EBRD considering providing up to EUR 100 mln for construction of social rental housing with support from Hansen Ukrainian Mission

The European Bank for Reconstruction and Development (EBRD) is considering a senior secured loan facility of up to EUR 100 million for the construction of social rental housing in Ukraine with the support of the Hansen Ukrainian Mission, a charitable organization run by Dell Loy Hansen.

According to the announcement, the loan facility will finance the expansion of Hansen's Ladder to Prosperity platform, designed to support internally displaced persons (IDPs), senior citizens, and war veterans in Ukraine. The loan facility will fund the further expansion of the Platform, with a focus on affordable rental and rent-to-own housing models.

The initial committed tranche of EUR 7.1 million will finance the development of phase 1 of the project, comprising two EDGE-certified affordable rental housing projects in Kyiv region, delivering 182 units. Future phases of the project will scale up to ca. 1,800 energy-efficient affordable housing units across multiple locations by 2029. The total project cost is EUR 167 million.

Phase 1 buildings are set to be EDGE "Standard" (Excellence in Design for Greater Efficiencies) certified, they will reuse the existing building assemblies for their development, reducing the material use and embodied carbon.

The Borrowers for the purposes of Phase 1 are two newly established Ukrainian SPVs, Hansen Affordable Housing, LLC and Hansen Affordable Housing Parkway House, LLC, fully owned by Dell Loy Hansen. The Hansen Ukrainian Mission will provide oversight and coordination for the implementation of the "Ladder to Prosperity" Programme by the respective Borrowers and across the Platform.

Additionally, Three donor-funded TC assignments will support: human capital recovery support to support the economic integration of tenants (EUR 50,000), human capital response for Ukraine, covering skills support in the construction and buildings operation sector (EUR 75,000), policy engagement to identify scalable private-sector models for affordable housing (EUR 75,000), and environmental and social capacity building (EUR 75,000).

The EBRD Board of Directors will make a decision on approving the project in November.