Mykolaiv has not yet decided on the co-funding of the municipal housing project

Ihor Nabatov, First Deputy Director of the Department of Urban Services. Photo: NikVesti

Mykolaiv is still in the negotiation stage regarding two municipal and social housing projects. The city’s financial capacity to co-fund one of them is also being assessed.

This was announced on 28 August at a press conference by Ihor Nabatov, Deputy Director of the Department of Municipal Services at Mykolaiv City Council, according to NikVesti.

Screenshot of the presentation

The first project involves the Danish-Ukrainian organisation «Ukrainian Homes for All» (UHFA). Negotiations are currently underway regarding the signing of a memorandum of cooperation.

According to Ihor Nabatov, the project involves the construction of blocks of flats for affordable housing. The target is 150 flats, 40 per cent of which are to be transferred to the city.

“We are currently in the process of negotiating the signing of the memorandum, seeking the best option for the further implementation of this project. A distinctive feature of this project is that the client will not be the city, but a Danish company, which will finance it at its own expense,” he noted.

The second project concerns the Municipal Rental Housing Fund. It should be noted that Mykolaiv is among the first five Ukrainian cities to receive new social housing under a new pilot programme run by the European Investment Bank (EIB) and the EU.

Ihor Nabatov explained that in May, in Kyiv, Mykolaiv successfully defended its proposed project application.

«There are various concepts. Some local authorities proposed building not 300 flats, as we proposed, but 900. But it all depends on the capabilities of each community, as there is a requirement to co-finance part of this project to cover the VAT, which is calculated not on the full project cost, but on the portion stipulated by law. So at the moment it is quite difficult even to say what sum we are talking about,» said the deputy head of the department.

Mykolaiv’s capacity for co-funding is currently being assessed.

«A letter from the Ministry of Finance has now been officially sent to the Mykolaiv local authority regarding the preparation of the relevant documents on the city of Mykolaiv’s financial capabilities. The Department of Economic Development is currently preparing the relevant set of documents. We’ll see how this pans out. But the project is certainly interesting in any case, as it concerns the development of our local areas,» noted Ihor Nabatov.

As a reminder, in February 2026 it emerged that Mykolaiv would submit an application to participate in the Cabinet of Ministers’ pilot project to establish a municipal rental housing fund. Should the community be selected, the city plans to build rental housing using donor funds.

Earlier, in January 2026, it was reported that Danish investors would build up to 10,000 flats in Mykolaiv, some of which the city would receive as social housing, whilst the investor would use the remainder at their own discretion.

Prior to that, in November 2024, Mayor Oleksandr Sienkevych announced plans to establish a municipal company to manage municipal housing in Mykolaiv — at the same time, the city was working on creating the relevant housing stock.