Guarantee and financial fund could speed up condominium associations renovations

In order to have access to large energy renovation funds, Integrated Home Renovation Services (IHRS) need to draw the attention of institutional investors, allowing financing offers with a green/sustainable character and with all the associated tax benefits. The IHRS work aims at providing guarantees for low energy needs, limited maintenance costs and the assurance that loans will be paid off in case of any unforeseen circumstances, hereby assuring banks and institutional investors less risk and thus the ability to offer a low interest rate and/or a long repayment term.

Overall adequate standardized financing offers for condominium associations are expected for renovations in one go, as well as step-by-step renovation.

In practice, the focus of discussion within condominium associations is nearly always on costs. Especially indoor climate improvement costs are generally underrated. The effects of climate change and their social responsibility to make environmental choices, such as stopping fossil fuels, are generally no strong motivators for most people to improve their buildings.
Individual condominium owners wonder: “What is this renovation going to cost me extra per month?” and “Can I afford it?” However, the question that should actually be asked is “What is the added value of this investment?”

Furthermore, IHRS risks relate to a successful uptake of renovations by condominium associations. The complexity of condominium association’s legal, social and technical position asks for careful process management. Possibly a guarantee fund is needed to assure high-quality collaboration during the design-phase and uppermost transparency during the decision process to help mitigate risk.

The goal is a fixed (maximum) monthly renovation contribution, consisting of regular maintenance costs, repayment costs and interest costs on the loan taken out to finance renovation.