(Bulletin of the Verkhovna Rada (VVR), 2003, No. 23, Art. 151)

Article 1.Arrears in apartment rent (payment for housing maintenance) and payment for communal services (water, heat, gas supply, sewerage services, electricity, removal of household waste and liquid sewage) (hereinafter referred to as housing and communal services) of tenants of residential premises and owners of residential buildings or apartments (hereinafter referred to as citizens), which arose as of the date of entry into force of this Law before providers of housing and communal services, shall be restructured for a period of up to 60 months depending on the amount of debt and the level of income of citizens as of the date of restructuring.

To restructure debt, citizens enter into agreements with housing and communal service providers on the monthly equal repayment of the restructured debt and timely payment of current housing and communal service charges (hereinafter referred to as the debt restructuring agreement).

Establish that, for the period of repayment of the restructured debt, the total amount of payments made by citizens for current payments and payments to repay the restructured debt must not exceed 25 percent of the income determined when calculating subsidies for working citizens, and 20 percent for pensioners and other persons receiving any types of social assistance.

If the income of citizens who have entered into debt restructuring agreements is insufficient to fully repay this debt, the term of the agreement is extended until it is fully repaid.

Article 2.Establish that citizens who have concluded an agreement in accordance with Article 1 of this Law shall be subject to the current procedure for calculating subsidies for payment of housing and communal services for current payments.

Article 3.Establish that the penalty for late payment for housing and communal services in the amount specified in the debt restructuring agreement shall be accrued for each day of delay, but not more than 100 percent of the total debt, provided there are no arrears in the payment of wages, pensions, scholarships, etc.

This procedure does not apply to citizens who have concluded a debt restructuring agreement in accordance with Article 1 of this Law and timely repay it and pay current payments.

Article 4.Debts of citizens who have not concluded a debt restructuring agreement and do not pay current charges are collected by housing and communal enterprises by court decision.

Article 5.

No penalty shall be accrued on the amount of restructured debt to housing and communal enterprises, power generating companies, and enterprises of the National Joint-Stock Company "Naftogaz of Ukraine" for their

Article 6.Final provisions

1. This Law shall enter into force on 1 July 2003.
2. To the Cabinet of Ministers of Ukraine:
- ensure broad awareness of the population about the mechanism for restructuring debt for payment of housing and communal services and about timely payment of current payments for housing and communal services;
- within a two-month period from the day of publication of this Law, approve the procedure and standard form of the contract on monthly equal repayment of the restructured debt and timely payment of current payments for housing and communal services;
- bring their decisions into conformity with this Law.

3. Recommend that local executive authorities and local self-government bodies create local standing commissions for restructuring debt for payment of housing and communal services.

Entrust control over the correctness of restructuring of debt for payment of housing and communal services to local standing commissions for restructuring of this debt.

President of Ukraine L.KUCHMA
Kyiv, 20 February 2003