MASS RENOVATION AND PRESERVATION OF RESIDENTIAL PROPERTIES NON-GOVERNMENT PROGRAM
(ABRIDGED. ALL RIGHTS RESERVED).
A Ukrainian construction and investment company "ARKHITEKTON’NIKA” presents a Non-government program for mass renovation and preservation of residential properties in Ukraine. The Program suggests a country-wide overhaul and modernization of multi-storied buildings and development areas in residential districts, without resettlement of dwellers. Objective of the Program is to improve living conditions of Ukraine’s population which makes it a priority-ranking project in the social and economic area. Today, living standards in Ukraine are one of the lowest amongst European and ex-Soviet countries. Over 10 million Ukrainians reside in 26 thousand houses, the so-called "khrushchovkas”, - dormitories (where a family would usually use a bedroom and a common kitchen on the floor), gostinkas (tiny one bedroom apartments) and small-sized apartments of limited comfort. The prevailing majority of such buildings have three to five floors, were built of panels or bricks in the period after the WWII until mid-1970 in large cities, and to-date have reached the critical point of physical wear. It is clear, that with the technologies used at that time and rapidity of construction, quality of works left much to be desired. Particularly, poor quality was the result of a lack of skills, low pay, and use of forced work of people that vocationally had nothing to do with construction. Building industry in 50-70’s was unable to secure large-scale construction with high quality parts and material. Commonplace was deficit of cement, metal products, and high quality bricks. Therefore, physical wear of most buildings to-date has reached 60 to 70%. Energy saving also falls far behind modern standards. Given the large scale of the problem, there is a task to come up with principles, conceptual solutions and technologies which would enable mass renovation and preservation of the old housing stock in Ukraine. While looking for a model solution for the problem, the designers pursued the following objectives: 1. Hold up the processes of rapid physical wear of material and structure of houses and engineering networks. 2. Find engineering solutions which would put no additional load on old houses and structurally ensure their inviolability. 3.Deploy construction technologies which, with appropriate engineering maintenance, could ensure meeting requirements to quality, environmental safety, acceptable costs and terms, security, energy efficiency and improving economy of housing operations. 4. Build social infrastructure which would significantly improve people’s living standards, and, together with modern housing facilities, helped to make country’s cities more attractive in the sense of positive migration processes. 5. Ensure commercial resource for the mass renovation and preservation of residential stock, by creating sufficient quantity of new living space nearby or inside the houses subject to major repair and renovation. 6. Create at the cost of new housing space, a stock of social and affordable high-quality housing and significantly reduce the housing line existing in the country. 7. Create within the Program’s framework an investment turf attractive for both domestic and foreign investors. 8. Organize conflict-free interaction between all stakeholders of the process in such a way, so that to ensure compliance with legal requirements, guarantee irreversibility of the process and remove possible barriers for it. 9. For the sake of achieving this goal, to effectively deploy all resources available in the society, which have their specificity in the real historical time, including political, academic, legal, financial and ideological aspects. Obsolete residential stock consists of two types of buildings: made of bricks and panels. Theoretically, old brick buildings still have a margin of safety on their fundaments, walls and flooring sufficient to sustain two to three floors built on top of them. Areas of these additional stories could serve the commercial resource; once sold or used in the asset management systems, they would generate enough income to pay off the cost of their construction, construction of annexes and capital repair of residential houses, and gain profits which could be used to arrange common usage areas. This income could be used to build a sufficient quantity of social purpose objects, put into use large areas of social housing and create a stock of "start” areas to resettle residents from panel "khrushchovkas”, which, in opinion of experts are doomed to be pulled down. However, it’s all not as simple as it looks. Each old brick building is different from all others and has its own features. You can’t be sure until you take a thorough study. For example, the quality of concrete and sand compo in each building may be different on walls of one floor: from fully compliant with norms to containing just traces of concrete. Floor slabs may also be of variable quality due to breaches in production technology. Some floors may be a combination of concrete slabs and wooden parts. Some of the buildings are just "unique”, being built on strip footing without the basement. We happened to come across overtired bricks or bricks burned only on the outside but unfired inside. A thorough inspection and examination of buildings take a lot of time and money. If one or a few buildings were concerned, it wouldn’t be difficult to find time and