On January 7, 2025, the Cabinet of Ministers approved amendments to the Residential Property Management Law (hereinafter referred to as the Draft Law). The goal is to enhance the technical condition and energy efficiency of apartment buildings by granting property managers broader rights. The Draft Law will be submitted to the Saeima for review and adoption.

Latvia's residential building stock is outdated, characterized by low energy efficiency, and the pace of apartment building renovations remains insufficient.

To accelerate improvements in building energy efficiency and maintenance, the Draft Law aims to grant property managers the authority to initiate construction projects in their own name and carry out other necessary activities to implement construction processes in apartment buildings.

Specifically, the Draft Law provides property managers the right to make investments in residential buildings without explicit authorization from apartment owners if such investments ensure compliance with mechanical strength, stability, and energy efficiency requirements.

These regulatory changes are expected to increase the pace of apartment building renovations and promote the renovation of entire residential neighborhoods, including improvements and development of infrastructure within those neighborhoods.

Although existing regulations already allow property managers to invest in residential buildings when necessary for their continued use, the required work often qualifies as construction. The Draft Law serves as a support tool, enabling managers to carry out such extensive work as well.

Conditions for Property Managers to Conduct Work

The Draft Law stipulates that property managers will have the right to perform such work if the following conditions are met:

1. Expenses for the residential building are recognized as necessary.
2. The need for construction arises from the technical inspection report or if the building's energy efficiency class does not meet minimum energy efficiency requirements.
3. The property manager has convened an owners’ meeting to initiate construction, and the meeting was not quorate. A second meeting was also convened but was again not quorate.
4. Both the initial and subsequent meetings are convened using the Construction Information System (hereinafter referred to as BIS) functionality.

Ensuring Inclusivity in Decision-Making

It is important to note that organizing meetings through BIS does not limit participation to apartment owners who use electronic communication. The organizer is responsible for ensuring that every apartment owner receives an invitation and organizing the meeting in a way that allows participation both electronically and in person.

Further details about the Draft Law "Amendment to the Residential Property Management Law" can be found on the unified Legal Acts portal.

Public Relations Department
Ministry of Economics
prese@em.gov.lv