This document discusses funding opportunities for social housing refurbishment in Europe from 2014-2020. It outlines the main funding priorities set by the EU Commission, including energy efficiency and renewable energy investments. Specific examples are provided of how EU structural funds and agreements with financial institutions like the EIB and CEB can support energy efficiency renovations of social housing through grants, loans, and project development assistance. The role of technical assistance and aggregating funding streams across different levels is also emphasized.

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EU funding opportunities for refurbishment
of social housing
2014-2020
RETOS DE LA REHABILITACIÓN URBANA EN EL SIGLO XXI
20th June 2013

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Contents
• European Structural Funds 2014-2020
- Investment priorities for Spain
- example of use of the Funds (past and future)
• Support from the European Financial Institutions
(EIB, CEB)
• The challenge of aggregating all funding streams
- illustrations of the potential of technical assistance

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EU Structural Funds 2014-2020:
Position of the Commission Services on the
development of Partnership Agreement and
programmes in SPAIN for the period 2014-2020
Main priorities for funding in Spain should be:
1. Increasing labour market participation and labour
productivity, as well as improving education, training and social
inclusion policies, with specific attention to youth and vulnerable
groups
2. Supporting the adaptation of the productive system to higher
added-value activities by enhancing the competiveness of SMEs
3. Promoting an innovation-friendly business environment and
strengthening the R&D and innovation system
4. Making a more efficient use of natural resources

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 “Making a more efficient use of natural resources”
 Energy efficiency
- The implementation of energy efficiency measures in public
buildings, in SMEs and in dwellings (including in agriculture and
the agro-food sector) should be a priority.
- This can apply mainly to the existing buildings − but also to
new constructions – through the corresponding renovation
plans.
- Innovative financing schemes – such as Energy Performance
Contracting −, mostly in public buildings and enterprises,
should be actively promoted.
- To be effective, the EU funding intensity should reflect the
economic conditions of target groups and expected energy
savings (ambition of the investment in terms of energy
saved/renewable energy generated).
- Furthermore, attention should be given to the efficiency of
district heating/cooling networks and industrial waste heat
recovery.

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 Renewable energies
 Renewables use should also be promoted in public buildings,
SMEs and dwellings, particularly by allowing auto-
consumption.
 The development and deployment of smart grids should be
fostered, with the corresponding provision of training in
order to meet the skill development needs in this area.

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How can Spain and its regions meet these priorities?
 Thematic concentration : at least 20% of the total ERDF
resources at national level should be allocated to one or
more low carbon priorities (draft ERDF regulation article 4):
- Renewable energies
- Energy efficiency in entreprises
- Energy efficiency in housing
- Smart distribution grids
- Sustainable urban mobility
 If Spain had the same amount of ERDF for 2014-2020 as for
2007-2013 (24bio€), this would mean : 4,8 bio€ for low
carbon investments
 Althouth Spain will get less money from the EU cohesion
policy (fewer poor regions as compared to EU average),
several bio€ will be available for low carbon investments

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 Different approaches to use EU funds:
- Classical grant-based approach:
Ex: The Energy Regeneration of Social Housing project in Corso
Taranto (Turin) is framed within the priority axe II
‘Sustainability and Energy Efficiency’ of the Piedmont
Region ERDF OP 2007-13
The project concerns ca. 650 dwellings with the following
interventions:
- Connection of the heating system of the flats to the
centralised heating system.
- Replacement of the windows in order to improve thermal
and sound insulation.
- Roof insulations against heat rises.
- Renovation of the fronts of the buildings.
The total amount of funding allocated to this project is
€7,576,288.50 of which €5,156,085.23 is ERDF and
€2,420,203.27 is ATC.

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- Set up a regional fund made of ERDF contributions, regional public
support (regional or national public banks), private investors…
propose loans or guarantees for social housing organisations to
make investments in Energy efficiency and Renewable Energy;
support of the development of Energy performance contracting;
grants should also be available in particular for energy auditing,
project preparation… (for instance London Green Fund)
- Set up a wider integrated strategy for territorial development
using the new instrument « Integrated Territorial Investment (ITI)
A voluntary tool for Member States
- Must be based on an integrated territorial strategy
- Can cover any sub-national territory as well as multiple categories
of regions
- Draws on funding from at least two priority axes
- Mono –fund or multi-fund [complementary participation of EAFRD
and EMFF]
- Can include any form of support

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Bilateral agreements with European Financial Institutions
 The European Investment Bank
Ex: Urban regeneration schemes under the Flanders social
housing programme in various locations in the region
(Belgium).
Investment programme 2013-2015.
The project will comprise small to medium-sized retrofitting and
newly built social housing investments in the years 2013-
2015 undertaken by social housing providers throughout the
region. It is expected that the investments to be funded will
concern in particular energy-efficiency measures.
EIB finance : EUR 200 million
The social housing to be financed under the project will have to
comply with high environmental standards and will
significantly contribute to improving the urban environment.

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 The Council of Europe Development Bank
(www.coebank.org)
The CEB can grant loans (but not subsidies) to its 40 Member
States (Including Spain) to finance social projects
Potential borrowers : Governments, local or regional
authorities as well as public or private financial institutions
Although the borrowers are generally the beneficiaries of the
financings, they can also act as project promoters on behalf
of one or several final beneficiaries
E.g.: Green Social Home Ownership in Wallonia (Belgium)
130mio€ loan to Fonds Wallon du Logement that provides
loans for acquisition of homes and eco renovation for low-
income families

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Aggregating the different funding streams
 The importance of technical and project development
assistance
Ex: ELENA facility by the European Invesment Bank and the
European Commission : providing non-repayable grant to
help local authorities prepare a project of renovation or new
construction with high environment performance.
Most recent example : in May 2013 the Brussels regional social
housing organisation (public body) got a 1.3 mio€ grant to
prepare a 120mio€ renovation, new construction
programme (nZEB), and co-generation [« VAMOS » (« Vert.
une Aide à la Maîtrise de l’Ouvrage Social »)]
 the importance of aggregating the needs of small housing
organisations to get access to finance; role of intermediary
bodies
ex: the Housing Finance Corporation in UK

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Julien Dijol, Policy Coordinator
julien.dijol@housingeurope.eu
SF Energy Invest:
http://sf-energyinvest.eu/
SHELTER
http://www.shelterproject-iee.eu/
CASH:
http://urbact.eu/fr/projects/low-carbon-urban-
environments/cash/homepage/