Factory reconstruction grant for apartment buildings

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Purpose

The aims of providing the grant are:

  • facilitating the adoption of new technical solutions in the reconstruction of apartment buildings
  • achieving energy efficiency and a better indoor climate for apartment buildings
  • reducing energy dependency and greenhouse gas emissions.

The grant can be obtained in the extent of 50% or up to EUR 1,000,000 per apartment association.


Webinar presentations.

For who?

Korteriühistu

apartment association

How to apply for support?

Korteriühistu! Uut moodi rekonstrueerides saad 50% või kuni 1 000 000 eurot toetust!

Kuidas taotleda korterelamute tehaselise rekonstrueerimise toetust? Selgitame lihtsate sammudega!

Important conditions

Supported activities

In issuing the grant, the supported activities are:

  • reconstructing the interior finishing and the related works that are necessary due to the replacement of windows, fire doors and front doors and construction of the heating and ventilation system
  • replacement or renovation of windows and doors, and the accompanying works
  • reconstruction and thermal insulation of the roof and ceiling roof, adding an awning, and the accompanying works
  • installation of an elevator to guarantee entry into and exit from the building; installation of ramps and handrails on landings, and the accompanying works
  • reconstruction and thermal insulation of the basement, and the accompanying works
  • replacement, reconstruction and balancing of the heating system, preparing a report on the balancing of the heating system, and the accompanying works
  • purchasing and installation of equipment necessary for use of local renewable energy, and the accompanying works
  • reconstruction or addition of balconies and loggias, installation of glass or replacement of balconies, and the accompanying works
  • construction of a ventilation system with heat recovery or reconstruction of the ventilation system, and the accompanying works
  • installation, replacement or reconstruction of the water and sewerage system, and the accompanying works
  • replacement or reconstruction of the electrical system in public areas of the building, and the accompanying works
  • preparation of a construction project necessary for the performance of work specified in clauses 1 to 12, and preparation of the construction survey and building audit that are the basis for it
  • performance of owner supervision
  • using the services of a technical consultant pursuant to subsection 8 (3)

Thermal insulation of the façade and the roof are supported activities if they utilise prefabricated exterior wall and roof components, and only works related to the installation of the components take place near the building.

Eligibility period of the project
  • Expenses for activities performed and obligations taken by the applicant before submitting the application to KredEx shall not be eligible.
  • The eligibility period of the project is up to 24 months as of making the decision to satisfy the application.
  • Only once during the eligibility period of the project may the recipient of the grant apply for an extension of the eligibility period of the project for up to 18 months if, during the implementation of the project, extraordinary circumstances independent of the recipient have arisen, and on the condition that the project’s activities will be finished by 31 August 2024, at the latest.
Maximum amount of the grant

The grant can be obtained in the extent of 50% of the eligible expenses, or up to EUR 1,000,000 per apartment association.


The rate of own contribution must cover the part of the eligible costs in the project that will not be compensated with the grant. Aid from another measure or funds from the state budget, funds from other public sector aid or foreign aid shall not be considered as own contribution.

The budget of the grant is EUR 12 million; the amount is divided equally between standard projects.

 

Application and disbursement

List of technical consultants (updated on a continuous basis)

The apartment association shall select a technical consultant who will help to prepare for the general meeting, including collecting information from the KredEx website, regulations and the letter of explanation, researching the estimated cost* of all works, and describing the extent of the projects and the works to be performed, if necessary.

If no technical consultant has been selected, the apartment association shall perform the aforementioned activities.


* The estimated cost includes design work, insulation of the façade and roof, window replacement, reconstruction of the heating system, installation of a ventilation system with heat recovery, replacement of water and sewage pipes, and the updating of the electrical system. In the case of certain building types, the construction of new balconies as well. In determining the estimated price, the consultant is able to make estimated recalculations based on what has been done before, and to what degree. The order and manner of how all works will be performed is left for the main contractor to plan.

See additional information on standardised houses in this presentation.

A technical consultant will be selected at the General Meeting, if necessary; a decision will be made on the reconstruction; a description of the works and the accompanying services will be provided; and a decision made on whether to take out a loan and the maximum amount thereof.

The apartment association is required to present an energy performance certificate based on the measured energy consumption data for the building. If there is no energy performance certificate, or the existing energy performance certificate was prepared before 2013, then a new energy performance certificate must be ordered.

The apartment association shall submit the grant application to KredEx, to which the minutes of the General Meeting, the energy performance certificate, and the list of members shall be appended, no more than 30 calendar days before the submission of the application.

Please send applications to [email protected] email address.

See additional information on the estimated cost of factory reconstruction of standardised houses in this file.

KredEx shall process the application and, if necessary, provide 10 working days to rectify any deficiencies.

KredEx shall notify the apartment association if the application has been declared compliant and will undergo evaluation.

If the application does not meet the conditions, KredEx shall make a decision to reject the application.

Upon the closing of the application round, on 3 May, KredEx shall start evaluating all applications deemed compliant, dividing them into groups by standardised designs, and creating a ranked list of all applications inside each group.


If there are more funds to be allocated than applications in the first group, the respective budget shall be subject to general redistribution.

