Ukraine —Disputes involving residents, homeowners’ associations and developers
Max Batryn, Partner, Lions Lawyers
Publication — Source
In Ukraine, disputes involving homeowners’ associations (ОСББ) and developers have become increasingly common, particularly in newly constructed residential buildings where governance structures were initially established under developer control.
These disputes typically arise from imbalanced legal relationships between residents and developer-affiliated management companies, which often retain operational and financial control over the building long after commissioning.
According to housing litigation practitioners, the manager in such relationships is inherently the stronger party. Therefore, in the event of a dispute over service payments, the burden of proof should logically rest on the manager to demonstrate that services were actually delivered, in the agreed volume and of proper quality.
However, current court practice in Ukraine has not yet fully adopted this consumer-protection paradigm.
Recent case law trends demonstrate significant procedural and evidentiary barriers for co-owners seeking to:
-Recalculate service fees due to non-performance
-Challenge abusive terms in management contracts
-Obtain financial transparency regarding expenses
-Access documentation on services allegedly provided
As a result, effective judicial protection of residents’ rights in this category of disputes remains limited.
Most Common Court Disputes
From a corporate governance perspective, the most frequent disputes concern challenges to decisions of ОСББ general meetings.
These conflicts often arise due to:
Ambiguities in the Law of Ukraine “On Homeowners Associations”
Procedural violations in convening meetings
Improper voting procedures
Errors in documenting resolutions
Lack of qualified legal supervision during meetings
Because general meetings are frequently conducted by residents without legal support, statutory and charter requirements are often breached — creating grounds for subsequent litigation.
Building Maintenance and Management
Beyond governance matters, courts regularly hear disputes involving:
Debt recovery claims against co-owners
Litigation between ОСББ and management companies
Claims regarding service quality or non-performance
Resident lawsuits seeking access to financial and operational information
These disputes often intersect with long-term management agreements concluded under developer influence.
Challenging Developer Schemes
The key factor in restoring lawful governance is the active position of co-owners.
Because only one ОСББ may exist in a building, residents must work within the existing association structure rather than creating a new one.
The most effective legal mechanism is convening a properly conducted general meeting to adopt corrective resolutions, including:
Recall of developer-affiliated board members
Replacement of audit commission members
Election of independent resident representatives
Amendment of the ОСББ charter
Approval of a transparent and economically justified budget
Such meetings must be conducted with strict procedural formalism and qualified legal assistance.
In practice, developers frequently attempt to regain control after losing governance positions — including through commercial litigation or even criminal complaints.
Legislative Reform: Reduced Risks
Recent legislative changes aim to eliminate structural abuse.
Under the Law of Ukraine “On Guaranteeing Real Property Rights to Future Construction Objects”, applicable to projects authorised after 10 October 2022, apartment buyers automatically obtain ownership upon commissioning of the building.
This reform significantly reduces opportunities for developers to:
Delay ownership transfer
Consolidate voting power
Establish controlled ОСББ structures
The law is expected to reshape housing governance disputes in the coming years.
Lions Lawyers advises residential communities, initiative groups, and ОСББ boards in complex housing governance disputes, including litigation against developers and management companies.
We provide:
Governance restructuring strategies
Litigation over abusive management contracts
Tariff audit and recalculation claims
Protection of co-owner voting rights
Early legal structuring significantly increases the chances of restoring transparent and resident-controlled governance.