Five-year-old program has financed more than $34 million in energy upgrades for affordable multifamily properties
Rocky Hill, Conn. (Sept. 24, 2019) – The Connecticut Green Bank is proud to announce that its Multifamily Housing Program has provided financing and technical assistance to more than 100 funded multifamily projects since the program’s inception in 2014.
Through its various products, the Green Bank’s Multifamily Program, along with financing partners’ Capital for Change and the Housing Development Fund, has deployed over $34 million in financing for energy efficiency, solar and health and safety upgrades. This capital has been used to fund individual energy projects as well as energy upgrades that are part of larger renovation or new construction projects – with $160 million total capital outlay for all project costs.
“We are pleased with the accomplishments of our Multifamily program, which has touched more than 8,000 housing units in Connecticut that serve low- and moderate-income residents,” said Bryan Garcia, President and CEO of the Green Bank. “While there is still plenty of work to do, this investment is helping to improve the lives and health of families and reduce the energy burden on property owners.
The Program enables multifamily property owners to design and implement energy improvements that reduce energy, maintenance and other operating costs, improve the living environment for residents, and increase property values. The Program also funds remediation of important health and safety issues. Savings resulting from energy improvements are often used to fund other needed capital improvements. Through this approach, the Green Bank is helping to preserve critical affordable housing resources in Connecticut. This is especially important because of the affordable housing shortage in the state and budget challenges which limit public funding for this sector.
Funded projects include a range of energy-related upgrades, for example, new, efficient HVAC equipment, building envelope improvements, and energy saving controls. A hydroelectric project and more than 5 megawatts of solar photovoltaic (PV) systems have also been installed. On the health and safety front, roofs can be repaired or replaced to prevent mold and other moisture related air quality issues from leaks, which is especially important if a property is to be weatherized and sealed.
Funding is specifically designed to accommodate restrictions on existing debt or other covenants that might prevent a property owner from moving forward with a project. For example, if additional mortgage debt is prohibited, a common occurrence, the Program will provide unsecured project financing. Solar programs are specifically designed so that non-profits and housing authorities, unable to take advantage of tax credits and other incentives, can still “go solar” and take advantage of long term, lower electricity costs.
The Program predominantly provides financing for existing housing that serves low- and moderate-income residents in Connecticut. This includes subsidized, rent restricted properties as well as non-subsidized housing.
“The Green Bank will often take on properties that are in physical and financial distress but can be resuscitated by lowering high energy and related maintenance costs. These are properties that traditional lenders are often unable to finance. We understand how to underwrite and support owners in making these projects work.” 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. “However, we could not accomplish our work without the support of a dedicated group of professional service providers, contractors, property owners and managers, and partners, including the Affordable Housing Alliance of Connecticut, Urban Homesteading Assistance Board, Connecticut Housing Finance Authority, Connecticut Department of Housing, the Department of Housing and Urban Development, and many others.”
For more information on the Multifamily Program, please visit www.ctgreenbank.com/multifamily.