Habitat for Humanity Ukraine

Contact information HFH Ukraine Zochova 6-8 Bratislava 81103 Slovakia Phone: +421 233669000 Fax: +421 252497073 E-mail: lhayes@habitat.org
Country profile

Like many countries formerly in the Soviet sphere of influence, the Ukraine has been growing steadily after righting itself in the 1990s. Indeed, the Ukraine sits on substantial oil and gas reserves and rich agricultural land. Its work force is well-educated, and the country perches in a strategic location connecting Europe, Russia and Asian markets.

But, again like many other Soviet satellites, the Ukraine continues to struggle with shelter issues. Privatization after its independence from the Soviet Union sent the Ukraine’s housing stock on a spiral downward from which the 46 million-population country has not yet recovered.

Housing Need
While the Ukraine has recorded steady overall growth since 2000, it has also endured a widening gap between the rich and poor. Overall, living standards for the majority of people have continued to decline, with poverty gripping especially families with many children and single-parent-led households.

The government estimated in 1999 that nearly one of every three Ukrainians lives in “unsatisfactory” conditions. About one-third of all state apartments are in need of extensive or routine repair. All housing built during the “mass industrial housing development period” needs reconstruction, whether in private or public tenure.

Housing in the Ukraine is also exposed to risk from natural disaster, including floods, landslides and earthquake risks. About 7 million people in 200 cities are considered to live in seismically risky areas.

How Habitat operates:
Habitat for Humanity and HOPE International announced a partnership in September 2008 to provide affordable home-improvement loans to HOPE's established microfinance clients in Ukraine. The pilot program is reaching 200 families in need in the Transcarpathian region in its first year. Loans range in size from $500 to $2,500 and can be taken in conjunction with a HOPE Ukraine business loan.

Description of the innovative projects
Clients who have a strong repayment history with HOPE’s business loans and who meet certain other eligibility criteria can access loans ranging from $500 to $2,500 to finance home improvements such as roof repairs, plumbing and electrical work. Following the Habitat model, loan recipients invest their own labor in remodeling their homes. This reduces the cost of the project and increases the pride of home ownership. The below-market-rate loans require monthly installments for six to 24 months, with payments deposited in a revolving fund to generate additional home-improvement loans to more families.

Habitat for Humanity regards access to credit as one of the key components to lifting low-income families out of poverty and out inadequate housing. Partnerships with like-minded organizations such as HOPE develop sustainable housing solutions to help exponentially more families in need help themselves to safe and secure homes where they can grow together with their communities.