On May 30, the Cabinet of Ministers of Ukraine approved Resolution No. 600 “On Approval of the Procedure for Providing Compensation for Destroyed Real Estate Objects.”
This Procedure defines the mechanism for providing compensation for destroyed immovable property and its use in accordance with the Law of Ukraine No. 2923-IX “On compensation for damage and destruction of certain categories of immovable property as a result of hostilities, acts of terrorism, sabotage caused by armed aggression of the Russian Federation against Ukraine, and the State Register of property damaged and destroyed as a result of hostilities, acts of terrorism, and sabotage caused by the armed aggression of the Russian Federation against Ukraine.” Accordingly, it describes the procedures for submitting and considering applications, the formula for calculating the amount of compensation, the procedures for providing funds to finance the construction of a manor house, garden or country house, etc. The BRDO team participated in the development of the Law and the Decree.
Thus, an application for receiving compensation can be submitted both in paper and electronic form.
Commissions must consider an application for compensation within no more than 30 days, except when the destroyed real estate is located in the area of military (combat) operations or in temporary occupation.
Owners of destroyed housing will receive cash to finance the construction of a manor-type house, garden or country house, or housing certificates for the purchase of housing.
In order to receive compensation for financing the construction of a manor house, a garden house or a country house, the applicant must open a current account with a special mode of use for crediting the compensation in one of the banks of Ukraine, with which the Ministry of Digital has entered into an appropriate electronic information interaction agreement. Compensations will be paid to applicants through Oschadbank JSC. After the decision to pay compensation, JSC “Oschadbank” shall transfer the funds to special bank accounts of compensation recipients no later than during the next working day from the date of receipt of funds.
Nevertheless, if the accrued compensation funds were not fully spent, then after 3 years from the date of their enrollment, they are returned by the banks to the account of Oschadbank JSC, and Oschadbank JSC, in turn, returns them to the state.
It is impossible to withdraw cash from a special account to which compensation for destroyed real estate was credited. Accordingly, the owners of the destroyed housing can use the funds to finance the construction of a manor-type house, a garden house or a country house.
If the applicant chose compensation in the form of a housing certificate for the financing of a new home, in this case, the executor of this compensation program will be JSC “Ukrposhta”.
At the same time, the recipient of the housing certificate must independently:
- search for the desired housing;
- agree the cost of housing with the owner or construction customer;
- order an assessment of real estate by an independent subject of assessment activity;
- pay notarial actions, administrative fees for state registration of property rights to immovable property and their encumbrances;
- decide on the conditions for the purchase of housing, in particular regarding partial or full financing of the purchase of housing using a housing certificate.
After choosing the housing that the compensation recipient intends to purchase using the housing certificate, the compensation recipient submits an application to JSC “Ukrposhta” for financing the purchase of housing in the amount specified in the housing certificate, by choosing:
- through a notary,
- through the administrative services center,
- through the social protection bodies of the population,
- by means of the Diia Portal, in particular with the use of the mobile application.
After the provision of compensation with the use of a housing certificate has been confirmed, the recipient has 30 calendar days, during which he must conclude a contract for the purchase of housing with the use of a housing certificate. At this time, funds in the amount of compensation specified in the corresponding housing certificate are reserved. If during this period the recipient of compensation has not taken any action, it is considered that the application for financing the purchase of housing has been withdrawn.
The contract for the purchase of housing with the use of a housing certificate is subject to notarisation.
After concluding the contract, JSC “Ukrposhta” transfers funds to the account of the seller of housing specified in the contract for the purchase of housing.
It is important that you can submit an application for compensation for destroyed real estate using the Diya mobile application already in a month – that is, starting from July 15. The Cabinet of Ministers recommends that the commissions start considering such applications as early as August 15, 2023.
We wrote more about the commissions that will consider applications for compensation for destroyed real estate objects in a previous publication. And about the Law of Ukraine “On compensation for damage and destruction of certain categories of immovable property objects as a result of hostilities, acts of terrorism, sabotage caused by armed aggression of the RF against Ukraine, and the State Register of property damaged and destroyed as a result of hostilities, acts of terrorism, and sabotage caused by the armed aggression of the Russian Federation against Ukraine” is available here.