From temporary housing to sustainable solutions: the role of humanitarian organizations in the development of local housing programs 

Methodology

The full-scale Russian invasion caused the largest housing crisis in Ukraine’s history since independence in 1991. Millions of people were forced to leave their homes due to hostilities and many houses were destroyed. In the early days after the start of the invasion, providing shelter in relatively safe regions of the country was one of the key priorities for local authorities and civil society. In the second year, the key challenge in housing remains the search for sustainable, affordable and long-term solutions to provide housing for those in need. Given the large scale of the demand, it is not possible to meet it adequately without inter-sectoral cooperation, assistance and joint efforts.

The purpose of this study was to identify the potential, conditions and obstacles for non-governmental organizations in increasing the capacity of local authorities in the development of social housing sector (in the broadest sense) for IDPs and other vulnerable groups as a long-term solution in the context of a full-scale Russian invasion of Ukraine.

The concept of social housing in Ukraine can have a broad and narrow understanding. In the narrow sense, social housing is housing that belongs to a housing stock of social purpose. In the broadest sense, social housing includes not only housing from the social purpose stock, but also other types of housing provision, which involves providing accommodation without rent or at an affordable rent. Thus, the concept of social housing in the broadest sense includes not only housing from the social purpose stock, but also from the temporary purpose stock (including for IDPs), as well as places of temporary residence. In order to avoid confusion, in this report, when it comes to Ukraine, we specify whether we mean 1) social purpose housing stock, that is, social housing in a narrow sense, or 2) social housing in the broadest sense.

Given the purpose of this study, it did not include issues of private sector housing, mortgages, or other financial and credit mechanisms. Considering the potential, conditions and obstacles for non-governmental organizations, the objective of the study was to collect information and develop recommendations relevant to non-governmental organizations that have an opportunity to implement large-scale programs to support the development or conversion of housing, as well as to increase the capacity of authorities.

To implement the study objective, we used a combined research methodology applying qualitative methods of social research (expert interviews, focus group discussions) and desk research (analysis of legislation and literature, data collection through requests for access to public information). 

The desk research included the analysis of legislation and regulatory acts in the field of social housing (in the broadest sense) in Ukraine, as well as previous studies and publications dedicated to the issue of housing provision, in particular to IDPs. The review of legislation and literature allowed us to determine the main legal framework of the social housing sphere (in the broadest sense), as well as the areas of responsibility of local authorities and non-governmental organizations regarding the development and maintenance of social housing (in the broadest sense), including temporary housing and housing for IDPs.

In addition, the desk research involved sending and processing requests for access to public information to regional administrations and territorial communities to collect data on the number of social housing units (in the broadest sense), the need for such housing and local housing programs. Requests were sent to the regional administrations of all regions, except for those in which a significant part of the territory is under active hostilities or occupation (Kherson, Zaporizhzhia, Luhansk, Donetsk), as well as Kyiv City Administration. The list of territorial communities was determined in a selective manner, taking into account geographical and typological diversity. Several regional administrations have also redirected requests to district administrations or territorial communities.

The field stage was based on in-depth semi-structured interviews with experts, representatives of state and local authorities and utility enterprises. Respondents were selected by the targeted method according to the list of contacts. The purpose of the interviews was to collect expert assessments about the needs and vision of municipalities regarding social housing (in the broadest sense), the main challenges during a full-scale invasion, the experience of interaction with non-governmental organizations or donors in the field of social housing (in the broadest sense), and plans for the implementation of potential or existing housing support programs for IDPs and other vulnerable groups. A total of 30 interviews were conducted, of which 20 – with representatives of territorial communities and 10 – with experts and representatives of public organizations and initiatives.

The field research stage also included focus group discussions with IDPs of different ages, and genders, residing and not residing in the collective centers. The purpose of the focus group discussions was to collect needs, motivations, assessments, and readiness to participate in possible programs from the point of view of IDPs. Conducting 4 focus group discussions allowed to take into account the experiences of different subgroups of IDPs based on socio-demographic characteristics in order to better understand their needs. In particular, focus groups were conducted with:

• IDPs who rent housing;
• IDPs living in a modular town;
• IDPs living in a dormitory;
• IDPs living in converted schools/kindergartens.

In addition, the study used the results of the Housing Leadership Lab — a three-day event organized by Cedos on December 7-9, 2023, during which 24 representatives of authorities and non-governmental organizations developed recommendations for the development of the housing sector in Ukraine.

The limitations of this study include the following. First, among the communities whose representatives agreed to participate in the study or provided answers to the requests, those who were more interested in the development of the social housing sector (in the broadest sense) may prevail. Taking this into account, the viewpoints of communities with less interest may be underrepresented in this study.

Secondly, requests for information and interviews indicated that the purpose of the study was to generate recommendations for organizations that could potentially provide assistance to communities. This could have an impact on the willingness of potential informants to agree to the conversation, as well as on the honesty of the answers.

Thirdly, the responses of regional administrations and communities to information requests were heterogeneous. Various authorities responded selectively to the points of requests. For example, regional administration could report on the number of approved local social housing support programs (in the narrow sense), but not provide any information on the number of already available social housing. Some of the regional administrations, in particular, Lviv, Volyn, Zakarpattia did not provide any comprehensive information on any of the requested items.

Key Conclusions

Social housing in the broadest sense is housing provided for people in need, which is rent-free or at an affordable rent. Social housing in the broadest sense includes social housing as such (social housing in the narrow sense), temporary housing (including temporary housing for IDPs), and places of temporary residence.

