IDPs will be allowed to mortgage housing purchased with housing vouchers: The Rada is recommended to support the bill

The Verkhovna Rada Committee on Legal Policy considered at its meeting the draft Law on real estate acquired through mortgage No. 15335.

The document proposes amendments to the Laws of Ukraine "On Mortgage," "On State Registration of Property Rights to Real Estate and Their Encumbrances," and "On Notariat."

The bill provides for the possibility to mortgage residential real estate that internally displaced persons acquire or build using housing vouchers and loan funds within the state program implemented according to the Procedure approved by the Cabinet of Ministers of Ukraine Resolution No. 1176.

As noted, the legislative changes aim to ensure the proper functioning of the state program for providing housing to internally displaced persons by combining the housing voucher mechanism with mortgage lending. In addition, they are intended to create legal guarantees to protect the interests of the state and financial institutions, in particular by legislatively regulating restrictions on the alienation of such real estate.

Following the review, the Committee recommended that the parliament adopt draft law No. 15335 in the first reading as a basis, taking into account the requirements of part one of Article 116 of the Rules of Procedure of the Verkhovna Rada of Ukraine.

Earlier, the "Judicial and Legal Newspaper" reported that the Notarial Chamber of Ukraine supported draft law No. 15335, while proposing a number of amendments. In particular, it is proposed to regulate the procedure for mortgaging indivisible objects of unfinished construction and future real estate if rights to them are already encumbered in favor of the customer or developer, as well as to clarify the rules for state registration of rights in cases of using housing vouchers.

Moreover, the NCU proposes to expand the list of cases exempting citizens from paying administrative fees, extending benefits not only to the registration of ownership rights but also to the registration of mortgages and prohibitions on alienation of housing purchased with housing vouchers or certificates. It is also proposed to explicitly define in the Law "On Mortgage" that housing or land plots purchased or financed with housing vouchers and loan funds may be subject to mortgage but shall not be subject to further alienation or re-mortgaging, except in cases of enforcement according to the law.

Certain amendments concern the Law "On Notariat" — notaries are proposed to be granted the authority to impose prohibitions on alienation of such property when certifying relevant agreements. According to the Notarial Chamber, these changes will eliminate practical problems during the execution of transactions using housing vouchers and certificates, ensure proper registration of encumbrances, and promote the effective implementation of state housing provision programs.

Previously, we reported that in Ukraine it is proposed to introduce a new legal mechanism for using housing vouchers for internally displaced persons from temporarily occupied territories by combining them with mortgage programs.

The need for adopting changes is justified by the necessity to regulate the mechanism of housing acquisition for IDPs using housing vouchers and loan funds. The bill aims to harmonize the five-year prohibition on alienation of housing with the mortgage institution, which will allow recipients of housing vouchers to attract additional loan financing secured by such property, while simultaneously introducing legislative guarantees to protect creditors' rights regarding enforcement on the mortgage object in case of non-fulfillment of the main obligation.

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