money. However, as we are talking tens of thousands of houses in the country, then, even if we assume that sufficient funds are available, it would be unfeasible to do this enormous scope of examination in a few years time, because it would be important to examine each square decimeter of the brickwork, foundations, slabs etc. Fast-track house inspection methodology does not seem appropriate either, because of shocking quantity of violations in construction of that time. The idea of superstructures is interesting, but, due to the above reasons, it is important to find a principally different approach. The following conceptual solutions might be acceptable with regard to brick buildings. Capital repair is performed inside the building, including replacement of plumbing fixture and communication, renovation and finishing of apartments and common use areas, facades with possible replacement of balcony railing, entrances etc. Modification of apartments’ layout could include partial movement of dividing walls and making new inlets. Possible modernization and re-layout of existing residential house would be based on improved architecture but would intend to preserve the existing structure; the number of rooms in apartments in the section, location and layout of bathrooms would remain as is; areas of premises would expand due to construction of bay windows and alteration of houses’ facades; expansion of apartments to the adjacent area as far as the cross walls in the section permits, change in the number of rooms and layout of apartments; on top floors – location of apartments inside new floors and attics, change in the number of rooms and layout of apartments. Pillars of special construction will be installed around the outside perimeter of the old house. The pillars will be installed on the poling, of strength calculated according to design parameters and geological conditions. The poling would be pressed in or poured in the ground using a special technology, safe for the building and residents. Metal arched (possibly, horizontal) bearing structure (similar to bridge truss) will be installed on outside pillars over the level of the old house roof, on the height stipulated by the design. In the plane of the arch, metal constructions will be installed, which shall serve the bearing elements for floors of the new house, the upper part of which (superstructure) will be erected above the old building. In addition to classical elements, cable-stayed elements will be used too. A technical floor will be created between the bottom of the new house and roofing of the old house, in order to have access to life support systems of the old house. The bearing metal beams will be installed from pillars at the level of each floor in the direction of the old building, which will not touch walls of the old house (there will be a 3 cm gap) and which will uphold ceiling of the terrace floors of the new house. Capital renovation will be completed in the old building. Both old and new buildings will look as one architectural complex. The technology enables to save financial resources and avoid lots of technological problems which inevitably occur if a new housed is built in the place of the ruined one, or on top of the bearing walls of the old building. New house’s life support systems will be autonomous. In this way, the new building will be connected to old one neither structurally nor by life support system. The new house will have the site area consisting of the old house’s site and added area covered by the perimeter of the old house and perimeter of the outside pillars of the new house. A weighty argument to support the suggested principal approach to preserve and upgrade the residential stock is that in future, when the government and business have financial capacities, they may have a realistic possibility to gradually dismantle old buildings and construct modern houses inside the skeletons of "new” houses. So, we suggest a unique technology without demolition of old buildings and, simultaneously, with the demolition in the future; without resettlement and, simultaneously, with resettlement of residents in the future. The structure of the new house gives residents of the old building additional residential space in the new house on the floors adjoining their old apartments. Having removed spandrels (walls under the window) and having installed glass doors instead, one can add to one’s old apartment a dining room adjoining the kitchen and a light room against the room with the balcony. If rooms face both sides of the old building, an additional room will appear on the opposite side, too. In this way we’d have a renovated development area under a specific object that needs reconstruction. A generalized result of such renovation, related directly to the building, is the preservation of the residential house from effects of air temperature fluctuations, solar radiation, wind and moisture. The useful life of the building extends and useful area of apartments increases. Overall, we understand modernization of the development area as modification of sizes of components of the development area, i.e. increase or decrease of the development area, walkways and courtyards, as well as re-layout, change of relief, and the purpose, density and quality of green plantations. Certainly, the proposed technology may not be suitable for all buildings in need of renovation and preservation. However, it is suitable for most houses and neighborhoods of residential community. And