Compensation for Property Damaged as a Result of War: A Guide

Recently, the Parliament has introduced a compensation mechanism for the objects damaged due to the full-scale invasion of russia. At the same time, the government approved the terms and procedure for providing such compensation through the eRecovery service in Diia. The service was launched on May 10. Later, an opportunity to apply for compensation in paper form was also added.

Let’s find out what needs to be done to receive compensation if your housing (or other property) was damaged, and what you should pay attention to when using the funds received.

Who is entitled to compensation

A citizen of Ukraine who has reached the age of 18 and is the owner (co-owner) of the damaged real estate object can receive compensation.

Certain categories of persons have a priority right to receive compensation:

• combatants, war veterans, mobilized persons;
• family members of the deceased servicepeople;
• people with disabilities of groups I and II, with disabilities due to war;
• large families;
• foster parents, foster carers, guardians;
• foster parents of family-type orphanages;
• orphans and children deprived of parental care.

Priority will be considered in terms of the order when considering applications for compensation and making payments.

The recipient of compensation cannot be:

• a sanctioned person;
• a person who has a criminal record for committing crimes against the foundations of national security of Ukraine (Articles 109-114-2 of the Criminal Code);
• heirs of the above-mentioned persons.

Which damaged objects can be compensated

The following are subject to compensation:

• residential houses of homestead type, cottages, townhouses.
• summer and garden houses;
• apartments;
• living quarters (e.g., dorm rooms).

NB: If the building where the damaged apartment is located is destroyed and the entrance, roof, staircase, etc., are not repaired, you will not be able to receive compensation from the state. In such cases, the local council and the management company (Housing and Utilities Department) should be contacted to ensure that the house is repaired in a centralized way.

The number of damaged objects for which compensation can be obtained is unlimited. But the amount of compensation for one damaged object will not exceed UAH 200,000.

To receive compensation for a damaged object, it must meet the following conditions:

• be located on the territory of Ukraine;
• be located in an area where hostilities are not taking place or which is not temporarily occupied*;
• be damaged after February 24, 2022, as a result of hostilities, terrorist acts, sabotage caused by the armed aggression of russia**;
• be subject to restoration by carrying out current or major repairs**;
• no repairs have been carried out on the damaged object (except for emergency work or urgent conservation work)**;
• information about the ownership of the damaged object is entered in the State Register of Property Rights to Immovable Property ***.

* List of territories in accordance with the order of the Ministry for Reintegration of the Temporarily Occupied Territories of Ukraine

** Compliance with these conditions is established according to the data of the commission act and/or the report on the technical inspection, which can be carried out both before and during the consideration of the application for compensation. 

*** To check the information, you can get help on the Ministry of Justice portal or in Diia. If there is no entry about the object in the register, it is necessary to carry out state registration of ownership of such property.

If the object does not meet at least one of these conditions, no compensation will be provided for it.

NB: If the damaged housing is repaired, but only partially, you can receive compensation to complete the repair work.

How to receive and use the compensation

1. Install/update the Diia mobile application or choose the authority through which you will submit the application in paper form

The procedure for obtaining compensation through eRecovery is tied to the use of the Diia mobile application. Therefore, to pass it, you need to install or update it on your electronic device, pass electronic identification and authentication.

If you do not have access to Diia, you can also apply for compensation in paper form through the Administrative Service Center, social protection authorities, or a notary.

1. Submit a damaged property information notice

You can do this:

• on your own through Diia;
• through the administrator of the administrative service center or a notary.

The information notice, in particular, indicates the contact details of the applicant, information about the property (type, area, address), the number of persons who lived/live in it, damage or destruction of real estate (date and approximate time of the event, description of damage, photo). More information about the service can be found here.

The information notice could be submitted from March 2022. So if you’ve already done that, you can move on to the next step.

1. Open an account to credit compensation 

The eRecovery account should be opened in one of the banks of Ukraine, with which the Ministry of Digital Transformation has concluded an appropriate information exchange agreement. The list of banks that will take part in the program can be found at the link or in Diia. You can also open an account when applying for compensation (next step).

