Municipality Jesenice, a steel industry city in Slovenia, went through economic problems and political changes in the 1990s. Due to the Residential law the former rental flats in poorly maintained social housing stock were in 90% privatized, at a very low price, mainly by low income inhabitants. The city district heating company identified over 40 buildings (1400 flats) with delivered energy consumption for heating exceeding 150 kWh/m2 a, where interventions are needed. As a part of EIE project EffCoBuild and in cooperation with local authority the measures, like web-site benchmarking, progressive subsidies and pilot energy certification of buildings, were prepared aiming to help the large residential buildings in Jesenice to develop sustainable maintenance and renovation projects. The paper presents more in detail the energy indicators in existing buildings, CO2 saving potentials, the municipal measures for stimulating the refurbishment and clients’ acceptance as well as good practice cases.