Urban Development Funds (UDF) are financial instruments under the Operational Program Regions in Growth (OPRG) 2014-2020 that build further on the UDFs created under the JESSICA initiative in the programming period 2007-2013. The main objective of the Urban Development Funds is attracting of additional private resource to the public resource, provided by the Operational programme “Regions in Growth” 2014-2020 through the Fund Manager of the Financial Instruments in Bulgaria (FMFIB), for financing of eligible urban projects and implementing the aims of the EU Regional policy.

"Sustainable cities fund" has been awarded the implementation of the functions of an UDF for the regions of Sofia and Southern Bulgaria via a public procurement procedure, held by FMFIB in August 2018.

The total financial resource available through the Fund is BGN 342.37 m of which BGN 202 mare the financial resource provided by the Operational programme, while BGN 140.3 m or 41% of the provided resource are the private co-financing from the Partners in Sustainable cities fund – United Bulgarian Bank and Fund for local authorities and governments (FLAG).

"Sustainable cities fund" offers loans with built-in guarantees aimed at a wide range of potential final beneficiaries in the field of urban development and cultural heritage. The guarantee coverage amounts to total of BGN 20.9 million: BGN 8.2 million for Sofia and BGN 12.7 million for South Bulgaria and is provided by OPRD through FMFIB.