PPE: who pays for energy renovation work?

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Question from Jean-Luc P. to Lancy: “Owner of a PPE apartment, I am surprised that our PPE administrator tells us that it is up to each co-owner to participate financially in the energy renovation work of our building to reach the heat loss threshold prescribed in the legislation . Is it correct? Couldn’t the PPE itself finance this work?”

As a reminder, Geneva PPEs are subject to the declaration of heat expenditure indices (IDC). It is the administrator of the PPE who is responsible for this transmission to the State services.

Since September 1, 2022, the IDC threshold has been set at 450 MJ/m². Beyond this, energy renovation of the building will be required so that the owners will have a period of thirty-six months to carry out the necessary work to bring the IDC below this threshold, from the notification of an administrative decision.

Decisions to carry out work must be the subject of decisions taken by the General Assembly of the PPE. The majority applicable to decision-making aimed at complying with a legal obligation, in this case to meet the requirement to carry out work useful in reducing the IDC below 450 MJ/m²is the simple majority.

Thus, related financing decisions, such as the use of the renovation fund, in whole or in part, and a possible call for additional funds from each of the co-owners, are also decided by a simple majority.

To the extent that the PPE includes both private and common areas, each lot represents a fraction of this whole. This is the reason why the PPE itself does not have its own economic substance and therefore cannot be pledged with a view to obtaining a loan. Only prizes can be pledged.

This is why the financing of the work which exceeds the use agreed by the general meeting of the renovation fund will, in principle, be the subject of a call for funds from each co-owner based on the thousandths held .

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