IDPs’ need for housing. The full-scale Russian invasion caused the biggest housing crisis since independence. At the beginning of 2023, the number of internally displaced persons in Ukraine was 5.4 million people. Most of them lived in rented housing. A significant part of displaced persons lacks financial resources to pay rent and utilities. They may also face a number of barriers specific to this housing sector, such as unreasonable price increases, evictions, discrimination when looking for housing, etc. At the same time, the idea of social housing seems attractive to at least part of IDPs, and society maintains high expectations from the authorities to overcome housing problems. According to some estimates, about 1.42 million IDPs may need about 500,000 housing units.

Existing system. In the mid-2000s, the issue of social housing (in the narrow sense) and temporary housing was settled in Ukraine. The purpose of social housing (in the narrow sense) is to provide housing to socially vulnerable groups of the population, and the purpose of temporary housing is to provide housing to those who have lost their housing due to various emergency reasons. Certain categories of people, including IDPs, have the right to receive such housing by registering in a certain register (“in a queue”). After the first wave of internal displacement caused by the beginning of the Russian-Ukrainian war in 2014, separate regulations were adopted for the development and provision of temporary housing for IDPs with a separate registration and scoring system for determining the priority of settlement. As of the beginning of 2021, there was a total of 1,098 units of social housing (in the narrow sense) and 1,997 units of temporary housing (including temporary housing for IDPs) in Ukraine.

To respond to the housing crisis, at the beginning of the full-scale invasion local governments and civil society mobilized their resources to shelter IDPs. In order to create the places of temporary residence, educational and cultural institutions, administrative buildings, dormitories and other types of premises were utilized, which allowed to accommodate a large number of people. Initially, the operation of temporary housing in different communities was organized differently in a decentralized manner, but since September 1, 2023, minimum standards and regulations have been introduced by the Cabinet of Ministers at the national level.

Housing development, record keeping, distribution, maintenance and management of social housing (in the broadest sense) are the responsibilities of local self-government bodies. The responsibility of the government is to create a legal framework, as well as to provide assistance in the development and maintenance of social housing (in the broadest sense). International organizations and donors can also provide assistance in housing development and participate in determining the conditions for its distribution and utilization.

Key rights and responsibilities of housing residents, rules of residence, as well as standard contracts for social housing (in the narrow sense), temporary housing (including for IDPs), as well as places of temporary residence are defined by the laws and resolutions of the Cabinet of Ministers. For social housing (in the narrow sense) and temporary housing de jure, there is an opportunity to receive rent from residents to cover the costs of housing maintenance and development, but in fact, this mechanism does not work, as well as the state support, which leaves local self-government bodies without adequate resources, the consequence of which is the risk of decline and marginalization of the social housing fund. For temporary accommodation, the state provides compensation for utility services, but the long-term sustainability of this support is uncertain. The mechanisms for ensuring the sustainability and further utilization of housing, if the need for it decreases, are not clearly defined. At the same time, territorial communities understand the needs of different social groups in housing and other functions that can potentially be satisfied with the help of these premises.

Obstacles. The complexity or lack of sufficient regulation of certain aspects of housing development leaves room for different interpretations of the relevant standards. Passing various authorization procedures is also a challenge. Financial obstacles are the main problem in the housing construction and remodeling process. In particular, they also include difficulties in finding donors, the insufficient level of skills in project and grant management and a lack of vision for a sustainable model of housing management in communal ownership. Administrative challenges include insufficient funding to support administrative capacity, insufficient staffing in general and fragmented responsibility for various aspects of housing policy implementation at the local level. Clearly prescribed rules, coordination of interaction and control of donors at various stages of projects can serve as safeguards against corruption risks.

Examples. The experience of the hostel for IDPs from the Mariupol community in Dnipro, the social hostel in the Konotop community, the CO-HATY project and the IOM project show various options and approaches to providing internally displaced persons with social housing (in the broadest sense). The analysis of these and other examples allows us to project changes in national legislation and offer recommendations for the implementation of the following activities and projects. The experience of the EU countries offers different models of social housing regulation and development.

Recommendations

Cooperation Model

Among the options of housing assistance for IDPs, two types can be distinguished: 1) the creation of social housing (in the broadest sense), 2) the provision of financial assistance to cover rental costs in the commercial sector. Comparing these two options allows us to draw the following conclusions. In the short term, under conditions of rapidly growing demand in the absence of sufficient quantity of social housing (in the broadest sense), cash benefit programs to cover rental costs are an important tool to help exercise the right to housing. At the same time, such programs are not persistent; the creation of social housing (in the broadest sense) makes it possible to provide housing for a larger number of people in the long term and has greater long-run efficiency in principle.

In the case of rental subsidies in the commercial sector, the rent, including subsidies, goes into the private capital, while in the case of social housing (in the broadest sense), the rent and subsidies that cover it, fully or partially, remain in the system and can be invested in the development of housing stock, including the creation of additional housing units. In addition, for the development of non-commercial housing stock, i.e. social housing (in the broadest sense), interest-free or low-interest loans can be employed, including loans from international financial institutions, which are not available for commercial housing. With this in mind, Julie Lawson and her colleagues estimate that the creation of commercial housing at commercial rates can be 181% more expensive than the creation of non-commercial housing, provided that financing for construction is raised before it begins. For example, 84,212 million Euros would be required to create 500,000 units of commercial housing to meet the housing needs of IDPs in Ukraine if financing were raised on a commercial basis. At the same time, for the non-commercial housing, 30,006 million Euros is needed if capital investments are made in construction before it starts, or 37,796 million Euros if construction is financed through preferential loans only.

