This «Affordable» Housing

30.03.2010 13:18
Articles about real estate | This «Affordable» Housing
With the advent of a new professional team of real estate market and construction see real steps and mechanisms to address the crisis on their part.
The epitome of this would be the deployment of affordable housing under a state of socio-economic program for 2010-2017 years.

  Development problems of housing
The crisis of confidence of investors, especially individuals to property developers and banks, the banks - to developers.
Lack of effective demand.
The sharp decline in investment

As a result of the meeting held on March 19, 2010 in Minregionstroe with the participation of the National Bank of Ukraine, deputies of Ukraine, representatives of the Presidential Administration, banks, construction companies a way to solving these problems is defined affordable housing and housing finance.

  What is "affordable" housing?
Affordable housing - built and those that are built with government support, residential buildings (complexes) and apartments.
The state support of affordable housing is guaranteed payment of the state 30 percent of construction cost (acquisition) of affordable housing and providing concessionary mortgage loan with an authorized bank.
The right to receive state support is provided to citizens in need of better housing conditions in accordance with the law.
Mechanisms to reduce the cost: donation of land, provision of engineering, transport and social infrastructure, exemption from fees and transfer of new housing, the use of projects re-use, etc.

The Ministry of Regional Development and Construction is responsible for the deployment of affordable housing, especially for those citizens whose income does not grant the right to social housing, but is not sufficient for independent housing solutions.
It should be noted that the construction of affordable housing is one of the activities that will help the construction industry gradually withdraw from the crisis.
At present, the construction of affordable housing is normalized by Article 4 of the Law of Ukraine "On prevention of the global financial crisis on the development of construction industry and housing, where, in particular, the definitions of affordable housing and public support for its construction or acquisition, the circle of persons entitled to to receive such support, sources of funding affordable housing, basic requirements for such housing and easing the conditions of its value.
This law also amended Art. 9 of the Housing Code of the Ukrainian SSR, which determined the possibility of providing permanent housing for citizens, who under the law are entitled to receive it, through the construction or acquisition of affordable housing by providing state support in the manner prescribed by the Cabinet of Ministers of Ukraine.
Part Two of Article 134 of the Land Code of Ukraine amended to provide for the granting of land plots of state and municipal property for construction of affordable housing without an auction.
At the legislative level, the construction of affordable housing are exempt from royalties on the development of engineering and transport and social infrastructure of human settlements (Article 27-1 of the Law of Ukraine "On the design and construction of the territories.
Minregionstroem also drafted a special Law of Ukraine "On provision of affordable housing, which was considered and adopted the first reading of the Verkhovna Rada (registration number 4124 from 25.03.2009).
The procedure for providing state support for affordable housing approved by Cabinet of Ministers of Ukraine from 11.02.2009 № 140 "On approval of the state support for affordable housing."
Also, the Cabinet of Ministers of Ukraine from November 1, 2009 № 1249 approved the State target socio-economic program for the construction (purchase) of affordable housing in the years 2010-2017.
The program provides for the 2010-2017 years to build (buy) 265.8 thousand apartments (16.6 million square meters). Costs of implementation of the Programme before inflation set at 88,499.7 million hryvnia (Figure 19). Of the total expenditure of the State budget provision of
23,234.8 mn. (26%), local budgets - 5442.8 mln. (6%), other sources - 59,822.1 million hryvnia (68%). In view of the population involved in the program, its economic effect is much larger than the direct budget financing.
Decree of the Government, which approved the program, provided the Council of Ministers of the Autonomous Republic of Crimea, Kyiv and Sevastopol city state administrations to develop and adopt a regional program for the construction (purchase) of affordable housing in the years 2010-2017 and to recommend to local authorities to provide its clients (developers) Land for affordable housing.
Minregionstroy as the state customer of the above state program, has prepared Guidelines on the order of the development of regional programs for the construction (purchase) of affordable housing, which letter of 11.02.2010 № 12/19-2-8-14-1375 sent to the Council of Ministers of the Autonomous Republic Crimea, regional, Kyiv and Sevastopol city state administrations and posted on the official site Minregionstroya in the section "State support for housing.
Regional programs provided to form during the first quarter of 2010.
Topical today remains the question of the cost of housing. Minregionstroem accordance with the powers determined by the indirect cost of building housing in regions of Ukraine.
Reserve lowering the cost of housing, including affordable, is to implement economic projects with rational architectural planning and technical solutions, modern technologies and materials, and industrial construction techniques.
Minregionstroem basically ensured the construction industry the necessary regulatory and methodological framework and design of construction of economic housing, and worked through the issue with the regions to establish a local fund projects for economic housing.
There are currently implementing regulations and methods developed during 2007-2009 and endorsed the decisions Minregionstroya: Recommendations for the design of residential buildings with apartments of social purpose, the Nomenclature of economic projects residential projects: affordable housing, social housing project - the standard economic house apartments with social purpose and the project-the standard for affordable housing, which are developed in accordance with applicable state building codes.

Victor Kovalenko www.business-realty.com.ua
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