Homeowners’ associations (HOAs)
Co-funding by the state budget, local authority budgets, and own funds of the HOAs
Multifamily apartment buildings
Installation of commercial heat metering units, replacement and modernisation of the heating system of an apartment building, modernisation of the hot water supply system, installation of heat metering distribution units, replacement or repair of windows and doors, thermal insulation of house structures, modernisation of llighting systems in common areas, ventilation systems (Packages A and B provide for 25 types of energy efficiency measures)
The total percentage of energy savings after the implementation of energy efficiency measures should not be less than 20% of total energy consumption
PHASE I: The HOA decides by a two-thirds majority to conduct a preliminary energy audit. The auditor prepares the energy certificate of the building and fills in the recommendation report (including a description of the project of energy efficiency measures for the house). At the general meeting of condominium, members decide on whether to participate in the programme, determine the list of energy-efficient measures (package A or B) and the maximum cost of the project. The HOA fills in the application for participation in the progamme and prepares accompanying documents. The same application covers reimbursement of the costs of the preliminary energy audit. The HOA selects the partner bank, opens a current account with it (if the condominium does not have a current account in the partner bank) and submits Application 1 and accompanying documents for participation in the programme through the partner bank.
Tranche 1. After consideration of the application by the Energy Efficiency Fund, the HOA will receive a written and electronic notification of confirmation of intentions (guarantees) of partial reimbursement of the cost of energy efficiency measures specified in application 1, subject to their proper implementation. The condominium receives tranche 1 for the conducted energy audit (up to 70% of energy audit costs) within 30 working days from the date of sending the notification of approval of application 1.
PHASE II: Project documentation and expertise
At its general assembly, the HOA decides to involve a designer to develop design documentation (works, materials, scope of work, procedure) and examination (this can be done during the first general meeting). If necessary, the HOA takes a loan to implement all measures.
Application 2. After receiving the project documentation and the conclusion of the expert organisation, the HOA through the partner bank submits application 2 and accompanying documents for approval of the project and partial reimbursement of the project documentation and its examination.
Tranche 2. After consideration of application 2 by the fund, the HOA will receive a written and electronic notification of approval and confirmation of the intention to reimburse the cost of the energy-efficient measures. The HOA receives tranche 2 for reimbursement of the cost of development of project documentation and examination (up to 70% of costs) within 30 working days from the date of notification of approval of application 2.
STAGE III: Construction works and verification. The HOA conducts energy-efficient activities (according to the project documentation) and independently selects contractors to perform the work. During the works, technical and architectural supervision should be carried out (this may be a representative of the design organisation that developed the project documentation or another specialist, as well as a specialist in architectural supervision).
Application 3. After carrying out all energy efficiency works, certification of energy efficiency of the house and inspection of engineering systems that have undergone energy modernisation, the HOA submits application 4 and accompanying documents for verification of measures taken and partial reimbursement of energy efficiency measures. The Energy Efficiency Fund verifies energy efficient works and financially evaluates the application.
Tranche 3. After consideration of application 4 by the Energy Efficiency Fund, HOAs will receive a written and electronic notification of approval of application 3, confirmation of eligible costs and the amount of the grant (which includes the amount of reimbursement for energy efficiency measures, technical and architectural supervision, energy certification, inspection of engineering systems). HOAs receive tranche 3 for energy efficiency measures within 30 working days from the date of notification of approval of application 3. Partial reimbursement of energy efficiency measures is 40% of the cost of eligible measures/works for the light package (A) and 60% for the integrated package (B).
The amount of compensation for energy certification and inspection of engineering systems is up to 70%.
From August 2019 to March 2021, 397 applications for participation in the programme were submitted throughout Ukraine. To date, only two projects have been completed.
The “Govorova 5” HOA in Odessa has implemented the “light” package A, which includes energy-efficient measures to replace common boilers, overhaul of utilities, dispatching of boilers, installing modern fire alarms, insulating pipelines and replacing window units.
In Odessa, the energy modernisation of apartment buildings is being successfully implemented with 100% financing of all activities by the co-owners of the house.
Only condominiums have the right to financial support under the Energodom programme. Given that condominiums account for only 10% of the total number of apartment buildings, it is obvious that most Ukrainian citizens are limited in receiving grant support in the energy modernisation of their homes. From January 1, 2021, the state programme “Warm Credits” was stopped, according to which HOAs and housing cooperatives could carry out energy modernisation of their houses, with the state repaying 40% of the loan. Local budgets subsidised 35% of the cost of purchasing equipment and construction and installation work under the Warm Credits programme.
There was no monitoring of the Warm Credits programme. The disadvantage of “Warm Credits” was that HOAs/housing cooperatives were obliged to obtain a loan from a bank for the purchase of equipment and materials at high interest rates. At the same time, despite its shortcomings, “Warm Credits” was the most successful programme, as it successfully utilised national, local and private sources of financing.
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