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Microsoft PowerPoint - GJGNY Financing.pptx

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					Green Jobs-Green New York
   Financing Structures

      March 26, 2010
       GJGNY Revolving Loan Fund

Residential (1-4 family homes) $13,000 loan cap

Multifamily (5 + units) $5,000 per unit and $500,000
loan cap

               ( 101                not for profits
Small business (<101 employees) and not-for-profits
$26,000 loan cap
              Financing Strategy
Use portion of GJGNY funding(~$60 million) as loan loss
  reserve to access the financial markets to establish
       l i loan f d
  revolving l     fund.
May use GJGNY funding to warehouse loans during proof
  of concept phase
Offer 3 financing approaches:
      Unsecured Loans
      On-bill Recovery
      Property Assessed Clean Energy (PACE) financing
         Requests For Proposals

RFP for Financial Advisor to assist in evaluating
financing structures; proposals under review

RFP for Program Lenders to originate and service loans;
Technical Evaluation Panel has reviewed draft

RFP for Underwriting Services to access the financial
   k
markets
               Unsecured Loans
One or more Program Lenders will originate and service
unsecured loans and On-bill Recovery financing

Program L d f 1 4 f il h
P                                           ill determine
            Lender for 1-4 family homes will d t      i
eligibility for free or reduced cost audits (as alternate to
             )                  g    y
the CBOs) and determine eligibility for 50% incentive (    (up
to $5,000) from SBC funding

Credit decision to be dit    based
C dit d i i t b credit score b   d
         On Bill
         On-Bill Recovery Pilot

National Grid up-state combined gas and electric
residential and small business/NFP customers
                                     On-bill
Combine utility rebates with GJGNY On bill
financing to promote comprehensive projects
May supplement credit score with utility bill
   y    pp                             y
paying history
Legislation to expand pilot and include meter
obligation is pending
                 PACE Financing
Municipal Sustainable Energy Loan Program
legislation (Nov 2009) – allows any State municipality
to establish a Property Assessed Clean Energy
(PACE) loan program
Municipality makes loan to homeowner for energy
efficiency; records lien on real property and
homeowner repays through a separate charge on
property tax bill
Supports larger projects with longer payback periods
Modifications to legislation required for NYSERDA to
provide aggregated access to financial markets
                           y
               Lender Survey
                      3/12/2010


Survey of participating lenders in Energy $mart Loan
Fund to gauge interest in a 5% loan guarantee as
alternative to 4% interest rate buy down
Assisted Home Performance Program lenders said 5%
loan guarantee pool would permit loans at 8% interest
rate
Multifamily lenders expressed interest in exploring
potential for larger loan guarantee pool
                       Challenges
Uncertainty of leveraging potential of loan guarantees
Balancing consumer access to loans at low interest rates with credit
score requirements of investors
Difficulty in matching annual energy savings to annual loan
payments
B k concern with superior position PACE fi
Banks               ith     i     iti                  i
                                                financing may h     to
                                                               have t
existing mortgage loans
Multifamily energy efficiency projects often face layers of secured
investors that will not accept additional liens on the property
i     t     th t ill t        t dditi   l li        th       t
Potential need to subsidize program interest rate to below market
rate
Potential need to establish separate financing approaches for lower
income consumers

				
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Description: Unsecured loans, also known as unsecured loans or credit. Does not require any collateral, only proof of identity, income proof, address proof and other materials (concrete evidence to see what banks) to banks for loans, bank credit according to the circumstances of individual loans, interest rates generally higher on a mortgage loan, customers can choose the specific circumstances of individual loans for years, and then sign contracts with banks, security.