Budget support for the building affordable houses for the population in conditions of decentralization

Abstract

Improving the quality of life of population, safe and comfortable environment for human life in the context of transparent mechanisms for the development of the building industry, safe and harmonious development of communities are goals of the reform of administrative and financial decentralization. From these points of view, the issue of revitalization and improvement of the existing mechanisms of state support for the construction and purchase of housing is a relevant area of modern researches.

The purpose of the article is to analyze current trends, identify key problems of state support for housing construction and justify the directions of their solution in the conditions of decentralization of power and resources.

The article describes the peculiarities of budget support for affordable housing for population in context of deepening the reform of administrative and financial decentralization. It is shown that the positive changes in housing market that have been observed in recent years in Ukraine are due to both the consequences of the reform and the increase in household income. Mortgage lending isn’t a determining factor in the revitalization of housing. A number of discouraging factors for the implementation of state housing policy have been identified, for example: unavailability of mortgages for the majority of citizens, inefficiency of state preferential housing programs, imperfect mechanisms of budget allocation, excessively cumbersome order for obtaining preferential loans, unreasonably high value for money. The direction of activation of affordable housing for the population has been determined. It has been shown that public-private partnership can be served as an alternative tool for budget financing of housing construction.