Reconstruction grant 2022-2027

Closed

Purpose

The comprehensive reconstruction of an apartment building increases its energy efficiency and extends its useful life, raises its value on the real estate market, and leads to an improved indoor climate. This grant is geared towards apartment associations and local governments that are looking to reconstruct their apartment building as comprehensively as possible.

In autumn 2022, we will open an application round for the reconstruction grant.
We will publish the conditions for the grant on this page by the end of September, at the latest.

Benefits

  • Energy savings
  • Healthy indoor climate
  • Good-as-new dwelling

For who?

Korteriühistu

apartment association
local municipality

Good to know

Application

  1. Check the conditions and documents of the reconstruction grant and renovation loan on the KredEx website.
  2. Check whether the apartment building has an energy performance certificate; if necessary, order one.*
  3. Choose a suitable technical consultant**.
  4. Prepare terms of reference for the reconstruction and an initial budget.
  5. If you need a bank loan, ask your bank for the preliminary terms and conditions of the loan.
  6. Organise the first general meeting of the apartment association. If necessary, also invite a consultant from the Regional Development Centre to attend the meeting and explain the terms and conditions of the reconstruction grant and loan, and the need to renovate the residential building.
  7. If you reached a favourable opinion on reconstruction at the general meeting, order the building design documentation.
  8. If necessary, convene a second general meeting to take the decision for the reconstruction of the residential building and, if necessary, apply for a loan and a guarantee.
  9. Submit the grant application documents to KredEx.
  10. KredEx organises an expert assessment of the building design documentation and forwards the results to the apartment association.
  11. Organise a procurement through the register of public procurements to find a builder. Organise a competition to find the performer of owner supervision.
  12. Once the project has passed the expert assessment, submit the loan application documents to the bank, if necessary.
  13. Sign the loan agreement and contracts for services.
  14. Finance the construction in the following order: own funds, loan and grant.
  15. Accept the completed reconstruction works. KredEx will pay out the grant after all the works have been accepted and the necessary documents submitted to KredEx.

The grant applicant must provide an energy performance certificate based on the measured and calculated energy consumption. These are marked by the same scale (letters A–H) and the same measurement unit (kWh/m2a) is used, but the calculation methodology is slightly different.

An energy performance certificate based on measured energy consumption is drawn up on the basis of the actual measured consumption data of the building. Therefore, this indicator is directly related to how much energy the building and its inhabitants consume. It shows the energy consumption before the reconstruction.

Since it is not possible to provide data in advance on the energy consumption measured after the reconstruction, a calculated energy performance certificate is required. This is a calculation attached to the building design documentation, which is submitted on the basis of the calculated standard use of the building. A calculated energy performance certificate (energy performance indicator) is needed to prove that the apartment association meets the conditions for the grant.

With the help of standard use, it is possible to compare the energy performance of buildings, not the consumption patterns of building occupants. In the case of standard use, the indoor climate parameters (air circulation, indoor temperature) and the energy consumption of the building occupants (hot water, electricity) are predefined.

The result of these calculations may differ from the energy performance certificate submitted based on the measured energy consumption, because the indoor climate conditions and the energy consumption of the occupants may differ from the values serving as the basis for standard use.

List of technical consultants
(updated on a continuous basis)

The technical consultant will advise the beneficiary on the budgeting of design and construction works, procurement of design and construction works, preparation of time schedules and carrying out other necessary processes. The main task of the technical consultant is to advise the apartment association on technical issues, in particular before the start of the renovation works, but also in the later stages of the renovation process. The content and scope of the services commissioned from the consultant is a matter for the apartment association to decide.

1) A natural person who has undergone competence training in the renovation of apartment buildings on the basis of a training module approved by the Ministry of Economic Affairs and Communications and passed an examination after the training may act as a technical consultant.
2) The technical consultant provides services on the basis of a written agreement between the applicant and the technical consultant or between the applicant and the company through which the technical consultant provides services. A sole proprietor may also act as the technical consultant.
3) The technical consultant must provide an independent service. He or she may not have any economic interest in the companies from which bids for design or reconstruction work are requested and which will carry out such work, or from which bids for exercising owner supervision are requested, except where the technical consultant is acting as the person specified in section 21 (1) 1) of the Building Code for the company exercising owner supervision. The technical consultant may not be a member of a management body of the legal person acting as the administrator of the apartment association, be in a contractual relationship with the legal person acting as the administrator of the apartment association, or be appointed by the administrator of the apartment association as the building manager for the apartment association applying for the grant.
4) The applicant has to select a technical consultant from the list published on the website of KredEx.
5) The technical consultant will perform all or some of the following tasks, depending on the agreement between the beneficiary and the consultant:

  • preparations for the commissioning of the building design documentation (at least at the stage of the final design documentation) and conduct of the procurement procedure for the design work. For compiling the terms of reference of the building design documentation, this example of the terms of reference and contracting volume can be used, if desired;
  • advising on the entry into a contract with the entity compiling the building design documentation;
  • coordination of design work and expert assessment;
  • preparation and conduct of the procurement procedure for construction works, and related advisory services;
  • advising on the entry into a contract with the building contractor;
  • advising on the preparation of the documentation necessary for application for the grant;
  • coordination of renovation works;
  • verification of the compliance of the statements and invoices submitted by renovation contractors with the concluded contracts and with the degree of completion and agreed volumes of works;
  • exercising owner supervision, subject to the existence of the required qualifications;
  • organising inspections during the warranty period and advising on the acceptance of warranty works.

A model agreement with a technical consultant is available here. It is not a mandatory format and the parties can alter it or make only partial use of it.

Contact us

Kaimo Kalda

Kaimo Kalda

Client Manager

kaimo.kalda [at] kredex.ee
Heikki

Heikki Parve

Energy Efficiency Project Manager

heikki.parve [at] kredex.ee
Elari Paimets

Elari Paimets

Client Manager

elari.paimets [at] kredex.ee