Consultancy: Housing stock and management assessment of MFBs in Western region of Ukrainian At Habitat for Humanity

Background

Approx. 75% of the general housing stock of Ukraine has been built before 1990s during the Soviet era. In the 1990s most of the Ukrainian housing stock was privatised resulting in 94,7% of owner-occupiers as of 2013. Currently, more than 180,000 multi-unit apartment buildings (MAB) exist nationwide. It is estimated that approximately half of the Ukrainian population lives in these buildings with many lacking functioning homeowner associations and maintenance mechanisms to implement necessary maintenance and renovations works. It is estimated that almost 80% of residential buildings are in urgent need not only of thermal modernisation to address the energy inefficiency, but also major repairs and maintenance.

Situation analysis

It is estimated that two thirds of these residential building stock (MABs) are in substandard condition, due to their age, decades of poor maintenance and management, legal-regulatory barriers, as well as the lack of clear ownership structure and responsibilities. These factors are responsible for the high energy demand and low energy performance rendering heating costs in the cold winter months unaffordable low-income households, in addition to being environmentally unsustainable.

The physical deterioration of the buildings and obsolete technologies, such as the in-house engineering systems leaves Ukraine consuming 2-3 times more energy per square metre for domestic needs than the EU countries. As well as contributes to substandard living conditions, health issues and energy poverty within wide sections of the Ukrainian population. A Ukrainian family living in an apartment building consumes an average of 150 to 264 kWh of heat per square metre, a German family living in a similar building consumes up to 70 kWh.

According to the Ministry of Energy in Ukraine, households are burdened by unaffordable utility costs. As of 2021, the average Ukrainian family of 3 people living in an apartment of 60 square meters and earning UAH 28.5 thousand per month, spends about 13.5% of their income on utilities alone (3.8 thousand hryvnias). At the end of January 2021, the total amount of household debts reached 81 billion hryvnias, according to the State Statistics Service of which 85% is debt for consumed energy (incl. gas, heat, hot water, and electricity).

This pre-war situation was significantly worsened by the full-scale Russian invasion in February 2022, the subsequent energy crisis, and the largest displacement crisis in Europe since WW II. According to Ukraine Internal Displacement Report more than 3,6 million people remain displaced after 2 years of ongoing hostilities with millions of non-displaced households affected by the war. In 2022, poverty growth in Ukraine increased from 5.5% to 24.1%, based on the threshold of USD 6.85 per person per day.

With winter’s arrival and temperatures plummeting below zero and anticipated attacks on critical infrastructure, the urgent need for energy-efficient modernization/upgrade to the residential housing stock is evident.

Habitat Regional Ukraine Response

Since the beginning of the Russian war on Ukraine, Habitat for Humanity has been providing support and assistance to Ukrainian refugees across the neighboring countries; Poland, Romania, Hungary, Slovakia, and Germany. Habitat for Humanity is working in partnerships inside Ukraine since September 2022. During this initial phase of our in-country intervention, HFHI is leveraging its extensive experience in residential energy resilience programming in the eastern European region, as well as Ukraine, through the REELIH14 (USAID funded project) and COMACT (EU funded project). These projects focused on supporting the eco-system around homeowner associations (HOAs) of multi-apartment buildings (MABs) that lead to energy-efficient renovations and upgrades.

Objective of the Housing stock and management assessment of MFBs

To conduct an analytical study on the conditions of the existing housing stock of privately owned residential multi-apartment buildings and their management practices and governance structures, as well as potential for privately owned energy efficiency modernization of the MABs in the western Oblasts of Ukraine.

Methodology

Geographic focus:

The geographical reach will include 9-10 cities within the three Oblast in the western Ukrainian regions of Lviv, Ivano-Frankivsk, and Zakarpattia. The selected cities include the Oblast capital centers of Lviv, Ivano-Frankivsk, and Uzhhorod as well as two or three secondary smaller cities in total not more than 10 cities.

Rational and detailed selection criteria of the secondary cities in the 3 Oblasts will be stated in the inception report. The city of Kalush in Ivano-Frankivsk oblast is pre-selected due to complementary HFHI programming in Kalush. Drohobych in Lviv oblast, Mukachevo in Zakarpattia oblast are proposed.

Preliminary selection criteria for the secondary cities are as stated below, the inception report to elaborate on the selection rational.

• Population 60K to 100K
• Potential publicly ( hromada, Oblast (and other large stakeholders ( e.g. foundations, charities, etc. ) vacant buildings for refurbishment into housing,
• Diverse typology of MABs (forms of management)
• Diverse heating systems (central, local, individual)
• IDP population in collective centres without longer-term housing prospects

Proposed methodology:

The proposed methodology is structured into 2 stages:

Stage 1: Desk research

The following activities are included in this stage:

• conducting desk research on existing available data on multi-apartment buildings (MAB), including general data, typology, statistics, any available energy -efficiency data or statistics and housing management types.
• collating and summarizing the results of existing studies at the level of regions and cities within the focus area.
• analysis of data from open and corporate sources: official statistics; reports of ministries and agencies.
• Existence of regional/district/city programs to support and develop new forms of management (professional managers/COAs)
• Existence of regional/district/city programs to support energy efficiency measures in MABs and RES development, as well as comprehensive repairs of office associations.
• drafting clear rational on the selection of the geographic focus cities. This includes the definition and agreement with HFHI on selection criteria for the 9-10 cities to be included. Preliminary selection criteria listed above. See above for geographical reach.
• Research and explanation of the regulatory environment governing forms of housing association and the implications ( bottlenecks) this has on accessing energy modernization financing, as backdrop to
• developing a rational for the inclusion of MAB buildings with Housing association status (OsBB) only, the advantages and limitation this will have on the study.
• developing detailed primary data collection methodology for stage2, including number of MAB surveyed/ survey criteria ( initial list see below)/ OsBB leadership KII interviews/ development of questionnaires/surveys, etc.)

