About fund

State Fund for Support of Youth Housing Construction is a unique instrument of state housing policy implementing various mechanisms of state support of citizens in their aspiration to get their own housing.

Today it has privileged crediting of young families, state support under the program of affordable housing (30*70 and 50*50 for ATO participants and IDPs), as well as compensation of interest rate under loans of commercial banks under the scheme of making mortgage loans less expensive, where 13% will be compensated.

The most popular and topical mechanism among the youth for today is the program of privileged long-term construction crediting or housing purchase for young families.

Main provisions of mechanism are determined by the Law of Ukraine on Youth Social Formation and Development in Ukraine that was adopted in 1993 and Regulation on the Order of Giving Privileged Long-term Loans to Young Families and Solitary Young Citizens for Housing Construction (Reconstruction) and Purchase, approved by the resolution of the Cabinet of Ministers of Ukraine dated May 29, 2001 №584.

The loan is given and serviced by the Fund without participation of commercial banks. It’s given to a young family aged up to 35 years, for the period of 30 years. Interest rate is 3 % per year. At any stage of loan treaty operation, when a child is born privileges are established. Families with children are exempt from percent payment for the use of loan, 25% are payed to the families where 2 children are brought, 50% are repaid if three and more children are brought. Funds received from the loan are directed to further crediting.

In 2009 the Government approved the Statute of the Fund envisaging formation of the Fund’s share capital. A new form of crediting was introduced at the expense of the Fund’s share capital funds.

The source of the share capital replenishment are funds from the return of privileged long-term youth loans for housing construction or purchase.

To get the loan at the expense of the funds of the share capital for a young family aged up to 35, the term of the loan is 30 years, the requirement was established for a borrower to be included to the citizens’ rating who need improvement of housing conditions. When calculating the sum of the loan square standards are applied which were determined by the resolution of the Cabinet of Ministers of Ukraine dated May 29, 2001 #584, the possibility of early funding is also provided for.

When introducing the privileged nature of giving loans at the expense of the funds of share capital the measures for preserving these funds were taken: interest rate is calculated taking into account the NBU counting rate +3%, additional privileged conditions are absent depending on the number of children making the loss of the share capital funds impossible.

Compared to the loans of commercial banks the conditions of crediting by the Fund at the expense of the funds of share capital are more moderate.

On October 24, 2012 the State Program of Youth Housing Provision was approved that will be effective until 2023.

According to the Procedure of the Affordable Housing Provision, approved by the resolution of the Cabinet of Ministers of Ukraine # 140 dated February 11, 2009, starting from 2010 the power to give state support to citizens for building (purchase) of affordable housing was delegated to the Fund by the Ministry of Regional Development of Ukraine. The Ministry defined the Fund as the recipient of budgetary funds for providing state support for citizens to build affordable housing.

The program foresees making housing cost cheaper by 30 % of the standard housing cost at the expense of state grant and by 50% cheaper for ATO participants and IDPs.

This program is aimed at citizens requiring improvement of housing conditions under law and who are capable of paying 70 % or 50% of standard housing cost.

This program is not aimed at low-income, socially unprotected citizens or people with limited financial possibilities. Its task is to help citizens, first of all, economically active part of society, to independently solve the housing issue by the implementation of financial and investment mechanism of state support for building (purchase) of affordable housing.

In 2012 the Fund was involved in the implementation of Social Initiatives of the President according to the resolution of the Cabinet of Ministers of Ukraine dated April 25, 2012 #343 on making mortgage loans cost cheaper.

The program foresees that partial funding of borrower’s obligations under loan for construction or purchase of housing (13% shall be repaid at the expense of the state budgetary funds; borrower gets the loan under 3% per year).

Thus, the system of state housing support of different categories of citizens was created in Ukraine with the participation of the State Fund for Support of Youth Housing Construction. A citizen who is acknowledged by legislation as the one who needs to improve housing conditions may use any mechanism in view of the property status.

The list of financial services provided by the State Fund for Support of Youth Housing Construction is as follows:

  • giving monetary loan, including on terms of financial credit;
  • property management for financing of construction objects and/or fulfilling operations with real estate pursuant to the Law of Ukraine on Financial and Crediting Mechanisms and Property Management in the Course of Housing Construction and Operations with Real Estate.