Requirements Guarantee and financial fund
D3.5 Discussion document for speeding up renovations by condominium associations by reducing the financial risks
Walter Van Steenis (Stichting WoonlastenNeutraal Renoveren (WNR))
E. Mlecnik (TU Delft - Real Estate Management)
R. Elgendy (TU Delft - Real Estate Management)
Clarence Rose (Stichting KERN)
Annick Vanhove (Stad Mechelen)
More Info
expand_more
Other than for strictly personal use, it is not permitted to download, forward or distribute the text or part of it, without the consent of the author(s) and/or copyright holder(s), unless the work is under an open content license such as Creative Commons.
Abstract
This report outlines the necessity of a dedicated guarantee fund and a financial fund to facilitate condominium renovations. The aim of installing such funds is to minimize risks for Condominium Association (CAs), their members, and financial institutions, making loans more affordable and encouraging renovations. The report particularly discusses fund development from the perspective of the CondoReno project partners who aim to create and multiply Integrated Home Renovation Services for condominium associations. Together with national stakeholders, they evaluated the most important barriers in the renovation process, based on former research and focusing on financial challenges intertwined with policy and legal issues. A workshop and two focus group discussions emphasized the importance of controlling costs and risks to make renovations affordable, especially for low-income individuals and households. The role of quality assurance in establishing a maximum renovation price and the concept of living cost optimality are highlighted. The report compiles all experiences so far on this topic, explores best practices and the legal and financial requirements for financial and guarantee funds as well as the importance of healthy financial planning for CAs. Finally, recommendations are given to optimize fund development.