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"Own House" Program (support of rural residence construction): a regional cross-section


  • O. Popova


The purpose oriented program "Own House", which has been implemented in Ukraine since 1998, is practically the only one enabling the rural dwellers to obtain a privileged credit in order to build or buy a house and to equip it. Taking into account the program's importance and social character, the author provides the results of an analysis of various problematic aspects of its implementation by region. The analysis has established the unjustifiably high level of the state budget funds granted for the construction of individual rural housing to certain regions. The share of that source of funding in total value of the commissioned houses, in some regions, amounted to 70-100% with a low funding from local funding (contradicting to the planned proportions of co-funding). The government support was notably focused in the naturally attractive and recreational regions, first of all, in the Crimean Autonomous Republic (in 2013, the region's share in total value of the state budget funded houses amounted to 24%, 24%). Also unjustified has been the support of the construction of large size and high value rural individual houses. With average cost (as expenditures central and local budgets) of the construction of a rural house, within the program, at 65 ths Hrn, in Chernovtsi and Lviv oblasts', and average rural house appears over 6 fold more expensive. The author justifies the conclusion about the advisability of a more even coverage of the program's budget support of individual housing construction based on the number of rural households in each region.

Suggested Citation

  • O. Popova, 2014. ""Own House" Program (support of rural residence construction): a regional cross-section," Economy and Forecasting, Valeriy Heyets, issue 1, pages 97-105.
  • Handle: RePEc:eip:journl:y:2014:i:1:p:97-105

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