All people desire to live in the most beautiful and desirable environment. However, the quality of housing not only reflects the socioeconomic conditions of people’s lives, but, to a certain extent, it reflects the level of maturity of the community in question. Joint European Support for Sustainable Investment in City Areas (JESSICA), an innovative financial instrument, is based on the use of repayable forms of financing and is mainly directed to improving housing infrastructure, energy efficiency and a thorough renewal of existing residential buildings in urban areas. The positive experience with the pilot project JESSICA in Slovakia serves as a prime example for the preparation of new investments using innovative financial instruments for the programming period 2014-2020. Due to both insulation and reconstruction, long-term energy savings are achieved in exchange for heating that is increasing the energy efficiency of buildings. JESSICA helps to improve the physical condition of the existing housing stock and prolongs its life whilst protecting the environment by reducing greenhouse gas emissions. By directing saved financial resources from JESSICA into the Housing Development Fund, it meets the demand of the inhabitants interested in insulation and housing renewal. JESSICA has had a positive impact on the aesthetics of settlements and the overall development of the urban environment.