because it gives a possibility to improve the bigger part of the obsolete housing facilities, it appears rather powerful to cope with the task. The most capital and labor intensive stages appear to be construction of superstructures, installation of elevators, renovation of engineering networks, and building of cultural and recreational facilities. However, thanks to engineering solutions, availability of contemporary construction technologies and high-tech materials, there is hardly a problem that can’t be resolved. For example, panoramic elevators can be built in lieu of elevator shafts; reconstruction of utility networks can be performed nowadays without digging them dug out from the ground. In construction of superstructures and annexes, the outward casing, internal dividers and floors will be made of framework of light metal girders and up to date light material. The finishing of interior will be done with plasterboards or sandwich panels with plaster coating. All materials are to meet rigid environmental and fire safety requirements. The superstructure shall have modern windows of big size, loggias and bay windows. They may be one, two- or three tiers. Correspondingly, apartments or other premises will be designed in one or several tiers. Of principal importance is the fact that the suggested technology of work is safe and does not imply temporary resettlement of residents from houses. The technology does not include setting up a vast construction ground, usage of cranes or noisy machinery. The site will not only be fenced, it will be hedged from top layers to bottom according to special modern technologies of safety. A little construction ground will be arranged on the side of the house, where only an electric hoist will be located from the beginning to the end of construction. Truck cranes will be used occasionally on as needed basis. Usage of heavy structures for assemblage is not foreseen. Materials will be transported inside the superstructure by special wheel mechanisms, barrows or manually. Certainly, at the stage of design, interests of people with disabilities will be taken into consideration, in accordance with existing norms and requirements. The most important component which characterizes the quality of housing is energy saving, which should be regarded as thrifty usage of heating and electricity during the creation and maintenance of living conditions in the dwelling areas of houses. Improvement of energy efficiency in apartments and houses must considerably boost energy efficiency in cities. Today, condition of hot water plumping network in apartments and basements, heat conductivity of walls, old windows cause huge losses both to residents of old houses, and to the society in general. Modern heating technologies enable to considerably improve energy efficiency in old houses and ensure meeting requirements in newly built ones. Conceptually, as one of the options, cavitational generators are suggested for usage on each stanchion in old houses. This would enable the residents to always have hot water and consistent heating. Air temperature in each apartment can be regulated by the residents. Payment for heating and hot water will be much lower than with centralized heat supply from boiler houses. Hot water will be supplied to new houses with help of boilers of calculated capacity. Heating will be supplied with help of "heat-insulated floor”, infrared panels and other modern technologies. Heat conductivity of walls and quality of windows will meet modern requirements to energy efficiency. It is planned to replace windows with double glazers and insulate the outside walls by creating additions using modern insulation material. New houses will have modern windows too, while spandrel sandwich panels will ensure reliable heat insulation. Reconstruction design of each house pays due regard to its comprehensive safety. The design assumes usage of fire-proof material, calculates stability of the building against wind, seismic and vagrant loads. The design includes implementation of modern technologies of air-conditioning, ventilation and smoke off take, heating and alternative energy sources.
Calculations demonstrate that reconstruction of single houses is not cost-efficient. Even with high potential rate of return, they fail to give good result because significant outlays of money are needed for conduct of inspection, design and approval of all issues with central and local government authorities and organizations. Coupled with the fact that the price of construction material purchased in small amounts is rather high, potential income may be reduced to zero. However, if reconstruction begins simultaneously throughout the country, and is performed in phases, by a few dozens and hundreds of houses in each city, we could considerably increase economic efficiency of the reconstruction in general, and reduce time it may take. Thanks to the fact, that old houses were built in bulk and by typical designs, costs are considerably saved on several positions. Namely, project design and reconstruction of engineering and electric networks, and of transforming plants as well as modernization of neighborhood areas will be done together with project design and completion of capital repair and modernization of a few or many houses. This will be reflected in design estimates and in cumulative costs which will be evenly loaded on the cost of a square meter of new housing space in the superstructures over houses of a particular neighborhood.
