| Abstract: |
The report reflects the authors' viewpoint in discussions concerning New
Housing Policy Concept in Ukraine. The housing sector in Ukraine has the
following specific features: residents of apartment buildings have received
their flats mainly through free privatization: 99,2% of households owns a
housing; 89% of households live in buildings constructed before 1990-th which
are in need of expensive major repair; the financial sources of major
financing are not identified; professional home management is only emerging
and focused on current needs; joint shared ownership on building and
unidentified land property rights are not effective. Such housing management
system shows a conflict of interests between residents as consumers of
services as well as homeowners. The vast majority of Ukrainian households are
insolvent in paying for utilities. Government subsidies have increased from
UAH 19 billion in 2015 to UAH 74 billion in 2018 and must be reduced to UAH 39
billion in 2021. The population housing utilities debt remains still UAH 66
billion at the end of 2020 (73% of the national monthly wages fund). The
provision of massive housing subsidies to almost half of the households
contradicts with their real property value and leaves the problem of financing
the renovation of the housing stock unresolved. The Government of Ukraine
should develop and approve a New Housing Policy Concept. We have proposed to
take into account the following recommendations for improving housing
management in the document. The state, as well as the local government bodies
must participate in the financing of the first major repair of houses
constructed before 1990, in a proportion to be determined according to the age
and technical condition of the house. To retain ownership of the home, another
share must be funded by the home co-owners. This provides for the right to
determine the ownership or use of land and to include in the management of the
homes of a reasonable component for further repairs. Alternatively, the
possibility of denying homeowners the rights to own a house that will pass to
the community or other efficient private owners is offered. In order to carry
out the functions of building management and facilities management, it is
proposed to consolidate the co-owners' organizations in the associations, to
create a fund for capital repairs and to use it for the gradual financing of
buildings renovation. To manage the real estate assets of co-owners, it is
proposed to introduce and support by the managers the services of insurance,
loans and other asset operations. In addition, it is necessary to establish
requirements for the capitalization of housing companies as assets managers,
enhancing their role in providing payment for housing and communal services
using financial instruments of asset management. As a large number of
apartment buildings do not have the necessary documentation, it is suggested
that inventory and periodic inspection of the buildings to be carried out
digitally by managers. At the same time, it is planned to develop information
models of typical houses, reuse projects of their repair. For developers and
house managers the implementation of life cycle costing and revenue accounting
are planned and their reporting to data bases. In order to withdraw the rental
housing market from the shadows, it is suggested to introduce accounting and
reporting of owners for renting apartments (premises) and monitoring by the
managers of the use of the premises of the house. In addition, to keep the
control of uninhabited housing and determine the rules for its maintenance. In
the implementation of these proposals, management companies, in the case of
investing their own funds in major repairs, modernization and reconstruction
of buildings can acquire, in the long term, into the ownership of the houses
under their management. |