From January: a change in apartment building bills — when reserve fund contributions may increase 2–4 times
2026.01.21
From January 2026, some residents of apartment buildings will see different amounts for reserve fund contributions on their bills. This change is not a decision made by the building administrator — it is the application of a mandatory minimum rate set by the state under the procedure approved in 2025. However, the biggest “catch” is 1 July 2026: if a building does not have a long-term repair plan and its condition is assessed as worse than good, contributions may increase several times.
“Reserve fund contributions are not the administrator’s profit or an administration fee. This is money set aside for future works in a specific building, and the state sets the minimum amount. Our responsibility is to apply the mandatory minimum and clearly explain to residents why changes appear on their bills,” says Andrius Soikinas, Development Projects Manager at Civinity.
A Government resolution adopted on 7 May 2025 changed the calculation procedure for reserve fund contributions and set higher mandatory minimum amounts for apartment buildings.
A new minimum rate took effect on 1 July 2025, so the previous lower rates can no longer be applied. As a result, from 1 January 2026, reserve fund contributions for some buildings are recalculated to the new mandatory minimum — EUR 0.1025 per sq m (instead of, for example, EUR 0.0923 per sq m used previously).
Important: if a building is already collecting more than the mandatory minimum, there may be no change on the bill — the minimum rate is a “floor,” not a target.
In relative terms, the change is usually not large, but many residents will feel it because reserve fund contributions are calculated based on the apartment’s floor area.
The calculation is simple:
monthly contribution = rate (EUR/sq m) × apartment area (sq m)
This means the monthly amount increases by 1.02 cents per sq m. So the monthly contribution increases by:
“The key for residents is to understand the principle: the rate is euros per square metre, and the final amount depends on the apartment’s size. That’s why for one person the change will be a few dozen cents, and for another a bit more — but in all cases it is calculated using the same formula,” Soikinas emphasizes.
These funds are collected for the needs of a specific building: repairs or renewal of the roof, pipelines, façade, stairwells, and other common areas. In other words, it is the building’s “financial cushion,” helping to plan works in advance and reduce the risk of suddenly needing large one-off payments.
Residents should note another deadline: from 1 July 2026, reserve fund contributions may increase additionally if an apartment building does not have an approved long-term repair plan and if the building’s technical condition is not assessed as good.
In such cases, depending on the building’s condition, coefficients may be applied to the state-set minimum rate:
In practice, if the base rate is EUR 0.1025/sq m, the monthly contribution for a 50 sq m apartment would be about EUR 5.13, EUR 10.25, EUR 15.38, or EUR 20.50, depending on the building’s condition.
“The biggest risk for residents is not the January change, but the July 2026 deadline. Approving a long-term plan on time helps avoid situations where the rate can jump several times simply because the building lacks a clear ‘roadmap’ for maintenance and renewal,” says Soikinas.
Under the planned procedure, apartment buildings that have completed renovation or are newly built may qualify for a 50% lower rate for a period of five years. This relief may be granted because such buildings typically have fewer urgent repair needs in the near term.
A long-term repair plan is a document that sets out what needs to be fixed and when, how much it may cost (approximately), and what sequence of works is the most reasonable. Usually, it is prepared for a multi-year period (for example, five years) so residents can make decisions based on a clear logic rather than “putting out fires.”
The plan may be prepared by the building administrator (who has the building’s data), by contracted technical maintenance specialists, or by the homeowners’ association chair with the support of technical specialists. In all cases, the plan must be approved by a majority of residents.
What must the plan include? Key elements are the planned repair or renewal works (e.g., roof, pipelines, façade), priorities, estimated costs, and timelines.
A building’s technical condition must be assessed periodically by a technical engineer employed by the administrator or contracted by the building. The engineer must also present the condition reports to residents (or their representatives).
Technical condition assessments and information about hazardous defects are recorded in PDBIS — the Building Data Bank Information System. When a specialist determines the building’s condition or identifies hazardous defects, the data is uploaded to the system and becomes visible to municipalities and other institutions.
This means the building’s condition assessment and its “status” are not subjective — they are based on specialists’ entries and officially recorded information.
To avoid higher payments in the future and ensure planned building maintenance, residents are encouraged to:
“Our goal is for residents to understand not only how much is being collected, but also why. When decisions about building repairs are made on time and based on a clear plan, residents benefit twice: fewer surprises on bills and a higher building value and comfort,” says Soikinas.
Civinity notes that reserve fund contributions are part of long-term building maintenance, and that a clear plan and residents’ involvement help not only to avoid sudden financial jumps, but also to ensure the building is maintained responsibly, efficiently, and transparently.