Financing Energy Efficiency Improvements for Homes, Commercial Buildings, & Charter Schools: Analysis of Opportunities for Self-Help To Promote and Finance Energy Efficiency
Creators: name: Butler, Sabrina
Publisher: name: The University of North Carolina at Chapel Hill University Libraries
Year: 2006

description: FINDINGS Energy efficiency offers a multitude of benefits to individuals, businesses, and schools, as well as to the greater community. In addition to a strong mission fit, a Self-Help energy efficiency initiative could also benefit the organization directly. Key benefits include: •Energy cost savings •Competitive market advantage •Increased sales •Increased productivity •Higher building value •Healthier buildings •Improved student performance •Economic development & job creation •Improved environmental quality & preservation •Reduced lending risk •Appeal to Self-Help investors. While there are a few existing resources and financial incentives for which some borrowers may qualify, there remains a gap in financing options for much of Self-Help's typical client base. Low-income homebuyers, marginal small businesses, and many charter schools have limited options for financing extensive energy improvements, and there is a real opportunity for Self-Help involvement. Of course, incorporating an energy efficiency initiative into Self-Help's lending programs would not be without challenges. This paper also explores several issues staff should take into account when considering program implementation, such as: •Accuracy of energy savings predictions •Appraisal considerations •Borrower overwhelm •Loan process delays •Contractor quality & experience •Liability questions •Maintaining accuracy of resources •Initial contact at varying stages of development process in construction loans •Limited borrower construction experience •Administrative costs •Staff knowledge & training •Program sustainability RECOMMENDATIONS Given the numerous benefits of energy efficiency for all sectors considered, it is recommended that Self-Help implement energy efficiency initiatives in the home mortgage, commercial, and charter school lending sectors. Specific recommendations were developed for each lending team. Residential •Develop and maintain a pamphlet on simple home energy saving recommendations •Develop and maintain a list of resources for home energy improvements, including qualified energy professionals and organizations providing support and technical assistance •Formalize underwriting criteria and promote a Self-Help energy efficient mortgage (EEM) loan product •In the long-term, consider the feasibility of an energy improvement loan program Commercial •Improve on and maintain existing pamphlet on energy conservation •Develop and maintain a pamphlet with general energy efficient building recommendations •Explore possibility of offering free or reduced-price energy audits •Offer staff educational opportunities Charter Schools •Develop and maintain one or more pamphlets on energy efficiency and green building (high performance) recommendations, organized by construction type •Develop and maintain a pamphlet on how to choose an experienced high performance building design team, including resources for identifying specific professionals •Improve Self-Help ability to provide high performance design technical assistance by training in-house construction advisors •Consider the long-term possibility of a specific high performance schools loan product with attractive interest rates or underwriting guidelines •Boost staff interest in proposed charter school initiative by offering educational opportunities, such as guest speakers and field trips