Alur Law: how to use the co-ownership works fund?
How to use the Alur law work fund?
Entered into force on January 1, 2017, the Alur law establishes a principle of savings between the co-owners in order to facilitate daily life within the co-ownership, in particular with regard to works. Here's what she's planning.
What is the compulsory works fund?
In the texts, a works fund is provided for by the Alur law. The purpose of this fund is to allow and anticipate the financing of future condominium works . With this money, the residents of the building can pay various costs, even unforeseen ones, without difficulty.
Alur law works fund: which condominiums concerned?
All condominiums are affected by the Alur fund, with a few exceptions:
- In the case of a new building, less than 5 years old
- For a building containing less than 10 main dwellings and if the syndicate of co-ownership chooses unanimously in AG ( general assembly of co-ownership ) not to constitute funds
- If the DTG ( Global Technical Diagnosis ) indicates that the co-ownership will not need work for the next 10 years.
Alur law works fund: how to use the works fund?
Let us now see how the use of the Alur law works fund will be.
This compulsory works fund will be set up 5 years after acceptance of the building. Its purpose is to finance the expenditure of compulsory works, but also those decided during the general assembly of the co-owners who come out of the estimated budget (expenses of maintenance or administrative operation).
The compulsory works fund must represent at least 5% of the estimated budget for the year. The co-owners provide it with an annual contribution, the amount of which is calculated on the basis of the percentage (the value of each lot).
Vote in general assembly
Each sum that will be taken from the fund to finance the works will be voted on at the general meeting. The majority of votes must be obtained to validate the decision.
Opening of a specific account
Opening by the trustee of a specific account which will be used to pay the contributions. This is a different account than the one for current charges.
How do condominium loans work?
Are you a co-owner and need to carry out renovation work? At Finance Studio, we offer two types of loans:
- The Condominium Loan : from € 1,500 to € 75,000, which extends from 1 to 10 years, in particular to insulate the walls, reduce the facade or change the collective boiler.
- The Eco PTZ Collective : the Eco-loan at zero rate is regulated by the State and makes it possible to finance renovation work to improve the energy performance of the parts and equipment of the condominium.
Steps for taking out Finance Studio loans:
- Before the GA: the trustee must inform Finance Studio of the work to be done and of the GA's project. The necessary documents are then sent to the co-owners by Domofinance.
- During the GA: the work is voted on; the property manager must inform the co-owners of the Personal Co-Ownership Loan solution or the Eco PTZ Collectif.
- After the GA: a membership form with minutes of GA is sent to the co-owners, who must then send the necessary documents to Finance Studio. If the Co-Ownership Personal Loan has been chosen, the organization contacts each co-owner to establish a loan with a personalized solution. If the Eco PTZ Collectif is preferred, a financing solution is set up with the trustee.