KredEx to allocate grants to municipalities for demolition of buildings

The Minister of Economic Affairs and Infrastructure, Urve Palo, signed the terms and conditions of grant allocation, according to which municipalities can apply for support from the state for the demolition of uninhabited buildings that clutter the cityscape.

“The state is already assisting in pulling down empty agricultural buildings, however other dilapidated buildings standing idle have also been a cause for concern for municipalities. This is clearly beyond the capabilities of rather many towns/communes. For example Valga has nearly 40 uninhabited residential properties. These buildings clutter the cityscape, depress real estate prices, scare away tourists and decrease the competitiveness of the region,” Palo said. “There are dozens of communes in Estonia with ugly and dangerous spooky hulks at the former collective farm centres. The municipalities could tidy up the vacated land and create new value for the site by building, for example, tenement houses supported by the state, or even playgrounds. This is the vision of the municipality and the decision of their council.”

The state covers up to 70 percent of the demolition costs of these idle buildings owned by the municipality or standing on registered immovable and encumbered with a building right. In order to receive the grant, an application is to be submitted to KredEx, who shall give a separate notice on the opening of the support measure. A total of 700,000 euros has been allocated to the measure. The maximum amount of grant is 60,000 euros per applicant.

According to the survey, conducted in 2013, there are over 250 buildings in Estonia that need demolition. The most problematic counties are Valgamaa, Ida-Virumaa and Lääne-Virumaa. The survey predicted that in 2015-2030 another 600 or more apartment buildings may need demolition.

The terms and conditions of grant allocation may be viewed here: https://www.mkm.ee/sites/default/files/lammutamise_toetamise_meetme_tingimused.pdf