ACCELERATING THE RENOVATION OF AGING CO-OWNED APARTMENT BUILDINGS: KEY POLICY RECOMMENDATIONS FOR APARTMENT BUILDINGS IN FLANDERS

More than half of the 147,500 apartment buildings in Flanders were built before 1981. A significant portion of these buildings is severely outdated, energy-inefficient, and often plagued by structural issues such as concrete degradation on terraces. Additionally, fire safety measures are frequently inadequate, with missing fire doors, unsecured boiler rooms, non-compartmentalized shafts, and outdated electrical systems.

To address these challenges, Embuild Vlaanderen and the energy agencies of Ostend, Mechelen, and Antwerp have joined forces under the European CondoReno project. Their focus is on accelerating the renovation of aging co-owned apartment buildings, as CAs (Condominium Associations) face a notoriously complex decision-making process. Key obstacles have been identified, and practical recommendations and solutions have been compiled into a ten-point action plan, presented to Flemish Minister of Housing and Energy, Melissa Depraetere.

Key Recommendations:

1. Current energy performance regulations primarily target individual homes and fail to address apartment buildings adequately. A dedicated energy performance label should be introduced for shared areas.
2. The minimum roof insulation standard should be adjusted to ensure that older apartment buildings are required to upgrade their insulation.
3. Develop online tools to better support CAs through energy agencies, including a grant simulator, a financing tool, and an application form for the “MijnVerbouwlening” renovation loan for CAs.
4. Secure renovation grants for co-owners at the moment the work contract is signed, providing financial certainty for all parties involved.
5. The existing grant system and available tools are primarily designed for private homes, which creates challenges for apartment buildings. Tailor grants and corresponding tools, such as a customized grant simulator, to meet the specific needs of co-owned apartment buildings.
6. Expand subsidies for the development of renovation master plans to include mid-sized buildings (7 to 15 units). Currently, this support is only available for larger buildings over 15 years old.
7. Do not proceed with the planned reduction of the “MijnVerbouwlening” for CAs; instead, make it an interest-free loan. At present, CAs must rely on a mix of funding sources (bank loans, reserve funds, individual renovation loans, private savings, etc.), which complicates financial management.
8. Promote alternative financing through energy performance guarantees with third-party financing models (ESCOs – Energy Service Companies) to attract private investment.
9. The “MijnVerbouwbegeleiding” program will launch in 2025. Link the performance subsidy for energy agencies to the development of a renovation master plan.
10. Collect more data on the diversity of apartment buildings to ensure policies better align with the reality of the varied CA landscape.