Экономические науки/15. Государственное регулирование экономики

Seleznyova E.S.

3-d year student faculty of international economic relations

Doctor of Philosophy, Associated Professor Savytska L.V.

Kharkiv national university of economics

PROJECT “FREE BUILDING” AS A MEAN OF SOLVING THE HOUSING PROBLEM IN KHARKIV

Housing issue remains one of the most painful for many Kharkiv citizens. According to experts, solving the housing problem for only those people who are in the apartment turns in current scheme and current pace of Ukraine will take about 100 years. To purchase, for example, one-bedroom apartment average Ukrainian should work from 20 to 30 years, with an average lifetime of 69 years. American citizen earns money for the same apartment per 2, 7 years, German – 4, 4 years, Brazil – 6, 3 years, Russian - 26 years, Belarusian - 28 years, Pakistan – 40, 6 years. So possibilities of different countries representatives are depended on the standard of living in the country.

According to the social polls conducted among Kharkiv citizens, the majority of participants (46, 9%) in the survey are confident that the housing problem in Ukraine can be defined only in case of increasing the standard of living. At the same time there were lots of pessimists who are confident that this problem will never be solved in Ukraine (23, 5%). A minority of respondents supported options provided by public assistance in this issue. Thus, 9, 1% is in favor of government to encourage banks to reduce the maximum interest rate on the mortgage. 7, 1% of respondents hope for increasing financing for affordable housing programs and concessional lending. 6, 7% of respondents offer to give developers tax breaks and simplify construction. The rest of the respondents consider that it is necessary to strengthen state regulation of prices in the building market [1].

Meanwhile, building market is still not out of the crisis. According to the city municipal data on January 1, 2011, 47035 families are registered in the housing lists in Kharkov. For the city with a population of 1.435 million people, these figures are not reassuring. This problem is actual not only for Kharkiv, but for many cities of Ukraine.

In this regard State program for youth housing has been implemented for 2002-2012 years. But according to the Accounting Chamber of Ukraine, it could not be implemented because the main problem was the lack of financing from the state budget, totally more than 790 m UAN. It was the main reason why only 12% of the planned number of housing for young people was commissioned [2].

Also in 2009, the implementation of state program for partial compensation of mortgage bank interest rates was stopped (it works only for those contracts that were made before 2009). The draft state budget for 2011 the largest amount of funding in the field of Construction and Housing was given to projects under the Euro-2012. In this case, items such as housing for Interior Ministry employees had to be sacrificed and leave in doubt affordable housing program.

Thus, there is a real problem to solve the problem of housing Kharkiv considering the economic situation of the city.

Under the program "Affordable Housing" in Kharkov several objects have run Construction Company according to which 30% of the price paid by the state and 70% paid by the person who needs to improve their living conditions.

This government program aimed to support both population and such an important sector of economy as the construction industry. But the major drawback of this program is that funds in the state budget, as well as looking at these conditions is not enough to purchase a house for its implementation [3].

Analyzing this program, we suggest the project "Free building" for consideration. This project will provide an opportunity not only for young, but for all Kharkiv citizens who are in the housing register, on their own initiative to unite and build housing creating housing co-operative. This co-operative will act solely in order to provide housing for local people. It will operate under a charter that will be approved by the Cabinet of Ministers of Ukraine. The draft stipulates that the authorities of the city government may transfer cooperatives to build a house which need in renovation, land in communal ownership and provide access to public infrastructure.

State Fund for Housing will provide members of housing co-operatives preferential long-term mortgages, sending shares and the payment of contributions. Also an organizing committee will be established. The main purpose of the committee will be to ensure a process of construction and public control over the state of construction.

The organization of the process of construction and reconstruction will get the ball rolling unfinished objects with minimum public funds. It is major advantage over previously proposed programs. As a result, Kharkivites will finally get their own homes.

References:

1. Соціальне опитування харків’ян [Електронний ресурс]. – Access mode: http://www.bagnet.org/

2. Рахункова палата України. Офіційний сайт [Електронний ресурс]. – Access mode: www.ac-rada.gov.ua

3. Програма реформування і розвитку житлово-комунального господарства на 2002 — 2005 роки і на період до 2010 року // Міське господарство України. — 2002. — № 1. — С .20 — 28.