Economic component of the project: once the superstructure is built, a portion of its space is marketed. Proceeds from sale of these areas shall cover the cost of reconstruction and ensure suitable income for the investor. Obviously, not all houses will be possible to reconstruct in this way. Not all objects may give sufficient rate of return: superstructures in the city center would cost a lot more than in the outskirts. So it is important to level off cash flows of the Program, so that the overall economic interest could encourage investments in this sector in general. The project economy is subject to exact formalization and evaluation and is quite acceptable. Today the country has sufficient construction resource capable of completion of significant scopes of reconstruction if these scopes were granted and properly funded. So, main role of the Program management is to organize and grant scope of work and sites for reconstruction and secure investment funds. Completion of capital repair without resettlement of residents and renovation of houses and neighborhoods of the obsolete dwelling stock, with the sufficient level or organization, and provided there are adequate capacities to produce sufficient quantities of modern construction materials, would be possible simultaneously both in the country’s capital, and in all oblast capitals and major cities. It is not an issue today to engage private investments or involve design or construction expertise or resources. Relying on their own organizational capacities, tapping on the level of market relations in the country, level of engineering and technical expertise the Program’s management and executors confidently launch the country-wide program of the preservation and renovation of the obsolete residential properties without resettlement of residents. The State can save a lot of money from the funds allocated for the capital repair and exploitation of houses, and lessen the social tension in this area.
PROGRAM STAGES.
The Program is short term for a neighborhood (micro district) and is completed within one construction season. Gradual reconstruction of all housing stock of a city is planned to be completed in a few years time. Preparatory work: approvals, design, planning of procurement with needed materials, mechanisms, funding and human resources may take one to two years. In year one, regions will have to create industrial zones around competent construction companies, prepare project design documentation, secure legal and insurance backing, and launch a public awareness campaign to explain benefits and needs for reconstruction and its specific features. People in charge gain organizational and management understanding of the mechanisms and methods of organization and completion of such scope of works with a mixture of financing sources; public organizations as co-executors are contracted for completion of particular works. Practical implementation of the Program includes three stages: Stage one – preparation (2010-2011): • Creation of industrial zones of modern building industry; • Setting up Managing Directorates and Local Offices of the Program "Renovation and Preservation of Obsolete Residential Properties of the Region or City; • Analysis of condition of residential stock of the city to define houses in need of modernization and capital repair; • Prepare urban-development documentation and have it approved after public discussion of the reconstruction projects; • Run public awareness campaign to explain the need for renovation and preservation of obsolete residential facilities; • Close mutual responsibility agreements between residents of houses and companies-contractors; • Prepare a schedule of reconstruction of residential facilities and utilities networks; • Prepare design estimates; • Close agreements, contracts and make arrangement between businesses involved in the Program. Stage two – pilot stage and adjustments to the Program (2010-2020): • Capital repair and renovation of houses and development areas of the residential stock on different groups of sites (term of completion of capital repair and renovation of one house and adjacent area is 7 months; works may be performed simultaneously on up to 200 houses in each city); • Detect and correct deficiency and mistakes in design estimates, make improvements to the Program; • Adjustment and implementation of regional schedules of completion of bulk work related to renovation and preservation of old dwelling facilities; • Founding and legalization of Associations of Co-Owners of Apartment House (ACAH), issue of certificates from Bureaus of Technical Inventarization (BTI) to resident for new housing space. Stage three - Program implementation (2010- 2020): • Perform schedules of renovation and preservation of old dwelling facilities in the regions; • Implementation of all technologies stipulated by the schedule and concept, to ensure quality and all-inclusive safety of works underway and investment funds; • Day-to-day interaction with residents of renovated houses: setting up and organization of work of ACAH; • Arrange for high-quality maintenance of renovated houses by competent professionals; • Ensure proper technical service of renovated sites; • Warranty service of renovated sites in case of detecting defects and incompliance with quality requirements; • Legal assistance in having ACAH obtain ownership title to renovated homes. Each stage ensures interaction between central government and local authorities. All stages include specific steps with regard to top-priority tasks of the Program defined by the Plan.
