Ukrainians will be able to claim compensation for housing in the temporarily occupied territories: who is entitled

In early 2023, the Verkhovna Rada of Ukraine adopted the Law of Ukraine "On Compensation for Damage and Destruction of Certain Categories of Real Estate as a Result of Hostilities, Terrorist Acts, and Sabotage Caused by the Military Aggression of the Russian Federation."

This was the start of the "eVidnovlennia" program, which allowed people to receive compensation for destroyed housing from May 2023 and for destroyed housing from August 2023. The program really got underway and didn't remain just on paper, which allowed for two important functions to be carried out: first, the compensation function, and second, supporting the real estate market during the war.

Now, almost two years after its launch, MPs have extended the compensation program to owners of housing located in the temporarily occupied territories. The adopted law has not yet been signed by the President of Ukraine, but it seems to be only a matter of time.

Another issue will definitely be financing, as the program applies to a new and rather large group of Ukrainian citizens.

Who will be able to claim compensation for which real estate?

As before, the following are eligible for compensation:

• only citizens of Ukraine (their heirs);
• only owners of residential real estate (apartments, houses).

In other words, businesses and citizens who own non-residential real estate cannot claim compensation.

The law provides for compensation for the following residential real estate:

• located in the territories of territorial communities located in the area of military (combat) operations;
• located in the territories under temporary occupation, encirclement (blockade).

These territories will be determined following the List of territories where military operations are (were) conducted or temporarily occupied by the Russian Federation.

The law equates all real estate objects in such territories to destroyed ones. Also, the requirement to survey such properties, which is mandatory for properties in the government-controlled territory, is canceled.

It is important to note that compensation will no longer be available to those citizens whose homes are located in the territory occupied before February 24, 2022.

Requirements for recipients and priority right to compensation for housing in the TOT

The Law stipulates that compensation for destroyed real estate in the TOT is provided only if the recipient of compensation has been residing in Ukraine for the last two years as of the date of submission of the application for compensation.

The Law specifies that residence in Ukraine means:

• residence on the territory within the state border of Ukraine;
• staying on a ship that is sailing under the State Flag of Ukraine;
• stay of citizens of Ukraine on a business trip outside Ukraine in foreign diplomatic missions of Ukraine, international organizations, and their bodies in accordance with the procedure established by law;

• staying at the polar station of Ukraine;
• being a member of a unit of the Armed Forces of Ukraine stationed outside Ukraine.

In addition, a person is deemed to reside in Ukraine if his or her single trip abroad on private business did not exceed 90 days and the period of stay outside Ukraine in each annual period during the last two years as of the date of submission of the application for compensation did not exceed 183 days.

At the same time, the law does not consider the requirement to reside in Ukraine to be a violation:

• traveling abroad on a business trip, study, vacation, or for treatment on the recommendation of a medical institution;
• residence of a person in a foreign country, except for the Russian Federation and the Republic of Belarus, under the legal status of (1) a refugee, (2) a person in need of complementary protection, (3) a person in need of temporary protection, or other similar legal status granted in connection with the armed aggression against Ukraine after February 24, 2022.

As before, the Law also provides for several persons who have a priority right to compensation, including combatants, persons with disabilities as a result of war, persons called up for military service during mobilization, large families, persons with disabilities of groups I and II, etc.

Another category has now been added to this list, which will significantly expand the number of priority participants in the "eVidnovlennia" program – internally displaced persons, but not all of them, but only if the destroyed real estate was the only residential real estate of such a person.

Forms and amount of compensation for housing in the TOT for Ukrainians

The law stipulates that only one form of compensation will be available for housing in the TOT – a housing certificate, i.e. an electronic document confirming the state's guarantees to provide financing for the purchase of residential real estate.

The certificate can only be used by its owner or his/her heir and cannot be alienated to third parties. The certificate can be used within 5 years.

As before, it is prohibited to sell or otherwise dispose of the property purchased with the certificate for 5 years.

In addition, the law stipulates that the owner of a home in the TOT at the time of purchase of a new home is obliged not only to assign to Ukraine the right to claim compensation for damages but also to alienate the real estate for which compensation is received, which is a logical and understandable step.

The amount of compensation has not been changed; it will be determined based on the location of the real estate, its area, etc.

The procedure for obtaining compensation for housing in the TOT

As before, an application for compensation may be submitted during martial law and within one year from the date of its termination to the Commission for consideration of compensation.

The application is submitted either in electronic form (via the Unified State Web Portal of Electronic Services) or in paper form (through an administrative service center, social protection authority, or notary).

The application must be accompanied by:

• a copy of the document confirming the ownership of the real estate object (such a document may not be submitted if the ownership of the relevant real estate object is registered in the State Register of Real Property Rights);
• a notarized statement by which the applicant undertakes to alienate the real estate in respect of which compensation is received into state ownership and to assign to the state the right to claim compensation for damages in the amount of compensation received;
• declaration of the place of permanent residence of the recipient of compensation for the destroyed real estate.

As a general rule, the application is reviewed within 30 days, and based on the results of the review, a decision must be made to grant or deny compensation, which can be appealed in court.

In general, the procedure for obtaining compensation is quite simple, and fairly quick and has been tested many times over the almost two years of the "eVidnovnennia" program.

The law is scheduled to enter into force in 4 months from the date of its publication. Thus, given that it has not yet been signed, the law may become effective in the second half of 2025, provided that the program is sufficiently funded.

The implementation of this law will undoubtedly be a positive solution for people who have lost their homes due to the war, especially for internally displaced persons, as one of the most vulnerable categories of Ukrainian citizens in the current situation.

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