The State Fund for Youth Housing Construction (Derzhmolodzhytlo) has provided housing for 2,240 families during the period of housing programs for internally displaced persons (IDPs), and plans to solve the housing issue of about 1,400 more families in 2025, the press service of Derzhmolodzhytlo told Interfax-Ukraine.
“In total, as of February 6, 2025 (and since 2017, when IDPs appeared as a separate category in state and local housing programs – IF-U), the State Youth Housing Agency has provided housing for 2,240 IDP families. In particular, 996 IDP families received a loan program funded by a grant from the German government through KfW Development Bank for a total of UAH 1.627 billion,” said Mykola Marchuk, Chairman of the Board of the State Agency for Housing and Urban Development.
In addition, 890 IDP families received loans under the program of providing citizens with affordable housing at the expense of the state budget, which was financed in 2017-2019. Another 138 families received government loans for IDPs and ATO (JFO) participants to purchase housing. Active lending took place in 2019. Today, new loans are provided through the repayment of previously issued loans. In addition, 110 families received loans through local targeted programs, and 106 families received loans at the expense of the authorized capital of the State Agency for Housing and Urban Development.
According to the agency, the active request is many times higher than the assistance provided. In particular, only for the program of providing soft loans at the expense of grant funds from the German government through KfW (CMU Resolution No. 451 of April 28, 2021), 30.5 thousand candidates were registered as of January 1, 2025, and as of February 1, 34.4 thousand candidates were registered in the register.
The grant program provides for the most favorable conditions for IDPs in Ukraine: a minimum down payment of 6%, a fixed loan rate of 3%, and a loan term of up to 30 years or until the borrower reaches retirement age. The loan object may be housing on the secondary market not older than 50 years from the date of commissioning. A family of one or two people can buy a 52.5-square-meter home and an additional 21.5 square meters for each additional family member.
As part of the grant agreement, the German government provided Ukraine with EUR 42.5 million in two tranches (EUR 25.5 million and EUR 17 million) on a non-refundable basis. Under this program, the State Agency for Youth and Housing has already selected 20 participants. In the coming days, the agency will issue the 1000th loan under this program.
“For 2025, the State Budget envisages an increase in the authorized capital of the State Agency for Housing and Urban Development by UAH 24 million. We also expect UAH 75 million to be repaid by borrowers from previously issued loans. And we expect that programs funded by local governments will be financed at the level of UAH 240 million this year. We will use these funds to meet the housing needs of young people and partially to lend to IDPs and combatants. We are working to preserve and continue the joint project with Germany,” Marchuk said.
He reminded that on January 31, 2025, the Council of Europe Development Bank (EBRD) decided to allocate a loan of EUR 50 million for a mortgage program for Ukrainian IDPs through the State Agency for Youth and Housing.
“Thanks to the EBRD funding, a new stage of the IDP program will be launched in the near future on terms completely similar to those of the program with KfW. According to estimates, EBRD funding will allow about 1.1 thousand IDP families to purchase housing this year, and state and local programs will help about 300 more,” Marchuk said.
