By tradition Bulgaria has had a distorted tenure structure - a strongly developed owner-occupied sector and a weak public rental sector. The owner-occupied sector has preserved its' dominating position and even added several percent as a result of the recent privatisation, private investment initiative and restitution, reaching a share of 97% by the end of 2002. Multi-story housing in Bulgaria is almost entirely presented by condominiums. By the end of 2002, the condominium buildings covered 53,2% of the urban stock in Bulgaria. Condominiums cover 65.9% of the Sofia housing stock.

The basic problem of condominium buildings is the lack of adequate management and maintenance, leading to progressive deterioration of the stock and great reduction of its' market value.

The pilot condominium buildings chosen are located in Zaharna Fabrika estate, Sofia, Bulgaria. This is a compact housing estate built-up entirely according to a single urban plan in the early 1940s. By that time it was targeted at the social rented sector. The housing estates were very well planned. There were cosy human scale internal spaces with trees and walkways between the buildings. Subsequently the common spaces between the buildings were run down due to lack of maintenance on behalf of the government during the socialist time. The current detailed urban plan provides enough capabilities for upgrading the existing built-up area. There are reserves for additions to the existing buildings. The housing estate was inhabited with residents with limited incomes from the beginning and this situation remains until now.

The area is well connected with the main transportation axes of the city and is also adjacent to one of the biggest green zones – the West Park. Existing industrial activities located near the estate create some negative impact on the apartments’ market value. The industry is gradually replaced with office premises thus creating prerequisites for avoiding this problem.

Zaharna Fabrika estate is situated in the North-West part of Sofia. It is a compact housing estate built-up entirely according to a single urban plan in the early 1940s.

The area suffered from a lack of adequate management and maintenance, leading to progressive deterioration of the stock and great reduction of its' market value. However, the current detailed urban plan provides enough capabilities for upgrading the existing built-up area. There are reserves for additions to the existing buildings.

The aim is to propose a feasible solution to financial and organizational problems and implement an adequate and sustainable system of partnership for renovation and subsequent management and maintenance of the existing owner occupied housing stock in Sofia.

Utilisation of the roof area and energy saving measures were implemented in order to lower heating costs and reallocate significant amount of running costs to renovation repayment.

The project includes renovation of 4 of the buildings with sound structure and 52 flats in total:

For the development of the project a special Foundation DC “Zaharna Fabrika” was established under the Bulgarian Law for non-profit organizations by the Bulgarian Housing Association. The Foundation is supported by the existing experience of the Bulgarian Housing Association. BHA has developed already an apartment building for limited income residents in Shumen. The scheme there was based on transfer of ownership on properties in instalments after relevant payments. Related to this, experience in work with residents and payments collection existed.

For the realization of the project the Development Combination “Zaharna Fabrika” signed a framework contract with the Owners Union “Zaharna Fabrika” to provide the loans for renovation. Based on the framework contract individual mortgage contracts were signed with the owner of each apartment. The guarantee for the relevant part of the loan issued by DIGH (75% of the total renovation sum) is a mortgage on particular private attic space owned.

The collection of payments is implemented by the DC “Zaharna Fabrika” foundation according to the mortgage loan contracts signed between the residents and the foundation. In case of non-payment Bulgarian legislation and the contract rules will be applied.

Currently the first of four buildings have been renovated and the renovation of the 2nd building is in progress.
The renovation of the buildings is progressing according to the time schedule.

The owners of the condominiums in Zaharna Fabrika wil benefit from the implemented measures.

The total costs of the project are € 372.945,-. Residents are offered a mortgage loan out of own recourses from the Bulgarian Housing Association (25%) and through the Dutch International Guarantees for Housing.

Bulgarian Housing Association
George Georgiev (Project manager), tel. +359 2963 1306

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Urban Policy > Housing > Housing policy

Collective housing