 

KredEx shall organise mini-competitions for groups of houses between undertakings found in the course of public auction.
 

KredEx shall make a decision to satisfy the grant, in which a designer and builder will be determined for the apartment association, and the association will enter into a design contract and a construction contract with this undertaking.

The apartment association shall request offers for owner supervision.

When choosing, it is important that the service provider is assigned additional tasks:

  • to check, at an on-site visit to the factory, the conformity of the documentation of the components
  • to check the conformity to the construction project

KredEx must be involved in supervision as an authorised party.

The Estonian Business and Innovation Agency (KredEx) disburses the grant or makes the final disbursement on the basis of the act certifying the completion of reconstruction works and on the condition that implementation of the project activities has been certified.

The grant will be disbursed pursuant to the actual costs on the basis of the application for payment. Expenses must be certified by means of invoices, instruments of receipt of work, and contracts.

The recipient of the grant may apply for the disbursement of the grant in four parts. The recipient of the grant has the right to submit the first request for payment for the partial payment of the grant once the construction project for the reconstruction of apartment building or at least five per cent of the total amount of the reconstruction works has been accepted, the second request for payment once at least 30 per cent of the total amount of the reconstruction works has been accepted, and the third request for payment once at least 90 per cent of the total amount of the reconstruction works has been accepted, and the fourth, or final request for payment that corresponds to at least five per cent of the total amount of the reconstruction works once all the reconstruction works have been accepted.

The grant shall be disbursed pursuant to the proportion of eligible costs indicated in the decision to satisfy the application, and in the extent up to the amount specified in this decision. In the event that the cost of reconstruction works turns out to be cheaper than the amount specified in the application, the grant will be disbursed pursuant to the percentage specified in the grant decision, guided by the actual cost of the project.

To obtain the disbursement, the recipient of the grant must submit the following via e-mail:

First disbursement (5%, design phase):

  • the request for payment on the relevant form (PDF file able to be filled in. Please Note! Please use Acrobat Reader to fill in the form. The form cannot be filled in using the Windows 10 Edge browser. Please save the PDF file to your computer first and then fill it in using Acrobat Reader)
  • construction project for the reconstruction of an apartment building accepted by KredEx
  • formal records of delivery and receipt for the works
  • payment orders or account statement
  • tenders received for the contracting of the owner’s supervision and technical consultant service together with the invitation to tender and the contract awarded to the successful tenderer

Second disbursement (30%, element production phase):

  • the request for payment on the relevant form (PDF file able to be filled in. Please Note! Please use Acrobat Reader to fill in the form. The form cannot be filled in using the Windows 10 Edge browser. Please save the PDF file to your computer first and then fill it in using Acrobat Reader)
  • formal records of delivery and receipt for the works
  • payment orders or account statement

Third disbursement (90%):

  • the request for payment on the relevant form (PDF file able to be filled in. Please Note! Please use Acrobat Reader to fill in the form. The form cannot be filled in using the Windows 10 Edge browser. Please save the PDF file to your computer first and then fill it in using Acrobat Reader)
  • formal records of delivery and receipt for the works
  • payment orders or account statement

Final disbursement:

  • the request for payment on the relevant form (PDF file able to be filled in. Please Note! Please use Acrobat Reader to fill in the form. The form cannot be filled in using the Windows 10 Edge browser. Please save the PDF file on the hard disk of your computer first, and then fill it in using Acrobat Reader)
  • formal records of delivery and receipt for the works
  • noise level control measurements of technical systems
  • thermographic survey with air leakage test (at least 3 apartments). In the event that the time of year does not allow for an effective survey to be conducted at the time of the handover of the building, the survey will be conducted as soon as possible and the deficiencies revealed as a result of the survey will be corrected during the warranty period. Thermography must be performed in accordance with the EVS-EN 13187 standard. The air permeability of the building must be determined by the fan pressurisation method in accordance with the standard EVS-EN ISO 9972 (in under and overpressure conditions)
  • construction, design, owner supervision and technical consultant invoices
  • payment orders or account statements from construction, design, owner supervision and technical consultant
  • report of the measurement of the air flow rates in the ventilation system in accordance with generally accepted methodology, indicating the design air flow rate and the measured air flow rate at each measurement point and the percentage difference between the two
  • report on the balancing of the heating system (if any), which must also be presented in case the central heating system was reconstructed beforehand, and the heating system was not updated with works performed within the framework of the reconstruction grant
  • in the presence of a gas appliance in the apartment, an audit of the gas installation
  • photos of the reconstructed apartment building and technical building systems
  • an excerpt of the ledger for differentiating eligible expenses related to the project from other expenses

The recipient of the grant is obliged to present the energy performance certificate based on the measured energy consumption data for the calendar year following the implementation of the project in the manner specified by KredEx no later than one month after the end of the relevant calendar year.

Reports

Contact us

Kalle Kuusk

Kalle Kuusk

Buildings' energy efficiency project manager

kalle.kuusk [at] kredex.ee
Elari Paimets

Elari Paimets

Client Manager

elari.paimets [at] kredex.ee