Providing housing for the most vulnerable population strata by granting them privileged loans at the expense and with involvement of grant resources

1. State specialised financial institution
“State Fund for the Promotion of Youth Housing Construction” **
PROJECT IMPLEMENTATION CONCEPTION:
“Providing housing for the most vulnerable population strata by granting them privileged loans at the
expense and with involvement of grant resources”
Chairman of the board: Serhii Komnatnyi
The city of Kyiv, 2a Maksym Kryvonos
interel@fhb.kiev.ua
www.molod-kredit.gov.ua
044 275 14 37
044 275 01 39
PARTNERS:
Mingerion
MinTOT
Minmolodsport
Local self-government bodies
Civic organizations
International Organizations
PROJECT IMPLEMENTATION PERIOD: 24 MONTHS
PROJECT IMPLEMENTATION TERRITORY: ALL REGIONS OF
UKRAINE
COST OF THE PROJECT: 10 MIL EURO (316,59 MIL UAH)*
*According to Ukrdealing inter-bank exchange rate of EUR to UAH (buying rate) as of 06.12.2018
** © Translation into English was supported by the Council of Europe Project
«Internal Displacement in Ukraine: Building Solutions», 2019

2. GRANT RECEIVER
State specialised financial institution "Derzhmolodzhytlo"
Statutory capital - 10,4 mil EUR (331 mil UAH)
 Financial services licences
 Credit portfolio - 39,4 mil EUR (1 249 mil UAH)
 Families provided with housing - 115 007
 26 years of experience in housing projects implementation
FOR LEGAL ENTITIES
• Initiatives to improve legal framework in housing sphere
• Participation in preparation of drafts on making amendments to
regulatory legal acts currently in force
• Participation in drafting new regulatory legal acts
• Housing crediting at subsidized interest rates (youth, pedagogues, scientists, ATO
participants, internally displaced persons, doctors, public-sector employees etc)
• Compensation of a part of a housing cost
• Compensation of a part of a mortgage interest
• Crediting of legal entities, including Associations of co-owners of apartment
buildings to hold emergency efficiency and heat preservation activities
• Creation and maintenance of the Housing Building Financing Fund
EXPERIENCE
Regional offices in all
regions of Ukraine
17 regulatory legal acts were developed
during last two years with participation of Derzhmolodzhytlo:
6 - draft Laws of Ukraine, 12- resolutions of the Government
Adopted: 1 Law of Ukraine, 4 Resolutions of the Government,
12 regulatory legal acts - in progress

3. PROBLEM
OBJECTIVE
 Over 9 400 citizens registered in the open electronic register of Derzhmolodzhytlo - candidates to receive
state support to build (purchase) affordable housing, of them: 6 673 IDPs
 Insufficient funding of the Program of providing state support for building (purchasing) of affordable housing
and granting privileged loans to young families from state and local budgets
 6 850 candidates to receive subsidized loans which are registered in a unified information analytical record
keeping system of youth crediting of Derzhmolodzhytlo
To solve housing problem for the most vulnerable population strata (youth, IDPs) by
introduction of a resource renewable crediting mechanism

4. The Law of Ukraine "On Youth Social Formation and Development in Ukraine"
The Law of Ukraine "On Prevention of Negative Influence of the Financial Crisis on the Development of
Construction Sector and Housing Development"
DETERMINE THE MECHANISMS OF PRIVILEGED NON-BANKING MORTGAGE CREDITING
LIMITED FUNDING OF PROGRAMS FROM ALL LEVEL BUDGETS
EXISTING PROJECTS. What exactly is necessary? Why our project?
MECHANISM OF PRIVILEGED CREDITING (SOCIALLY ORIENTED INTEREST RATE) IS A SUSTAINABLE
SOLUTION IN ADDRESSING A HOUSING PROBLEM
OF YOUTH AND IDPs
 Providing housing for the most vulnerable social groups
 Integration of internally displaced persons to the community
 Decreasing the level of emigration from Ukraine (retention of human and labor potential inside the country)
 Stimulation of construction industry
 Positive demographic effect (around 57% of program participants have 2 and more children)
 Stimulation of economic activity of population

