The new Housing Code may contribute to corruption in the housing sector

18.01.2022

The new Housing Code may contribute to corruption in the housing sector

The National Agency for the Prevention of Corruption (NAC) conducted an anti-corruption examination of the draft Housing Code of Ukraine, developed by the Ministry of Community and Territorial Development.
NAZK informs that in the proposed version of the project, corruption-prone provisions were found that can contribute to the establishment and spread of corrupt practices in the housing sector, in particular:
1) conferring broad discretionary powers in the absence of a defined procedure and mechanism for the implementation of the actions of the following persons:
  • heads of enterprises, institutions, organizations, officials in a state body, heads of a military unit regarding decision-making on the provision of official residential premises;
  • officials of local self-government bodies in terms of single-person determination and appointment of a temporary manager in an apartment building;
  • employees of the conformity assessment body and the state body that controls decision-making on the possibility of re-certification and/or certificate renewal;
  • officials of local authorities and self-governance regarding the settlement by their own acts of issues that should be settled by acts of the Government;
2) unclear regulation of the powers of territorial communities in assisting developers in the construction of new low-cost housing, as well as of local self-government bodies and other organizations in the area of disposal of housing in newly built houses handed over by developers;
3) lack of mechanisms and methods of implementation by local self-government bodies of powers regarding approval of housing reconstruction and demolition of unfit residential buildings;
4) unclear regulation of the powers of territorial communities in terms of assistance to developers in new housing construction, as well as unsettled definition of "low value" housing in new construction;
5) lack of a procedure for state control (supervision) of compliance by the compliance assessment bodies with legislation regarding the certification of multi-apartment building management activities.
You can get acquainted with the conclusion of the anti-corruption examination and the recommendations of the NAZK at the link .
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