Collection of  accumulative funds and their use

Collection of  accumulative funds and their use

All owners of multi-apartment residential apartments and other premises pay monthly cumulative funds, and the  administrator of the house every month calculates, collects and records these savings funds.  Vilija  Zapalskienė, the head of Civinity, one of the largest group of building maintenance and engineering solutions in the Baltic States, advises residents who want to know the size of the funds accumulated in their apartment building and   information about their use, who will provide the requested information.

Civinity Namai, a company of the Civinity Group, when providing invoices to residents for the administrative and maintenance work performed, also provides information on the accrued savings funds and their use in the monthly account.

The Government of the Republic of Lithuania has established that until a long-term plan is prepared and approved, and with it the monthly cumulative contribution rate, the minimum cumulative contribution rate is applied when calculating the amount of the monthly cumulative contribution: forgrowing houses with a useful area of up to 3000 sq. m. – EUR 0.05 per sq. m. and with a useful area of 3000 sq. m. and more – EUR 0.03 per sq. m. reconstructed, owners of renovated or new-build houses, by their decision, are subject to a 50 percent lower rate than the established minimum monthly cumulative payment rate for 5 years from the date of completion of construction.

The accumulative funds are used to update the objects of common use of the house in accordance with the mandatory requirements for the use and maintenance of structures. All works of an apartment building (various repairs to renovate or repair objects of common use – roof, walls, stairwell doors, etc.) for which the savings will be used, the long-term work plan (two or more years) should be indicated, which also indicates the preliminary cost of the works and the deadlines for completion. The long-term plan is drawn up by the administrator of the apartment building  , and the calculated rate of the cumulative monthly payment, together with the long-term plan, is approved by the decision of the majority of the owners of apartments and other premises (at least 50% + 1).

“When communicating with residents, unfortunately, we notice a flawed practice in which the co-owners of an apartment building  do not approve the long-term plan drawn up by the administrator with the works indicated in it. In this case, the minimum rate of the cumulative contribution is applied, and all additional repairs carried out must be additionally paid for by the co-owners of the house,” explains the head of “Civinity”.

It is important to mention that when selling an apartment, unused savings are not returned to the previous owner of the apartment.  Correctly charged, but unused savings are not considered an overpayment.