How to motivate private investment to retrofit the existing housing stock

How to motivate private

investment to retrofit the

existing housing stock

Mirja Adler

KredEx

12 September 2011

Who is private investor for

housing stock in Estonia?

• Legal body:

– Housing association

– Housing cooperative

• Community of apartment owners

– no legal body

• In all cases all apartment owners (private

persons) are responsible for decisions and

payments

To motivate private investors

the purpose has to be set, is it

• Complete renovation of the buildings

• Healthy indoor climate

• Energy efficiency

• Better living environment

Or the combination of all of them - yes

Key for motivation: complex

approach

Technical studies by Tallinn

University of Technology

Studies for 4 different building types,

including social studies about residents

attitude and expectations

• Brick

• Concrete large panel

• Wooden apartment buildings

• Newly constructed buildings

Estonia BPP - Paldiski 171 • Supervisory of works 7.669 €

• Design 5.958 €

• Reconstruction 389.408 €:

• roof – 52.325 €

• windows – 46.664.€

• facade – 119.566 €

• balconies – 107.929 €

• heating system – 51.643 €

• heating metering system – 11.279 €

• Total costs per square meter 128 €

• Result: 58% energy saving

• Paldiski mnt 171

– built in 1977

– typical block of flats

– 5 storey

– 60 apartments

– 3.144 m²

Financial measures

• Grants

– From state

– From municipalities

• Low interest rate loan

• Beneficiary can

combine the

measures

Grants and guarantee • State grant from KredEx for:

– energy audit – 50%, max 700 €

– technical inspection – 50%, max 700 €

– building design documents - 50%, max 4 000 €

• Reconstruction grant from GIS: 15, 25 or 35%

depending on the level of refurbishment

– Grants from municipalities, for example:

Tallinn City 10% for renovation

• Credit guarantee from KredEx – if needed

Low interest rate loan -

revolving fund scheme

Results so far Loan

• Start 24.06.2009

• By 31.08.2011:

• 308 buildings

• Apartments 11 004

• Ca 730 600 m²

• Total 26,8 mln €

• Average 88 500 €

• Saving 33,4%

Refurbishment grant

• Start 30.09.2010

• By 31.08.2011:

• 218 applications/buildings

– 5,5 mln €

• 183 pos decisions

– 4,9 mln €

– 15% 1,8 mln €

– 25% 2 mln €

– 35% 1,1 mln €

• Ca 452 000 m²

• Average 26 600 €

Steps for end-beneficiary

Information to market participants

• Press-conference in public media

• Infodays/seminars/workshops - to end

beneficiaries, builders, energy auditors, project

designers, local municipalities

• Advertisements in newspapers/magazines

• Internet (website, banners,

news, articles)

• Direct mails

• Leaflets/booklets

• Cooperation with banks

10 campaigns since 2006

Conclusions • To motivate private investors the all-round

approach is needed:

– Legal framework

– Specialist and companies available

– Arguments and support for decision making process

(studies, BPP)

– Financial support schemes – loans, grants

– Programs for awareness raising

– Campaigns to inform residents about possibilities

Contact:

KredEx

Mirja Adler

Hobujaama 4

10151 Tallinn, Estonia Tel: +372 6 674 100

Fax: +372 6 674 101

E-mail: [email protected]

www.kredex.ee