home renewal experience in rakvere, estonia · my background information • andres jaadla •...

Home Renewal Experience

in Rakvere, Estonia Andres Jaadla

Founder and Chairman of the board - Estonian Union of Housing Cooperatives EKÜL

Member of the board – Housing Europe

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My background information

• ANDRES JAADLA • 10.03.1965. • Tartu University – Master of Law , 1991 • My housing backround • Founder and Chairman of the board - Estonian Union of Housing

Cooperatives EKÜL (largest Housing Organisation In Estonia) - 1996. – .. • Co-owner and Management Board member of Domen Grupp AS • Member of te board - BUCHA - Baltic Union of Housing Cooperatives

1999… • Member of the UNECE Housing and land management UNECE Real Estate

Market Advisory Group (REM) 2015 - …

• Member of the board – Housing Europe – 2014 - … Housing Europe – Largest Housing Organisation in Europe of 42 national & regional federations gathering about 41.400 providers in 22 countries who manage over 25 million homes)

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The Estonian Union of Co-operative Housing Associations (EKYL)

… is an independent organization that brings together over 1500 co-operative housing associations/ apartment

associations all over Estonia.

Largest housing organisation in Estonia. Membership of EKYL is voluntary, accounting for

approximately 15 % of the national co-operative housing stock.

EKYL represents Estonian co-operative housing associations on local, national and international level. It works in

partnership with state institutions, municipalities, universities, private companies and NGOs.

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Estonia

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Estonian Housing reform 2018

ESTONIA 2018

Country of Housing Cooperatives !

ca 90 % of housing stock

22 856 cooperatives ANDRES JAADLA 5 RIGA

The Estonian Union of Co-operative Housing Associations (EKYL)

• In 1996 Estonian Union of Cooperative Housing Associations

was formed from union of 6 cooperatives .

• The new organization started to organize training courses which were based on 3 pillars.

• �People (leadership and communication skills)

• �Building (basic knowledge in technical

matters)

• � Management (knowledge about

legislation,accounting etc) ANDRES JAADLA RIGA 6

RIGA ANDRES JAADLA 7

Trainings in EKYL's training centre to offer its members a universal,

professional, high-quality service - legal services, representation in

courts, bookkeeping-consultations and

trainings in EKYL's training centre.

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Trainings in EKYL's training centre

Today the housing managers study in 160 – hours courses

which have official licence from the Ministry of Education.

Manager of a housing co-operative is a new profession in Estonia

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e- training

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e- training

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e- training

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EKÜL SUMMER UNIVERSITYS

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Development of legislative and other acts of law

EKYL's objectives are:

to develop and advertise the housing association movement;

to influence and participate in legislation - observe and contribute to the development of legislative and other acts of law;

to provide help with the management and administration structures of Estonian housing associations;

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Publish relevant leaflets and materials, including own magazine

• to gather and forward the information to the members; to publish relevant leaflets and

materials, including own

magazine ELAMU (HOUSING);

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Apartment

building stock in Estonia

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Apartment building stock in Estonia

• ~65% population living in

apartment buildings

• ~95% of apartments are in

private ownership

• not insulated, not ventilated …

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0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

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ap

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ild

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(x 1

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Construction year

Wood

Large-block

Brick

Large-panel

17 RIGA

Reconstruction grant in Estonia

• Reconstruction grant is suitable for apartment

associations planning full-scale reconstruction.

• it is possible to apply for the grant in the amount of 15%, 25% and 40% of the total cost of the construction work depending on the level of integration in reconstruction of apartment buildings.

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Grants 15%, 25% and 40%

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15% 25% 35% 2010-

2014

Current state 15% 25% 40% nZEB 2015-

2020 + more strict ventilation and other requirements

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Main steps in the KredEx grant

application process • Housing association decision – simple majority

50% +1 in general assembly meeting

• Qualified technical consultant – steering the

preparation

• Energy audit/EPC of the building and

investigations (stacks etc.)

• Detailed technical design: full set of building

design documents (including calculated EPC

for compliance approval)

• Building permit applied/issued

• Credit decision from bank issued ANDRES JAADLA 20 RIGA

Main steps in the KredEx grant application process

• Grant application to KredEx:

– Investigation of design documents by third party

experts (KredEx)

– Revision of design documentation if needed

(applicant)

– Funding decision by KredEx if all requirements met

• Tendering with contractors

• Construction (KredEx has special supervision rights)

• Commissioning protocols for ventilation rates and

heating system

• Grant payment by KredEx after handing over

• EPC based on measured use after one year operation

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Results 2010-2014 (old system)

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• Grants - 38 million euros

• Total investments – 135 million euros

• 35% grant most popular (>50% in last years)

• Renovated apartment buildings – 663 (of

total of about 20 000 apartment buildings)

• Renovated net area – 1,9 million m2

• Average energy savings per building – 43%

• Total annual energy savings – 60 GWh

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Example: Sõpruse pst 202, Tallinn • 11 375 m² (162 ap. 2012-2013)

• Investment € 2 062 000, 181 €/m²

• Grant 35% € 721 600, 63 €/m²

• Credit € 1 340 000, 20 years

• Measured annual savings 63%, ~500 MWh

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Example: Sõpruse pst 202, Tallinn • External insulation of facade + roof insulation

