Commission proposed mechanisms to better protect investors in residential construction

The National Securities and Stock Market Commission endorsed the draft State Strategy for Ukraine’s Housing Policy until 2033 and its action plan for 2026–2029. At the same time, the Commission submitted a number of comments, primarily concerning investor protection in residential construction.

The strategy was drafted by the Ministry for Development of Communities and Territories of Ukraine in accordance with the Law of Ukraine “On the Basic Principles of Housing Policy,” which the Verkhovna Rada adopted on 13 January 2026. This law introduced a system of strategic planning in the housing sector in Ukraine for the first time.

The reason why such a document is needed right now is quite obvious. Most apartment buildings in Ukraine were built before 1990, and they have long since failed to meet modern energy efficiency and safety standards.

The full-scale war has only exacerbated the problem — parts of housing has been destroyed or damaged by Russian occupiers, and millions of people were left homeless or forced to flee their homes.

At the same time, the country still lacks a fully-fledged social housing fund, and mechanisms for affordable housing are underdeveloped. Funding for construction relies largely on money from ordinary people, while long-term and institutional investment remains rare — largely due to war risks and insufficient investor protection.

The strategy proposes creating transparent, secure, and inclusive systems for investing in housing construction. This is precisely where the Commission sees its role and offers assistance with specific tasks. In particular, it is prepared to take on the task of updating the regulations governing construction financing funds, real estate funds, and asset management companies.

The Commission is also prepared to participate in the creation of a mechanism for financing construction through escrow accounts. These are special accounts in which buyers’ funds are held until the developer fulfills its obligations. The Commission proposes to establish capital and ownership requirements for companies that build housing and to require developers to disclose information about their projects.

Another proposal is to establish a construction guarantee fund. It is designed to protect people who invest in housing: if construction is halted, the fund will help complete the construction of the project or refund the money invested.

The Commission also wants to shape the conditions that will allow banks, insurance companies, and pension funds to invest more in housing construction. To achieve this, clear rules for evaluating such projects and new financing instruments need to be developed.

Experts from the regulator proposed taking into account the draft Law of Ukraine “On Securitization and Covered Bonds” (No. 15172 dated 13 April 2026), already registered with the Verkhovna Rada. The Commission believes that, from an operational standpoint, the expected outcome of this initiative should be specified more clearly: the measures have to include not only the adoption of a specialized law but also the adoption of the necessary NSSMC regulatory legal acts.

According to the regulator, this will make it possible to introduce mechanisms for issuing covered bonds and securitizing assets, which will help attract long-term financing for residential construction, distribute risks more effectively among market participants, and stimulate the development of mortgage lending, thereby increasing the affordability of housing for citizens.