Available from June 16 the application of offsetting fines for the arbitrary

According to the President of the Technical Chamber of Greece TEE this is an application application that gives citizens an additional additional incentive to cooperate with their mechanical engineer and to join the regulations of law 4178
for unauthorized buildings, the provisions of which were recently ruled constitutional by the Council of State. Citizens can now offset half of their unauthorized building fine with energy upgrade and structural adequacy work and materials. Our goal is, on the one hand, for illegal buildings to participate in the country’s energy saving efforts and, on the other hand, for illegal buildings to obtain the structural safety required under the supervision of an engineer,” emphasized TEE President George Stassinopoulos.

It should be noted that, according to Article 20 of Law 4178/2013, the amounts paid from the date of entry into force of this law for services, work, and materials for the energy upgrading of buildings, as well as for their structural adequacy, on constructions prior to 2003, with the amounts of the special fine provided for in this law and up to 50% of the special fine provided for.

According to the relevant Joint Ministerial Decision, the works and expenses covered relate to energy upgrades to meet the minimum requirements of the Energy Performance of Buildings Regulation (KENAK), and for structural adequacy, the works and expenses for meeting the minimum load-bearing capacity requirements in accordance with the Intervention Regulation (KANEPE).

According to TEE President George Stassinopoulos, “Law 4178 on tackling illegal construction and environmental balance is a substantial and well-considered step towards addressing the chronic problem of illegal buildings. Without increasing fines, a comprehensive framework has been established with the primary goal of recording all illegal buildings in the country. At the same time, the institution of electronic building identification is being promoted, and the electronic issuance of building permits will begin shortly. The new electronic era, with control and registration of built-up areas throughout the country, has begun. This is how we are combating decades-old problems. First and foremost, that of illegal buildings.

This provision of Law 4178, which comes into effect today in the TEE’s electronic system, may prove invaluable to citizens, as it will improve their quality of life, reduce their energy costs, and increase the security of their properties. According to TEE President George Stassinopoulos, the launch of the application could have a positive impact on the economy and lead to the preservation or even creation of new jobs in the construction sector, while also benefiting the country and the environment by promoting energy savings and building safety.

See detailed instructions on the TEE website for managing declarations of unauthorized buildings under Law 4178/2013.

The electronic system will be available for use of the offsetting application from the afternoon of Tuesday, June 16, 2015.

According to what the TEE has prepared for the operation of the application in its information system, the following is envisaged:

Offsetting of special fines for energy upgrades to buildings under Law 4178/2013

For buildings constructed before 2003, as well as for stone buildings constructed before July 28, 2011, and subject to the provisions of Law 4178/2013 (Government Gazette A 174), the amount of the special fine payable under the above law may be offset against the amount spent after the entry into force of this law on energy upgrading measures for these buildings. The decision does not apply to buildings whose owners have received subsidies from state or European Union co-financed programs for interventions in the building sector to improve their energy efficiency.

The interventions may concern both the building envelope, including openings, and the heating, cooling, air conditioning, and hot water supply systems.

The interventions are implemented in accordance with the provisions and specifications in force for the minimum requirements of the Energy Performance of Buildings Regulation (EPBR).

The costs of purchasing materials and equipment, as well as additional work required to complete the interventions, such as dismantling, removal, installation, restoration, scaffolding, etc., are taken into account for the offset, as well as the provision of energy inspection services. etc., as well as for the provision of energy inspection services.

The above expenses do not include VAT. The calculation of the relevant expenditure takes into account the expenditure limits described in the joint decision of the Ministers of Economy, Competitiveness and Shipping and Environment, Energy and Climate Change entitled “Announcement of the ‘Energy Saving at Home’ Program to be implemented under the NSRF 2007-2013,” as amended and in force.

The offset is applied to an amount of up to fifty percent (50%) of the special fine, excluding the relevant fee, provided that the interventions result in an upgrade of the building by at least one energy class, or annual primary energy savings greater than 30% of the reference building’s consumption.

Compliance with the requirements is determined exclusively after two energy inspections have been carried out on the building. The first takes place after the building has been brought into compliance with the provisions of Law 4178/2013 and before the start of the interventions, and the second after their completion, in order to verify that the interventions have been carried out correctly and that the energy target has been achieved.

