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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