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LAW OF UKRAINE

of June 24, 2004 No. 1869-IV

About the Nation-wide program of reforming and development of housing and communal services for 2009-2014

(as amended on on June 11, 2009)

1. Approve the Nation-wide program of reforming and development of housing and communal services for 2009-2014 (further the Program) which is attached.

2. To the Cabinet of Ministers of Ukraine:

by preparation of drafts of the laws of Ukraine on the Government budget of Ukraine for the corresponding year to provide expenses on address financing of the actions provided by the Program; within three months from the date of entry into force of this Law to bring the regulatory legal acts into accord with this Law.

3. To Council of Ministers of the Autonomous Republic of Crimea, the regional, Kiev and Sevastopol city public administrations, local government bodies during development and approval of drafts of local budgets to provide at them necessary means for ensuring accomplishment of regional and local programs (actions).

4. This Law becomes effective from the date of its publication, except the Section VII "Financial provision of accomplishment of tasks of the Program" of the Nation-wide program of reforming and development of housing and communal services for 2009-2014 approved by this Law which becomes effective since January 1, 2010".

 

President of Ukraine V. Yushchenko

Approved by the Law of Ukraine of June 11, 2009 No. 1511-VI

The nation-wide program of reforming and development of housing and communal services for 2009-2014

I. Current state of housing and communal services

For the last decade the problems connected with functioning of housing-and-municipal complex are in focus of vigilant political attention, however serious positive shifts in this sphere still did not happen.

The situation in housing and communal services continues to become complicated, there are no positive changes in formation of market bases of housekeeping, development of the competition and attraction of private investments into the companies of industry. Inefficiency of reforming of industry resulted in critical condition of fixed assets of the companies of housing and communal services. The imperfect tariff policy caused the chronic and constantly growing unprofitability of the companies. Housing and the companies of housing and communal services, and also system of regulation of natural monopolies led imperfection of management system to the fact that the companies of industry are incapable to work effectively in market conditions and to provide to consumers services of proper quality.

Shortage of own and budget financial resources, their inefficient placement, lack of the efficient mechanism of attraction of extrabudgetary funds do not help permission of tasks of technical retrofitting of the housing-and-municipal companies and development of municipal infrastructure. The effective cooperation with private investors, the international financial institutions and the donor organizations is not set up, the favorable investment climate is not created.

And constantly growing losses of water and heat energy are considerable. Specific expenses of energy resources during implementation and provision of housing and communal services almost twice exceed the corresponding indicators of the countries of the European Union.

Imperfection of system of social protection of the population in the sphere of provision of housing and communal services, the insufficient awareness of the population, inconsistency of regulations of the legislation concerning regulation of relations of consumers and producers/contractors of housing and communal services predetermine growth of dissatisfaction among the population.

The statistics brightly testifies to lack of real shifts and delays in proper realization of housing-and-municipal reform. So, as of January 1, 2009 the receivables and payables of industry constituted according to 10,1 one billion and 9, 4 billion hryvnias. Losses of the companies following the results of work in 2008 constituted 1, 6 billion hryvnias.

Every third apartment house needs capital repairs. In critical condition more than a third of water and sewer and thermal networks, close to 30 percent of heatitems, more than 20 percent of bridges and overpasses stays.

70 percent of motor transport which is used in the sphere of improvement, about 40 percent of the pumping equipment and coppers, more than 20 thousand elevators and so forth need replacement of 87 percent of railway vehicles of urban electric transportation. About a half of grounds for municipal solid waste do not meet sanitary standards. Significant amount unauthorized musorosvalok is annually formed.

Permission of this question needs enhancement of approaches to financial provision of accomplishment of the Program, its reduction in compliance with nation-wide priorities, observance of effective use of budgetary funds during realization of state policy, development of effective mechanisms of attraction of extrabudgetary funds, in particular means of the international financial institutions and the donor organizations, for forming of housing stock and reforming of housing and communal services within development of public and private partnership.

