Renovated Facade Unveiled at Historic Old Town Rīga Building
In the heart of Riga, Latvia, a significant facade renovation project has recently been completed on a building located on Kungu Street. The renovation, which covered nearly 3,800 square meters, was a collaborative effort between residents, SEB banka, the municipality, and the financial institution "Altum".
The project began with the residents' association demonstrating excellent payment discipline, a crucial factor that secured the loan from SEB banka. The bank did not mortgage the house to secure the loan, indicating that banks may consider loans based on factors other than collateral in some cases.
To be eligible for the loan, the association also had to show financial preparedness, having savings available to cover initial project preparation costs. This financial readiness positively influenced the bank’s decision.
Professional oversight was another key condition. The involvement of reputable and experienced construction supervisors and builders ensured that the renovation would be well-managed.
The cost of the renovation project was close to 600,000 euros. To help reduce the loan amount needed from the bank, the municipality covered half of the costs, providing up to €30,000 in co-funding for facade works.
The loan repayment structure was based on each apartment’s area, making the repayment proportional to ownership size. The term for a loan from "Altum" is 20 years, with a fixed interest rate of 3.9% per annum.
Residents contributed 70,000 euros from their home savings to the renovation. If a bank refuses to give a housing association a loan, they can receive a loan from "Altum".
The main limitation for larger-scale facade renovation is the ability and desire of apartment owners to agree on the necessary repairs. In this case, the main key to success was the agreement among most of the residents of the building.
Mārtiņš Paurs, a member of the board of "Rīgas namu pārvaldnieks", mentioned that 14 projects were implemented with municipal support last year, most of which were facade projects. More than 350 building repair loans have been issued by "Altum", and every fifth one is for facade renovation.
The renovated building, now more aesthetically pleasing, is opposite St. Peter's Church. Residents hope to receive additional 30,000 euros from the local government. With hundreds of buildings in Riga requiring facade renovation, according to Paurs, similar collaborative efforts could play a significant role in improving the city's architectural landscape.
- The government of the European Union, through the municipality, provided co-funding for facade works, contributing up to €30,000 to the project located on Kungu Street in Riga, Latvia.
- Mārtiņš Paurs, a member of the board of "Rīgas namu pārvaldnieks", stated that more than 350 building repair loans have been issued by "Altum", and every fifth one is for facade renovation.
- Residents of the renovated building, located opposite St. Peter's Church, contributed 70,000 euros from their home savings to the renovation project.
- If a bank refuses to give a housing association a loan for a home-and-garden project, they can receive a loan from "Altum" for business or finance purposes, such as a facade renovation project in the field of fashion-and-beauty, lifestyle, or media.
