Regional programme of preferential housing loans for IDPs of Luhansk region

The need for permanent housing for internally displaced persons remains one of the most painful issues of recovery and adaptation in new communities. Tens of thousands of people were forced to leave their homes in Luhansk region. Against this backdrop, housing policy at both state and regional levels begins to play a decisive role. One of the key instruments in this area is the State Fund for Youth Housing Assistance (Derzhmolodzhytlo) - an institution that implements a range of affordable housing programs, including state and regional preferential loans, co-financing schemes, and targeted local projects for IDPs and veterans.

At present, several mechanisms are used at the local level to address housing accessibility: temporary accommodation in dormitories, partial compensation of rental costs, and preferential long-term housing loans, which offer a more sustainable solution.

One such specialized initiative is the Regional Target Program of Housing Lending for IDPs of Luhansk Region for 2025–2026, developed specifically to support families who were forced to leave occupied communities.

Since IDPs registered in the territorial communities of Luhansk, Alchevsk, Dovzhansk, and Rovenky districts of Luhansk region are deprived of the opportunity to obtain housing funded by the respective communities - due to the occupation of these territories since 2014 and the fact that local self-government bodies and their executive authorities did not relocate to territories controlled by the Ukrainian authorities - ensuring effective solutions to housing issues for this group of IDPs has become a priority.

Who can receive the loan?

The program supports IDPs who:

1. were deprived of personal liberty as a result of the aggression (released from captivity);
2. are veterans who acquired a disability as a result of the war;
3. have the status of a large family (three or more children under 18);
4. are registered in the communities of Luhansk, Alchevsk, Dovzhansk, or Rovenky districts.

Participation requirements

An applicant must:

1. Be an IDP from territories covered by the program

This requirement is confirmed by an IDP certificate and registration in the relevant community prior to displacement.

2. Not own housing in territories controlled by Ukraine

3. Submit an application for participation

The decision is made based on the formation of a waiting list.

4. Confirm eligibility category (veteran status, disability, large family, etc.)

5. Confirm solvency

After loan payments, the applicant must retain at least the subsistence minimum; income per person must not exceed ten average salaries.

Scope of benefits

• 99.5% of the principal loan obligation (for persons for whom the fact of deprivation of personal liberty has been established);
• 75% of the principal loan obligation (for veterans with disabilities resulting from the war);
• 75% of the principal loan obligation (for large families);
• 50% of the principal loan obligation (for other IDPs registered in the specified communities).

Financial terms

• housing may be purchased only on the secondary market (outside combat zones and occupied territories);
• interest rate — 3% per annum;
• loan term — up to 10 years (but not beyond the borrower reaching 65 years of age);
• down payment: 0% — for persons released from captivity; 6% — for other categories;
• maximum loan amount — up to UAH 3 million;
• housing area standard — 52.5 m² for 1–2 persons plus 21 m² for each additional family member;
• maximum allowable price per square meter applies depending on the locality.

How to apply

Applications are submitted by email to the Department of Housing and Communal Services of the Luhansk Regional Military Administration, together with the following documents:

• copies of identity documents (including those of family members);
• copies of tax identification numbers (including family members);
• copies of IDP certificates;
• extract from the Unified Register of Persons Deprived of Personal Liberty;
• copy of the certificate confirming disability as a result of the war;
• consent to personal data processing;
• copies of other documents confirming eligibility for one of the beneficiary categories.

Selection procedure

Two registers are formed:

1) Persons released from captivity — receive loans in order of priority without selection;

2) Other categories — winners are determined through a random selection using a number generator.

The selection is conducted openly, with participation of the Luhansk Regional Military Administration and Derzhmolodzhytlo, and is streamed on YouTube (https://youtu.be/Q-IeucQs93o?si=kNbwy7WUeO447uMM).

After the announcement of results

The selected applicant must submit a complete set of documents:

• copies of passports of the selected applicant and adult family members;

• loan application;

• copy of the tax identification number;

• extract from the territorial community register (if no registered residence);

• copy of the IDP certificate;

• information from the State Register of Property Rights confirming the presence or absence of housing ownership;

• documents confirming special status (veteran, large family, etc.);

• proof of solvency (income certificates, including for all family members);

• written consent to include family members in the loan calculation;

• documents confirming family relations (marriage certificate, birth certificates);

• preliminary sale and purchase agreement.

Important! In addition to payments stipulated by the loan agreement, the selected applicant pays a one-time contract conclusion fee equal to one minimum wage.

The preferential housing loan program for IDPs of Luhansk region is an example of how regional instruments can address gaps that the state, due to war, is unable to fully cover.

If you wish to learn more details or receive free legal assistance on another issue, you can find a lawyer via the link.

This publication has been produced as part of a project implemented by the Danish Refugee Council (DRC) with funding from the European Union through its Civil Protection and Humanitarian Aid Operations. The views and opinions expressed are those of the author(s) alone and do not necessarily reflect the views of the European Union or the DRC. Neither the European Commission nor the DRC can be held responsible for the content of this material.