5. IMPLEMENTATION MECHANISM
GRANT RESOURCE RECEIVERS
(borrowers)
CONDITIONS:
2. First contribution - 10% of housing value;
3. Loan term - maximum 15 years;
4. Interest rate 7% per annum.
Channelling 10 mil EUR (316,59 mil UAH)* to granting privileged loans will allow to provide housing to 446 families
and ensure 38 loans per year at the expense of repayment funds
Returned funds are
channelled to
granting new loans
*According to Ukrdealing inter-bank exchange rate of EUR to UAH (buying rate) as of 06.12.2018
agreement loan
repayment
construction
investment

6. DEADLINES, IMPLEMENTATION STAGES
ACTIVITY EXECUTORS, PARTNERS IMPLEMENTATIO
N DATE
RESULT
Determination of criteria for selection of
citizens who may receive privileged loans
Grantor
Derzhmolodzhytlo
before concluding loan
agreements
List of citizens
Citizens notification on possibility of
granting a loan and necessity to submit
respective documents
Derzhmolodzhytlo
Citizens
After a grant resource
is received
Submission of necessary
documents by citizens to
Derzhmolodzhytlo
Conclusion of loan agreements and
agreements of housing mortgage which is
to be purchased at the expense of loan
funds
Citizens
Developers
Derzhmolodzhytlo
As far as the
documents are
submitted by citizens
Conclusion of necessary
agreements
Receiving a title to ownership
of housing by citizens
Servicing of loans including arrangement
of loans repayment by citizens, granting
loans at the expense of working capital
Derzhmolodzhytlo
Citizens
Permanently Timely repayment of received
loan by borrowers, crediting at
the expense of working capital
Reporting to the donor on the use of grant
funds and other information
Derzhmolodzhytlo
Grantor
Permanently Exchange of information of
establishing further cooperation

7. BASIC CALCULATIONS
Attracted grant EUR 10 mil (316,59 MIL UAH)*
AVERAGE LOAN INDICATORS (PER 1 AGREEMENT) ESTIMATED VALUE (PER 1 AGREEMENT)
AVERAGE VALUE OF INVESTMENT OBJECT EUR 24 891
(788 014 UAH)*
AVERAGE BORROWER'S LOAN AMOUNT EUR 22 402
(709 213 UAH)*
AVERAGE AMOUNT OF BORROWER'S MONTHLY PAYMENT
PRIMARY LOAN + INTEREST RATE
EUR 190
(6 020 UAH)*
COMPENSATION OF EXPENSES OF DERZHMOLODZHYTLO FOR LOAN
GRANTING AND SERVICING** (expenses for labor remuneration based on planned
timing for servicing of 1 agreement per month; purchase of goods, materials; payment of
services including communal, telecommunication; software and hardware administering;
purchase of capital assets)
EUR 62/MONTH
(1970 UAH)*
*According to Ukrdealing inter-bank exchange rate of EUR to UAH (buying rate) as of 06.12.2018
** Part (50%) of interest under loans received by Derzhmolodzhytlo The rest of received interest is channelled to form a working capital

8. RESULTS
446 FAMILIES WILL RECEIVE PRIVILEGED LOANS DURING THE FIRST YEAR OF IMPLEMENTATION
190 families during every 5 years
 DECREASE OF SOCIAL TENSION
 INTEGRATION OF INTERNALLY DISPLACED PERSONS TO THE COMMUNITY
 DECREASE OF OUTFLOW OF HUMAN AND LABOR POTENTIAL INSIDE FROM THE COUNTRY
 AROUND 32 THOUSAND M2 OF BUILT (PURCHASED) HOUSING
 OVER 14 MIL EUR (AROUND 445 MIL UAH) OF ATTRACTED INVESTMENTS FOR HOUSING
CONSTRUCTION (including own contributions of investors)
 IMPROVEMENT OF DEMOGRAPHIC SITUATION
 EQUAL ACCESS TO HOUSING
 STIMULATION OF ECONOMIC ACTIVITY OF POPULATION
WORKING
CAPITAL