Furthermore, the social housing mechanism (in the broadest sense) allows for better requirements for housing quality, environmental standards and living conditions, which the state has fewer instruments to influence in the commercial sector. However, partial rental subsidies are not affordable for some people who need housing, but have low incomes. A major risk is that rents will rise. Even if rents are fully subsidized, there is a risk that assistance programs will be curtailed, leaving people homeless and vulnerable.

The development of social housing system (in the broadest sense) can not only provide housing for internally displaced persons, but also facilitate the return of people who have been forcibly displaced outside Ukraine. Social housing (in the broadest sense) is important for strengthening the local economic development and social cohesion. Even if the need for such housing among IDPs decreases, it is necessary to attract professionals and specialists in education, healthcare, and critical infrastructure to communities; to provide housing for youth and socially vulnerable groups; to end homelessness; and to implement the de-institutionalization reform. The outcomes will be access to basic needs, livelihoods and housing in a safe, adequate and affordable manner, the promotion of social solidarity and human development, reduction of resource overconsumption, and more sustainable, resilient and integrated urban development.

Given that the housing crisis in Ukraine, caused by the full-scale Russian invasion, has been going on for two years now, the priority of the government, local authorities, international, humanitarian and non-governmental organizations is the transition from emergency short-term measures to durable solutions. In the case of housing assistance, the key solution is the development of the social housing system (in the broadest sense) at the local level.

Non-governmental humanitarian organizations can offer support to local authorities in the form of funding, expertise and partnership for the development of social housing (in the broadest sense), including by converting existing buildings into IDPs accommodation.

For humanitarian organizations, the project implementation model of assisting local authorities in the development of social housing (in the broadest sense) can involve two phases. The first phase provides for the immediate implementation within the existing legal framework and the restrictions imposed by it. First and foremost it is focused on responding to the existing needs. The transition to the second phase requires the availability of respective legislative conditions. The second phase is aimed at ensuring the sustainable development of social housing (in the broadest sense) in the long term.

First phase

In the first phase, the implementation of assistance projects requires the involvement of three parties: a donor organization, local non-governmental organization, and territorial community (local self-government body). The format of relations between them should be defined by a three-party agreement (contract or any other similar document):

1. The donor organization undertakes to provide funding, training and expert support.
2. The local non-governmental organization undertakes to perform the necessary work on (re)arranging the housing funded by the donor organization, and to transfer all improvements to the territorial  community.
3. The territorial community undertakes to provide premises for the housing, and ensure the further use (including financing) and development of the housing.

Housing development is coordinated by a working group consisting of representatives of the local community (relevant structural units of local governments), a local non-governmental organization and donor organization. All significant decisions, both strategic and operational, are made with the consent of three parties.

The manager and operator of the housing should be a communal enterprise of the territorial community. It should also be authorized to enter into contracts, interact with residents and monitor the fulfillment of contractual terms.

The housing should be arranged in the form of temporary housing for IDPs (“housing for temporary residence of internally displaced persons”), which is currently provided free of charge.

The advantages of a status of temporary housing over a status of a place of temporary residence are as follows:

• The status of temporary housing provides for higher requirements for the quality of premises than the status of a place of temporary residence;
• Temporary housing implies the status of housing, unlike a place of temporary residence, which is not formally a housing.

The advantages of the status of temporary housing over the status of social housing (in the narrow sense) are as follows:

• No “queue” of people belonging to other socially vulnerable categories of people, except for IDPs, who have the right to immediate and priority settlement;
• Uncertainty about the possibility of social housing (in the narrow sense) provision for people who became IDPs after February 24, 2022.

At the same time, the impossibility of settling in temporary housing for permanent community residents in need can also be regarded as a disadvantage. In addition, the disadvantage of the status of temporary housing for IDPs compared to the status of social housing (in the narrow sense) is the impossibility of imposing a rent for living in it.

Since the provision of housing for IDPs is a key current need of territorial communities in Ukraine, the use of the status of temporary housing for IDPs, specially designed for the needs of this social group, is the best option. Among other advantages of the temporary housing status is the explicit right of the donor organization to participate in determining the conditions for the provision and operation of this housing.

Nevertheless, in certain exceptional cases, when due to certain specific difficulties the development of housing with the status of temporary housing for IDPs is not possible, it is also permissible to use other statuses, in particular, a place of temporary residence or social housing (in the narrow sense), given that the interest in providing housing for people in need take precedence over the legal aspects of the status of this housing.

The cooperation agreement should stipulate that if the community no longer needs the temporary housing for IDPs, the premises should be converted into social housing (in the narrow sense) or retained in the ownership of the territorial community to be provided for living, in particular, to professionals whose involvement is required by the community, as well as to other people (including socially vulnerable persons) who need assistance with housing.

Second phase

In the second phase, when it becomes possible to transfer communal property to non-governmental organizations without holding an auction for the development of social housing (in the broadest sense), the management and development of the created housing can be performed by local non-governmental organizations or donor organizations (if they are ready to perform direct housing management functions and have a strategy for long-term presence in the community). In this case, the premises on the basis of which the housing is planned to be created should be transferred to a long-term rent to the relevant non-governmental organization, which assumes obligations for the further operation and development of the housing. At the same time, to reduce the risk of conflict, the existence of partnership relations between this non-governmental organization and territorial community remains important. Agreements on such partnership can be made in the form of a memorandum or other similar document.

