Single and multifamily properties can benefit from low interest rate loans to remove mold, asbestos and other issues
Rocky Hill, CT (Nov. 21, 2019) – In Connecticut, 58% of the housing stock was built prior to 1969, according to the Partnership for Strong Communities, and this older housing stock can often present problems to home owners and residents. Along with structural and code violations from possible deferred maintenance over time, there is potential for the presence of health and safety issues, like mold and asbestos. The existence of these hazards can also make energy assessments, and related efficiency improvements, impossible. To help implement home energy upgrades and remediate health and safety problems, the Connecticut Green Bank and its partners are offering special low interest rate financing solutions for single- and multi-family homeowners.
For owner-occupied 1-4 family properties, the Smart-E Loan program now allows asbestos and mold remediation to be financed in full (up to $25,000) when completed with an Energize CT Home Energy Solutions (HES) program assessment or other energy-related improvements.
“Mold or asbestos in a home prevents blower door guided air sealing, which is an important part of the HES program,” said Lorenzo Wyatt, owner of Home Comfort Practice. “If we can’t complete this part of the assessment, home owners can’t access the full benefits of efficiency improvements, not to mention the obvious negative health implications.”
Administered by the Green Bank in partnership with nine local lenders (community banks, credit unions and a community development financial institution), the Smart-E Loan offers long-term, low-cost financing for more than 40 qualifying energy improvements. A network of over 500 eligible local contractors completes these upgrades, including insulation, windows, efficient heating and cooling, electric vehicle home charging stations, and solar systems.
“We heard concerns from contractors who are often unable to complete home energy assessments and make recommendations for more comprehensive energy efficiency improvements because of mold or asbestos, especially in low-to-moderate income households,” said Bryan Garcia, President and CEO of the Green Bank. “We understand that to provide all of society with a healthier, more prosperous future through the green economy, our financing programs must address these critical issues.”
Smart-E Loan terms range from 5-20 years, with associated not-to-exceed rates fixed between 4.49% – 6.99%. Loan amounts range from $500 – $40,000, though several of the participating community banks do not lend over $25,000. Through June 30, 2019, participating Smart-E Lenders closed 4,266 loans for $65.4 million in financed projects.
For multifamily property owners, particularly those serving low- and moderate-income residents, the Green Bank offers the Energize CT Health and Safety Revolving Loan Fund. This loan was designed to address a wide range of health and safety issues, including mold, asbestos, lead, knob-and-tube wiring, radon, and leaky roofs, that block the way to full energy improvements.
Created thanks to $1.5 million of Regional Greenhouse Gas Initiative (RGGI) dollars from the Department of Energy & Environmental Protection (DEEP), the Green Bank has already financed projects with these funds. One example is Success Village, a 924-unit housing co-operative in Bridgeport and Stratford. The $165,000 loan will cover a phase one pilot that includes asbestos removal from piping on the central heating system which was installed in the 1960s. Completion of the pilot will inform design, engineering and implementation of health and safety and energy upgrades for the full property.
“We are seeing significant energy, maintenance and other cost savings on properties that replace old, inefficient HVAC equipment, weatherize building envelopes or add solar,” said Kim Stevenson, Director of Strategic Initiatives at Inclusive Prosperity Capital, the non-profit that manages the Multifamily Program on behalf of the Green Bank. “These savings also improve the living environment for residents and improve property values. We strongly encourage owners to evaluate their buildings for missed savings opportunities.”
The Energize CT Health and Safety Loan fund offers financing of $10,000 to $300,000 (waivers for larger loans are possible) with terms up to 20 years at 2.99%.
To learn more about these loans, visit https://ctgreenbank.com/smartehealthsafety/ and https://ctgreenbank.com/programs/multifamily/energizect-health-safety-loan/.
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