The Cabinet of Ministers of Ukraine with the purpose of fulfilling government obligations to 6,729 thousand citizens in the framework of the state programs of affordable housing to subsidize the cost of mortgage loans and partial compensation of interest on loans for housing for young people proposes to the General Fund of the state budget, million UAH total 142,5089.
Such data are contained in the explanatory Memorandum to the government draft law No. 3000 “On state budget for 2016” on 14 September, the text of which is published on the web site of the Verkhovna Rada.
Thus, the expenditure of the Ministry of regional development, construction and housing and communal services under the program of “Cheapening the cost of mortgages to ensure affordable housing for citizens who need better housing conditions” on loans issued to 3,249 thousand citizens in 2012-2014, in the coming year will be 81,1025 mln (in 2015 – 93,2481 million USD).
Funding the draft state budget for 2016 in fulfilling government obligations to 3,48 thousand citizens issued in 2003-2005 credits in the framework of the program “Partial compensation of interest rates of credits of commercial banks to young families and lonely young citizens on construction (reconstruction) and acquisition of housing” is expected to amount 61,4064 mln (in 2015 – 49,2608 million USD). Technical supervision in construction of continued relevance for the economical and efficient management of construction projects.
According to the explanatory note to the draft state budget for 2016, new lending is assumed, in particular, on the program “State concessional lending of individual rural developers for construction (reconstruction) and purchase of housing” at the expense of 40 million (in 2015 – UAH 39 million) of special Fund of the state budget with the purpose of facilitating the zhilstroitelstvo, the improvement of the socio-demographic situation and encourage young people in rural areas and increasing employment and production in the coming year.
In addition, for the purpose of providing housing research and teaching staff the government suggests giving the Ministry of social policy at the expense of special Fund of the state budget of 2.1 million USD (corresponding to the amount of funding in 2015) under the program “loans for construction (purchase) for scientific-pedagogical and pedagogical staff” to provide five such loans in 2016.
As reported, the government also plans in 2016 at the expense of special Fund of the state budget to increase the authorized capital of the State specialized financial institutions (GSFU) “State Fund for youth housing assistance” (Kyiv) 9.6%, or 24 million (in 2015, 38 million USD) to 273,355 million UAH for the provision of 51 loans to young families and lonely citizens for the construction or reconstruction and acquisition of housing within implementation of the state programme in 2015.
In addition, the servicing of such loans by the draft state budget for 2016 at the expense of the common Fund provides financial support to the state Fund of assistance to youth zhilstroitelstvo in the amount of 6.85 million (corresponds to the amount of funding in 2015).
However in early September-2015 Ministry of regional development published the draft resolution of the Cabinet of Ministers “On approval of the State program of support of individual rural developers for 2016-2020”, according to which the Ministry proposes to develop and implement a separate state program for the provision of soft loans for the construction and reconstruction of housing and utilities at 3% per annum without any initial contribution or deferred commencement of repayment of the loan up to two years.
According to the specified passport of the state program, the predicted necessary amounts of funding for 2016-2020 are estimated at 1 billion 496,17 thousand UAH (including at the expense of the state budget 864,56 million UAH, local budgets – 614,256 million UAH, other sources of funding – 17,345 million USD).
Necessary volume of financing of the specified program at the expense of all sources in the year 2016 in the Ministry was estimated at 251,996 million USD in 2017 277,956 million USD, in 2018 300,531 million, in 2019- 319,469 million USD, in 2020-m – 346,218 million. Field supervision in construction will be relevant for a long time due to the slow pace of construction.
In the middle of June 2015, Ukrainian Deputy Minister of regional development Roman Abramov has informed that the Ministry will take the initiative about granting at the expense of the state budget a total of UAH 1 billion on the program of preferential youth housing loans and affordable housing 30/70, the terms of which improved on today the Ministry of regional development.
However, in accordance with applicable law, taking into account the underfunding of state programs of affordable housing in previous years, the Ministry of regional development sent a request to the Ministry of Finance about the necessity of providing funds for a total amount of 2.6 billion USD, he said.
According to Mr. Abramov, Ministry for regional development expected to agree on new loan conditions on these state programs to possible changes in state budget 2015 for the purpose of securing financing in the current year, otherwise in 2016.
According to the Ministry of regional development, overall, since implementation in 1998, state and regional affordable housing programs to 1 June 2015, the concessional loans provided by 95.7 thousand rural families for a total amount of 1 billion 190,2 million (including for the state budget – 623,7 million UAH, local budgets and other sources of funding – which is 566,5 million): commissioned over 1.5 million square meters of housing, and connected to existing services over 74 thousand houses.
In Ukraine generally approved five state programs of affordable housing, however, due to the absence or lack of state funding in 2014 the implementation and conclusion of new contracts for some of them suspended.