Experience of Lithuania in housing refurbishment

Švitrigailos str. 7 / A. Vivulskio str. 16, LT-03110 VilniusTelephone +370 5 262 98 53info@bkagentura.lt

Simona IržikevičiūtėHousing and Urban Development Agency

March, 2012

• population <3,19 mln.;• > 66 % of population lives in multi-apartment buildings

built 1993 1961-1990;• 97 % private ownership, 3% social housing;

Urban inhabitants

Rural inhabitants Year

14,5% 85,50% 1910

23% 77% 1914

15% 85% 1945

66,7% 33,3% 2007© Department of Statistics to the Government of the Republic of Lithuania

(Statistics Lithuania), 2005.

Background

BackgroundPeriod (years) (%)

before 1918 31918 - 1940 111941 - 1950 41951 - 1960 81961 - 1970 191971 - 1981 251981 - 1990 251991 - 1996 5

before 1940 – 10 051 multi-apartment building1941 - 1960 – 3 688 multi-apartment buildings1961 - 1993 – 20 507 multi-apartment buildingsIn total: before 1993 there were built 34 246 multi-apartment buildings

Between 1951 to 1991 there were 69% of the total available floor space built .

Period Years Description

I 1900 – 1918 In the first two periods houses were built in bricks and wooden beams.

II 1918 – 1940

III 1941 – 1960 In the third period there were only brick houses.

IV 1961 – 1990 The fourth period is characterised by mass industrial production of multi-apartment buildings homes with panel elements. The period marks the time when there was particularly rapid urbanisation process, urban growth industry, increase in urban population.

V 1991 – 2001 The last period – multi-apartment building construction numbness, economic stagnation, a significant decrease in volumes.

Eil.Nr.

Name of the construction materials Trukmė metais

1 Concrete and reinforced concrete foundations 125

2 Prefabricated concrete walls 125

3 Prefabricated reinforced concrete floor/ceiling 125

4 Windows and doors in wooden frames 40

5 Indoor wooden doors 50

6 Wooden flooring 40

7 Linoleum flooring 20

8 Ceramic tile flooring 80

9 Roof covering with 2-3 layer ruberoid 10

10 The joint sealing 8

11 Façade paint finish 6

12 Façade plaster 50

13 Cold water galvanized piping 30

14 Hot water galvanized piping 15

15 Service pipelines 20

Background

Typical project 1-318

Vilnius, 1-318-19 Kaunas, 1-318-35/66 Tauragė, 1-318-18

Panevėžys, 114-117-30 Jonava, 117-32 Kaunas, 117-54

Typical project 1-117

Typical project 1-464

Kaunas, 1-464LI-51/1 Tauragė, 1-464LI-A53 Druskininkai, 1-464AŠ-17LT

Typical project 120

Vilnius, 11-120B-06/1 Vilnius, 111-120B-14/1 Vilnius, 111-120B-13/1

Lithuanian housing strategy

Main goals are:Expand housing options for all social groups

Strengthen the capacity of the housing sector in the housing market

Ensure effective use of existing housing, maintenance, upgrading and modernization, including the rational use of energy resources

Approved in 2004 by Lithuanian Government

English version available on the internet site www.am.lt

• Housing and Urban Development Agency

• Apartment owners

• Housing administration companies

• European Investment Bank (EIB)

• Municipalities

• Commercial banks (3 selected banks)

• Engineering consultant companies

• Contractors

• Etc.

Participants

• Attempts to launch modernisation of apartment blocks in early 90’s were rejected

• World Bank Project in 1996-2004• Subsidised renovation programme launched in

2006, Programme ran out of money in late 2007

• Decision to launch a “win-win” scheme using JESSICA in early 2009

Attempts to modernise Multi-apartment buildings

Modernisation of Multi-apartment buildings is funded:

• State budget support (via Programme for Modernisation of Multi-Apartment Houses, via Climate Change Special Programme);

• JESSICA instrument (Joint European Support for Sustainable Investment in City Areas) (via Programme for Modernisation of Multi-Apartment Houses);

• EU Structural Funds’ support (several OP).

Results of the subsidised renovation programme launched in 2005

> 450 finished projects

< 40 ongoing projects

JESSICA holding fund

The contribution invested into the JESSICA Holding Fund is EUR 227 mln. (784 mln. Lt) and it consists of:

- European Regional Development fund (EUR 127 mln.) - National funding (EUR 100 mln.)