1. Submit an application for compensation, receive notification of its registration and the beginning of consideration

An application for compensation can be generated using the eRecovery service in Diia. It should contain:

• (Last name, first name and patronymic (if any))
• date of birth;
• contact details (phone number, email address)
• registration number of the taxpayer’s account card
• the e-Recovery account number, information on which is transferred by the bank and which is available in the mobile application of the Diia portal;
• address of the damaged object from the information notice that was submitted earlier;
• information on the existence of a priority right to receive compensation.

In addition, the applicant must indicate that there are no restrictions on them as a person entitled to compensation.

If the damaged object is in common ownership, the applicant must give the consent of the co-owners to receive compensation. This can be done immediately in electronic form through Diia. Or to grant the commission for consideration of matters regarding the provision of compensation a notarized document in paper form, but only after you receive notification of the registration of the submitted application and the beginning of its consideration.

Applications will be considered alternately, depending on which message was in the system earlier. The priority right will also be considered. The applicant receives notification of the registration of the application and the beginning of its consideration automatically through Diia.

Those who, for technical reasons or personal convictions, do not use Diia, can also submit an application and documents for payment of compensation through the Administrative Service Centers (ASCs), social protection authorrities, and notaries. 

The application will be formed and registered electronically, but the data will be entered by the ASC administrators, social workers, and notaries — on the basis of the documents you submitted. As a result, the applicant must receive a copy of the registered application, indicating its registration number and digital code.

In the future, all notices regarding the procedure for obtaining compensation shall be communicated to the applicant in writing by the commission or the authorized authority.

1. Allow the commission to inspect the damaged object and provide it with the necessary documents

A special commission under the local self-government body or the military administration of the settlement considers the application and decides whether to provide compensation or not.

The commission representative will contact you to conduct an inspection of the damaged object — if it has not been carried out by the time the application is considered. In its course, it is necessary to provide representatives of the commission with access to housing, as well as documents confirming the ownership of it and the existence of a priority right.

NB: To verify the information provided in the compensation application, the commission may obtain documents or information from electronic registers. For example, if information about the ownership of housing is contained in the State Register of Property Rights to Immovable Property, the commission should not demand supporting documents from you because it can independently verify this information.

If the recipient does not agree with the results of the inspection, they may submit their objections to the commission in paper form through the ASC, the social protection authorities, or the notary. This can be done within 5 working days from the date of the inspection or submission of the application if the inspection has taken place before. Before objecting, the applicant has the right to submit explanations, photos, conclusions from third parties or other documents in support of their arguments.

The commission should consider the objections and take them into account when making a decision on granting/refusing to provide compensation, making a note of this in the decision.

1. Receive notification of the decision taken by the commission and the amount of compensation

The term of consideration of the application shall not exceed 30 calendar days from the date of its submission or formation of the commission. The commission may suspend this term if:

• the applicant failed to submit or has not submitted in full the information or documents necessary for the consideration of the case;
• the commission has documented information that the recipient of compensation has been served with charges of committing a crime against the foundations of national security of Ukraine.

The commission is obliged to notify the applicant no later than the next working day from the date of the decision to suspend the consideration of the application.

NB! The commission has no right to demand from the applicant other documents than those necessary to stop the consideration of the application. At the same time, it has the right to independently aply to state bodies, local self-government bodies, enterprises, institutions, organizations, regardless of the form of ownership. They are obliged to provide it with the necessary documents or information, in particular, to restore the lost documents of the applicant.

Within five working days from the date of elimination of the circumstances that became the basis for the suspension, the commission must resume consideration of the application. The period of consideration of the application shall be extended, considering the time elapsed before its suspension.

During the period of consideration of the application, the commission must:

• ensure the inspection of the damaged object, including in order to establish the fact of repair works (if it was not carried out before the consideration of the application);
• determine the amount of damage;
• establish the presence/absence of the right and grounds for granting compensation and priority right;
• calculate compensation in accordance with the checklist approved by the government;
• enter this information in the Register of Damaged and Destroyed Property and inform the applicant about it.