ORGANIZATION AND FUNDING.
The public-sector sponsors of the Program are local government bodies and other balance-holders of the houses. According to the Law on Local Governance, the executive committee of a city council or a session of the City council adopts a decision whereby an authorized local company is a pointed to perform preparatory and organizational works and to be the Customer of the Program. Further, the Company "Customer”, inter alia, shall close a General Contract with the "Investor-Developer”, for completion of the capital renovation and modernization of the neighborhood and give a list of buildings to be repaired and upgraded. The contracts shall stipulate at the stage of approval of projects and issue of permits for construction, the transfer to the city executive committee of property rights to 15% of areas (5% for free and 10% at the cost of construction) to be built. In this way, the local government shall be entitled to distribute future social and affordable housing according to the requirements and plans. The Program shall engage local high-skilled professionals in the area of construction, leading experts of the design institutes and bureaus, representatives of NGOs and government institutions. While selecting contractors for construction works the Investor-developer shall give preference to the local construction companies. Funding for the Program shall be a combination of allocations from the central government’s budget, regional budgets, and private investment. The tentative proportion of funds, required to implement the Program, shall be: • 5% at the cost of the budget funds – repair and replacement of outside engineering networks; • 95% investment funds for capital repair and modernization of houses and development sites. This Program is not aimed at helping business entities earn surplus profits and falls into category of social business projects. First of all, it is crucial to meet the citizens’ needs in the most important things: in housing and high quality living conditions. Full set of financial services, monitoring and security of investment funds will be provided by a consortium of Ukrainian structured banks. The following facilities may be used to rise needed funding: • Setting up of Construction Financing Foundations and Investment Insurance Funds • Issue and trading of promissory notes, bonds and coins; • Attracting investment from foreign companies and international investment funds; • Engage Ukrainian and international construction companies willing to invest in the Program; • Launch municipal investment programs and funds and other internal and external funding facilities. The selected insurance companies shall provide insurance protection for contractual relations between business entities, agreements with residents, construction works etc. Specifically, they will cover quality and terms of works, professional liability, on-the-job risks of construction works, loss of title etc. The National Managing Directorate, acting by virtue of the government regulation, shall be responsible for organization and management of the Program implementation. The governing body of the National Managing Directorate will be the Board of Directors, composed of the managers of concerns, holdings, construction and investment companies, which run investment projects and perform investment contracts with investors, and have raised investments, which ensure adequate scope of works in the regions, and managers of banks, investment funds, insurance, law and other firms, directly involved and playing crucial role in the Program realization.
Decisions of the Board will be fulfilled by the CEO, appointed by the managing company of the group of entities, which developed, initiated and organized implementation of the Program. Fulfilment of the Program will be monitored by local government bodies directly through Local Offices of the Program "Renovation and Preservation of the Obsolete Residential Properties”, who, via mass media, shall inform bodies of executive power, investors and public at large on the progress of the Program, prepare interim and final reports and arrange public hearings in their respective cities. Local Offices in oblasts, cities and regions shall include, in addition to the first local officials, deputy Chair of the city council in the respective industry, chief architect, chief sanitary inspector, Head of housing and utility sector, managers of expert service, BTI, officers of the Ministry of Internal Affairs, fire inspection, land resources department, companies operating electricity and gas supplying networks, greenhouse and planting companies, reputable builders and other managers responsible for areas related to the mass reconstruction processes. Overall, implementation of projects under the Program shall result in fulfilment of social and economic obligations of the municipal governments to their voters and public at large. The Ukrainian specialized construction and investment company "ARKHITEKTON’NIKA” developed and launched a Non-government program of renovation and preservation, capital repair and modernization of buildings and development areas in residential districts in Ukrainian cities, without resettlement of dwellers. Leaning on the sound concept and a valid set of conceptual solutions regarding social, financial and building technologies; • carrying out decisions of the Ukrainian Government; having created the organization structure; • tapping on the available construction and related resources; • having tested organizational patterns of interaction between elements of the reconstruction