II. Purpose of the Program and way of reforming of housing and communal services

1. The purpose of the Program consists in determination of bases of realization of state policy of reforming of housing and communal services, implementation of measures concerning increase in efficiency and reliability of its functioning, ensuring stable development for requirements satisfaction of the population and economic complex in housing and communal services according to the established standard rates and national standards.

Reforming of industry is carried out taking into account interests of each specific person and provides wide explanation of process and results of reforms.

For goal achievement of reforming of industry it is necessary to resolve issues relatively:

coordination of economic interests of the state and subjects of housekeeping;

decision possibility citizens of Ukraine of housing problems;

optimizations of production and territorial infrastructure of housing and communal services according to requirements of the population;

creations of conditions for reliable and safe provision of housing and communal services for the reasonable prices stimulating energy saving;

elimination of disproportion in the demand and supply in the housing market and housing and communal services; updates of production base of industry taking into account the latest developments of scientific and technical progress, implementation of innovative model of development of housing and communal services; increases in efficiency of use of energy carriers and other resources, radical decrease in power consumption of production, increase in energy efficiency of houses, creations of incentives and conditions for transition of economy to rational use and economical expenditure of energy resources; stimulations of private entrepreneurial initiative in accomplishment of tasks of development of housing stock and municipal infrastructure; minimization of technogenic influence of industry on the environment and person in general;

developments of the market relations and the corresponding institution infrastructure, step-by-step deregulation and liberalization of potentially competitive market on condition of development of system of state regulation of natural monopolies; developments of legal acts concerning differentiation of powers of executive bodies and local government bodies in the sphere of housing and communal services; improvements of quality of management of housing and municipal infrastructure.

Reforming of industry is performed by forming according to requirements of the international standards of the housing market, implementation of the non-discriminatory economic relations between subjects of the market and the state with gradual restriction of functions of the state as subject of housekeeping and strengthening of its influence on forming of market infrastructure that provides:

carrying out mutually agreed tariff, investment policy and policy in the sphere of development of the domestic market;

realization of the effective antimonopoly policy and implementation of institution transformations in the housing market and the housing and communal services aimed at the development of the market relations and the competition;

stimulation of innovative, investment and energy saving activity of subjects of housekeeping; increase in energy efficiency of industry by reduction of amounts of losses of fuel and energy resources, decrease in power consumption of production of separate types of products (services);

development of the transparent mechanism of pricing and rates for products and services of the companies performing activities in the housing-and-municipal sphere.

On the content the business case of development of housing and communal services consists in forming optimum for society and the state of the economic relations by implementation of market methods of housekeeping, stimulation of energy efficiency of tariff, investment, scientific and technical, external economic and environmental policy, institution and structural changes in housing services industry.

2. Implementation of actions of the Program in such spheres is provided:

1) forming of the state housing policies;

2) contents of houses, constructions and house adjoining territories, including carrying out reconstruction of obsolete housing stock;

3) renderings of services on centralized water supply and water disposal;

4) productions, transportations, deliveries of heat energy, provision of services on centralized heating and supply of hot water, including with use of alternative energy sources and types of fuel;

5) repair of rooms, houses, constructions;

6) improvements of settlements;

7) urban electric transport.

3. State policy of reforming of housing and communal services is based on such basic principles:

1) the joint liability of the state and local government bodies for high-quality accomplishment of the Program, providing the population with housing and communal services according to the state social standards and efficiency of the sphere of housing and communal services in general;

2) availability to all segments of the population of housing and communal services which meet the requirements of state standards;

3) the priority direction of the state support on ensuring with social housing the categories of citizens determined by the law with simultaneous creation of system of long-term lending of housing, available to other segments of the population;

4) forming and observance of the state social standards (regulations and standard rates) in the sphere of housing stock and housing-and-municipal servicing;

5) creation of conditions for transparent and independent state regulation in the sphere of housing and communal services, consumer protection and adjustment of feedback with society;

6) ensuring effective use of human, money and material resources in the sphere of housing and communal services;

