Russia Will Pay" project, 44,2 million square meters of housing stock, worth over $39 billion, has been destroyed or damaged in Ukraine. And this is based on the recorded figures. The Presidential Office promises to build 32 apartments in 16 regions by the end of the year to address the housing crisis. The possibility of purchasing completed apartments from developers for temporary housing for displaced persons left homeless is also being discussed. In the Kyiv region, the total area of apartments completed and ready for purchase is over 42 square meters. Once new buildings are built or existing ones are restored, the apartments will be handed over to those on the waiting list.
The housing issue is complex, as over 4500 private and apartment buildings have been destroyed in the Kyiv region alone following the Russian attack. The housing problem must be addressed immediately, before winter sets in.
In early May, the Kyiv Regional Military Administration announced the construction of 50 square meters each in Irpin and Borodyanka. In Irpin, the Lastochka sanatorium was allocated for development due to a shortage of available land in the city. The Lastochka sanatorium is planned to accommodate 1000 families. The project's cost has already been estimated at 36 billion hryvnias. However, construction has not yet begun, and the deadline is already looming.
There is no talk of financial compensation for lost housing, although this could also be one option, notes Yuri Pita, President of the Association of Real Estate Specialists.
"Building housing will take time—years, and many people have nowhere to live. Getting housing now, which will be purchased from the developer, is an option, but you'll get what they give you, not what you want. Some won't be happy with the floor plan, others with the layout or the location of the building. But I'm not sure they'll hand out housing to private homeowners, and I don't know if they'll build on the site of the demolished one. In my opinion, it's better to give people the opportunity to choose their own housing. Some will want more square footage and pay extra. Others, on the contrary, will want smaller housing and buy where they want, even if it's in another city. It's something like a mortgage—the buyer found an apartment they liked, and a loan was issued against it. But this assumes the person has a temporary place to live. If not, they'll have to take whatever's offered," emphasizes Yuri Pita.
It's clear that if a house or apartment is unfit for habitation, people should be provided with new housing. But what to do with partially damaged buildings that can be repaired or rebuilt, but are currently uninhabitable, remains an open question. All of this will take time, not six months, and most importantly, we need to find funding for construction, which the state currently lacks.
Purchase voucher
According to Yuriy Pita, not all developers are willing to sell their apartments to the state for displaced persons, as in the Kyiv region they are currently being offered for purchase at 24 UAH per square meter. They consider this a small amount, but if offered 27 UAH or more, they'll consider it. However, not all are willing. Some developers in the region are willing to sell vacant apartments in their new buildings today, even at the stated price.
"The Kyiv regional military administration approached me to find available housing through the association. I spoke with developers who could sell finished apartments at the asking price. After all, building at that price is unrealistic and takes a long time. Construction of a new building takes two to two and a half years. That's ideal. It's unclear what will happen next, how the price of building materials will change, what will happen to the hryvnia. There's already a shortage of materials, and logistics are very expensive. And there will be kickbacks when building at public expense. Furthermore, while the building is under construction, the price of building materials will fluctuate, and there will be scandals and investigations," noted Lev Partskhaladze, Chairman of the Board of Directors of the Ukrainian Construction Association.
Lev Partskhaladze believes that the ideal solution to the housing issue is to distribute vouchers to the affected people so they can choose their own apartments, wherever and with whomever they choose.
"But the price per square meter should be around $1000-$1200—that's the right amount, since we need housing that's renovated and furnished," emphasizes Lev Partskhaladze.
But there could be corruption here. That is, the voucher could be sold.
The private sector, according to the head of the board of directors, needs to be allocated a minimum amount for restoration.
"Although this is a complex issue, as every house is different: some are 300-500 square meters, while others are 70 square meters. There should be limits. For example, state compensation is no more than 100 square meters. If a rich person is damaged, they'll somehow get by, but a poor person won't be able to rebuild on their own," says Lev Partskhaladze.
Give me money for rent
But while the situation with residents of the Kyiv region is more or less clear, the situation with those displaced from regions currently experiencing military conflict presents significant challenges. How and where can housing be built for them, and in which regions?! Moreover, they may have to wait a long time for a house to be built or an apartment to be purchased. Therefore, paying rent is an option.
"We won't be able to provide housing for this many people within 10-15 years. Our economy is declining month by month. And now, siphoning off public funds for the construction or purchase of apartments is wrong. Even the government is already proposing to pay rent for displaced people. Our state can't afford the restoration or construction of new housing, or the purchase of apartments. And the economic situation will only worsen. We don't have that kind of money," emphasizes Oleg Popenko, head of the Union of Utility Consumers.
But we need to regulate the housing rental market—there's no rental law, no social housing law, no municipal housing law, etc. And we need to regulate rental prices at the legislative level, as in some cities they've increased by 220%.
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