News

The application for co-financing projects for renovation of buildings under OP "Regional Development" will begin in June.

19/01/2011

The largest co-financing for building renovation will be obtained by apartment block owners in panel blocks in high-risk neighbourhoods with higher crime and unemployment rate. They will be able to apply for up to 60% of the renovation cost, which includes not only replacement of windows, but also installations and complete reconstruction of buildings. Initially, the program would only allocate money for the so-called social apartments – panel housing in urban areas with high crime rates. However, the Regional Office has struggled to allocate funds from Brussels for the repair of panel apartment blocks in other neighbourhoods, as well as for retrofitting of monolithic blocks. However, apartment owners there will receive less financial assistance. Panel apartment blocks in prestigious urban areas and city centres will be able to apply for up to 50% co-financing under OPRD. People living in monolithic construction could apply for up to 40%. 15.6 million BGN are provided under the social housing renewal schemes, while for other homes – 62.6 million BGN. The funds will be able to completely renovate about 600 buildings. For this purpose, their owners should associate themselves under the Condominium Ownership Management Act and establish a legal entity. The pilot projects of the United Nations Development Programme show that for an apartment capital repair in a panel building are needed about 5,000 BGN. There are over 700,000 dwellings in multi-family buildings in need of repair in Bulgaria. After retrofitting, 40 to 60% is saved from energy only, as demonstrated by data from the block retrofitting program, while the life of the building is extended by 15 – 20 years. The investment returns for 5 – 6 years.