The Mykolaiv Regional Council is calling for the Derzhmolodzhytlo to be retained due to the risk of affordable housing programmes being suspended

The Mykolaiv Regional Council is calling for the preservation of Derzhmolodzhytlo due to the risk of affordable housing programmes being halted. Screenshot of the session

Members of the Mykolaiv Regional Council have backed an appeal to the Cabinet of Ministers of Ukraine to prevent the merger of the state agency Derzhmolodzhytlo and PJSC «Ukrfinzhytlo».

The decision was voted on at the session on 28 May, according to NikVesti.

The initiator of the appeal, Olena Herasymchuk, explained that the draft Cabinet resolution on the possible merger of the two institutions had already undergone public consultation; however, such a decision could have serious consequences for subsidised housing programmes, international funding and the construction of social housing.

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She noted that these are two completely different models. Derzhmolodzhytlo focuses on social programmes, whereas Ukrfinzhytlo operates a commercial model of bank mortgages. Therefore, it is impossible to merge them.

Olena Herasymchuk explained that Derzhmolodzhytlo has been working for over 30 years on affordable housing programmes for young families, internally displaced persons and military personnel. The agency is funded not only from the state and local budgets, but also by international donors.

According to the councillor, over the years, international partners have provided over 5.6 billion hryvnias in funding through Derzhmolodzhytlo.

She said that housing programmes for young families, military personnel, medical staff, teachers and displaced persons could be at risk due to a possible merger.

«If these two agencies are merged, all the programmes currently in operation and those planned for previous years will be halted. The regional budget alone provides for funding of over 113 million hryvnias to provide housing for priority groups, which include combatants, military personnel, veterans, IDPs, all young families, teachers, doctors and so on,» she emphasised.

In the appeal itself, the councillors note that Derzhmolodzhytlo is a non-profit state institution that administers budget funds and implements state and local programmes for subsidised housing. In contrast, Ukrfinzhytlo operates as a commercial entity with a banking-style lending model.

The authors of the appeal stress that following the merger, profit may take precedence over social support for the population. As a result, subsidised housing may become inaccessible to military personnel, veterans, displaced persons, young families, doctors and teachers.

In the appeal, the councillors also stress that Mykolaiv region, as a frontline region, needs not the «optimisation» of institutions, but effective mechanisms to bring people home and support socially vulnerable groups.

Among the appeal’s demands are to preserve the autonomy of the Derzhmolodzhytlo, prevent its merger with Ukrfinzhytlo, and increase state funding for social and subsidised housing programmes for military personnel, veterans, internally displaced persons and young families.

During the vote, MPs supported the document without reservation.

It should be recalled that last year, the Mykolaiv region received 1.6 million hryvnias in grant funding to provide housing for internally displaced persons. This money was used to purchase a flat for a young family from Energodar in Pivdennoukrainsk. Mykolaiv was unable to receive grant funding as the city is located in a potential combat zone.

It was previously reported that the Mykolaiv city authorities are currently working on three different projects for the construction of social housing in the city.