The State Fund for Youth Housing Construction (Derzhmolodzhytlo) has provided housing for 2,240 families during the implementation of housing programs for internally displaced persons (IDPs) and plans to address housing needs for approximately 1,400 more families by 2025, as reported by the press service of Derzhmolodzhytlo to the Interfax-Ukraine agency.
"As of February 6, 2025 (and since 2017, when IDPs became a distinct category in state and local housing programs - IF-U), Derzhmolodzhytlo has provided housing for 2,240 IDP families. In particular, under the loan program financed by a grant from the German government through KfW development bank, 996 IDP families received support totaling UAH 1.627 billion," said Nikolai Marchuk, Chairman of the Board of Derzhmolodzhytlo.
Additionally, 890 IDP families received loans under the affordable housing program funded by the state budget, which was active from 2017 to 2019. Another 138 families received state loans for IDPs and ATO (JFO) participants to purchase housing. Active lending occurred in 2019. Currently, new loans are being issued based on the repayment of previously issued loans. Furthermore, 110 families received loans through local targeted programs, while 106 families were financed from the authorized capital of Derzhmolodzhytlo.
According to the agency, the demand for assistance far exceeds the support provided. Specifically, as of January 1, 2025, there were 30,500 candidates registered for the program providing preferential loans funded by German government grants through KfW (Cabinet of Ministers resolution dated April 28, 2021, No. 451), and by February 1, the number of candidates in the registry had grown to 34,400.
The grant program offers the most favorable conditions for IDPs available in Ukraine: a minimum down payment of 6%, a fixed loan interest rate of 3%, and a loan term of up to 30 years or until the borrower reaches retirement age. The property being financed can be residential real estate on the secondary market that is no more than 50 years old from the date of commissioning. A family of one or two people can purchase housing with an area of 52.5 square meters, plus an additional 21.5 square meters for each subsequent family member.
Under the grant agreement, the German government provided Ukraine with a non-repayable amount of EUR 42.5 million in two tranches (EUR 25.5 million and EUR 17 million). Derzhmolodzhytlo has already conducted 20 selections of participants under this program. Recently, the institution is set to issue its 1,000th loan under this initiative.
"For 2025, the state budget includes an increase in the authorized capital of Derzhmolodzhytlo by UAH 24 million. We also expect UAH 75 million in repayments from borrowers of previously issued loans. We anticipate that programs financed by local self-government bodies will be funded at the level of UAH 240 million this year. These funds will be directed both to meet the housing needs of youth and partially to finance IDPs and combat participants. We are working to maintain and continue our joint project with Germany," Marchuk stated.
He reminded that on January 31, 2025, the Council of Europe Development Bank (CEB) decided to allocate a loan of EUR 50 million for the mortgage program for Ukrainian IDPs through Derzhmolodzhytlo.
"Thanks to CEB financing, a new phase of the program for IDPs will soon be launched under conditions fully analogous to those of the program with KfW. According to estimates, CEB funding will enable approximately 1,100 IDP families to purchase housing this year, while state and local programs will assist around 300 more," Marchuk said.