New forms of subsidizing of overhaul of apartment buildings are being implemented in regions

9 february 2015

Konstantin Shishka, the expert of the Analytical Center participated in workshops on the implementation of a regional overhaul system in the Kaliningrad region. Workshops were held in the framework of the Program on implementation of new rules of formation of funds for overhaul of apartment buildings, prepared jointly by the Analytical Center, the International Finance Corporation and the Administration of the Kaliningrad Region.

The purpose of the Program, developed under the Cooperation Agreement between the Analytical Center and the Kaliningrad region, is to create a balanced system of accumulating funds for overhaul of apartment buildings and to ensure informed choice of forms of accumulation by the owners of premises.

Kaliningrad region is a pilot region, the situation in which is unique because it is one of the latest who launched a program on overhaul and was able to take into account the mistakes of pioneer regions, as well as allocated the real money for the state support of the overhaul, aimed also at the lending institutions development. No region has had such experience yet.

To stimulate owners, the Kaliningrad Governor has allocated 1 billion rubles, that is designated to subsidize up to 85% of the cost of overhaul of apartment buildings, as well as to subsidize the interest rate on the loan to the extent of the refinancing rate, and the owners can use this loan to co-finance the remaining 15%. At this stage the owners in the Kaliningrad region shall determine the method of formation of the fund for overhaul.

An important result of the seminars, which were attended by about 400 people, was the training of trainers among the senior officials of local government and housing activists, who will be work with the owners on-site. To support this activity, the IFC and the Analytical Center have developed a "Tutorial on the organization and financing of overhaul and energy efficiency measures in apartment buildings".