7) responsibility of the state (concerning management, regulation, stimulation and technical support) and local government bodies (concerning development planning of housing stock and municipal infrastructure, effective use of property of territorial communities) for efficiency of functioning of housing and communal services;

8) transition to economically reasonable prices and rates for use of housing and utilities, implementation of provision of address subsidies to separate categories of the citizens for compensation for expenses connected with payment of housing and utilities;

9) creation of equal conditions for all subjects of housekeeping and consumers in the housing market and housing and communal services;

10) ensuring the balanced development power - warm, water - gas supply and water disposal during accomplishment of programs of housing and industrial construction;

11) providing population with high-quality drinking water;

12) technical retrofitting of industry based on broad application of domestic and foreign scientific and technical achievements, in particular in power - and resource-saving, implementation of environmentally friendly technologies;

13) stimulation of construction by removal of administrative barriers and development of the competition in the market of construction materials;

14) development of public and private partnership in the sphere of construction and reconstruction of housing stock and municipal infrastructure;

15) publicity, public control, transparency and participation of citizens in decision making concerning reforming and development of housing and communal services, informing the population by executive bodies and local government bodies according to their powers of rather basic principles and tasks of state policy in the sphere of housing and communal services;

16) creation of equal conditions for all subjects of business activity in the sphere of housing and communal services, providing equal conditions for all investors.

III. Main objectives of the Program and means necessary for their accomplishment

1. The main objectives of the Program are:

1) development of state regulation of activities of natural monopolies in the market of utilities;

2) forming of the state housing policies, creation of the developed competitive environment in the market of servicing of housing, including implementation of complex reconstruction of quarters (residential districts) of obsolete housing stock with involvement of investors builders on competitive bases;

3) ensuring profitable functioning of the companies of housing and communal services;

4) technical retrofitting of housing and communal services, reducing specific indicators of use of the energy and material resources necessary for production (provision) of housing and communal services, including creations of the efficient and transparent mechanism of stimulation of use of alternative energy sources and types of fuel;

5) investment attraction and cooperation with the international financial institutions and donor organizations;

6) involvement of the public to processes of forming of housing policies and housing and communal services reforming.

2. Accomplishment of tasks of the Program requires implementation of actions of institutional, organizational, financial, normative and legal and scientific and technical support.

IV. Institutional ensuring accomplishment of tasks of the Program

Institutional ensuring accomplishment of tasks of the Program includes the following events:

determination of functions and responsibility central, local executive bodies and local government bodies concerning accomplishment of programs of providing the population with housing, upgrade of housing-and-municipal infrastructure, implementation of state regulation, guaranteeing reliability, efficiency, high quality and economically reasonable cost of housing and communal services;

differentiation of management functions and state regulation in the housing-and-municipal sphere, increase in role of the central executive body concerning housing and communal services concerning implementation of strategic management by industry;

enhancement of licensed policy in the sphere warm, water supply and water disposal concerning strengthening of responsibility of the subjects performing activities in the specified sphere;

differentiation of the exclusive and competitive markets in the sphere of housing and communal services;

strengthening of influence of residents of houses on conditions of the accommodation and service quality of housing by stimulation of creation of associations of co-owners of the apartment house;

assistance to creation of system of managers in the market of housing services.

Institutional actions of accomplishment of the Program are given in appendix No. 1 to the Program.

V. Normative and legal and scientific and technical ensuring accomplishment of tasks of the Program

Normative legal support of accomplishment of tasks of the Program provides implementation of system approach to legal regulation in the sphere of housing policies and housing and communal services. Planning and production of rule-making activities are performed taking into account conceptual documents that after general public and professional discussion are taken as basis for development and adoption of the laws and other regulatory legal acts adopted in their execution. Implementation of such approach will give the chance to prevent emergence of contradictions and duplication of regulations of regulatory legal acts.

1. Normative and legal and scientific and technical ensuring accomplishment of tasks of the Program provides:

1) project development of regulatory legal acts concerning regulation of the relations in the sphere of housing and communal services;

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