For all our dear and esteemed readers who keep a close eye on their utility bills, there is very important information. The Cabinet of Ministers is actively promoting a new initiative aimed at helping families save personal money.
A pilot project has recently been launched to provide housing rent subsidies.
Journalist and pension consultant Sergey Korobkin has released a new video on YouTube, where he explains who will be eligible for the benefit, the conditions for its allocation, and how much money can be received from the government for housing rent.
Who can receive housing subsidies for IDPs
On October 25, 2024, the Cabinet of Ministers adopted Resolution No. 1225 "On the implementation of the experimental project to provide subsidies for the payment of the cost or part of the cost of renting housing...".
This regulation primarily concerns internally displaced persons (IDPs), as well as those who will rent housing to them. The resolution came into effect on January 29. You can find a link to the text of the resolution in the message below this video.
Conditions for receiving housing rent subsidies for IDPs
Who among internally displaced persons can receive a subsidy? There are several conditions:
1. Participants in the project can be individuals with IDP status, renting housing and spending more than 20% of their total income on rent.
2. Such individuals:
a. Either relocated from areas included in the list of territories where hostilities are taking place or temporarily occupied, and do not have their own housing in the territories controlled by Ukraine with a total area of more than 13.65 square meters per family member.
b. Or have completely lost their housing, meaning it has been destroyed or damaged to the extent that it is uninhabitable.
3. Rent subsidies will not be granted if such displaced persons continue to receive living allowances – 2000 UAH for adults and 3000 UAH for children.
4. There should be no familial ties between the tenant and the landlord.
5. After signing the contract, residents must live at the declared address.
6. And perhaps most importantly, the rental agreement must be formalized officially, and it needs to be registered with the Pension Fund.
How the size of the housing subsidy for IDPs is calculated
The amount of the housing rent subsidy is calculated individually for each household and depends on income levels, the number of family members, the cost of renting housing, adjusted by a coefficient for the region where the rented housing is located. Importantly, a family can simultaneously receive both a rent subsidy and a subsidy for housing and communal services. Therefore, one does not interfere with the other.
The Pension Fund provides an example where a family of four applies for a housing rent subsidy. This includes a working man and woman, and two minors. The spouses together earn a salary of 24,000 UAH per month and rent housing in Dnipro for 14,000 UAH.
However, former Minister of Social Policy and ex-Deputy Prime Minister Pavel Rozenko claims that on average, the compensation for housing rent for the entire family will now amount to only 2-3 thousand UAH per month, rather than 7 thousand as per the Pension Fund's example. He wrote this on his Facebook:
"I took a pencil. For a family of four, with two adults and two children, there are 15 options for different regions and family incomes. The amounts of rent subsidies ranged from two to three thousand one hundred UAH per month for the entire family."
Pavel Rozenko also reminded that until April 2024, such a family of forced migrants received living assistance of 10,000 UAH:
- adults – 2000 UAH each,
- children – 3000 UAH each.
In fact, this assistance has been taken away and replaced with smaller subsidies. Moreover, it is now much more complicated to obtain them.
How to apply for housing assistance
For those undeterred by these complexities, I will explain how to apply for this assistance. To receive a subsidy, the tenant along with the property owner must submit a request and a signed rental agreement to the Pension Fund.
This can be done in person: at any service center of the Pension Fund or at a CNAP, which is a center for the provision of administrative services.
As for the housing rent subsidy, as already mentioned, it is necessary to provide primarily two main documents:
- the rental agreement (there is a special form approved in the annex to the resolution);
- and an application (also of an approved form).
In addition, depending on the circumstances, other documents may be required, such as:
- proof of familial relationships,
- or, conversely, proof of separate living,
- any court decisions regarding status, for example, regarding lost housing, etc.
Of course, there must also be a document confirming IDP status.
Reasons for denial of housing subsidies for IDPs
However, you may encounter other surprises and additional conditions at the Pension Fund. Subsidies will be denied or already allocated assistance may be revoked if:
• within three months prior to the application or during the receipt of assistance, someone in the family acquired a vehicle manufactured within the last five years (except for mopeds and trailers);
• if within three months prior to the application, property, goods, or services were purchased or paid for in excess of 100,000 UAH;
• if within the same time frame, cash or foreign currency was purchased, or banking metals were acquired totaling more than 100,000 UAH;
• having more than 100,000 UAH in total on deposit accounts on the first day of the month for which the subsidy is applied or on the first day of each month during which the subsidy is received;
• owing alimony, etc.
In general, the resolution is extensive and contains a lot of nuances. The housing rent subsidy is granted for six months, with subsequent automatic renewal. The duration of the experiment is currently set for two years, until January 2027.