Multi-Apartment House Renovation (Modernization) Programme
The possibility to reduce heating costs which are growing each year and to improve the condition of the old house are the reasons to apply for a multi-apartment building renovation (modernization) credit.
Why to choose us? A solid partnership and experience in issuance of credits to renovation projects
For years we have been collaborating with such institutions as:
- Būsto energijos taupymo agentūra VšĮ (Housing Energy Saving Agency) (before 2013 it was called Būsto ir urbanistinės plėtros agentūra (Housing and Urban Development Agency)) – since 1999
- Central Project Management Agency - since 2002
- Mortgage Loan Insurance - since 2005
- INVEGA – since 2009
- European Investment Bank - since 2010
Šiaulių Bankas is a leader in multi-apartment building apartment renovation (modernization) lending in Lithuania. For 10 years, the bank has been actively participating in this program and has financed more than 2,000 apartment building projects of EUR 567 million. Two of the three renovated multi- apartment buildings in Lithuania are financed by Šiaulių Bankas.
Conditions, process, other important information
The documents that should be provided by the project administrator in order to receive the credit for renovation of a multi-apartment house:
- Application of the Administrator in the form acceptable to the Bank
- Investment plan for the renovation (modernization) of an apartment building, agreed with the Agency (signed physically or submitted a letter of approval) and approved by the decision of the apartment owners / members of the apartment house owners' association
- Energy efficiency certificate of the apartment house;
- 4. Decision (minutes) of the owners of apartments and other premises on the renovation (modernization) of an apartment building. In case the Administrator uses the Project Manager, the decision (minutes) of the apartment owners must clearly state that the credit agreement is signed by the Administrator and the implementation of the renovation project is administered by the Project Manager.
- State aid agreement
- Free-form certificate prepared and signed by the Administrator about apartments and other premises in an apartment building that belong to legal entities and information about apartments and other premises owned by natural persons where economic activities are carried out
- Certificates from utility service suppliers (companies providing heat, electricity, water, gas and municipal waste transportation services) and from the Manager of multi-apartment house common use objects (certificates are provided not older than of 90 days) on overdue payments of the community / apartment owners, their amounts and terms , indicating the starting date and amount of the overdue payments of each indebted apartment / premises‘ owner
- An extract from the Real Estate Register about the owners of the flats of the multi-apartment houses and other premises;
- Valid articles of association of the multi-apartment house Administrator (legal entity) and an extract from the register of legal entities / articles of association of multi-apartment house owners / joint activity agreement (if not submitted earlier)
- Identity document (passport or identity card) of the administrator's representative (natural person) and document confirming the basis of representation (if not previously submitted)
- Decision adopted by the municipality, which instructs the Administrator to implement the renovation (modernization) of a specific apartment building (or apartment buildings of the whole city), if the Administrator is the administrator of the implementation of the municipal programme
- Certificate issued by the Agency on de minimis aid granted and registered to the owner of the apartment, if the apartment building has an economic activity.
- Assignment Agreement, if the renovation (modernization) of the Apartment Building is implemented by the decision of the Beneficiaries Project Manager
- replacement of heating and hot water systems
- Rearrangement, replacement or equipment of ventilation and recuperation systems
- Roof insulation
- Insulation of the facade walls (including the socle)
- Glazing of balconies and loggias
- Change of the exterior doors and vestibule door
- Change of windows in the apartamens and other premises
- The basement ceiling insulation
- Renovation (modernization) of elevators
- Renovation (modernization) of other engineering systems of common use.
Will the administrator have to cover not collected credit instalments from its own funds?
An administrator bears responsibility for the appropriate collection of funds (credit instalments, accrued interest and default interest if any) from the flat owners and owners of other premises as well as payment of these funds to the bank. The administrator is not responsible for failure of the flat owners/owners of premises to pay the credit instalments or fulling their liabilities or for their improper fulfilment. In other words, the obligation of the administrator to repay the credit is to the extent of the number of payments collected from the beneficiaries.
It is foreseen that credit maturity is 20 years. is it possible to take it for the period of 10-15 years?
The credit maturity is chosen by the flat owners whose interest is represented by the administrator. It is foreseen that maximum, i.e. the longest credit maturity can be 20 years, however, a credit can be taken for a shorter period as well.
When is the credit for the completed works disbursed?
Šiaulių Bankas does not limit the periodicity of the credit disbursement. When the works are performed, an invoice and work acceptance-transfer deed are provided and the completion of works is approved by he responsible persons .
Is it possible to repay the loan to the bank earlier than agreed?
