The Ministry of Regional Development, in collaboration with the European Investment Bank and the European Commission, is working on a pilot project to create social housing worth 100 million euros. Its aim is to develop a model that can be scaled up in the future.

This information was reported by Vitalii Bezgin, Minister for Communities, Territories and Internally Displaced Persons of Ukraine, in an interview with the Interfax-Ukraine news agency.

According to Mr Bezgin, the future social housing system should not be limited to housing funded by the state or the community. The Ministry’s draft law sets out several ways to establish such a fund, including new-build projects, renovating residential and non-residential buildings, purchasing ready-built housing, and including properties owned by other parties on a contractual basis.

‘The new approach involves using different mechanisms to increase the supply of social housing,’ said Mr Bezgin.

A key element of the new model is the establishment of a social housing operator. The idea is that this operator will manage the housing stock professionally, ensuring its upkeep and expansion.

The Minister also announced plans to attract private capital and international investment to the development of social housing, particularly through public-private partnership schemes. Rental income will be channelled back into the system to fund the maintenance, development and construction of new housing.

‘Social housing requires a long-term financial model, so we cannot rely solely on the state budget and community resources. We will be seeking international aid and investment instruments,’ the Minister explained.

Vitalii Bezgin revealed that MinRehion is already collaborating with the European Commission, the EIB, the World Bank, the EBRD and other partners to develop financial mechanisms for housing projects.

‘One specific example is a pilot project to build social housing worth EUR 100 million in cooperation with the EIB and the European Commission. The aim is to develop a model that can be scaled up,’ said Vitalii Bezgin.

Source: interview with Vitalii Bezgin for Interfax-Ukraine.