The initiative to merge the State Fund for Youth Housing Construction (Derzhmolodzhytlo) with Ukrfinzhytlo PJSC has sparked widespread concern among IDP Councils across Ukraine.
Throughout May, a series of meetings, consultations, and discussions took place during which representatives of IDP Councils examined the potential consequences of the proposed reorganization for internally displaced persons (IDPs). Discussions were held by councils in Lviv, Ternopil, Zakarpattia, Volyn, Vinnytsia, Rivne, Khmelnytskyi, Mykolaiv, Kharkiv, Sumy, Poltava, Chernihiv, and Ivano-Frankivsk regions. The key conclusion was clear: IDP Councils are prepared to defend the housing rights of displaced people.
Council representatives identified potential risks and prepared appeals to central government authorities. These efforts aim to bring the initiative into broader public discussion and ensure that the voices of internally displaced people are taken into account when decisions on housing policy are made.
It is worth recalling that at the end of April, a draft Cabinet of Ministers resolution was published proposing the transfer of assets as part of the planned merger of Derzhmolodzhytlo and Ukrfinzhytlo. Civil society organizations, human rights groups, and IDP Councils immediately issued public statements regarding the proposed changes. They warned that the reorganization could limit IDPs’ access to preferential housing programmes, suspend existing programmes or delay their financing, and undermine the confidence of donor organizations that provide funding for their implementation.
What do representatives of IDP Councils say about the proposed changes? Read our overview.
Olena Hrekova, Head of the IDP Council under the Lviv Regional Military Administration, explains:
“The Lviv region has already established an effective support mechanism. Under the Comprehensive Programme for Supporting IDPs during martial law in Ukraine, a procedure is in place to compensate the interest rate on preferential mortgage loans. Under this mechanism, borrowers receive compensation equivalent to 3% annual interest for housing purchases. In 2025, 21 internally displaced persons benefited from this opportunity.
Funding for this programme has also been allocated in the regional budget for 2026, which will make it possible to support approximately 40 displaced people. Preferential lending through Derzhmolodzhytlo remains one of the most accessible housing mechanisms because it places a minimal financial burden on borrowers and takes into account their limited incomes. The IDP Council under the Lviv Regional Military Administration has expressed its position on the need to preserve and further develop housing support mechanisms for displaced people implemented through Derzhmolodzhytlo.”
Oksana Luhova, Head of the IDP Council under the Poltava Regional Military Administration, highlights the challenges faced by displaced people seeking to access programmes administered by Ukrfinzhytlo:
“Purchasing housing through the eOselia programme is more complicated. While the state advertises a 7% interest rate, there are additional hidden costs and strict banking requirements. For example, after making monthly loan payments, a borrower must still have at least the subsistence minimum available for each family member. If a person’s income does not meet banking criteria, the loan may cover only part of the property’s value.
There are also significant differences regarding the age of eligible housing. Under eOselia, a building must generally be no older than 20 years, and in some cases no older than 10 years. By contrast, Derzhmolodzhytlo allows applicants to purchase homes up to 50 years old. This means access to a much broader and more affordable housing market.”
The Sumy Regional Military Administration prepared an official appeal to the Prime Minister of Ukraine, incorporating the risks associated with the proposed reorganization that were identified during discussions within the IDP Council under the Sumy Regional Military Administration.
“The regional authorities supported our position and included our arguments and demands in their appeal. Sumy region is a frontline region. The vast majority of IDPs here are residents of our own region. They have lost their homes but do not intend to relocate elsewhere. Given their generally low official incomes, the pre-retirement age of many displaced people, and the possibility of programme suspension or stricter lending requirements, these changes could deprive many people of the opportunity to purchase housing under preferential conditions,” emphasizes Nataliia Kalinichenko, Head of the IDP Council under the Sumy Regional Military Administration.
The situation surrounding the proposed merger of Derzhmolodzhytlo and Ukrfinzhytlo has demonstrated how IDP Councils can unite and use democratic participation mechanisms to protect displaced people’s right to affordable housing. The next step now rests with the Cabinet of Ministers of Ukraine, from which stakeholders expect an open and transparent dialogue.
This publication was made with the support of UNHCR, the UN Refugee Agency in Ukraine. The content of the publication is the sole responsibility of the Charitable Organization “Charity Foundation “Stabilization Support Services” and does not reflect the views of UNHCR.