Montenegro
The Pavićević family lives more peacefully knowing they can heat their home and have a path to legal ownership. vlatko otašević/ undP montenegro
Making Houses Energy Efficient— and Legal
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Energy efficiency and illegal housing settlements are not often linked. But since Montenegro has significant challenges from both, an innovative solution has been to do just that. The idea is simple. People in approximately 100,000 illegally constructed homes and buildings could draw on low-cost loans to invest in energy efficiency measures such as new insulation, doors and windows. These measures cut their energy bills. The savings are enough to pay back the loans in a reasonable time, and legalize the properties, with titles that guarantee property rights. Broader benefits accrue through increased tax collection and better public services. UNDP developed the approach, and to test it, enlisted four households in an illegal settlement on the outskirts of the town of Bijelo Polje. The Pavićević family was one. A construction worker, Siniša Pavićević, 52, lives with his wife and two sons. He started building his house himself back in 2004, but after three years, he could not afford to finish it or pay the fees for a legal title to it.