Financing

Clean Heat NYC

The buildings they work with are 60% rent regulated and the others are condos, co-ops, and low income. NYC Clean Heat defines a rent regulated building by having over 50% of units rent regulated. Landlords cannot hike the rent without applying for permission from the city. They may apply for financing so they don’t make the tenants pay for the reparations.

Traditional Loans

For commercial, cooperative and condominium buildings that have an outstanding first mortgage on the property, we recommend first discussing your financing needs with your current lender so that they can assess whether the building financials can bear additional debt under their credit guidelines. These may include 2nd mortgage lenders, NYSEAC will vouch for lendee with bad credit for credit enhancing program. NYSEAC is working with the department of energy to have $100,000 for financing. If a building meets criteria they are referred to the creditors.

Energy Service Agreements

An Energy Service Agreement (ESA) is a multi-year agreement in which the building agrees to purchase energy from a fuel provider or Energy Service Company (ESCO) at a price that is based on historic billings, and in exchange the company pays upfront for all of the conversion costs. This financing agreement is then repaid through savings that accrue to the company either from selling a less expensive commodity to the customer (i.e. gas rather than oil), or through energy savings from efficiency measures. Depending on the duration of the contract, ESAs can be structured to allow for immediate operating savings to accrue to the building even while the loan is being repaid.

Performance Contrasting

Energy efficiency reparations-
Building saves money by making reparations and uses the savings to pay for the bill. They have a set time by when they need to repay. This finances any type of conversion. This is a good option for buildings that cannot make the changes out of pocket, or will end up owing money they cannot pay back. This is financing option works for any type of conversion.

Equipment Leasing

Tank clean ups are very expensive. Companies will rent you the tank which is preferable for buildings owners because it does not show up as a loan. They have to take energy efficiency measures within their property/s that total out to the cost of the tank/s. The buildings do not need to meet an energy efficiency quota per month. They need to perform an energy audit and the company determines which projects need to be worked on.

Green Jobs, Green NY

Green Jobs – Green New York Low Interest Financing
http://www.nyserda.ny.gov/Multifamily-Performance-Program/Low-Interest-Financing.aspx
Loan Reduction by about half the market rate and get 50% of the loan an interest rate of 0%.
For example, if you borrow $50,000 to fund an approved project, you pay interest on only $25,000 and the remaining amount is interest free. Financing can be applied to individual improvements within you Energy Reduction Plan even if they don’t total 15% in energy savings. Can contribute up to $5,000 per unit or up to $500,000 per project.

Home Performance with ENERGY STAR program

Low cost financing. Low interest payments conveniently built into your existing utility bill. Offset payments with savings! They provide a List of Multifamily Performance Partners

Association for Energy Affordability-Con Edison

If you are interested in learning about the financing tools available to fund the fuel conversions and building upgrades please fill out the following form:

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One response to “Financing

  1. Pingback: Converting from No. 6 to a Cleaner Fuel Doesn’t Have to be Expensive | Energy Efficiency Initiatives in Multifamily Buildings in Northern Manhattan·

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