|City of Assen||The Netherlands|
2 million € budget
The Assen Service Costs Model (ASCM)
Objectives & Characteristics:
The renovation will be funded through the homeowners association (HOA), while a guarantee fund is provided by the authorities (in our case the regional authorities: Province of Drenthe). This guarantee fund allows banks to provide a loan under current regulations, as the HOA itself does not hold any collateral. Home owners pay a regular fee to the HOA. As the HOA pays for the renovation of the complex, the fee paid by homeowners to the HOA will increase. This increase in so called ‘service costs’ however is balanced by a decrease in energy costs.
The selected consortium of builders who realize the renovation of the apartment complex will guarantee an agreed-upon energy performance of the building for a similar period of the time as the repayment of the loan will take. They are not only responsible for the renovation itself, but as well for maintenance and management of the building. The property owner thus exchanges the energy costs for service costs. Thus, residents live in a more comfortable and energy efficient house, while their costs remain similar, or even decrease.A rollout of this project will have multiple positive effects. The release of capital, among other banks and pension funds, can lead to a huge boost for the construction and sustainability sector and thus for the growth of the economy. This, of course, in addition to the contribution on the objectives of CO2. Other effects are, fiscal benefits (tax revenues) and the increase of the liveability of cities. All these aspects make that there is a lot of interest from the Dutch Parliament and the European Parliament in the Asser Service Costs Model. The ASCM pilot phase is now finished. One building was refurbished and its co-owners do not have any energy bill to pay.
TECHNICAL & FINANCIAL DETAILS
KEY SUCCESS FACTORS (REPLICATION POTENTIAL)