If a non-governmental organization that has rented the relevant property is in charge with the management and further operation of housing, the decision-making role of the territorial community (local self-government bodies) can be limited to strategic decisions.

In addition, when the mechanisms for transfer of municipally owned housing to rent are improved, it is necessary to move from providing all housing free of charge to a combined model. Such a model can potentially work for both non-governmental organizations and communal enterprises. The combined model implies that part of the housing can be provided free of charge for people who cannot afford to pay rent; while the other part can be provided for affordable rent at below-market prices. The rental income should be used to cover the operating costs necessary for housing maintenance, repairs, and construction of new housing under this model. In case of self-sufficiency, loans (in particular, from international financial institutions) can be attracted to develop the housing and increase its stock.

Since the current legislative framework does not allow for the provision of social housing (in the broadest sense) by non-governmental organizations or the use of a combined model for the provision of housing to IDPs, it is exactly when relevant amendments to the legislation are made and opportunities for the implementation of these practices are created that the statuses that the housing developed under such models can have will be determined.

For the combined model, the cooperation agreement should stipulate that if the need for housing among IDPs decreases, the housing should be provided on the same terms (some apartments free of charge for the most vulnerable social categories and some for affordable rent), in particular, to professionals whose involvement is required by the community, and to other people (including socially vulnerable people) who need assistance with the housing. This will ensure the sustainability and long-term positive impact of the housing developed in the territorial community with the support of humanitarian organizations.

Model variants

Thus, the model of cooperation with local authorities for the development of social housing (in the broadest sense) can have several implementation options, depending on whose responsibility is the long-term housing management and whether paid and free accommodation is combined.

Variants of the model of cooperation between humanitarian organizations and local authorities for the development of social housing (in the broadest sense)
		An institution in charge with the long-term housing management
		Communal enterprise	Non-governmantal organization
Conditions on which the housing is provided	For all people without rent fees	1	3
	For some people – without rent fees, for some people – at affordable rent fees	2	4

1. The first variant of the model envisages the provision of rent-free housing, the operator of which is a communal enterprise that performs long-term management functions. The key advantage of this variant is the possibility to implement it without waiting for legislative changes within the existing status of temporary housing for IDPs. At the same time, this variant does not provide for mechanisms to ensure the financial sustainability of the developed housing. One of the risks may also be the ability of territorial communities to have communal enterprises capable of the effective housing management and development.
2. The second variant of the model allows for the provision of housing both without rent and for an affordable rent. Its operator is a communal enterprise in charge with long-term management functions. The key advantage of this variant is the ability to ensure the financial sustainability of the housing (at least under favorable conditions). Furthermore, the experience of successful implementation of this model can generally strengthen the capacity of the territorial community. At the same time, the lack of legislative regulation is a disadvantage. As in the first variant, the ability of communal enterprises to manage the housing effectively may pose a risk.
3. The third variant of the model allows for the provision of rent-free housing managed by non-governmental organizations. This variant is the least likely. The advantage of this variant is the creation of opportunities to provide housing in situations where territorial communities do not have sufficient capacities to create effective communal enterprises. At the same time, a key disadvantage is the lack of financial sustainability. Since non-governmental organizations generally lack guaranteed institutional funding, the possibility of long-term maintenance of such housing is vulnerable.
4. The fourth variant of the model allows for the provision of housing managed by non-governmental organizations, both without rent and at an affordable rent. The advantages of this option are its financial sustainability and independence from the capacity of territorial communities and their utility companies. The disadvantage is a lack of legislative regulation.

The first variant of the model allows for its implementation in the existing legal framework. Therefore, it may be the initial option used at the first stage of the assistance project implementation. At the same time, the second and fourth variants allow for sustainability and long-term impact, and therefore the implementation plan should provide for the possibility of adjusting and changing the model variant used in a particular project.

Essential terms and conditions

For the implementation of this model, the agreements and obligations of the parties should be formalized in a contract or other similar document. Any updates to the agreements (if any) should be included in the contract as amendments, addenda, or supplemental agreements to prevent possible risks in the implementation of decisions. The contract should be concluded for a period of at least 5 years, and preferably for 10 years; in any case, it should be renewable.

An important guarantee to ensure the long-term sustainability of the housing is a waiver of privatization of the housing created under the assistance project.

The implementation of a community housing project should be accompanied by the adoption of a community housing development program intended to establish the key parameters of the project, provide for the necessary legal grounds, regulations and procedures, as well as to allocate funds for housing management and operation, and create conditions for attracting other donor organizations.

When planning accommodations, we should presume that the created housing should be suitable for long-term use, not just temporary. With this in mind, it is important to create opportunities for families and households to live separately with individual bathrooms and kitchens. At the stage of planning, it is important to consider the need to create individual housing for different types of households in terms of composition and size. If possible, the list of future residents can be determined before the start of renovation works to take into account the specific needs of these people when planning the housing (in this case, future residents can be involved in the process of planning, renovation works, and housing arrangement).

Housing improvement works should increase the level of accessibility of premises. If it is not possible to make all new housing barrier-free, at least a part of the created housing should be barrier-free, if technically possible. The key barrier-free parameters that require priority attention are access to the housing, barrier-free toilets and showers, and consideration of barrier-free furniture.

