How to Get a Loan for a Homeowners Association

Housing cooperatives (ЖБК) and homeowners associations (ОСББ) can qualify for a loan on preferential terms. The terms offered are generally similar, though they may vary slightly from bank to bank. For energy efficiency measures under the “5-7-9%” program, homeowners associations now often receive 0% for the first 2 years, followed by a preferential rate (usually up to 5%). The loan can be used for a solar power plant, its auxiliary equipment, or heat pumps.

The program has certain limits on the loan amount (up to UAH 3 million) and on the equipment itself: you can purchase 1 solar power plant and 1 heat pump. To get financing under the program, you need to complete the following steps:

• Schedule and hold a meeting at which participation in this program will be approved;
• Choose one of the partner banks where you plan to apply for the loan
• Submit a loan application
• The bank checks your application against the program’s requirements
• If the application is approved, the bank transfers the loan funds to the equipment supplier’s account

Homeowners associations and housing cooperatives also have an additional option to receive a grant under the “GreenDim” program. Under this program, the state partially compensates the loan principal. Repayment terms will vary depending on what you plan to purchase and for how much. For example, the state compensates up to 70% of the cost of equipment for solar power plants and heat pumps. The maximum grant amount is up to UAH 1 million for a solar power plant and up to UAH 2 million for heat pumps. You first receive the loan on special terms, and then submit a separate application for the grant.