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Tenants of the state and communal property have obtainedthe right to change their purpose under contracts concluded before the new lease law entered into force

The Order of the State Property Fund of March 22, 2021 No. 453 "On Approval of the List of Purposes, within which it is possible to amend lease contractsconcluded before the Law of Ukraine "On Lease of State and Communal Property"entered into force, regarding changes in the purpose of leased property. The order was registered by the Ministry of Justice on April 6, 2021 under No. 447/36069.

You can read the order at the link:https://bit.ly/3vJjht1.

This order allows tenants of the state and communal property, whose contracts were concluded before the Law of Ukraine of 03.10.2019 No. 157-IX "On Lease of State and Communal Property" entered into force, to amend their contracts regarding the targeted use of leased property.

The State Property Fund emphasizes that the change of purpose can be carried out only within the framework of the list of targeted purposes approved by the Fund. That is, the current purpose and the new purpose that the tenant wants to make in his contract must be provided for by the approved list.

For example, if a tenant uses premises for "public association placement", then in this case he is not entitled to change the intended use of the property, since the corresponding purpose is not in the List. This also applies if the lease contract provides for such intended use as "Other Use of Real Estate Property".

At the same time, changes to the contract are not limited to one purpose. The tenant can also change one purpose to several different, and vice versa. Please also note that rents cannot be reduced after the change of purpose.

In general, the list of activities approved by this order of the Fund does not include such purposes as placement of:

  • state and communal healthcare institutions, which are partially financed at the expense of state and local budgets;
  • state educational institutions, partially financed from the state budget, and educational institutions financed from the local budget;
  • business entities formed with the participation of trade unions that provide services of cultural, educational, recreational and other social activities;
  • local self-government bodies and their voluntary associations (except for associations of local self-government bodies with all-Ukrainian status);
  • organizations providing surveillance services for persons with physical or mental disabilities;
  • libraries, archives, museums, except museums, which are maintained at the expense of state and local budgets
  • social protection institutions for homeless citizens, homeless children and institutions intended for temporary or permanent stay of elderly and persons with disabilities;
  • state and communal institutions of extracurricular education (except for health facilities for children and youth) and preschool educational institutions;
  • social services institutions for families, children and youth held at the expense of the local budget, in particular, centers of social and psychological rehabilitation of children, social dormitories for orphans and children deprived of parental care, social centers of mother and child, centers of social and psychological assistance, rehabilitation centers for children and youth with functional restrictions, centers for HIV-infected children and youth;
  • creative unions, public associations, religious and charitable organizations on area that is not used for business activities;
  • public associations of persons with disabilities on an area not used for business activities;
  • diplomatic missions and consular offices of foreign states, representative offices of international intergovernmental organizations in Ukraine (except for agreements, the rent of which is regulated by intergovernmental agreements);
  • professional creative workers on area (creative workshops), which is not used for business activity;
  • other use of property.
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