Receiving premises and preferential rental terms
18 february 2018
The preferential rental terms provide the sustainability of NGO services. Such option allows freeing up resources that can be directed to expanding service volumes and, accordingly, more people will be able to get the help they need.
The mechanism which helps non-governmental organizations to resolve the issue of premises for the realization of their own activities, by renting a passive real estate fund in communal property on concessional terms was introduced in Poltava region.
For this purpose, the non-governmental organization has searched for vacant premises, prepared a question for submission to the session of the city council and provided advocacy support for consideration and decision-making at the session, approval and signing of the rent agreement.
The process started with the request for free premises list that are in communal property. Based on the received answer, the overview of the premises was made and the one suitable for the organization was selected.
Then a letter to the executive committee of the city council asking for the rent of a concrete utility that is in communal ownership was prepared. It should be noted that the receiving of privileges of rent is the competence of the deputies’ commission. Thus, for obtaining preferential payment terms, the organizers turned to the chairman of the standing deputy commission, on the basis of which a draft decision for the regular session of the city council was created.
The most important step in the implementation of this case was to raise the issue in the agenda of the session of the city council and vote for it. The preparation of the mayor’s decision on the transfer of premises to the rent was made, which was signed after a positive decision at the session.
The final stage was the signing of a rental agreement. Having negotiated with the Head of Management of the communal property of the city, the maximum possible term of the rental agreement was determined. As a result of the meeting, the parties discussed the terms and signed a long-term rental agreement.
Positive experience of Poltava region during 2015-2018 was successfully extended to other regions of Ukraine. Budget advocacy school experts emphasize the possibility of several options for obtaining premises: at preferential rental rate, rent for 1 UAH per year and rent under a free loan agreement. Each region chooses the mechanism that is the most appropriate for it.
Case implementers: CO “Light of Hope”.
Result: during 2015-2017 the receiving of premises on preferential terms of rent was realized in 11 regions of Ukraine.