Business news from Ukraine

Business news from Ukraine

Applications for compensation for destroyed housing started in “Dia”

The reception of applications for compensation for housing destroyed because of the war started in “Diya” on August 1, the press service of the Ministry of Community Development, Territories and Infrastructure (Ministries of Recovery) reported.

“From today, homeowners whose housing was destroyed will be able to apply for compensation to purchase a new apartment or house. This can be done through the Diya application,” the press release said.

Compensations will be paid to sole owners of housing that was destroyed due to hostilities after February 24, 2022, is not subject to reconstruction and is located in the non-occupied territory and not in the zone of active hostilities. In addition, an information report on the destroyed property filed by its owner must be registered in the registry.

Applications will be considered by commissions previously established at local governments to process eRecovery applications, the report said.

At this stage, compensation will be paid in the form of electronic housing certificates for the purchase of housing. The Ministry of Restoration is also developing a mechanism for the payment of funds for the construction of new private houses on the land plot of the compensation recipient.

Earlier in May, the state aid program “eRestoration” was launched, which provides assistance for the ongoing repair of housing damaged as a result of the war.

Since the start of the program on May 10, Ukrainians have already submitted more than 31 thousand applications for cash assistance for minor repairs of damaged housing. Local governments have set up 520 commissions, which consider applications, inspect damaged housing and decide on the assignment of assistance that can be directed to repairs.

As it was reported with reference to the KSE Institute data, during the year of war in Ukraine about 153.8 thousand dwellings were damaged or destroyed, including 136 thousand private houses and 17.5 thousand apartment houses.

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Ukraine will pay compensation for destroyed housing with “housing certificates”

Prepared for the second reading of the bill on compensation for damaged and destroyed housing (#7198) takes into account the position of the Ministry of Reconstruction that compensation for destroyed housing, recorded in the “Diya”, will be provided with money in the form of housing certificates, not square meters, said Deputy Minister Alexandra Azarkhina.
“A person will have the opportunity to choose how he uses the housing certificate – either in the secondary housing market or primary housing. There is also an opportunity, in case of loss of a private house, to receive compensation for building materials and work on the site of the destroyed house,” – she said at the signing ceremony of the Memorandum of Cooperation between the Ministry of Reconstruction and Public Organization “Office of Transformation”.
Azarkhina specified that the housing certificate would be issued for the amount, which reflects the value of the destroyed housing, and it can be used when buying real estate.
The Deputy Minister stressed that the ministry and the team of authors of the bill № 7198 were categorically against the state itself to build housing to replace the destroyed and settle people there.
“We were against it, and we are glad that our approach was supported,” said Azarkhina.
“Housing certificate” can be used for five years to buy an apartment, private, garden or summer house on the primary or secondary markets. You can choose any region, except temporarily occupied territories and those where military operations are conducted. If funds from the housing certificate are not enough to buy the desired property, a person can add the missing amount, she added.
The basic source of compensation should be seized Russian assets.
As reported, more than 2.4 million Ukrainians live in housing damaged as a result of Russian aggression. Diya has already received more than 316 thousand applications for destroyed and damaged property. The Verkhovna Rada approved the draft law No. 7198 in the first reading in April 2022.

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