EIB has to date distributed to UDF’s: 6.000.000,00 € to Šiauliu bankas (2010);

6.000.000,00 € to Swed bank (2011);6.000.000,00 € to SEB bank (2012);

10.000.000,00 € to Šiauliai bank II JESSICA Call 2011;20.000.000,00 € undergoing III JESSICA Call 2012.

Vilnius – 10.04.23 – 13

Process. Approved legal acts

• The Law on the State support for the acquisition or rent of housing and for the modernization of multi family buildings of the Republic of Lithuania (latest amendment January, 2012 );

• Resolution No. 1213 of the Government of the Republic of Lithuania regarding the Approval of the Program for the refurbishment (modernisation) of multi-apartment buildings (latest amendment December, 2011);

• The Rules of State support for the refurbishment (modernization) of multi-apartment buildings, approved by the Government of the Republic of Lithuania (latest amendment December, 2011)

• The Description of the procedure for the preparation of modernisation projects for multi family buildings, approved by Minister of Environment of the Republic of Lithuania (latest amendment November, 2011)

• The description of the procedure for payment of credit and interest taken for the renovation (modernization) of multi family buildings for low income families, approved by the Minister of Environment and the Minister of Social security and Labor of the Republic of Lithuania (February, 2012)

Financing scheme.Investments for the modernisation -100%

• Fixed interest rate at 3% p.a.• Maturity up to 20 years• 2 years grace period (during construction)• No collateral or guarantees required; • 15% JESSICA loan write-off if certain energy efficiency level

achieved (upon completion) 110-145 kWh/m2 (Class “D”)• 100% grant for preparation of renovation documentation

reimbursed (paid from national funds)• 100% of reimbursement of installments to low income families;• 15 % additional support from Climate Change Special programme

for energy efficiency measures implementation JESSICA loan write-off if not less than 40 % energy savings are achieved;

Process. JESSICA financing scheme

Process

• Approved 95 IP;• Total planned investments – 77.276.169,25 Lt (22.380.725,57

Eur);• 58 applications for credits;• 43 approved applications:

– JESSICA I: 14 Credit value – 1.962.957,74 Lt (6.777.700,48 Eur)– JESSICA II: 29Credit value – 2.299.736,82 (7.940.531,29 Eur)

Process. State of play - March, 2012

Process. State of play - March, 2012

Comparison of State support intensity50 % (old Program) JESSICA

Investments for 1 m2 420 Lt Investments for 1 m2 480 Lt

State support 50 % State support 15 % +15 %

State support boundaries

≤ 140 Lt/m2

(~33% in total State support for the particular case)

(15%+15%)*480 Lt=144 Lt/m2

Home owner investment for insolvent inhabitants

20 Lt/m2 45000 Lt – Project preparation costs;12000 Lt – project administration costs; 30000 Lt- technical supervision ;

(45+30+12)/2,5=34,8 Lt/m2

(140 – 20)/420=28,5% (State support intensity for m2 of investments)

144+34,8=179 Lt/m2

179/480=38%(State support intensity for m2 of investments)

20

The communication is being planned and implemented taking into account key influential aspects, such as:

1) Season;2) Political, social and economic events in the country;3) Course of the processes;4) Real action plan

Activities. Promotion planning

Activities. Promotion

Housing and Urban Development Agency implemented more than >20.000 consultations, organised > 200 seminars and training activities, is preparing typical technical project for housing refurbishment in order to lower the preparation costs of such documents, several studies were made (including the opportunity study on the usage of renewable energy sources within housing refurbishment, monitoring of the implemented projects, recommendation plan for the buildings to be modernised in the first place, etc.)

www.atnaujinkbusta.lt

Vaišvilos g. 9, Plungė5 floors, 50 apartments. Built in 1978.Total heated area – 2 590,16 m²

Implemented measures: Heating and hot water system upgrading; replacement of windows and exterior doors; roof insulation; wall insulation; basement ceiling insulation; insulation of base; drinking water pipelines and equipment replacement; repair works of sewage system; floor insulation on the ground; electrical wiring repair works; stairwell repair works

Investments – 385.319,16 EUR

Results

Completion date – September 20, 2011Energy efficiency class (according to Energy

Performance Certification classification) before refurbishment (modernisation) – E, planned value – C, Achieved value – B;

Energy consumption before modernisation - 293,94 kWh/kv.m

Energy consumption after modernisation - 121,01 kWh/kv.m

Energy savings - 58,83 (%)

Housing and Urban Development Agency

Švitrigailos str. 7 / A. Vivulskio str. 16, LT-03110 VilniusTelephone +370 5 262 98 53info@bkagentura.lt

Thank you for your attention!