New housing should be created with due regard for energy efficiency, climate responsibility, the use of environmentally friendly solutions, and lean consumption of resources. With this in mind, the priority is to retrofit the existing buildings instead of building new ones, as well as to build at brownfield sites instead of greenfields, and to maintain compact development of settlements instead of sprawl and expansion of the built-up area. Wherever possible, old materials, furniture, and decoration elements should be reused.

Implementation Plan

The assistance project implementation plan may differ for each community, depending on the previous experience of cooperation, community capacity, and other relevant factors. Nevertheless, it should include the following key project stages.

1. Preparatory stage

The key goal of this stage is to prepare for project implementation. The result of the preparatory stage is a detailed project implementation plan with defined key roles required for its implementation. This stage should include the following steps.

• Determining the key intervention parameters, including the possible amount of financial contribution, human resources from the donor organization, and key objectives. The amount of funding will determine the project scale, and the size of internal human resources involved will determine the need to engage external consultants and partner organizations.
• Developing proposals and terms of reference for partner organizations, as well as selecting and establishing agreements with partner organizations whose participation is necessary for the successful project implementation. When creating the conditions for cooperation, it is important to remain flexible and sensitive to the variability of situations, needs, and capabilities of different communities.
• Determining the cooperation parameters and conditions together with territorial communities, which should include a detailed legal analysis, drafting documents, forms and rules, monitoring tools, training programs, capacity building and experience exchange programs necessary for project implementation.
• Informing key stakeholders in the field of humanitarian response, housing, local development, etc., including international organizations, national authorities and key Ukrainian non-governmental organizations. Such coordination is necessary to take into account the existing experience and context in which the project is planned, as well as to avoid ineffective duplication and non-constructive competition.

2. Qualification stage

The key goal of this stage is to identify the communities for cooperation under the project. The qualification stage outcome is the needs assessment and list of selected communities.

Communities can be selected in two ways:

1. based on the results of an open competition: this option is appropriate if it is possible to support more than 5 communities and there are no specific selection criteria that make an open competition ineffective, such as previous experience of cooperation;
2. without an open competition: this option is appropriate if it is possible to support no more than 5 communities (which makes the costs of holding a competition and preparing applications unjustified in terms of results) or if there are specific selection criteria that make the competition ineffective.

With public information requests and letters to the communities and regional administrations, information can be obtained on the registered need for social housing (in the broadest sense), the availability of local programs, plans for the creation of social housing (in the broadest sense), and the availability of vacant premises available for the construction of social housing (in the broadest sense). Addressing regional administrations can help to get an overview of the situation and trends in the region, as well as information and advice regarding the communities in the region which are the most in need of support. 

Selecting the communities for support, it is important to consider the presence of IDPs who need the housing in the community, as well as the overall dynamics of forced displacement, in particular, according to the Ministry of Social Policy of Ukraine and the International Organization for Migration. At the same time, it is important to take into account employment opportunities in the community, as well as the availability of other infrastructure, such as educational infrastructure for children or social infrastructure for people who may need social services. Another important factor is the community’s ability to implement such projects. On the one hand, more capable communities may have more experience and expertise to implement a joint project faster and more efficiently. At the same time, they may also have a larger workload and many partner projects at the same time, which means less attention to each specific project. On the other hand, less capable communities also need support, in particular to increase their capacity and gain experience in implementing partner projects. Therefore, when selecting communities, it is important to pay attention to their capacity level and take it into account when planning a project.

Before selecting communities, it is worth checking for any political or other conflicts in the last 5 years that may affect the ability to implement the project. It is also important to check the community leadership for integrity. This can be done by monitoring the media, as well as with the involvement of specialized organizations, such as the Chesno movement. The existence of previous corruption cases may indicate an increased risk of new cases. The presence of political conflicts can also pose a risk to the project in the event of change of officials or escalation of conflicts, which can, for example, impede the effective work of the local council, making it difficult to make the decisions necessary for the project implementation.

The process of selecting communities should include a preliminary technical assessment of sites proposed by the communities through site visits by engineers and other professionals to determine whether the social housing (in the broadest sense) facility can be built within a reasonable period. Such technical assessment at the community qualification stage requires appropriate funding.

The open competition involves the following stages:

1. creation of conditions for participation in the competition;
2. dissemination of announcements of the competition and collection of proposals from communities;
3. creation of the Qualification Committee to evaluate the proposals;
4. conducting the evaluation and forming a list of potential winners;
5. conducting the technical assessment of the facilities proposed by the communities included in the list of potential winners;
6. determining the final list of winners;
7. notification of the competition results.

An open competition can increase the process transparency and attract new communities to cooperate. At the same time, the proposal preparation will require additional efforts from the communities without guarantees of success. Therefore, it is important to keep the proposal form at the minimum level of complexity necessary for the qualification process. In the case of the open competition, it is important to make due efforts to disseminate the announcements to the communities. The public announcement can be disseminated on the organizers’ websites, specialized portals (Decentralization, Hromadskyi Prostir (Public Space), Gurt, etc.), social networks (in particular, Facebook) and specialized groups dedicated to local development through associations of local governments. External experts with experience in humanitarian response, housing, local development, etc. can be involved in the assessment and selection of communities (including representatives of professional non-governmental organizations working in the field of housing policy, associations of local governments, and relevant ministries).

