A few days ago, the government announced that the Ukrainian authorities have expanded the activities of the State Program for Providing Youth with Housing, adding the possibility of building and acquiring housing for temporary residence of internally displaced persons. But examination of the document showed that it hides huge dangers of abuse.. This was announced by expert Georgy Mogilny on Facebook.

“In order to seem to solve the problems of internally displaced persons, the Cabinet of Ministers of Ukraine allowed Derzhmolodzhitl to build and buy housing at significantly higher margins than before, and provide soft loans to private companies involved in housing construction,” Mogilny said..

The expert notes that there is no mention of internally displaced persons in the resolution. The clear rules of the previous criteria for program participants have been changed to general language. For example, the mention of young families in the Order remained, but the requirements for financial condition, housing, etc..

And added features:.

- construction or acquisition of housing by Derzhmolodzhitl for the purpose of further transfer of such housing for rent (rent), lease with the right to purchase, sale on concessional lending terms (without specifying to whom the transfer);

– concessional lending to legal entities and individuals for housing construction (without specifying the requirements and goals of housing construction by legal entities, the percentage is not more than the NBU discount rate, for up to 20 years),” the expert wrote.

Further, according to Mogilny, these norms will be finalized at the sole discretion of Derzhmolodzhitl and agreed with the Ministry of Regional Development.

“In fact, they threw away budget money and possible foreign aid for Derzhmolodzhitlo’s expenses according to the rules that Derzhmolodzhitlo will later approve for itself in agreement with the Ministry of Regional Development,” notes Mogilny.

Another point that the expert highlighted is the price per square meter, at which Derzhmolodzhytlo will issue loans, buy and even build housing on its own already as a customer.

Previously, there were four gradations depending on the type of settlement.

For large cities of the level of Kyiv, Dnipro, Lvov, Odessa and Kharkov, it was possible to buy in 1. 75 times more expensive than the indirect cost of construction in the region.

For regional centers, as well as cities of regional significance with a population of more than 300 thousand. people - 1.5 times.

For cities of regional significance with a population of more than 100 thousand. up to 300 thousand. - 1.25 times.

For other settlements - indirect cost in the corresponding area.

No changes happened only for big cities. But for other types of settlements, the changes are significant..

“For example, even in a village in a district next to any regional center, the coefficient is now 1. 75 (+75% of the price compared to the existing one). That is, with a budget account or foreign aid money, you can buy / build housing even in a village in 1. 75 times more expensive than the indirect cost of construction in the region. The smallest existing coefficient that determines the marginal purchase / construction price in the new version of the Cabinet of Ministers - 1. 5,"

If these changes are approved, then the lack of clear norms and the relative permissiveness in the allocation of funds will create great risks of abuse and endless corruption.. The worst thing is that this can lead to a situation where internally displaced persons and people who have lost their homes simply will not get it..

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Recall that the Resolution of the Cabinet of Ministers dated April 16, 2022 No. 457 came into force, by which the Government changed the procedure for paying assistance to IDPs.