The commission holds its meetings openly, so you can be present during the consideration of the application if you wish. Information on the location of the commission, its composition and procedure of work should be posted on the official website of the local government or military administration of the settlement.

Based on the results of consideration of the application, the applicant must receive a notification of the decision made by the commission and the amount of compensation, and a checklist with a list of necessary repair works through Diia. Let us remind you that the amount of compensation cannot exceed UAH 200,000 for one damaged object.

The grounds for refusal to provide compensation may be that:

• the application was filed by a person who cannot be the recipient of compensation or does not have the authority to submit an application;
• the commission found inaccurate data specified by the applicant.

Based on the results of the consideration of the application, the applicant must be notified of the decision taken by the commission and the amount of compensation through Diia. Let us remind you that the amount of compensation cannot exceed UAH 200,000 for one damaged object.

If the recipient does not agree with the decision or amount of compensation, actions, or inaction of the commission, they may submit an objection to the authorized body that created the commission — the executive body of the local council or the military administration of the settlement. This can be done within 5 working days from the date of the decision of the commission or the commission of such actions, and in case of inaction — within the deadline when such actions must be taken or decisions must be made. Based on the results of consideration of the complaint, the authorized body makes a decision that is binding on the commission.

The decision of the commission to grant or refuse to grant compensation is approved by the executive authority. It can also send an application for reconsideration by the commission.

If the recipient does not agree with the decision of the authorized body, they can appeal to the court or to the government hotline. A complaint to the government hotline may be grounds for monitoring (verification) of the decision by a special body under the Ministry of Infrastructure. In case of detection of violations by the authorized body during the monitoring, this will be the basis for reconsideration of the application.

1. Receiving and using compensation

The funds will be credited to the eRecovery account opened by the recipient of compensation with a special mode of use. The Register of Damaged and Destroyed Property will determine the order of payments automatically, taking into account:

• the procedure for making decisions on the provision of compensation;
• the priority right of the recipients;
• the amount of funding available.

If the state does not have the funds to provide compensation, payments may be temporarily suspended.

Replenishment, withdrawal of cash, transfer of funds (except for their intended use) from the recipient’s account with a special mode of use is prohibited.

The use of compensation is also limited. It can be spent only on the purchase of a list of goods specified by the government (construction and sanitary materials, windows, doors, roofs, etc.), as well as on payment for construction works. Such goods and works can be purchased only from those sellers and contractors who will join the implementation of the eRecovery program. Their list will be published on the Diia portal.

NB! The commission will determine the list of repair works for housing restoration at the expense of compensation in the checklist. Within a month after the completion of the repair, the commission may check the compliance of the works carried out and the purchased construction goods.

The term of use of compensation funds is one year from the moment of their accrual. After the expiration of this period, the bank will close a special account, and the remaining unused funds will be returned to the state.

1. Notifying about completion of repairs

After the completion of the repair works specified in the checklist, the recipient of the compensation is obliged to submit (through Diia or in paper form through the Administrative Service Center, social protection authorities, or a notary) a notice of the completion of the repairs within 15 working days.

This is necessary so that the state can confirm the intended use of the compensation. Such verification will be carried out selectively by the commission within 30 calendar days after the end of the month in which the repairs were completed. Selection of applications for verification is carried out automatically from the data of the Register of Damaged and Destroyed Property.

NB! It will not be possible to avoid verification by not submitting a notice of the completion of the repair works — they will be considered completed automatically twelve months after the date of crediting the funds to the special account of the recipient of compensation.

The verification results will be recorded in the act, which will be further entered into the Register of Damaged and Destroyed Property. If you disagree with them, the results can be appealed to the authorized body.

This publication was made possible by the support of the American people through the United States Agency for International Development (USAID) within the SACCI Project. The content of this publication is the sole responsibility of Transparency International Ukraine and does not necessarily reflect the views of USAID or the United States Government.