The following criteria should be also taken into account when selecting communities for the project implementation:

• security situation;
• the potential and willingness of local authorities to commit to co-financing of social housing (in the broadest sense) programs :
• availability of buildings that can be transformed into social housing (in the broadest sense) after completion of the necessary repairs;
• availability of a local social housing (in the broadest sense) development program for a period of 7-10 years or a commitment to adopt such a program.

3. Planning Stage

The key goal of this stage is to prepare for the project implementation in specific communities. The planning stage outcome is a signed document that defines the mutual obligations of the parties involved in the project regarding its implementation. This stage should include the following steps.

• Needs analysis, which includes IDP needs analysis, analysis of the housing needs of other social groups, analysis of the capacity of local authorities and non-governmental organizations, and analysis of the technical and legal possibilities of work with a particular facility.
• Preparation of technical documentation and other documents and decisions necessary for the housing development.
• Preparation of a cost estimate, housing improvement work plan, monitoring and evaluation plan, risk management plan, and community stakeholders engagement plan. In addition, it is important to prepare a preliminary financial plan for the maintenance of the newly created housing in order to find or allocate the necessary funds.
• Preliminary training necessary to proceed to the project implementation. Such training may include familiarization with the key values, goals, and concepts of the project, as well as mastering the key skills necessary to start the project work.
• Conducting public consultations in the community on the housing development to inform residents about the project purpose, planned activities, and the project impact on the community development. Public consultations are also necessary to collect proposals, answer questions, and take into account the needs of community residents in the project and related activities.
• Formal approval by the community authorities (by a decision of the local council or executive committee) of the key parameters of the cooperation project, in particular, 1) basic requirements for the project implementation; 2) description of a specific facility; 3) co-financing obligations for re-arrangement/repair/reconstruction; 4) project implementation period; 5) long-term guarantees of financial support for the social housing (in the broadest sense) functioning; 6) facility management conditions (living conditions; identification of the body/enterprise responsible for the facility management); 7) description of the criteria for granting the right of residence. Such key parameters can be approved in the form of a local social housing (in the broadest sense) development program and an action plan for its implementation. 
• Execution of the agreement and other documents required to start the project work.

4. Development stage

The key goal of this stage is the actual creation of housing. The development stage outcome is the residential premises that are fully ready for operation and occupancy by residents. This stage includes several key components.

1. Performance of construction works related to the creation of the physical space of the housing: repair, refurbishment, reconstruction, etc.
2. Mentoring of communities, which includes regular interaction (including online consultations and visits) between mentors and communities. Each community can have a mentor who is an architectural specialist, as well as a mentor who is an administrative and social specialist. In addition, other specialists with special expertise required by the communities for the project implementation may be involved for consultations on a case-by-case basis.
3. A training program for the communities to equip employees of local authorities and civil society organizations with the necessary skills in housing construction, operation and management, standards of social services and social work, communication and community facilitation, conflict resolution, counteraction to gender-based violence, project management, financial management, civic participation and other relevant knowledge.  
4. Measures for organizational development and institutional capacity building of the institutions that will manage the created housing. The plan of such measures should be determined individually for each institution, based on the recommendations developed during the preparatory stage of the project. Institutional development activities may include, in addition to participation in training programs, assistance in preparation of internal documents, policies and procedures, establishing or organizing the work of supervisory boards, changing the structure and introducing new positions, conducting strategic planning, conducting necessary research, establishing mechanisms for interaction with beneficiaries, civic participation and transparency, and auditing.
5. Monitoring activities, including regular (e.g., every three months) reporting to the donor on the work done, risk management, and plans for the next stage.

Before the development stage, it is important to determine the list of personnel required for the project implementation (taking into account the specifics of work at specific sites), which may include technical supervision engineers, civil engineers, and construction engineers, cost engineers, lawyers to support the facility and prepare the necessary documents at the community level (local programs, implementation plans), case managers to support future residents, procurement specialists.

If the project is implemented by a non-governmental organization, for the purpose of construction works, the local authority (local council) must transfer the facility to the non-governmental organization for temporary use, which provides legal grounds for its work on the site. After that, the non-governmental organization is to select a contractor to perform the construction work and procure the relevant services from it. To develop the plan for the reconstruction of the facility, it is necessary to procure relevant services from certified companies/organizations. The planner should be provided with necessary information such as site conditions, technical specifications, and detailed project requirements. Planning specifications shall be approved by the customer in consultation with the planner. To obtain a construction permit, an application is to be submitted to the local administrative service center.

The facility reconstruction includes such steps as issue of the contractor’s work permit, performance of the construction work, technical supervision, execution of the completion certificates, obtaining a new technical data sheet for the building, and facility commissioning. After these works are completed, the temporary use of the facility by the non-governmental organization can be terminated.

5. Operational stage

The key objective of this stage is the actual functioning of the housing. The operational stage includes determining the list of residents, establishing the conditions of use, and launching a long-term housing management system with the involvement of residents in management, professional development, and the monitoring and evaluation system.

It is important to base the process of determining who will be allocated housing on a transparent system that is free from subjective or corrupt influences. Point-based or quota-based approaches to designing such a system are among the possible approaches that could be integrated into it. At the same time, it seems appropriate to consider, if possible, improving the existing point-based system proposed by the government, due to its possible insensitivity to certain specific situations. The qualification process cannot take place without the involvement of local authorities. In particular, it is appropriate to use the registration or survey data from the IDPs in need of housing that are kept by the communities. At the same time, it is important to involve representatives of local non-governmental organizations, as well as IDP representatives, such as IDP councils, in the distribution of housing. The donor’s participation in the qualification process is important, but its influence on this process should be transparent and justified.

