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June 11, 2024
The National Recovery Plan, presented by the Government of Ukraine at the Lugano conference in July 2022, emphasizes Ukraine's commitment to recovery and renewal. While it lays the essential groundwork for the country's physical reconstruction and economic resurgence, a deeper understanding and strategies are needed to address the complex challenges faced by the conflict-affected population.
In line with the needs of humanitarian response, funding and programming for the projects supporting Ukraine’s recovery should be aimed at integrating internally displaced persons into the host communities, as well as creating appropriate conditions for the return of Ukrainian citizens from abroad and their reintegration upon coming back to their places of origin.
We find ourselves amid an unprecedented displacement crisis that has not been seen since the turbulent times of World War II. With over 6.3 million having sought refuge abroad, nearly 4.7 million people are internally displaced within Ukraine, out of which approximately 1 million are children and 1.5 million are elderly individuals aged 60 and above. As reported by the CCCM Cluster, currently around 116,000 individuals reside in 2,500 collective centers, highlighting the pressing need for proper accommodation.
About 80 percent of IDPs rely on rented housing for shelter, facing a number of challenges with securing stable living conditions. In March this year, the Ukrainian government announced a significant reduction in the number of recipients eligible to receive state housing allowances with the aim of “optimizing their disbursements”. This cut is estimated to reduce the number of beneficiaries from 2.5 million to 1 million, affecting a sizable portion of the IDPs. And for approximately 70 percent of IDPs, this housing allowance serves as the primary source of income, making the reduction particularly impactful. Alarmingly, 8 percent of the respondents expressed the dire consequence of being compelled to return to unsafe homelands due to the loss of housing aid. Additionally, about 10 percent are planning to seek aid from humanitarian organizations to cope with the abrupt changes in assistance programs.
Escalated by the ongoing war, the housing crisis presents a complex situation with multifaceted funding requirements, necessitating both short-term and long-term strategies. With challenging conditions in Kharkiv, Zaporizhzhya, Sumy, and other impacted regions, the approaching winter is bound to exacerbate the situation, potentially leading to increased displacement and a heightened need for emergency housing solutions. Simultaneously, it is imperative to provide sustainable housing solutions for the purposes of ensuring the integration of individuals displaced since the onset of the full-scale invasion. Equally important is the development of robust and sustainable housing solutions for Ukrainian refugees returning from abroad, facilitating their reintegration and stability.
To address the housing challenges for IDPs and affected populations, it is necessary to create a variety of housing solutions tailored to their specific needs, capacities, and vulnerabilities. These solutions should include ensuring adequate conditions in the collective sites, establishing a system of social housing for IDPs, expanding financial mechanisms for purchasing affordable housing, and further developing the compensation mechanism for the housing destroyed or damaged due to the war in Ukraine, including increasing its funding.
Diversifying housing solutions should prioritize three key categories: individuals still residing in collective centers, those with vulnerabilities preventing them from entering the labor market, and working-age individuals, including youth.
For the first two groups, who are unable to resolve their housing issues independently, a transparent and inclusive social housing system should serve as a long-term solution. The upcoming housing policy legislation must provide clear and equitable mechanisms for IDPs to access social housing while ensuring its financial effectiveness, especially in the regions where social housing is currently absent.
Establishing this new social housing system will require a multifaceted approach, including the construction, purchase, reconstruction, and repair of existing facilities to form a robust stock of premises.
Additionally, a comprehensive strategy should be developed specifically for resettling IDPs from collective centers.
For working-age individuals, including youth, the most effective long-term solution for the housing challenges lies in fostering employment opportunities, encouraging entrepreneurship, and expanding access to credit instruments. Implementing a comprehensive IDP employment strategy and enhancing the availability of credit programs at both national and regional levels will significantly contribute to resolving housing issues.
Scaling up the existing housing credit programs, such as those provided by KfW or eOselya, is crucial to better support displaced individuals in securing stable housing and promoting economic self-sufficiency.
Communities' and local government’s capacity to implement local housing policies prioritizing the needs of IDPs is limited due to the magnitude of challenges, insufficient funding, and the lack of prior experience. According to KSE Institute, during the period from February 24, 2022 until January 2024, over 250,000 buildings have been destroyed, resulting in direct damage to the housing stock estimated at about 56 billion USD, while the total cost of rebuilding Ukraine over the next decade, under RDNA3, amounts to 486 billion USD.
Without adequate funding, particularly through national compensation and international reparation mechanisms, Ukraine will not be able to provide recovery assistance to all victims and survivors. Currently, those who lost their homes before the commencement of the full-scale invasion in February 2022 are excluded from both national and international compensation mechanisms.
Finding and developing durable housing solutions for IDPs remains a challenging task for the Ukrainian government and society. Where civil society organizations are actively involved in this process through the advocacy and expertise, it is crucial for international organizations to incorporate localization strategies in their advocacy efforts, ensuring the involvement of national civil society organizations. For the civil society sector in Ukraine, it is vital that the government prioritizes the most vulnerable categories of population when developing new systems of social housing and other durable solutions for IDPs. We urge the government to establish a functional system to address the challenges faced by millions of IDPs. If the system lacks flexibility or inclusivity, NGOs must guide the most vulnerable through the system, ensuring their equal access to dignified living conditions, rather than mere survival.
In view of the above, the recommendations for the Government of Ukraine, International Organizations and Partners are as follows:
In conclusion, the formula for Ukraine’s recovery can be achieved by adopting a human-centered model that prioritizes the human rights and integration of the whole Ukrainian society. By investing in suitable living conditions, employment opportunities, and social services, Ukraine can not only drive economic inclusion for vulnerable populations but also foster their seamless integration into society, establishing a resilient and prosperous future for Ukraine.
Right to Protection, CF
GROUP OF INFLUENCE, NGO
CF EAST SOS
Human Rights Centre ZMINA
People in Need
Norwegian Refugee Council
Nonviolent Peaceforce
Tenth of April, NGO
Triangle Génération Humanitaire (TGH)
Caritas Ukraine
ALLIANCE.GLOBAL, Public Organization
Estonian Refugee Council
Kindernothilfe e.V.
Kindwrnothilfe, Germany
Stabilization Support Services, CF
Agency for Sustainable Development and Innovation, NGO
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