Compensation for destroyed and damaged property

Law Services - Compensation for destroyed and damaged property

🇺🇦The Verkhovna Rada of Ukraine adopted a draft law that provides for the creation of a state register of property damaged and destroyed by the war and the procedure for compensation for it from the State.

❔ Who can receive compensation

▪️owners of apartments, other residential premises, private, garden and country houses;
▫️customers of the construction of private, garden and country houses (individuals);
▪️natural persons who invested/financed construction;
▫️members of housing cooperatives who bought housing, but did not issue ownership rights to it;
▪️heirs of the above persons.

❕ Condominiums, managers, residential housing units also have the right to compensation. This concerns the restoration of the common property of an apartment building.

🔶Main innovations:

🔸Compensations will be provided exclusively for property (damaged/destroyed) from February 24, 2022
🔸It is valid for three years after the termination or abolition of martial law in the territory where such an object is (was) located.
🔸The law will not apply to objects that were in the temporarily occupied territory on the date of the introduction of martial law.
🔸Persons from the sanctions lists with convictions for crimes against national security and their heirs will not be able to receive compensation.
🔸It will be impossible to receive monetary compensation for damaged property, for such cases only restoration through construction works and/or provision of construction materials for them is offered.
🔸Owners of destroyed apartments and other residential premises will receive a housing certificate – a document confirming the state’s guarantee to finance the purchase of an apartment or other residential premises (including one that will be built in the future) in the amount of a specified amount of money.
🔸Owners of private houses will have a choice – to receive a housing certificate for the purchase of an apartment or house or monetary compensation, which will be transferred to an account with a special mode of use for financing construction.
🔸There is no limit on the amount of compensation — both monetary and in the form of a housing certificate — as well as restrictions on the location, type and area of new housing, the construction of which will be financed through the certificate.
🔸You can use the certificate within five years from the date of its issuance, and it is prohibited to alienate within 5 years, except by inheritance.
🔸A copy of the document confirming ownership or purchase of real estate and, if available, photo and video recording materials before or after destruction must be attached to the application.
💰The sources of funding for compensation for damaged and destroyed property will be:
🔹funds from the state and local budgets;
🔹funds of international financial organizations, other creditors and investors;
🔹international technical and/or repayable or non-repayable financial assistance;
🔹reparations or other charges from the Russian Federation;
🔹other sources not prohibited by the legislation of Ukraine, including local funds created for the purpose of providing compensation and restoration of damaged/destroyed (destroyed) real estate objects.

✅Compensation mechanism
☝🏻It will be possible to submit an application for compensation through Diya, Tsnap, social protection bodies or a notary.
The decision to provide compensation will be made by local self-government bodies, which will create the appropriate Commissions for consideration of issues related to the provision of compensation. These commissions will consider the applications, conduct an inspection of the destroyed housing and determine the amount of compensation. The amount of compensation will be calculated according to a special methodology currently being developed by the CMU.