The provision of housing for IDPs should be accompanied by other services from the community, which may include psychological assistance, social services, employment assistance, retraining, and finding educational institutions for children. The necessary assistance can be provided by case managers.

The financial plan of the housing project should take into account not only the construction, repair, and furnishing costs, but also include calculations of income and expenses during the operation stage. This includes the costs of administration, necessary current repairs, maintenance of equipment and furniture, salaries of specialists, and involvement of necessary experts. Revenues may include grants from other donor organizations, rent, if it is possible under the chosen housing model, and funding from the community budget. If the created housing is administered by a communal enterprise, the community should cover the necessary expenses if there are no other sources of coverage. Payment for utilities should be made by the residents of the housing. If the latter are unable to make such payments, they can be covered by a government subsidy or assistance for utility bills, funds from donor organizations, or from the community budget if there are no other options.

A good housing management system should be able to respond to changes in the needs of residents and a variety of situations, including conflicts that may arise during operation. The housing management organization should have an independent supervisory board to approve key decisions, as well as a proper accountability and transparency policy. The latter should include the requirement for annual public reporting (including reporting on income and expenses), development of a strategy with the involvement of key stakeholders (including residents), public information on key decisions, as well as preliminary discussion of draft key decisions with stakeholders before they are made, including through public consultations.

Key rights and obligations should be set forth in the contract with tenants. If possible, agreements should be concluded for a period more than one year that can help to promote a better sense of ownership of the housing, a desire to take joint responsibility for it, and integration into the community, formation of a sense of “home.”

In addition to the contract, it is important to have residence rules that are enforceable and effective. The residence rules should be developed with the involvement of residents themselves. Non-governmental organizations and experts, including facilitators, can also assist in the development of the rules, as they can organize and conduct a process of joint rule-making with the participation of residents. It is important to review the rules regularly with possible additions to them. It is also important to involve residents in this process. To resolve conflicts among residents, as well as between residents and the management organization, it may be appropriate to involve non-governmental organizations, including IDP organizations, IDP councils, and specialists in facilitation, mediation, and conflict resolution.

Monitoring and evaluation activities should include, in addition to the public reporting and activities of supervisory boards, communication with the donor organization aimed at collecting information on key results, challenges and needs. The possibility of providing the necessary assistance, both financial and non-financial (e.g., necessary consultations, engagement of specialists, training activities), from the donor, including in the post-project period, can significantly enhance the project sustainability.

Community engagement

Involvement of key stakeholders is one of the important factors to ensure the project sustainability. Such involvement should take place at all stages of project implementation and cover different groups of stakeholders.

At the preparatory stage, a key stakeholder engagement measure is to inform other humanitarian and donor organizations, as well as non-governmental organizations and experts operating at the national level, about the project implementation plans to coordinate and take into account existing experience.

At the qualification stage, it is important to communicate with various key stakeholders within the communities considered as candidates for cooperation, as well as national and local experts who can provide expert opinions on the experience and opportunities for cooperation with a particular community.

During the direct implementation of the project in the communities, stakeholder engagement includes, firstly, interaction with key interest groups in the community, and secondly, interaction with residents of the housing. In order to engage with key interest groups in the community, outreach activities are needed to build support for community housing, overcome stereotypes and marginalization of social housing (in the broadest sense) and housing rent, and to increase understanding between IDPs and the community’s resident population. Such outreach may include messages in the media and social media, as well as opportunities for face-to-face communication, meetings and public events, such as cultural events, public consultations, and public hearings.

In addition to public outreach, public reporting, transparency, and oversight by independent supervisory boards, it is also important to establish communication not only with the government team but also with opposition politicians or important non-governmental initiatives. Informing these groups about the project and gaining their support can contribute to the project sustainability.

Involvement of housing residents concerns primarily the housing management issues. For example, residents can perform functions necessary for the housing maintenance, such as administration, repair, cleaning, etc. Such involvement can take the form of hiring residents to fill these positions, which can further contribute to solving the problem of employment, if any. It is important to inform residents in a due and timely manner about all important decisions and changes related to their housing. Such information should include the possibility of providing suggestions, explanations and discussions of various scenarios for resolving the existing issues. In addition, there should also be an opportunity for feedback through regular surveys, communication and appeals, and the establishment of friendly relations between residents and the administration.

The project sustainability and success can be positively affected by the development of community and good neighborliness between residents. This can be facilitated by encouraging residents to engage in joint activities, such as arranging common spaces or landscaping the surrounding area. In addition, it is important to encourage various forms of self-organization of residents: both irregular joint activities and institutionalized forms of self-organization, such as regular general meetings or the formation of a residents’ association to collectively represent their interests. Certain housing management powers, including advisory and consultative functions, the right to approve certain decisions, and the right to manage certain financial resources can be delegated to self-organized associations of residents, if established.

Strengthening the Community Capacity

Measures to increase the capacity of communities to implement housing projects for IDPs should be implemented in three dimensions: 1) mentoring, 2) training, and 3) horizontal exchange of experience.

