On February 15, 2026, the Law of Ukraine “On the Basic Principles of Housing Policy” entered into force, establishing new approaches to the realization of the right to housing. At the same time, the Law of Ukraine “On the Privatization of the State Housing Fund” remains in effect; its validity is limited to a period of one year following the termination or repeal of martial law.

Against this backdrop, on March 18, 2026, the Cabinet of Ministers of Ukraine introduced Bill No. 15088, which proposes to amend Part 2 of Article 2 of the aforementioned law—the provision defining the list of properties not subject to privatization. The document has already been submitted to the Verkhovna Rada of Ukraine for consideration.

It is advisable to consider the proposed changes through the lens of martial law, widespread damage to the housing stock, and the gradual transformation of state housing policy.

What exactly are the proposed changes?

In the current version of the law, the list of properties not subject to privatization is exhaustive and rather conservative. It includes, in particular, apartments (houses), residential units in dormitories located within nature reserves, military installations, and in areas subject to mandatory evacuation; those in a state of disrepair; and service housing.

Bill No. 15088 generally maintains this logic but proposes a number of significant changes.

First, it provides for an exception to the general ban on the privatization of dilapidated housing. Currently, such privatization is strictly prohibited. At the same time, the bill allows for the transfer of ownership of apartments and houses in a state of disrepair if they have been damaged or destroyed as a result of hostilities, terrorist acts, or acts of sabotage caused by the Russian Federation’s armed aggression against Ukraine. A mandatory requirement is the availability of an inspection report (certificate) for the relevant property. A clear time criterion is established: the damage to or destruction of the real estate property must have been caused by events occurring after February 24, 2022.

The need for this change stems from the fact that, under the state program “eRecovery,” the recipients of compensation for damaged or destroyed real estate are the owners of such property, whose ownership rights are registered in the State Register of Real Rights to Real Estate. At the same time, citizens residing in non-privatized housing stock are tenants. In the event of damage to or destruction of a dwelling, the tenant cannot be eligible for compensation, which creates inequality in the exercise of property rights. The bill provides for the possibility of privatizing such housing if individuals resided there legally, which will allow them to apply for compensation after registering their ownership rights.

Second, a ban is introduced on the privatization of housing located in communities that are under temporary occupation, as specified in the official list. As of today, this list has been approved by Order No. 376 of the Ministry of Development dated February 28, 2025.

The introduction of this ban is aimed at preventing illegal registration actions and abuses by the occupying authorities or related parties. At the same time, the explanatory note to the draft law does not contain a detailed justification for this change, which leaves room for debate.

Third, the Law of Ukraine “On the Privatization of the State Housing Fund” is being brought into line with current legislative approaches. In particular, the outdated term “closed military settlement” is being replaced with “military town” (property complex). Accordingly, it is proposed that housing located within the territory of military towns not be included among the objects of privatization.

The exclusion of references to residential premises in dormitories from the relevant provision deserves special attention. This approach is based on the fact that relations concerning the realization of housing rights for dormitory residents are governed by special legislation, specifically the Law of Ukraine “On Ensuring the Realization of Housing Rights for Dormitory Residents,” and do not need to be duplicated in the general law on privatization. This decision is consistent with the principle of sectoral specialization in legal regulation and helps eliminate regulatory redundancy by clearly delineating the scope of general and special legislation.

Draft Law No. 15088 has a number of advantages: citizens whose state-owned housing has been destroyed are given the opportunity to become its owners in order to participate in reconstruction programs; the establishment of a clear document (inspection report) minimizes the risk of discretionary action by government authorities; the definition of temporarily occupied territories reduces the risk of registration abuses.

At the same time, the privatization of dilapidated housing may contradict the fundamental principle of real estate safety, raising questions about the creation of formal ownership without real economic value. Attempts at abuse cannot be ruled out either, such as classifying properties that were uninhabitable even before 2022 as “war-damaged.”

Thus, Bill No. 15088 is a critically important link in the chain of wartime housing reform. It eliminates discrimination against tenants of state-owned housing who, due to the lack of ownership rights to damaged homes, were effectively denied access to the “e-Recovery” program. Despite the risks of creating “nominal ownership” of destroyed properties, this step is the only legally feasible mechanism that allows citizens to convert their right to residence into actual monetary compensation or a housing certificate. The effectiveness of its implementation, however, will depend on strict oversight of damage assessments to ensure that the exception for victims of aggression does not become a loophole for legalizing the old, dilapidated housing stock.