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Many Ukrainians can stay without subsidies

Многие украинцы могут остаться без субсидийMany residents in June received pay stubs without regard to state aid.

In Ukraine is heating up the issue of subsidies. In late June, residents of the eight districts of Kiev, which serves the management company “First Ukrainian expert center” blindsided bad news: money for the compensation of privileges on payment of utilities will not.

At least, before making any changes in the state budget for 2017.

This answer was given to the KSCA at the request of the management company, a copy of which was sent out to residents.

The reason – the complete spending of budget subventions in the amount of 1.17 billion. for payment of benefits and subsidies for communal, allocated to Kiev from the state budget for this year. The money ran out in the spring, and by may 1, the debt to the utilities and service providers of the capital amounted to nearly UAH 1.8 bn. Without changing the law on the state budget, these debts will only accumulate.

The Finance Ministry has prepared the relevant draft amendments to the budget for 2017 in order to allocate an additional 15 billion UAH for the payment of benefits and subsidies to all enterprises that provide public services.

“Before the end of the current session of Parliament two weeks left. We will provide in this period, the government’s proposal that members approved them”, – reported earlier, Deputy Finance Minister Sergei Marchenko.

Condominiums on a starvation diet

But if MPs can’t fix the budget in time, then the first victims will be the Association of owners of apartment houses (ajoah). Because under the law they can charge citizens the full cost of services, while there are subsidies. But to pay the bills to providers of services (repair and maintenance of buildings, cleaning of the territory) to the fullest. There is a difference which the state has an obligation to cover from budget. In case of lack of money, as it is now, it turns out that a condominium provides a state.

As previously stated, the former first Deputy head of KCSA Alexander Mazurchak, debt recovery subsidies in front of condominiums throughout the country increased up to UAH 2 billion. In the total debt of the state to the suppliers of housing services subsidy reimbursement and benefits 35 billion.

According to him, in the absence of compensation from the budget and debt accumulation, condominiums, 70% of which are funded by grants, decline and lose the ability to carry out its functions. As a result, this critical situation will lead to the disconnection of the utility services.

Condominiums are forced to shut down the elevators, the light does not have funds for maintenance of buildings, etc.

“The delayed timing of the renovation, the implementation of Treaty obligations, for example, by contractors for garbage collection. For example, if there is no money to replace broken or stolen items Elevator, the tenants will long to walk” – said the Executive Director of the Association of Directors of apartment buildings Andrei Nikonchuk.

According to him, the average tariff service at home consists of about two dozen services. In the absence of compensation from the budget is the leaching of working capital condominiums indefinitely.

What’s next?

According to the Association of Directors of apartment buildings, now the capital of 10.5 thousand high rises on the unification of condominiums accounts for 14-16%. The rest of the departmental and communal housing.

However, in June, many residents have received a payment receipt excluding subsidies. That is not a joke stirred the inhabitants of the capital, which is now being asked to pay at the full rate.

Service providers attribute this to the fact that across the country now there is a recalculation of subsidies in non-heating season. Local bodies of social protection do not manage to assign the discount, so many Ukrainians have received bills without taking into account subsidies.

In particular, “Kyivenergo” calls it a temporary phenomenon and citizens promise that the receipts for June, which will come in July, will reflect the subsidies in may and June 2017. However, the company asking the capital’s residents to pay bills and not accumulate debts. Because if you have debts more than two month subsidies have not accrued.

Probably, this step can go, and some management companies, in order to maintain its financial stability. But, experts say, is to deprive citizens of their right to pay reduced rates of condominiums and management companies can’t.

They still have late discount.

If the deputies will not have time to amend the budget for the current year until the end of this session, the condominiums may agree to defer or restructure payment for services rendered.

“I am sure that many companies will agree to this, as they understand that this budget and that the work ajoah – this is not a classical economic activity. Service providers do not want to lose customers, knowing that this is not the fault of the condominium. Unfortunately, the market for housing services is now not fully market and it is partially manual control. Now, if subsidies were not, then it would be possible to speak about market relations”, – said Andrey Nikonchuk.

In his view, in July the situation is somehow resolved. So, invoicing without accounting for subsidies will cause serious social tension and paralyzes the system as heat, and utilities in General. An example is the hot water was turned off in several districts of the capital because of the shutdown of CHP-6.

“A month later the residents started to rebel, and local authorities and energy came to the decision to restore supply of gas to CHP-6”, – said Andrey Nikonchuk.

Cold autumn

According to experts, the worst thing that such situations undermine the very idea of Association in a condominium. People are not too active in this respect. The creation of condominiums in recent years was very dynamic, especially after the adoption of law (№417) on the replacement Housing management companies in 2016. 10 years ago, condominiums were about 5% of the total number of houses in the capital.

But because the government plans to increase the number of apartment houses under the management of condominiums by the end of 2017 to 29% of the total area and so may remain on paper. According to the Cabinet today in Ukraine there are 170 thousand apartment houses a total area exceeding 431 million sq. m.

The area of multi-family housing stock served by public utilities, is 43%, private enterprises is 16.5%.

According to the former Minister of housing Oleksiy Kucherenko, the issue of debt on subsidies is closely linked with politics. And while there is a “hole” in the amount of 30 billion UAH on payment for housing and communal services, more than two-thirds associated with the cost of energy, no budget injections do not help. Especially when you consider that the subsidies proposed in 140 times more money (UAH 14.1 billion) than on warm loans (100 million UAH). That is, the money just “eaten away”, instead of spending it on energy saving.

“In the best case be able to migrate in the fall. And then at any time, the resource provider may terminate any user for non-payment. Now hostage of “Naftogaz” was heating utilities, water utilities, regional gas companies. In some places the share of subsidies in the calculations (count – debts) reaches 90%”, – said Alexey Kucherenko.

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