A mentoring program can involve mentors who can provide communities with the support they need, as well as introduce them to the best practices and help them expand their understanding of possible options. Several mentors can work with each community, with expertise in construction and architecture, as well as administrative and social issues. It is important for mentors to be able to visit the community repeatedly, combining online consultations with face-to-face communication. In addition to mentoring support, it may be appropriate to engage narrowly focused specialists for consultations, who, upon request, could provide the community with answers to questions or help solve problems.

The training program for communities can address both hard and soft skills and combine the study of theories with work on practical cases. Training topics can include: approaches to housing policy, rights and responsibilities of different parties in relation to housing, human rights and non-discrimination, construction and land issues, project management, English, public communications, participatory practices, facilitation, combating and preventing gender-based violence, community management, conflict resolution and mediation, fund-raising, housing management, monitoring and evaluation, needs assessment, etc. The training can be useful for both government authorities and representatives of non-governmental organizations. A special priority should be given to training and professional development for employees who directly interact with housing residents (e.g., receptionists, administrators, superintendents, etc.) to ensure that they have the appropriate level of communication skills.

A great added value can come from creating opportunities for different communities that are simultaneously receiving similar support or implementing similar projects to share experiences, discuss common challenges and successes, and provide mutual support to each other. In addition, it is important to further disseminate the experience gained by different communities, including through associations of local governments.

One of the success factors may be the stability and duration of community support, which would allow for the planning and implementation of projects that require a longer duration. It may be useful to assist communities in reorganizing operational or management processes, setting up procedures, creating new positions, redistributing job responsibilities, and developing or updating internal policies and procedures.

Given the limited administrative capacity of communities, it may be appropriate to allocate a part of the funding to pay for the professional services necessary for the project implementation, such as project management, architectural design, facilitation, etc.

Changes in Legislation

Although the creation of housing for IDPs can already take place within the framework of existing legislation, the development of a social housing sector (in the broadest sense) that is sustainable in the long term requires legislative changes. Such changes should be developed with the involvement of local authorities and civil society organizations that already have experience in providing housing. The creation and improvement of legislation should be based on the existing practices, their analysis, effectiveness study and evaluation. 

First and foremost, key housing legislation needs to be updated, in particular the Housing Code and the Concept of State Housing Policy, which are currently focused on housing privatization and creating the conditions to facilitate the purchase of private property, without offering effective and sustainable mechanisms to provide the housing for those who cannot afford to buy the housing, even if they receive a preferential loan or partial compensation for the cost of housing.

The regulation of the social housing sector (in the broadest sense) also needs to be changed. First of all, it seems appropriate to unify approaches to housing and premises with different statuses: social housing (in the narrow sense), temporary housing, and place of temporary residence. The need for separate funds of social housing (in the narrow sense) and temporary housing may be reconsidered. The practice of allocating temporary housing for IDPs separate from “general” temporary housing also needs to be assessed. In addition, it would be appropriate to expand the social housing sector (in the broadest sense), which currently de facto provides rent-free housing, despite the de jure possibility of receiving rent. To ensure the sustainability and self-sufficiency of social housing (in the broadest sense), it is important to combine the provision of rent-free housing with the provision of housing at affordable rents that are lower than in the commercial rental sector. For this to be widely applied in Ukraine, it may be necessary to expand the cohort of people eligible for social housing (in the broadest sense), to detail the procedures for determining the rent fee, as well as the procedures for its payment and subsidization, and other changes, the detailed list of which should be further analyzed.

For the development of social housing sector (in the broadest sense), it is important to develop opportunities for non-governmental organizations and charitable foundations, as well as municipal institutions and communal enterprises, to create and manage social housing (in the broadest sense) provided at zero or affordable rent. This will require amendments to the laws governing taxation, charitable activities, rent of state and municipal property, land allocation, and other issues, the detailed list of which should be further analyzed. One option would be to create a separate status for social housing providers (in the broadest sense), which would be subject to appropriate regulations. In order to attract investment in the development of social housing sector, the possibility to become social housing providers could also be granted to companies with limited profitability status, which would mean the need to develop laws to regulate this status.

To facilitate the creation of housing in the existing premises, it is important to simplify the procedures for using buildings that previously housed educational and cultural institutions for social housing (in the broadest sense), and to simplify the procedures for changing the intended and functional purpose for the creation of social housing (in the broadest sense).

The accounting system for housing needs also should be changed. The existing “queues” may need to be updated. It is necessary to digitalize the accounting and create a single electronic register instead of several different “queues”. “queues”. In addition, the lists of priority, and non-priority categories, as well as the scoring system, may need to be revised. It may be useful to give more flexibility to local authorities in the allocation of housing, along with increased transparency and public control over decision-making. 

At the national level, there is a need for a social housing development program (in the broadest sense) to assist communities and direct financial resources into the sector.

Increasing the institutional capacity of the national government to implement the housing policy and to guide and coordinate the efforts of local authorities is critical. Possible steps in this direction include prioritizing housing issues within the structure of the relevant ministry, as well as establishing a national housing agency to take over housing programs currently managed by different ministries and central executive authorities. The national housing agency could also perform data collection functions, provide technical and financial support to local communities, and attract international funding. To change the cultural perception of rented housing and social housing (in the broadest sense), and to protect the rights of residents, it may be appropriate to create the institute of housing ombudsperson.

Transparency, civic participation and public control mechanisms should accompany all aspects of housing policy implementation. Particular attention should be paid to the regulation of the mandatory participation of residents in the management of housing or premises where they live, including through associations of tenants.