Regulations determine the procedure for interest rate subsidies for the energy efficiency of multi-apartment buildings

The Cabinet of Ministers has issued new regulations No. 678 – “Regulations on the implementation of energy efficiency improvement measures in multi-apartment residential buildings through a support program in the form of interest rate subsidies”. The announcement was published in the official gazette “Latvijas Vēstnesis” on November 12, 2026, in issue No. 219, with the official reference OP 2026/219. The regulations are placed in the “Cabinet of Ministers” section of the publication as the 15th entry of this issue.

The document defines the procedure for implementing energy efficiency improvement measures in multi-apartment residential buildings using interest rate subsidies from the support program. The issuing body is the Cabinet of Ministers, and the publication in the official gazette is the institutional reference to be used when citing the norm. 14 Cabinet of Ministers regulations, numbered from 662 to 678, were published in a single issue.

Subject and Recipients of Subsidies

The subject of the norm is directly defined in its title: a support program operating in the form of interest rate subsidies and its application to energy efficiency improvement measures in multi-apartment residential buildings. The circle of recipients is thus multi-apartment residential buildings – the type of building where the majority of Latvian households reside.

The subsidy mechanism in the form of an interest rate means that the support is linked to financing rather than granted as a one-time grant. This is significant because the implementation of renovation projects in multi-apartment buildings is usually determined by the decision of the apartment owners’ association and available bank financing.

Energy Efficiency Regulations Package in One Issue

Regulations No. 678 are not the only document related to housing energy efficiency in this issue. Published in the official gazette on the same day were also:

• amendments to Cabinet of Ministers Regulations No. 160 of March 15, 2016, regarding the “Growth and Employment” operational program’s 4.2.1. specific support objective measure “Promote energy efficiency improvement in residential buildings” and the 13.1.1.2. measure “Support for the insulation of multi-apartment buildings” (Regulations No. 676);
• amendments to Cabinet of Ministers Regulations No. 510 of September 5, 2023, on the common implementation rules for the European Union cohesion policy program 2021–2027 financial instruments (Regulations No. 677);
• amendments to Cabinet of Ministers Regulations No. 18 of January 7, 2025, regarding the cohesion policy program’s 2.1.1.8. measure “Energy efficiency promoting measures in cultural infrastructure” (Regulations No. 674);
• amendments to Cabinet of Ministers Regulations No. 512 of September 5, 2023, regarding the second round of “Support measures for people with disabilities to ensure the accessibility of the housing environment” (Regulations No. 668).

The common thread is the framework of the European Union funds – the cohesion policy programs and the Recovery and Resilience Facility plan – under which housing renovation is financed.

Where to find the official text and what it means for borrowers

The official reference to the regulation is “Latvijas Vēstnesis”, November 12, 2026, No. 219, OP 2026/219, entry 15. The publication is also available on the publication’s website – vestnesis.lv (document address: https://www.vestnesis.lv/url/17030?content=1).

The interest rate subsidy is an instrument that acts directly on household loan costs: it reduces the interest burden for the benefit of the borrower, while the principal and other terms remain a matter of the agreement between the bank and the community of owners. Such support is a prerequisite for renovation projects, where the payback period is aimed at thermal energy savings, to become feasible also in homes with limited savings.

Impact on the pace of renovation

The pace of insulating multi-apartment buildings in Latvia has historically depended on how accessible and expensive bank financing is for communities of apartment owners. Linking the subsidy to the interest rate means that the amount of support is a variable quantity – it follows the level of market rates rather than a fixed amount per project. Consequently, the practical impact of the regulation will depend on how actively the communities of owners use the program and how many projects are submitted.

Operators and stakeholders should note that the text of regulation No. 678 was published in the same issue as amendments to older energy efficiency regulations (No. 676); therefore, when quoting a specific condition, it must be verified which of the two documents defines it.

What the reader needs to know

The practical significance for households is narrow and specific: if a community of owners of a multi-apartment building decides on energy efficiency improvement measures and takes out a loan, the interest rate subsidy of the support program can reduce the monthly payment. This, in turn, affects both the possibility of decision-making and the building’s operating costs after the completion of the works.

Since the support is linked to the loan and not automatically to the building, the individual project of each house and the financing terms are important. The precise criteria, the amount of support, and the application procedure are defined by the text of regulation No. 678, published in “Latvijas Vēstnesis” on November 12, 2026, No. 219, OP 2026/219.

Official source: Cabinet of Ministers Regulation No. 678 “Regulations on the implementation of energy efficiency improvement measures in multi-apartment residential buildings in the form of an interest rate subsidy of the support program”, published in “Latvijas Vēstnesis” on November 12, 2026, No. 219, official reference OP 2026/219; publishing institution – Cabinet of Ministers.