The increase in housing construction in Kyiv in view of the realization of a project on beneficial mortgage credits will encourage the development of the city's economy, according to Head of Kyiv City Administration Oleksandr Popov.
"This program is needed for us not only from the social point of view: one job in the construction industry adds 6-7 auxiliary jobs. If we use our potential in the construction industry as much as possible, we'll push the development of the economy with such a project," Popov said in an interview with Interfax-Ukraine.
"This is very promising. I think that the project is a strategically important one and of top priority," he said.
He said that the task of Kyiv authorities was to vigorously promote the program.
The program foresees the compensation of 10-20% of down payments using funds from the city budget. It is planned to allocate UAH 15 million by the end of this year for the purposes, and then annually UAH 150-200 million will be allocated using funds received from the sale of land at auctions.
Thus, by 2015, housing construction in Kyiv could be increased to two million square meters per year, Popov said. Apartments for participants of the state mortgage program will be built by companies, the operation of which is under the control of the city authorities – Kyivmiskbud Holding and municipal company Zhytloinvestbud-UKB.
He said that the city will allocate land plots to build housing under the state mortgage program to the said companies. The companies guarantee a drop in the prices of apartments of 10-15%.
The agenda of a session of Kyiv City Council to be held on September 20, 2012 includes the issue of measures to subsidize the cost of mortgages to provide affordable housing to citizens who need to improve their living conditions in Kyiv.
