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🌇Given the large number of internally displaced persons (IDPs) and people whose homes were damaged by the war, affordable housing is not just a dream for Ukrainians, but an urgent need.

👤Oleksandr Chervak, CEO of the Confederation of Builders of Ukraine (CBU), and Anna Laievska, Head of the CBU Committee on development, Commercial Director of Intergal-Bud, discussed social rental housing, the mechanisms working in Europe, and whether they can be adapted to Ukrainian realities on Kyiv FM radio.

Currently, more than 4.6 million IDPs are registered in Ukraine, and only a third of them are eligible for the eOselia (eHousing) program. In a situation where there is a housing shortage and not everyone can afford to buy their own home, social rental can become the mechanism that balances the market.

As Anna Laievska noted, social housing consists of apartments built under public-private partnerships that meet all necessary standards. These are homes that developers do not sell but offer for long-term rent at preferential rates or transfer to municipal enterprises.

For example, in Europe, the average rental price for social housing is $5 per square meter.

💰"This is a widespread mechanism in Europe. It is one of the priorities of international financial institutions and donors, such as the European Investment Bank. The EIB is implementing social housing construction programs for Ukrainian IDPs in European countries," emphasized Oleksandr Chervak.

As a result, communities receive a pool of rental housing for vulnerable populations, and developers receive economic benefits. Anna Laievska outlined preferential mechanisms that operate in Europe, including: cost-price financing, concessional lending, utility connection preferences, and other options.

For this mechanism to work effectively in Ukraine, there must be subsidized supply on the market — stimulating measures implemented at all levels, including financial support, grants, subventions, guarantees, etc.

📜Mr. Chervak emphasized that for the social housing mechanism to be launched, a comprehensive program is required: "We need to propose ready-made solutions, agree on them, and gain support from government institutions. We are working on such proposals to ensure the mechanism works faster and can be scaled."

Why doesn’t social housing work in Ukraine? What is needed to attract investment in its construction? How can all necessary aspects be considered in a legislative proposal?

📹Watch the expert dialogue in the video (Ukrainian language):

https://www.youtube.com/watch?v=frnsYR35zS0 

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