• Triple windows (+moved to the insulation layer)

• Heating system: exhaust air heat pump + district heating

• Ventilation system: ventilation radiators and old stacks for extract

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2015-2020 KredEx new grants • No need for state-loan (private banks have resources, well

capitalized, low interest rates)

• 102 M€, grants 15, 25 and 40% (50% for design, technical consultants, supervision)

• More emphasis on preparation, ventilation, energy monitoring:

– More detailed building design documents (full energy calculation in

addition to energy audit + because of third party verification)

– Investigation of building design documents by third party experts (run by

KredEx having contracts with qualified experts)

– Technical consultants

– Commissioning protocols for ventilation airflow rates and heating

system balancing

– Agreements for post-maintenance

– Measured EPC after one full year of operation

• Guarantees are still inforce ANDRES JAADLA 25 RIGA

• 15% financial support – EPC class E

• 25% financial support – EPC class D (EP ≤180 kWh/(m2·y))

• 40% financial support – EPC class C (EP ≤150 kWh/(m2·y))

• + some additional technical requirements

especially for ventilation and insulation

• EPC class C – the same value for new and renovated (in some

countries could be called as renovation nZEB)

• 40% grant will keep the monthly payment for the occupant roughly at the

same level before and after the renovation – renovated building, improved

indoor climate and real estate value being a bonus

• 25% grant slightly less cost effective because of tight ventilation

requirements

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KredEx renovation grant reqs

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Mechanical supply and extract heat recovery

ventilation – rooftop and facade installation –

no ductwork in apartments

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Experience with new system

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• 90% of the applications for 40% grant, first year was

slow start, but then more applications than planned

• Key figures for 40% grant projects:

– Average financial support 108 €/m2

– Average renovation cost (grant included) 270 €/m2

– Average renovation cost 702 000 € (40 ap./2600 m2)

– About 400 buildings (102 M€)

• Centralized mechanical supply and extract HRV with

rooftop AHU and facade ductwork installation one of

the most popular ventilation solutions

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2015 innovation – economic facade

installation of HRV ventilation

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Future - quarter renovation

Quarter renovation

in

my city

CITY OF RAKVERE RIGA ANDRES JAADLA 30

Insulation of multiapartment buildings – Housing pilot project in Rakvere

Approx. 70% of

Rakvere’s citizens live in multi-apartment buildings.

The city produces ca

16 000 tons of CO2.

CO2 emissions would be diminished by

8,2% if all multiapartment buildings went

through insulation works of houses

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Seminari street in Rakvere

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District with the highest density of population:

18 apartment buildings,

8 different types of apartment buildings,

about 900 apartments, area 1,8km²

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URB –

ENERGY

80 000 eur. 34 RIGA

Before

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Plans

NU-NU Arhitektuur

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Today

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2018 Rаkvere

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2018 Rаkvere

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Solar Panels in walls !

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TARTU 2015 … - quarter renovation H2020 SMART CITY PROJECT

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TARTU - H2020 SMART CITY PROJECT.

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Estonia

Revolution in renovation-

module renovation

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2018/18 innovation – economic facade installation of

HRV ventilation and module renovation

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2018 – first nearlly zero renovated „ old building“ in Estonia

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VIDEO

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Estonia experience -wider scope

or renovation grants Estonian studies report highly significant economic benefits from renovation:

• quantified tax return of 32% of renovation total cost

• job creation of 18 jobs in a year per 1 M€ renovation cost

E. Pikas, J. Kurnitski, R. Liias, M. Thalfeldt. Quantification of economic benefits of renovation of apartment buildings as a basis for cost optimal 2030 energy efficiency strategies. Energy and Buildings 86 (2015) 151–160.

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Tax return breakdown

ANDRES JAADLA

32% direct return

VAT return

16,7%

From consultancy 0,4%

From construction 16,3%

Labor tax return 15,6%

From consultancy 0,5%

From construction 11,9%

From manufacturing 3,1% 49 RIGA

54% 34%

12%

Material costs, € Labor costs for employer, € Project management costs, €

• Labor cost of 34% includes all labor cost in design, constructin and manufacturing

• Project management cost of 12% includes all costs in design and construction

Cost structure of renovation projects by

Kredex

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Summary

ANDRES JAADLA

• Lessons learnt 2010-2014 period – poor ventilation sometimes resulting in moldy apartments the most significant problem

• 2015-2020 grant system requires HRV ventilation (and commissioning protocols for verification) and moving windows to insulation level in the

case of 40% grant as major changes

• Both changes were first seen as „fully impossible“ by stakeholders, but after 6 months

experience economic solutions were found

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Summary • Quarter renovation and Model renovation

solutions – KredEx renovation manual is prepared – designers can copy and customize

the model solutions by quarters

• Win-win-win situation for all :

- occupants benefit from increased real estate value

- government from tax return and economic growth, and

- environment from saved energy ANDRES JAADLA 52 RIGA

Welcome – to Study visit !!

Invitation !

Practical study visit

5- 6 march 2019

„ Renovation in Estonia - quarter and module

renovation, Tallinn - Rakvere “ ANDRES JAADLA RIGA 53

THANK YOU !

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