Compensation for housing destroyed due to the war: how it will work in Ukraine

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Compensation for housing destroyed due to the war: how it will work in Ukraine

Compensation for housing destroyed due to the war: how it will work in Ukraine

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As a result of the war with Russia, about 800,000 Ukrainians lost their homes. This is more than 15 million square meters of apartments and houses. This was reported by Olena Shulyak, the deputy head of the Committee of the Verkhovna Rada for the organization of state power. She also added that about 220,000 people have already submitted applications for compensation for destroyed housing. How will the compensation mechanism work in Ukraine?


It is worth noting that the compensation mechanism has not yet been clearly defined by the Ukrainian authorities. Compensation for destroyed housing should be made in accordance with draft law 7198, which has only been adopted as a basis but has not yet been passed into law. It is likely that the document will still undergo changes and additions, but the main points can be taken from it already. But it is worth remembering that if adopted, the law will enter into force two months after its publication unless otherwise specified.


Who will be entitled to compensation


Citizens of Ukraine who are owners of damaged or destroyed housing; persons who purchased housing while still under construction or had their own unfinished construction; members of housing and construction cooperatives who bought the premises of a cooperative, but did not issue the ownership right to it. The right to compensation will be available to the heirs of the above-mentioned persons. The draft law also provides for compensation for the restoration of common property for condominiums, managers of apartment buildings, and cooperatives.


Stages of receiving compensation


First, you need to submit an application, this can be done through the Diia portal, or by contacting a center of administrative services, social protection authorities, or a notary public. Further, the application must be considered by a special commission, which will be created by the executive body of the local council as a temporary collegial body. The draft law provides that the review will take place within 30 days from the date of submission of the application. The next stage is the actual provision of compensation.


The procedure for providing compensation will be established separately by the government. At the same time, it is expected that it will apply to cases of destruction and damage to immovable property that occurred after the declaration of martial law on February 24, 2022. The application for compensation itself can be submitted during the state of martial law in Ukraine and within 90 calendar days after its termination or cancellation.


What are the methods of obtaining and the amount of compensation


It will be possible to receive compensation in the form of money that a person has the right to spend at his/her own discretion, as well as as a contribution to financing the construction of a new home or financing works to restore damaged common property of an apartment building.


As for the amount of compensation, there is no talk of specific amounts and coefficients yet, the evaluation methodology has  to be developed. But according to the draft law, the amount of compensation will be determined based on the results of the evaluation of the cost of housing restoration, taking into account the degree of its damage. The maximum amount of compensation for housing cannot exceed the value of 150 square meters for one site of immovable property. If the owner of a destroyed house wants to receive real estate, the value of which exceeds the maximum amount of compensation, then the difference will have to be paid at his/her own expense.


Who will have the primary right to receive compensation


Compensation will be provided in the order of receipt of applications. But priority will be given to families with many children, persons with disabilities of groups I and II, participants in hostilities and families of deceased war veterans.


When and how long to wait for compensation


It is currently unknown. The stage of post-war reconstruction of Ukraine will be long. In addition, as already noted, there is still no clear mechanism for providing compensation. But owners of destroyed or damaged housing are recommended to carefully record all the damage and report it. And also check the presence of the necessary documents that confirm the right of ownership of housing. In case of their loss, you should contact the relevant authorities for recovery. If the home has suffered minor damage that the owners can repair on their own, then it is advised not to delay the repair. But also carefully record all damages in order to be able to receive compensation later.