This stage will conclude with the submission of a desk research report

Stage 2: Field research

The field research stage will include the below primary data collection, analysis and documentation:

• Conduct primary data collection through questionnaires, interviews, focus groups in the 9-10 selected cities with representatives of the housing and communal services/ HOAs/managers and representatives of CSOs and specialized associations. (See above- The detailed primary data collection methodology to be defined in the inception report.)
• conduct stakeholder KII interviews and engagement in the 9-10 selected cities with representatives of the housing and utilities sector/ condominiums/managers and specialized NGOs and Associations.
• analysis and documentation of primary data through GIS mapping, photo documentation, using ordinary survey maps, and other digital data collection tools ( e.g. Kobo)

This stage will conclude with the submission of the final assessment report and mapping. A mid-term draft report is required.

Field research details:

1. Condition of the housing stock in the selected cities:

– % of single-family houses, multi apartment houses (MAB)

– % of old and new housing stock (chronological typology by building period),

Total approx. 300 MAB should be surveyed as part of the primary data collection with an average of 20-50 buildings per city. The city of Kalush should have 50 MAB surveys included.

– Analyze the level of condition of MAB and categorize as (multiple choice answers):

• A. Demolish and rebuild (not in the scope).
• B. Complex rehabilitation (large scale major parts – roofing, foundation, heating, main plumbing of sewage, sanitation and water, entire insulation).
• C. Partial rehabilitation and upgrade (heating OR insulation OR water systems).
• D. Partial repairs and upgrade (minor parts and individual apartments’ needs).
• E. No interventions needed (not in the scope).
• # of vacant apartments per MAB ( must be included for Kalush)
• Condition and reason for being vacant ( must be included for Kalush)
• # of IDPs living in each of the MAB ( must be included for Kalush)

2) Forms of management of MABs and energy efficiency

– List of MABs according to the form of management established in MABs (HOA, housing cooperative, municipal or private enterprise, individual entrepreneur or other form);

– List of HOA and housing cooperatives by the established type of service (self-service, management company, individual entrepreneur, etc.);

– List of HOAs that have applied / received / completed to the Energy Efficiency Fund and plan to do so, as well as key experiences and challenges with the EEF

– List of HOAs with their own funds for reconstruction (if any, what is the contribution).

• List of HOAs managed by women – location/contacts
• Number of pensioners, low-income groups
• Levels of energy payments for heat/gas/water/electricity to understand approximate indication of owner groups that fall within the definition of energy poor.
• Cooperation of local authorities and co-owners of housing cooperatives/ condominiums

Deliverables:

Stage 1: A desk research report will be submitted at end of stage 1- desk research, including the above detailed topics, rational for geographic focus area, rational for study focus on MAB with housing associations only and agreed detailed research area and methodology for the primary data collection and field research.

Stage 2: Based on the results of the study- stage 1 and 2 , an analytical report will be prepared and submitted. The report contains the following information for the geographic focus area:

– Descriptions of the housing stock standards, ways of managing HOAs and energy efficiency potential of the housing sector, socio-demographic analysis of HOAs

– The report will include Infographics of key indicators, well designed mappings for the selected regions- specifically detailed mapping of the City of Kalush within depth information on:

– Recommendations for local authorities, NGOs and specialized associations on energy efficiency modernization of the housing stock of the geographic area.

– All necessary field research data in Appendices including a list of interviews/focus groups conducted, meeting minutes and meeting summaries, a list of studies, programs, etc.)

All documentation will be submitted in English language.

Timeframe:

Consultant team to propose detailed work stages and timeframe in the inception report. Maximum of 6 months, preferrable research period from March -August 2024.

• Inception report – 1st month,
• Mid-term (ongoing process) – 3 months,
• Final (full report including field data, mapping, photos of building and OsBB information) – 6 months.

Requirements to the contractor:

Habitat welcomes applications from an individual or team that has the following experience and skills:

• Demonstrated track-record of designing and delivering high-quality applied-research products
• Nuanced knowledge & understanding of the Ukrainian residential energy-efficiency context, programs, funding streams – prioritised for western Ukraine.
• Experience in conducting analytical research in the field of housing management/energy efficiency of the housing sector preferably in Ukraine.
• At least 5 years of experience in projects related to residential real estate management and energy efficiency in the residential sector in Ukraine.
• Experience in preparing analytical documents, brochures and manuals.
• Experience with using open data, GIS technologies, and drafting programs (e.g. autocad, etc.)
• Good working knowledge Ukrainian and English