As soon as Ukraine was proclaimed an independent democratic state, it started working towards radical economic restructuring . Or, rather, we should speak about forming not only a basically different economy, but also political system, social relations, public infrastructure, etc. In fact, a new European state with a new human community is being born. Bringing about tremendous changes like that is a painful and lasting process involving inevitable mistakes, digressions, retreats and advancements. There are objective reasons for that. The impossibility to apply in Ukraine a "pure" Western model, on the one hand, and lack of distinct vision of specifically Ukrainian model, on the other, results in misunderstandings concerning the objectives and routes of reforms, in clashes of opinions with respect to these issues, and even in open social confrontations. It is noteworthy, however, that the concept of private ownership has already firmly established itself alongside with state, collective and municipal forms of ownership - the fact legalized in the Constitution of Ukraine. The country's political system has undergone substantial alterations; human mentality and outlook have changed dramatically while progress in democratization is quite obvious. All this means that, notwithstanding the numerous existing problems and constraints, Ukraine is confidently moving towards up-to-date developed market economy of the kind favored by most democratic European countries.
There is no doubt that successful implementation of housing and municipal reforms is among the most essential components of global economic restructuring in Ukraine. It is but natural since housing and municipal issues, like none others, concern each Ukrainian without exceptions. We are all well aware of problems involved in getting public housing ; the possibility to obtain a long-term loan for the purchase or construction of a new dwelling remains purely theoretical so far; the situation with housing maintenance and repair is grave. Certain measures have been already taken to improve the situation: the Supreme Rada has developed and approved the National Housing Policy Concept; Strategies for Reforming the National Housing Policy, as well as first-priority tasks for its implementation have also been designed. Well-known Resolutions No.588 and No.891 have been adopted by the Cabinet of Ministers of Ukraine; several versions of the Housing Code of Ukraine have been drafted. The State Committee for Construction, Architecture and Housing Policy of Ukraine is working steadily on drafting new legislative and normative acts aimed at expediting housing and municipal reform, etc. There are still, however, too many unresolved problems in this sphere which, regrettably, tend to aggravate from year to year. All this shows the need for further essential reforms in housing and municipal economy.
It stands to reason that it would be impossible to address such huge and complicated issues without targeted support coming from the President of Ukraine, from the Cabinet of Ministers of Ukraine, from the Supreme Rada, without prompt and coordinated actions by ministries and agencies concerned, without broad participation of non-governmental organizations and individual experts. Only such collaboration on a large scale will guarantee successful implementation of comprehensive market reforms in Ukraine as a whole, and housing and municipal reforms in particular.

Crucial democratic changes taking place in Ukrainian society, radically new public relations emerging in Ukraine, economic reforms aimed at creating developed market economy modeled on current international patterns, integration into European structures - all these factors make it necessary to rely heavily upon the expertise accumulated by developed European and world states.
Ukraine today is striving to follow up-to-date Western practices in forming and efficiently operating markets for various commodities and services; in managing resources and processes in market economy; in improving the state functions with different forms of ownership in place, as well as self-government and authority enjoyed by territorial communities; in developing interaction between government and non-governmental structures for accomplishing common social goals, etc. Market transformations result, among other things, in rapid growth of private commercial firms and companies, as well as non-governmental organizations.
Growing numbers of such organizations and, most importantly, their steadily increasing role in society is a sure indicator of Ukraine becoming a full-fledged member of European democracy. Relying upon Western expertise with respect to mission, goals, structure, operation, financing of non-governmental organizations, their newly formed Ukrainian counterparts figure more and more prominently in reforms implementation in economy, politics, public relations. The Housing and Municipal Reforms Support Center is a typical example of such a Western-type non-governmental organization.
International non-governmental organization "Housing and Municipal Reform Support Center" is a non-governmental and not-for-profit organization which since 1997 has actually operated as Ukrainian successor to PADCO company (USA) implementing programs aimed at supporting shelter reforms. Proceeding from their mutual interest in this sphere, the Center has signed an Agreement with the State Committee for Construction, Architecture and Housing Policy of Ukraine, under which the Center assists the Committee in implementing the State Program for Reforming Housing and Municipal Economy, while the Committee, in its turn, acts as chief coordinator for the Center's operation.
The first results provide grounds for expecting that in future the Center will be able to realize the whole of its potential and make a tangible contribution to successful implementation of housing and municipal reforms in Ukraine.
This new experience in collaboration demonstrates that both independent operation of non-governmental public organizations in different spheres of Ukrainian economy, and joint efforts by government and non-governmental structures aimed at solving urgent social problems can be very efficient and promising.

Over the past few years housing and municipal economy issues have become pressing for cities and towns of Ukraine. Continuous budget deficit, sparse financing allocated for developing this sphere of the municipal economy, low paying capacity of the public result in speedy deterioration of the housing stock and municipal infrastructure. The state has almost stopped constructing new housing or overhauling the existing stock and utilities.
Since 1993, 3.4 million units and one-family buildings have been privatized which constitutes less than a half of public housing. On the average, only 49.2% of units have been privatized in Ukraine so far. Physical wear of technical facilities in this area amounts to 50%, while lack of funding prevents construction of additional water and heat supply capacities and sewage. All this is bound to bring about rapid disintegration of the country's housing and municipal economy.
One of the most acute problems is maintenance of departmental housing managed by Ukrainian enterprises and organizations. Since they lack funds needed to maintain this housing, it is actually falling into disrepair. Transferring it to city jurisdiction is unlikely to improve the situation as city budgets have no money either for its maintenance and repair.
As a result, residents of departmental housing become "hostages" of a bankrupt enterprise or an enterprise which has not enough funds to cover subsidies for housing maintenance. On the other hand, enterprises that are doing well, are also disadvantaged by having housing to manage, since they are compelled to include housing maintenance costs into the production costs . This raises production prices and, consequently, reduces the enterprise's competitiveness.
The problem is further aggravated when enterprises with housing to manage are privatized. On the one hand, housing is not part of the authorized fund of the enterprise under privatization, on the other - the government makes no provisions for using funds raised through privatization for repairing and renovating housing so that it could meet the required standards. Regrettably, these problems have not been addressed in the State Privatization Program for 1998.
Judging from experience amassed by the Center staff in different Ukrainian cities, the enterprises' chief executives are extremely interested in forming associations of multifamily buildings co-owners in their departmental housing.
It is our belief that the only realistic solution is carrying out large-scale reforms aimed, primarily, at introducing market relations into housing, at setting up condominiums and at transferring housing maintenance to private structures.
The results of the Center's operation testify to the fact that, notwithstanding all the problems, housing and municipal reforms in Ukraine are under way; that there is a growing demand for services provided by the Center. The Center, in its turn, has a considerable potential for future active participation in implementing housing and municipal reform in Ukraine.