The State Finally Takes on Long-Term Construction Projects: Lists of Problematic Residential Complexes in Odessa and Ukraine to Be Compiled

Have you invested all your savings in a home under construction but still can't get the coveted keys to your apartment? The promised completion dates for the new building have long passed, but actual completion is still as far away as walking to the moon? You want to finally start renovating your long-awaited apartment, but the house still hasn't been put into operation? The cause of all these troubles is one. You purchased housing from an unscrupulous developer. Previously, an ordinary buyer had to personally identify the "bad guys" - intuitively or through reviews from fellow victims. But starting from the new 2022 year, the state has seriously taken up the cause against irresponsible developers!

The Cabinet of Ministers of Ukraine has obligated local authorities to compile lists of long-term construction projects.

This step is expected to:

• help an ordinary person not to fall into the trap of false promise-makers when purchasing real estate in a new building;
• force careless builders to put their long-term projects into operation faster, so as not to end up on the "black" list. And this will bring our fellow citizens closer to receiving their long-awaited housing.

Criteria by which "problematic" residential complexes will be added to the black list

1. Construction is being carried out with money from buyers (individuals and legal entities) or through construction financing funds
2. The object has not been put into operation 2 years after the planned date of commissioning specified in the project documentation or in the contract
3. No construction work has been carried out at the site for 2 years
4. The object has at least 5 floors - corresponds to the consequences class (responsibility) CC2 and CC3*

*objects of CC1 classes (up to 4 floors inclusive) will not be included in the black list. These are mainly private residential houses, townhouses and cottages. Important! Objects that meet all 4 criteria simultaneously will be entered into the list.

Who and when will compile lists of problematic new buildings.

The lists of long-term construction projects will be compiled by employees of regional state administrations. They were supposed to notify citizens about this by December 25, 2021 on their official websites. The lists will be compiled until April 15, 2022. And by May 15, registers of problematic residential complexes will be posted on websites and sent to Minregion (Ministry of Development of Communities and Territories). The institution will publish on its official page the general list of long-term construction projects of the entire Ukraine. According to statistics, there are more than 1,000 unfinished projects in the country. For each unfinished project from the black list, a "case" will be opened with 17 points - information about the technical condition of the object, number of investors, data about the customer and reasons for stopping construction.

What will the creation of the black list of long-term construction projects entail?

1. The materials of the list can be used by the Interdepartmental Working Group to assist deceived investors.
2. Developers will strive to complete residential complexes faster to avoid being included in the register of long-term projects and to not damage their reputation.
3. To avoid getting into trouble, potential buyers can themselves check whether their chosen residential complex is included in the list of long-term projects.
4. The register will systematize the reasons why unfinished projects are not put into operation. This will help local authorities solve the problem comprehensively.

What we think about the creation of the official list of unfinished projects

In general, we positively assess such a state initiative. Including because objects that have signs of unauthorized construction and are built without a full package of permits will be entered into the register. Under the category of consequences of class CC2 and CC3 practically all multi-apartment residential buildings fall. And all of them will be on the black list if they meet the 3 additional criteria described above. Also positive is the fact that investors-buyers can independently submit information for inclusion in the register. At the same time, in our opinion, there are limitations in the resolution that will not allow all truly problematic construction projects to be included in the black list.

• For example, it is difficult to confirm the fact that construction work has not been carried out for two years. And if the completion dates of the object are delayed by two years from the date specified in the contracts with investors, but at the same time one worker is "walking" around the construction site, this will not provide grounds for inclusion in the register.
• Objects that attracted investor money without having all the permits will not get into the register. At the same time, the completion dates in the contracts are not specific, the dates are too postponed or vague.
• Residential complexes that were somehow, sometimes through corruption, put into operation will also not be included in the list. But in fact, houses are not connected to utilities, electricity, city water supply, sewage, etc.

What should a buyer of an apartment in a new building do to protect themselves from investing money in problematic housing

Unfortunately, developers often attract investor money without obtaining construction permits. For potential apartment buyers - these are risks:

• to give money to the developer and not receive an apartment. Because the house is being built without a construction permit or the actual construction does not match what the permit was issued for, the building cannot be put into operation or may be demolished altogether;
• to invest money in an apartment in a problematic house or in a low-quality building. The disappointing consequences of such a purchase may only become apparent when you give the money and move into the apartment.

Now, to avoid the risks of investing in problematic housing, you can:

• check yourself whether the object is included in the official black list of long-term construction projects;
• consult with experts who will direct you to reliable developers and to "correct" new buildings that meet all standards

If you want to choose housing in a resort city of Ukraine, a pearl on the Black Sea and in the "little Paris," as Europeans call our city, consider only quality new buildings in Odessa. Important! As we say in Odessa: "This won't cost you anything!" Our services are paid not by the buyer, but by the developer. fresco.od.ua - official partner of reliable construction companies. Contact us!