For the conduct of the offset the following documents must be submitted the following documents must be submitted:

a) Application by the interested party stating their details, the details of the building for which they are requesting offsetting, the number of the certificate of compliance with the provisions of Law 4178/2013, the amount of the special fine that has been calculated, the cost of implementing energy upgrade measures, and the amount requested to be offset.

b) A copy of the building permit, the approval for small-scale works, or the written notification to the YDOM (Building Control Authority) if required for the execution of the works.

c) Documents supporting the relevant expenses, including delivery notes for materials or equipment.

d) Copies of the two Energy Performance Certificates issued following the energy inspections. The first takes place before the start of the work but after compliance with Law 4178, and the second after completion of the work and achievement of the energy target.

e) Conclusion – Statement by the Energy Inspector who conducted the second inspection, declaring that the energy target set out in paragraph 4 has been achieved.

g) A solemn declaration pursuant to Article 8 of Law 1599/1986 (Government Gazette A 75) with certification of the authenticity of the applicant’s signature, stating that they are submitting all the required supporting documents, the details of which are true, that all the expense receipts they are submitting were issued for the purchase of materials and equipment, the performance of work and the provision of services for the energy upgrade of the building referred to in his application, and that the owners of the building in question have not received any subsidies from state or European Union co-financed programs relating to interventions in the sector to improve their energy efficiency.

Offsetting of special fines for structural reinforcement of buildings under Law 4178/2013

For buildings constructed before 2003 and subject to the provisions of Law 4178/2013 (Government Gazette A 174), the amount of the special fine payable under the above law may be offset against the amount spent after the entry into force of this law on the structural reinforcement of these buildings. Buildings that have received subsidies or support from programs relating to interventions in the building sector for the repair – restoration or reinforcement of their load-bearing structure, or co-financed by the European Union, or programs for the restoration of damage to buildings affected by natural disasters (earthquake, fire, flood, landslide).

The interventions concern the repair, restoration, or reinforcement of the load-bearing structure and are carried out in accordance with the provisions and specifications in force for the mandatory minimum load-bearing capacity requirements in accordance with the Intervention Regulations (KANEPE) or in accordance with the legislation in force at the time of issuance of the building permit for the building, following a study and technical report by a competent engineer.

The offset includes expenses for the purchase of materials and equipment, as well as for additional work to complete the interventions, such as dismantling and removal, installation and fitting, restoration, scaffolding, etc., compensation for the required building inspections and for the structural adequacy and structural reinforcement studies when these are not mentioned in the provisions of Law 4178/2013 (A’ 174) as mandatory supporting documents for eligibility. The engineers’ fee for preparing the above studies may be offset by a maximum percentage equal to 5% of half (50%) of the special fine. The above offset expenses do not include VAT.

The relevant expenditure is calculated based on the price list set out in the Decision of the Deputy Minister of Infrastructure, Transport, and Networks, “Price list for calculating the cost of repair work to restore damage to buildings affected by natural disasters (earthquake, fire, flood, landslide) and the corresponding Housing Assistance.”

The offset is made for an amount up to fifty percent (50%) of the special fine, excluding the relevant fee.

For the conduct of the offset the following documents must be submitted the following documents must be submitted:

a) Application by the interested party stating their details, the details of the building for which they are requesting offsetting, the number of the certificate of compliance with the provisions of Law 4178/2013, the amount of the special fine that has been calculated, the cost of implementing structural reinforcement measures, and the amount requested to be offset.

b) The documents for the relevant expenses, including the delivery notes for materials or equipment.

c) A copy of the structural vulnerability report submitted to the electronic system for declaring unauthorized construction and a copy of the structural adequacy study, if required. If it is not mandatory for the inclusion of the unauthorized building in accordance with the provisions of Law 4178/2013, a structural adequacy study shall be prepared by a competent engineer prior to the interventions and submitted.

d) Approved permit for construction or approval of works for static reinforcement of the building such as this is defined in building as defined in paragraph 5 of Article 25 of Law 4178/2013.

e) Conclusion of the Building Inspector after completion of the works, certifying the proper execution of the works provided for in the issued static reinforcement permit.

f) A solemn declaration pursuant to Article 8 of Law 1599/1986 (Government Gazette A 75) with certification of the authenticity of the applicant’s signature, stating that they are submitting all the required supporting documents, the details of which are true, that all the expense receipts they are submitting were issued for the purchase of materials/equipment, the performance of works and the provision of services for the structural reinforcement of the building referred to in his application, and that he has not received any subsidy/aid for the building in question from programs relating to interventions in the building sector for the repair/ restoration or reinforcement of their load-bearing structure, or from programs co-financed by the European Union or programs for the restoration of damage to buildings affected by natural disasters (earthquake, fire, flood, landslide).

Submission and verification of supporting documents

The authorized engineer submits the required supporting documents to the electronic system of Law 4178/ 2013 and submits a solemn declaration that the information submitted has been checked for accuracy and completeness and that the supporting documents submitted correspond to the work declared and carried out for the energy upgrade or static reinforcement of the property or property.

It is possible to submit the above supporting documents for the same property or real estate for both cases of offsetting the special fine, provided that the offsetting is carried out in total for an amount up to fifty percent (50%) of the special fine, excluding the relevant fee.

In cases where the single special fine is offset in accordance with the provisions of Article 20 of Law 4178/2013, the initial calculated payment amount before the offset as described above shall be taken into account for the application of this provision.

