Dutch Fund Offers €75 Million for VvE Building Maintenance and Sustainability
The Hague, Monday, 30 September 2024.
A new €75 million fund by SVn aims to help Dutch owners’ associations finance building maintenance and sustainability projects. The fund offers loans up to €65,000 per apartment, addressing a critical need for urban property upkeep and energy efficiency improvements.
Scope of the Fund
The Toekomstbestendig Onderhoudsfonds voor Verenigingen van Eigenaren (VvE’s) is a pioneering initiative targeting the maintenance and sustainability of buildings with eight or more apartments. This fund provides a streamlined process where VvE’s can apply for loans up to €65,000 per apartment with a fixed interest rate and a maximum repayment term of 20 years. The fund’s unique aspect is its dual-purpose nature, allowing for both essential maintenance and sustainable upgrades through a single application.
Key Areas of Focus
The fund supports a variety of maintenance and sustainability measures, including balcony repairs, sewer replacements, and the installation of solar panels and green roofs. This integrated approach ensures that buildings can address immediate maintenance needs while simultaneously advancing toward greener, more energy-efficient solutions. The fund’s creation marks the first time that such a comprehensive financial package has been made available to VvE’s, emphasizing the Netherlands’ commitment to sustainable urban development.
Collaboration and Financial Backing
The €75 million fund is made possible through financing from BNG Bank and Invest-NL, organizations dedicated to supporting sustainable initiatives. This collaboration aims to rapidly increase the fund’s volume, enabling more VvE’s to benefit from the financial support. According to Arjen Gielen, Chairman of SVn, the fund’s flexibility and accessibility are crucial for the 65,000 VvE’s in the Netherlands, which include a mix of private owners, housing corporations, investors, and commercial landlords.
Addressing Financial Challenges
Steven Wayenberg, a VvE advocate at Vereniging Eigen Huis, highlights the significance of this fund in tackling the financial constraints faced by many owners’ associations. Until now, loan funds have primarily focused on sustainability, but this new fund prioritizes essential maintenance. Wayenberg notes that many VvE’s lack sufficient financial reserves, making deferred maintenance a significant issue. With this fund, both urgent maintenance and sustainability measures can be addressed concurrently, enhancing living conditions and promoting long-term environmental benefits.
Application and Implementation
To qualify for the fund, VvE’s must have a professional and up-to-date multi-year maintenance plan (MJOP). The fund also offers flexibility for mixed VvE’s, which include both private owners and professional landlords. This feature allows for direct repayment or self-financing options, making the fund particularly attractive to a diverse range of property owners. Additionally, the fund provides online tools and personalized guidance to assist VvE’s through the application and decision-making process, ensuring a user-friendly experience.