‘Investi f’Darek,’ a property renovation scheme supporting urban regeneration while creating economic activity in our localities has been launched by the Minister of Finance the Economy and Investment Tonio Fenech and Minister for Tourism, Culture and the Environment Mario de Marco.

The new scheme promotes investment in restoration, conservation and maintenance of privately owned residential properties located within Urban Conservation Areas (UCAs) and Grade 1 and Grade 2 scheduled buildings.

The scheme is the first in a series of financial incentives announced in the government budget for 2012 with the aim of promoting sustainable urban regeneration, improving our country’s appearance and incentivising local economic activity.

Minister Tonio Fenech remarked that this scheme will represent an investment in our urban environment, which all enhance economic activity in our localities, by creating further demand for jobs related to home refurbishment, including restorers, plumbers, electricians and so forth. This is part of a wider Government strategy, in the context of the ongoing international economic crisis, intended at generating economic activity which safeguards and enhances job creation. Such incentives build on positive results achieved lately in terms of increase in emplyoment, where the private sector is playing a major role.

Minister Mario de Marco said that the centre of our towns and villages is part of our environment, a tourism attraction and a representation of our cultural heritage. Minister de Marco stated that the scheme is part of a holistic plan towards improving the environment, protecting our cultural heritage and strengthening the tourism product. The incentive therefore forms part of a broader package of measures envisaged in the National Environment Policy, and complements other projects and initiatives, such as White Paper on Neighbourhood Noise to be published in the coming days, amongst other.

Under this scheme, private owners of residential Grade 1 and Grade 2 scheduled buildings and all buildings within urban conservation areas (UCAs) may apply for a rebate on costs of restoration, conservation or maintenance carried out between 1st January 2012 and 30th June 2014.

The grant is capped at 20% of the restoration costs up to a maximum of €5,000 per beneficiary. This scheme is being made available to a maximum of 1,000 beneficiaries on a first come first served basis. Only one building per applicant is eligible for support under this scheme.

Eligible expenditure that may qualify for this grant includes the cost of works related to restoration, cleaning and maintenance of the facade, repair or replacement of doors and apertures, repair or replacement of traditional wooden/masonry balconies, paint and plaster works, consolidation and restoration of the internal building structure that includes repair or replacement of ‘xorok’ and timber/steel beams, arches and ‘kilep,’ reconstruction or maintenance of roofs and wells.

Costs of materials, labour, hire of equipment, professional fees (the latter include architect’s fees, specialist consultancy, project management costs capped at maximum rate of 5% of the total restoration costs), as well as MEPA permit fees and other government charges that are directly related to restoration would be eligible for the grant.

A Government Notice to this effect, which explains in detail the provisions of the scheme has been published today in the Government Gazette.

Applicants will have until 30th June 2012 to apply for this grant in accordance with the process described in the Government Notice and in the relevant guidance for applicants available from the MEPA website www.mepa.org.mt.

The scheme is being administered jointly by MEPA and the VAT Department. Further information regarding the scheme may be requested by phone on 22901530 or via email on investifdarek@mepa.org.mt .

In the coming weeks, MEPA will be holding a number of public information sessions to explain the details of the scheme.

Later this year, once the necessary legal amendments are finalised, the Government is planning to introduce further incentives, including an exemption from duty on documents on transfership between heirs in order to facilitate the consolidation of ownership of Grade 1 and Grade 2 scheduled buildings and buildings in UCAs, as well as tax credits and tax reduction on income from sale or rent of these properties, amongst other incentives.

All the necessary information, guidance and application forms in relation to these further incentives will be published in due course.

The measures are aimed at promoting sustainable urban regeneration and reversing the trends of residential vacancy, dilapidation and urban decay.

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