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🏗️ Registration of FRO and SRP, Innovations in Construction Digitalization, and Prospects for Social Housing: Key Takeaways from the CBU Committee on Development Meeting

During the meeting of the CBU Committee on Development, participants discussed pressing issues related to the registration of Special Property Rights (SRP), the operation of the FRO (Future Real Estate Objects) system, and social housing initiatives.

💬 “We are seeing an increasing number of projects transitioning to the future real estate object model. This is due to a limited supply and the emergence of new developments on the market. At the same time, developers face a range of practical issues with the FRO system’s functionality,” emphasized Anna Laievska, Chair of the CBU Committee on Development.

💻 Oleksandr Honcharenko from the “Digital Transformation Support” (DTA) project presented the current status of digital services within the Unified State Electronic System in the Construction Sector (USEDSS) and outlined the technical aspects of registering Special Property Rights (SRP) and ownership rights.

He explained that for indivisible unfinished construction objects, the registration of SRP is carried out by a state registrar using the same procedure as for divisible ones. All necessary information is generated automatically within the USEDSS and transmitted to the State Register of Property Rights without user involvement. Before a notary issues an extract, the system performs an automatic check for any registered FROs in the building and verifies the absence of encumbrances on the guarantee share, ensuring transparency throughout the procedure.

📊 Plans for developing SRP functionality in the second half of 2025 were also presented. Key directions include the development of software for automatic updates, the launch of SRP registration based on a building passport (expected by the end of Q4), and improvements to notarial extracts regarding data from the State Register of Rights.

📜 Legal aspects of construction and sales under the FRO model — specifically, the most common mistakes and questions from developers — were clarified by Anatolii Leshchenko, Deputy Director of the Department of Private Law and Head of the Legal Support Division for State Registration at the Ministry of Justice of Ukraine.

He emphasized that the FRO system is more efficient. However, the human factor remains a challenge: interference in automated processes or violations of procedures can cause issues with commissioning a property.

The expert provided specific examples of such cases, described how they were resolved, and highlighted the critical importance of timely response. If a technical or logical error occurs, one must immediately contact USEDSS technical support or the relevant state authorities (including the Ministry of Justice) to identify the cause and find an appropriate solution.

🏘️Anna Laievska presented the conceptual framework for the development of the draft law “On Social Housing” and shared European practices that could be tailored to Ukraine’s context. She noted that creating separate districts with social housing leads to marginalization. A more effective approach is to allocate a pool of apartments within regular residential buildings.

In Germany, three scenarios of social housing support are implemented:

✔️ Direct public investment: the community identifies the need, finances the construction, and the housing is transferred to its balance.

✔️ Preferential loans for the construction of social housing.

✔️ Providing incentives to developers in exchange for transferring a share of apartments to specialized housing funds.

Ms. Laievska also proposed the idea of using already-built but unsold apartments for social rental purposes. According to her, currently up to 40–50% of apartments remain unsold before a building is commissioned, which creates potential for implementing rental programs.

🤝 CBU representatives — Oleksandr Chervak, CEO of the CBU, Anna Laievska, and Anatoliy Berkuta, Vice President of CBU — joined the working group of the Ministry for Communities and Territories Development of Ukraine to develop the State Housing Policy Strategy. The strategy aims to ensure synergy between donors, businesses, and government authorities.

Recently, the Ministry for Communities and Territories Development of Ukraine also launched a pilot project for the creation of a Municipal Rental Housing Fund, which introduces a new model of social housing in the form of long-term rentals under preferential conditions.

Oleksandr Chervak called on representatives of the development sector to actively participate in shaping social housing policy by submitting their proposals and recommendations.

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