process; • founding a construction sector of modern building material and special constructions; • taking advantage of the favourable conditions of the Ukrainian and European economic space; • being confident in obtaining political support and guidance in conditions of a democratic state, the managing, creative and executive agencies involved in the implementation of the Program are well-positioned to renovate, repair, and in this way secure preservation of almost entire stock of the obsolete brick buildings in the country for 7 years, by 2016. The non-Government program of mass renovation and preservation of the residential properties in Ukraine guarantees the following: • Due regard paid to traditions and achievements of the worldwide building culture; • Modern technologies deployed in reconstruction of engineering networks, setting up of pillars and installation of heating, air-conditioning, energy efficiency and alternative sources of energy; • Implementation of new engineering solutions in the manufacturing of structures and usage of new construction systems, technologies and materials; • Obligatory replacement of plumbing, doors and windows in the house; • Replacement of old electric wiring; • Installation of as many elevators as there are doorways in the building; • Repair of stair wells, cladding of walls, repair and replacement of handrails, stairways and landings; • Increase of useful area in apartments due to extensions built along the building perimeter; • Arrangement of courtyards, and adjoining areas, renovation of sidewalks, green plantations; • Implementation of new security systems and outdoor lighting; • Accommodating interests of people with disabilities; • Setting up of cultural and recreation complexes, one per 5-10 houses, main elements of which will be aqua-facilities (state-of-the-art swimming pools) and a two-floor multi-purpose clubs; • Building of infrastructure of multi-level on-ground and under-ground parking facilities and laundries; • Free of charge receipt by residents of additional areas, listed improvements in their apartments (houses) and courtyards (neighborhoods) at the cost of commercial stock of residential areas in superstructures; • Creation of a stock of social, affordable and "start” housing at the cost of housing areas in superstructures. Implementation of the Program shall have the following outputs: • completion of the full-scale renovation and preservation, capital repair of houses in the obsolete residential stock, and modernization of development sites of neighborhoods (residential districts), and reconstruction of engineering networks and life support systems in Ukrainian cities; • improved housing conditions of millions of people; • creation of conditions for sustainable psycho-physical well-being for future generations; • attract billions of investments into the economy; • avert catastrophe of destruction of the country’s residential stock; • elimination of causes for degradation of environment in the cities; • improved architectural and spatial expressiveness of the cities; • creation of significant stock of social housing and housing at reduced prices, securing housing space for military officers, veterans of Afghan war, WWII veterans, disabled people, young families, unwed mothers, families with many children and other categories of citizens; • secure implementation of regional (or city-wide) housing and social programs; • building additional positive image of the country yet before 2012; • bringing local living standards closer to European; • facilitate positive migration and demographic processes; • facilitate processes of unification in the society and induce social optimism in the nation; • development of the economy overall; • development of the modern construction industry; • increased domestic demand for metal products, output of construction industry, building resource; • new vacancies; • uplift in the financial market and in the securities, insurance, real estate and consumer markets; • Strengthened national security of the country. Primary outcome of the Program must be significantly more comfortable housing conditions of millions of people, positive impact on their psychological, energy and physical state. This outcome is expected to further promote improvement of living conditions for people in all dwelling localities of the country and have huge development impact on the society. Completion of the Non-government Program of mass renovation and preservation of the residential properties in Ukraine is likely to become the beginning of a large-scale progressive renovation of the country. The Program may be implemented only on the systemic level. The team of founders, managers and employees of the construction and investment company "ARKHITEKTON’NIKA” that co-authored the Program, recognize their huge responsibility before the Ukrainian society. We welcome residents of the houses, managers of government institutions, architects, builders, managers and specialists of Housing Offices, experts and designers, officials of permit-granting agencies, mass media and citizens of Ukrainian cities to partner with us on the Program, making their humble contribution into this initiative. Our mutual understanding and effective interaction may give hope to people that desperately look forward to a better future. By joining efforts we will be able to secure high-quality and comfortable housing to the present and future generations of Ukrainians. The program is open for improvement. Suggestions and comments are welcome. Full or partial reprinting of text or usage of ideas, reference to the source is obligatory.