1 / 38

DOE Technical Assistance Program

DOE Technical Assistance Program. March 17, 2011. CDFIs: Opportunities for Partnerships with Energy Efficiency Programs. What is TAP?.

alan-acosta
Download Presentation

DOE Technical Assistance Program

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. DOE Technical Assistance Program March 17, 2011 CDFIs: Opportunities for Partnerships with Energy Efficiency Programs

  2. What is TAP? DOE’s Technical Assistance Program (TAP) supports the Energy Efficiency and Conservation Block Grant Program (EECBG) and the State Energy Program (SEP) by providing state, local, and tribal officials the tools and resources needed to implement successful and sustainable clean energy programs.

  3. How Can TAP Help You? On topics including: • Energy efficiency and renewable energy technologies • Program design and implementation • Financing • Performance contracting • State and local capacity building • TAP offers: • One-on-one assistance • Extensive online resource library, including: • Webinars • Events calendar • TAP Blog • Best practices and project resources • Facilitation of peer exchange

  4. The TAP Blog Access the TAP Blog!http://www.eereblogs.energy.gov/tap/ Provides a platform for state, local, and tribal government officials and DOE’s network of technical and programmatic experts to connect and share best practices on a variety of topics.

  5. Accessing TAP Resources We encourage you to: 1) Explore our online resources via the Solution Center 2) Submit a request via the Technical Assistance Center • 3) Ask questions via our call center at 1-877-337-3827 or email us at solutioncenter@ee.doe.gov

  6. Upcoming Webinars Please join us again: Title: Developing Low-Interest Retrofit Loan Programs for the Multifamily Sector  Host: Sarah Busche and Karlynn Cory, NREL Date: March 23, 2011 Time: 3:00 - 4:15 PM EDT Title: Ask the Expert: Energy Savings Performance Contracting  Host: Meg Giuliano, ICF; Karl Berntson and David McGeown, SRA; and Doug Dahle (NREL) Date: March 24, 2011 Time: 1:30 - 3:00 PM EDT Title: Qualified Energy Conservation Bonds (QECBs): Updates From the Field Host: Elizabeth Stuart, LBL Date: March 28, 2011 Time: 2:00-3:30 PM EDT Title: Developing an Evaluation, Measurement, and Verification Plan: Residential Retrofits Host: Julie Michals, NEEP Date: March 29, 2011 Time: 2:00 - 3:00 PM EDT For the most up-to-date information and registration links, please visit the Solution Center webcast page at www.wip.energy.gov/solutioncenter/webcasts

  7. The Opportunity Finance Industry March 17, 2011 The Opportunity Finance Industry Created by: Opportunity Finance Network, Wanda Speight, EVP, Finance

  8. Opportunity Finance Network • Opportunity Finance Network (OFN) is the nation’s leading network of community development financial institutions (CDFIs), with 184 high-performing CDFI Members that serve low-income and low-wealth people and communities in all 50 states and mange more than $9 billion in capital. • For more than 25 years, OFN has been the leading catalyst in the CDFI industry, focusing on and excelling at: • Understanding and assessing CDFI performance; • Building deep and broad public support for opportunity finance; • Convening practitioners and partners to share knowledge about practice and strategy; and • Driving strategic innovation.

  9. The Opportunity Finance Industry • The opportunity finance industry is a leading source of innovative, market-based solutions for economically distressed communities and underserved people across the United States. • CDFIs are leaders of this mission-driven industry, which over the past 30 years has grown to include revolving loan funds, venture funds, banks and credit unions managing over $30 billion in total assets. • Serving all 50 states and a growing number of Native unions, CDFIs currently provide more than $5 billion annually in loans, investments, and financial services to urban, rural, and Native communities.

  10. The CDFI Footprint & Impact • The opportunity finance industry is diverse. Individual CDFIs focus on the unique market conditions of the communities where they operate. • Many CDFIs are engaged in housing, while others focus on small business or community development. CDFIs my also provide retail financial services, financial education, and technical assistance to small businesses.

  11. The CDFI Footprint & Impact • CDFIs by the Numbers • 35,624: Job created or maintained via small business and microenterprise opportunity finance; • 60,205: Affordable housing units constructed or renovated with CDFI investments; • 16,405: Responsible mortgages financed to first-time and other homebuyers; • $20.5 billion: Total CDFI direct opportunity finance outstanding. CDFI Data Project FY 2008

  12. For more information please visit: • www.opportunityfinance.net • www.cdfifund.gov

  13. CDFI Approach to Energy Efficiency March 17, 2011 Enterprise Cascadia John Berdes, President Adam Zimmerman- Sr. Vice President

  14. Product: Standardizing a Customized Need • CO2 Matters: Energy usage screen • Prioritize the greatest CO2 impact • Low Touch Underwriting • Non-Traditional: Utility payment history, FICO >590 • IT Platform: Linked to utilities and loan management • Product Specifications • Rate: 5.99% (3.99% for <250% Federal Poverty) • Term: 20 years • Security: subordinated lien on property • Servicing: on bill of utility providing energy for heat • Risk: Cash funded loan loss reserve: 10% • Affordable: Goal is net zero impact on the family budget • Delivery financed by fees not interest margin

