COLORADO GREEN BUILDING GUILD

Financing your Residential Green Building Project

Local Financing Programs

ClimateSmart Loan Program:Offers PACE loans to Boulder County property owners who want to make energy efficiency and renewalbe energy improvements to their property. Homeowners can apply for a $3,000 minimum or a $50,000 maximum (or 20%of the statutory value of your home, whichever is less). Financing will be repaid by the homeowner through a special assessment on their property taxes.

NOTE: Residential financing under ClimateSmart Loan Program suspended

Low-Income Weatherization Program: The Governor’s Energy Office is coordinating the dispersal of $79.5 million over three years for low-income residents to improve the energy efficiency of homes by replacing energy consuming appliances, weather stripping and insulation. To be eligible, a person’s income must be up to 200 percent of the poverty level. Priority is given to the elderly, persons with disabilities, families with children, high energy users, and households with high-energy burdens. The grant is up to $6,500 per home. More than 10,000 homes are expected to receive improvements each year through this program. The program includes funds to train contractors for the work. All funds must be spent by March 31, 2012.

Mortgages

Homes built following green building standards may also qualify for special "green" financing. Called an Energy Efficient Mortgage (EEM), they can offer you more purchasing power.

The Colorado ENERGY STAR Mortgage (Bank of Colorado presentation download)

ENERGY STAR Explains several types of EEMs and provides links for additional information.

U.S. Department of Housing and Urban Development (HUD): Energy-Efficient Mortgage Program The Energy-Efficient Mortgage Program is one of many Federal Housing Authority programs that insure mortgage loans to encourage lenders to make mortgage credit available to borrowers, such as first-time homebuyers, who would not otherwise qualify for conventional loans on affordable terms.

Energy Ratings and Mortgages Energy efficient homes may qualify for mortgages that take into account a home's efficiency. Residential Energy Services Network (RESNET) provides information on home energy rating systems, energy efficient mortgages, and finding certified energy raters and lenders who know how to process energy efficiency mortgages.

Other Resources:

Funding Opportunities Compiled by the Environmental Protection Agency

Financing an Energy-Efficient Home This fact sheet from the Department of Energy features an overview of energy-efficient financing programs from mortgages to home improvement loans.

Refinancing for Energy-Efficiency Improvements An overview of refinancing to make energy efficiency improvements, from the Alliance to Save Energy.

Federal Housing Administration (FHA) Offers an Energy Efficient Mortgage (EEM) Home Owner Guide, which details the benefits and opportunities of this type of financing.

Consumer Incentives from the Tax Incentives Assistance Project

Private Financing Mechanisms

Many private Full Home Service Companies and Solar companies have created their own financing programs. When you are choosing a contractor keep this in mind but also be careful to explore the interest rates and make an informed decision about the economic benefits of each financing offer.