The Cabinet of Ministers has approved the procedure determining the amount of compensation for the cost of dorms included in authorised capitals of companies established in the course of privatization (corporatization). The procedure defines the calculation of compensation from state budget for the cost of dormitories transmitted to balance of local communities, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.

The document was adopted in pursuance of Part 3, Clause 14, Law of Ukraine "On ensuring implementation of housing rights for residents of hostels." It defines a mechanism for calculating the full compensation of the cost of dormitories owned by companies established as a result of privatization (corporatization), whose authorised capital includes dormitories.

Government analysts say the amount of compensation is determined by Council of Ministers of the Autonomous Republic of Crimea, regional administrations, as well as Kyiv and Sevastopol state administrations on contractual basis with owners of the hostels. However, the amount cannot exceed the amount of compensation considered by statutory funds of the hostel owners at the moment of acquiring the ownership rights for the hostel and regarding the reduction due to calculated depreciation. The amount of compensation may also be increased by amount of actual owners’ costs for major renovation in the course of owning the dormitories.

The owners of hostels will be compensated from the state budget during transfer to communal ownership. The government decree shall be applied to 745 companies, whose authorised capital includes the dormitories.
Experts say the plan for 2013 is to transfer 279 dormitories to ownership of territorial communities; in 2014 – 235 dormitories, and in 2015 – 231 dormitories.

The government previously developed a national targeted program of transferring hostels to local community ownership 2012-2015, which was later adopted as the law by Verkhovna Rada.

Government analysts say the document states that citizens living in dorms of state ownership can privatize their residential premises after transfer of such dorms to ownership of local communities.

The program contains schedule, scopes, and funding terms for transfer of state-owned dormitories to communal ownership. It also indicates the possibility for change of such amounts and dates  in accordance with actual situation at the appropriate markets and taking into account the real budget capacity.

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