Yes, inhabitants can repay the loan earlier. In this case, no need fines, early repayment fees and other similar fees applier from the side of the financier.
If the credit is repaid prior to its maturity, should the interest be covered for the entire period?
Interest is calculated by aggregating the actual credit account balance each month (i.e. used and outstanding portion of the credit). interest will be charged from the fact t. y. how much it is calculated on the current day.
In the credit granting terms it is specified that during the period of credit usage until renovation is carried out it is possible to pay nothing even interest. Is this so?
Yes. During the credit usage period the interest can be subject to a grace period. The interest accrued over the grace period will be repaid over the entire credit repayment period according the separate repayment schedule.
If the administrator addressed the bank regarding 5 houses which are planned to be renovated. In this case, one or five credit agreements are signed?
In this case, 5 credit agreements are signed (one credit agreement for one apartment building).
Who signs a credit agreement - each owner of the flat?
A credit agreement is signed by the administrator on behalf of the flat owners.
What works will receive funding?
Construction works are subject to funding.
Can a community take a credit?
Yes. A credit can be taken by a manager of the objects of common use (a community, a person authorized by a common activity and administrator of the objects of common use). A credit is taken in favour of inhabitants.
Shall the credit servicing fees apply?
The credit administration fees such as a document analysis fee, credit administration fee , commitment feet, amendment of agreement conditions fee and early repayment fee shall not be apply.
A credit agreement includes a definition "appropriately executed works". What does it mean?
Appropriately executed works shall mean the works which meet the quality requirements set to such works. After the works are finished the Bank must be provided with the transfer-acceptance deed signed by the contractor, the client (administrator) and the technical supervisor responsible for the quality of the carried-out works.
Should it be paid for the renovation only during the heating season or all year round? What will happen to instalment if heating is subject to compensation?
Credit instalments are paid on the monthly basis. The payment procedure of socially disadvantaged people is defined by the legal acts. As for socially disadvantaged people credit and interest as well as other expenses related to the preparation of the project and its implementation shall be covered.
If a credit is taken on behalf of the administrator is the debt reflected in the balance sheet of the administrator?
This credit is not included in the balance sheet. The funds are only administrated by the bank and implementer of renovation, but they are not accounted in their balance sheets.
Where can I find out more about the apartment building renovation (modernization) programme?
More information about the apartment building renovation (modernization) program is available on the website www.betalt.lt.
Do apartment owners have to pay instalments for other apartment owners who do not meet the requirements?
No, each apartment owner must repay only the part of the credit that is granted for that apartment (depending on the useful floor area of the apartment).
How are inhabitants' decisions on the apartment building renovation (modernization) programme made?
The decision is made by the apartment owners at the meeting or by voting in writing. The majority required for a decision is 50% + 1 vote. In order to receive this loan in Šiaulių Bankas, it is necessary that at least 55% of all owners of apartments and other premises in an apartment building agree to take the loan.
Is a collateral required to obtain a loan for the renovation (modernization) of an apartment building?
No, residents can receive state aid and credit to renovate housing without mortgaging property.
Which houses can participate in the apartment house renovation (modernization) programme?
A multi-apartment house is a house with three or more apartments. The programme is open to houses built or for which a construction permit was issued before 1993.
The key stages of the renovation:
- Initiation of a multi-apartment house renovation
- Flat owners' meeting organization
- Preparation of an Investment Plan
- Public discussion of the Investment Plan
- Investment plan coordination with BETA
- Approval of the coordinated Investment Plan in the Meeting
- An application for a loan (submission of documents) to the Bank
- Bank's preliminary decision
- Purchase of contractual works
- Purchase of a Technical Project
- Verification of a Contractor at the Bank
- Bank's written commitment to provide funding
- Purchase of contractual works approved by BETA
- Credit Agreement Signature
- Purchase of Technical Maintenance
- Implementation of a multi-apartment house renovation
- Credit Disbursement
- Certification of a a multi-apartment house
- Applying for the state aids
- State Aid Receipt
- Interest and credit payment
- a multi-apartment house is built under the construction permits issued before 1993;
- investment plan foresees to achieve at least C building energy performance class and reduces previous computational thermal energy consumption by at least 40 per cent;
- not less than 60 per cent of the house inhabitants agree on taking a credit for renovation;
- multi - apartment building owners with past due obligations of more than 60 days, not exceeding EUR 170 per utility company or manager of multi-apartment building premises (past due payments are calculated by aggregation), must not exceed 10% of all multi-apartment building owners.
Where to apply for a loan to renovate an apartment building?
For more detailed information visit Šiaulių bankas branches or call 8 700 55 055 (+370 37 301 337 from abroad).