The amounts paid for energy upgrade or structural reinforcement works are deducted from the last installment and the immediately preceding ones until the offset is completed. If, after the above calculation, it appears that the amounts already paid exceed the amount of the outstanding fine, based on the provisions of this law, they shall not be refunded or sought.

The competent Building Authority, or other competent authority, designated by decision of the Minister of Environment, Energy and Climate Change, shall randomly check at least five percent (5%) of the declarations submitted in order to verify that the information contained in the declarations concerning the description of the construction, the supporting documents and delivery notes, as well as the findings of the energy inspectors or Building Inspectors, are true and accurate.

In the event of false information and/or untrue statements being found, the special fine initially calculated by the electronic system is doubled. In order to impose the doubling of the special fine, a relevant administrative act is issued by the competent service, which is submitted to the TEE.

The audit following a complaint or order by public authorities may be carried out by Building Inspectors as defined in Law 4030/2011 (A’ 249), randomly, after an electronic draw.

Transitional Provisions

The above expenses for energy upgrade works carried out after the entry into force of Law 4178/2013 and before the publication of the specific Joint Ministerial Decision, on properties or real estate subject to the provisions of Law 4178/2013, may be offset against the special fine, provided that the Energy Inspector certifies that the interventions result in an upgrade of the building by at least one energy class, or annual primary energy savings greater than 30% of the reference building’s consumption.

In this case, the relevant supporting documents shall make specific reference to the date of issue of the supporting documents and receipts in relation to the dates of application of this article. In addition to the original energy performance certificate, the other supporting documents shall be submitted in accordance with the provisions of this decision.

Indicatively, for energy upgrades, the model of the “I save at home” program will be followed, which generally includes the following categories of work:

Replacement of window frames (frames/glass panes) and installation of shading systems. Due to the program’s energy upgrade requirements, the intervention mainly, but not exclusively, concerns thermally insulated/thermally broken window frames with double glazing.

Replacing only the glass pane is also eligible, provided that an energy upgrade is achieved. Replacing the front door of a single-family home and stairwell and skylight frames in an apartment building is also eligible. However, “openings” to heated or unheated interior spaces of the building (e.g., apartment doors) are not included.

This category also includes the installation of external awnings and movable protective covers on openings (shutters, roller blinds).

Installation of thermal insulation in the building envelope, including the roof and pilotis. In this category, the installation of internal thermal insulation is also eligible when the installation of external thermal insulation is technically impossible or not permitted by current legislation (e.g., listed buildings, traditional settlements).

Upgrading of heating and hot water supply systems. The following are eligible in this category:

− Installation of a new or replacement burner and/or boiler system with a new oil or natural gas system (central or individual) or a system that operates mainly using renewable energy sources, RES (e.g., biomass burner, heat pumps, solar thermal systems, etc.) or a high-efficiency cogeneration system (CHP). The installation/replacement concerns the entire electrical and mechanical equipment of the boiler room and the distribution network (automation, circulators, chimney, replacement or insulation of pipes, etc.). Expenses for oil tanks and heat output terminals (radiators, underfloor heating system, etc.) are not eligible.

− Installation of automatic control devices for the heating system, such as timers, compensation and/or hydraulic balance automation for adjusting partial loads (three-way or four-way solenoid valve, circulator speed regulators, etc.), room thermostats, thermostatic radiator valves, etc., including heat metering systems for the allocation of heating costs.

− The installation of solar systems for the supply of hot water for use (collector, water storage tank, support base, pipes, etc.).

Specifically, in the case of a proposal to replace an oil burner/boiler with a new one of the same technology, the Energy Inspector must provide sufficient documentation, based on their characteristics and the results of the exhaust gas analysis, the need for replacement rather than maintenance or chemical cleaning (e.g., a boiler that has suffered irreparable damage).

The proposal (combination of interventions) for energy upgrading, which is submitted with the application, shall must cover the following requirement which constitutes the minimum energy target:

upgrade by at least one energy class or, alternatively, annual primary energy savings greater than 30% of the reference building’s consumption (kWh/m2).

In order to verify compliance with the above requirement, the materials and systems used for the interventions must have energy certification. It should be noted that increased energy savings are achieved when the structural elements and individual electromechanical installations meet, after the interventions, the minimum specifications referred to in paragraphs 2 and 3 of Article 8 of KENAK, in accordance with the provisions of the relevant Technical Instructions of the Technical Chamber of Greece (TEE).

In addition, building materials and electromechanical systems, for which there is a relevant obligation under current legislation, must bear the CE marking. The above costs per specific intervention include any additional work necessary for the complete implementation of the intervention, such as scaffolding, plastering, minor restoration work to restore the appearance of the element on which the intervention was carried out, dismantling/demolition and removal, screens, formation of drainage slopes on the roof, waterproofing, necessary work and interventions for the proper functioning/performance of thermal insulation, necessary interventions on the roof (e.g., replacement of tiles), etc.