To foster renovation process additional grants was provided, as well, to discipline those who voted against renovation heating bill compensations were excluded.
Initial Multi-Apartment Building Renovation (MABR) programme implementation process was slow and insignificant without state support, due to following reasons:
-long deep renovation payback period.
-unwillingness of owners to change existing situation
-commercial banks reluctance to provide financing.
-large share of owners on fixed low income.
-many low-income people were eligible for heating bill compensations and had no incentive to join the program.
-chronic distrust of population in Government.
To foster MABR process Lithuanian Government decided to provide interest rate subsidies and additional grants to final beneficiaries, including vulnerable groups.
-providing interest rate subsidies (result based);
-providing additional grants to final beneficiaries (result based, funded from Climate change fund and state budget);
-covering monthly instalments for low income households (covered from municipalities funds).
-providing technical support financing.
-providing long term financing.
As well, Lithuanian state decided to discipline those who are not willing to join building modernization process amending the Law on Monetary Social Benefits to Low-Income Residents:
-refusing to heating bill compensations to those who voted against their building modernization;
-imposing requirement to gradually accumulate funds for building renovation.
As this good practice is related with legislative changes, no financial resources were used.
Evidence of success
Multi-Apartment Building Renovation (MABR) process in Lithuania was fostered, and by December 2020, it was renovated 3,066 multi-apartment buildings and inhabitants, including vulnerable groups, have got interest rate subsidies and additional grants.
It is still uncertainty due to demographic problems in remote areas and smaller cities (lower investments due to uncertainty of possible relocation).
Potential for learning or transfer
This good practice can be used in other regions as an example that only benefit related stimulations are not working, so discipline requirements usually could follow by benefit related support. All the legislation changes have to be initiated at state level to be effective. The main legislation changes have to be, on the one hand, about subsidies, grants, financial and non-financial help and, on the other hand, about some limitations, state support reduction, if apartments’ owners don’t want to participate in the Multi-Apartment Building Renovation (MABR) programme.