Sherpa Pre-Development Energy Loan
The Sherpa Pre-Development Energy Loan offers an affordable, low-risk, one-stop solution to analyze, design and arrange financing for green energy upgrades. Connecticut Green Bank has partnered with New Ecology Inc., an expert multifamily technical services provider and nationally-recognized non-profit, to act as an owner’s representative to help scope, design and arrange financing for energy improvement projects.
- Identify practical, cost-effective ways to save money on utilities, reduce maintenance costs and make your building(s) more attractive to tenants
- De-risk the process of identifying energy upgrades by having an experienced team lead the way
- Identify and secure utility incentives and project financing to implement your project
Any affordable or market rate multifamily properties with 5+ units are eligible to participate. Qualifications of best candidates are:
- Existing buildings (or multiple buildings) with at least 20 units
- Buildings with owner-paid electric, central heating and hot water
- Benchmarking and Opportunity Assessment to assess your property’s potential
- Energy Audit to identify improvements, and estimate costs and savings
- Design and Funding Technical Assistance to get the project designed, funded and ready for implementation
|Rate||Affordable properties: 0%
Market rate properties: 2.99%
|Term||Due in 24 months or upon
|Loan details||No fees, unsecured|
- Complete an application.
- Provide property financials: current year operating budget, previous two years’ financial statements, previous two years’ tax returns, most recent mortgage statement, and certificate of insurance.
- Email application and property financials to [email protected] with the subject “Sherpa Pre-Development Application” and the name of your property
2. Opportunity assessment
Assess your property’s potential
- An initial energy assessment is performed to identify opportunities for heating, cooling, lighting and other efficiency upgrades, as well as solar feasibility. Receive a report on estimated savings
- Review recommendations, chart a course of action and explore funding options
Out of pocket cost:
- Owner co-pay: $250/building
- Green Bank loan: $2,250/building
3. Energy audit
Identify improvements and estimate costs and savings
- Receive a detailed list of energy upgrade options and recommendations
- Identify available utility incentives, tax credits and other funding sources
- Calculate cost savings and return on investment
Out of pocket cost:
- Owner co-pay: 25% of audit cost.
- Green Bank loan: 75% of audit cost.
4. Design and development
Design your project
- If you choose to proceed, New Ecology provides customized pre-development services to get your project designed, funded and ready for implementation.
- Services may include: mechanical engineering design, bid specifications, construction documents, work bidding, environmental testing and securing utility incentives.
Out of pocket cost:
- Owner co-pay: 25% of design development cost.
- Green Bank loan: 75% of design development cost.
Once the project is designed, Connecticut Green Bank can either directly finance or help you arrange finance options to implement your project. Learn more.
- Prior to the opportunity assessment, you will sign a Technical Assistance Agreement detailing the opportunity assessment copay of $250/building and 25% copays for subsequent pre-development services and repayment obligations for funds advanced by Connecticut Green Bank.
- If you decide to stop after the opportunity assessment, there is no obligation to repay funds advanced by Connecticut Green Bank.
- If you take out a pre-development loan for audit and design development services, you are required to repay all funds advanced by Connecticut Green Bank.
- If you secure project financing through Connecticut Green Bank, funds advanced under the Sherpa Loan program may be rolled into project financing.
Contact us today with questions or to discuss your project with a Connecticut Green Bank representative.
Email [email protected] or call (860) 257-2333.