  15. Outputs

  16. Why? • CDFI Brand: If we don’t the carbon economy will be just about carbon, not opportunity • Positioned: Seizing the opportunity at the earliest stages of an emerging industry • Policy: Removing the obstacles to policy innovation and unleashing huge demand • In turn creating marketsthat deliver outcomes • Regional: CO2 demands regional response and aggregated resources • Resource: Substantial and sustained to bottom line

  17. Outcomes (12/31/10)

  18. Market-Maker Goal: Shift the residential energy efficiency market to an environment where action to improve the efficiency of homes is as easy as buying a car with better gas mileage. • Standardized product offering with options • Standardized & auditable performance rating • Widely branded “outlets” for sales • Affordable, easy to access financing terms • Warranty and peace of mind (value proposition) Ultimately, the product must remove obstacles to policy decisions that drive markets to “value” efficiency

  19. Cross Selling: Aligned Products • Efficiency Contractor Finance • Start Up for New Entrants Goal: Support business productivity and growth to meet demand • Provide access to working capital • Blanket loan agreements for individual contract advances • Incent quality assurance • Build credit management capacity • Enhance relationships with suppliers and subs • Lay groundwork for supply chain management Goal: Create access to the market for emerging firms historically under-represented in this space. • Program preference for underserved and rural firms • Dedicated technical assistance, training, and certification support • CDFI capital enhanced by community partners • Partnerships with existing firms

  20. Liquidity Drives the Bus • Mandate: Setting the pace on the product and TBL tactics demands setting the pace on liquidity • Now: $10M pilot, Q2-11: Replicable, marketable • Tiered PRI/SRI/Market with 20-30% guarantee • Yield below market in the 5.5% range • Right regional players at the table • Challenges: price point; portfolio performance; underwrite; maturities; market place • Bottom Line: Liquidity must value the outcomes and the pace of achieving them

  21. City of Indianapolis- Office of Sustainability and INHP Partnership March 17, 2011 John Hazlett- City of Indianapolis, Office of Sustainability Becca Murphy- INHP, EcoHouse Project Manager Joe Huntzinger- INHP, VP of Lending, Corporate & Capital Development

  22. Office of Sustainability • Created in October 2008 • City-wide effort across City departments • Public-Private Partnership Approach • Focus on long-term cost savings, building our economy, improving the local environment and enhancing our quality of life www.sustainindy.org

  23. DOE BetterBuildings Grant Funding Background: • 2009 Recovery Act • $482M allocated to BB Program • 34 Grant Recipients Total • City of Indianapolis awarded $10M

  24. Near Eastside Sweeps Grant Program Near Eastside Sweeps Grant Program • Retrofit 800 homes, 200 businesses and 20 non-profits (churches and community centers) • $1,500 per home, $2,000 per business/non-profit will be available as a grant • Eligible measures will include: • Air Sealing and insulation • HVAC equipment upgrades • Duct repair and sealing • Water Heater upgrades • Lighting

  25. Loan Program Partnership with INHP Key points: • INHP’s track record and history with the City • Acknowledge and work through issues early in the negotiation process • Respect the organization’s mission, organizational structure and existing relationships with lenders • Value institutional knowledge

  26. INHP • 22-year-old, independent, housing nonprofit • 501 (c)(3) • CDFI • Mission: To increase safe, decent, affordable housing opportunities that foster healthy, viable neighborhoods • Our mission is both people and place based • People – ANYONE with a real or perceived barrier to homeownership • Place – targeted neighborhoods of Indianapolis

  27. INHP Programs Comprehensive education—prepares our clients for success • Homeownership preparedness • Post-purchase support • Credit, budgeting, financial planning, and more Financing options—helping clients access a loan program that meets their needs • First mortgages • Emergency repairs • Accessibility loans • Down payment assistance

  28. Lending Demographics (2010)

  29. Service Area • As a nonprofit, INHP concentrates loan efforts to specific areas and families • Within the defined (tan) target areas: • Verified income up to 120% of the Area Median Income (AMI) as defined by HUD, based on family size. • Within the remainder of Marion County, City of Indianapolis: • Verified income cannot exceed 80% of the AMI as defined by HUD, based on family size.

  30. Targeted Income Metric A family of 4 with an income of $54,950 is at 80% of AMI A family of 2 with an income of $65,940 is at 120% of AMI

  31. Public, Private, Philanthropic Partnerships • INHP’s partnership network • Board strength and composition • Area Community Development Corporations and nonprofits • City and state government • Localbusinesses and lenders • Since, just 2000: • Nearly 12,500 families have completed an INHP homeownership program • INHP, with its lender partners, has invested more than $200 million in mortgages for Indianapolis families

  32. Loan Pool Structuring a Loan Pool • Previous pool leaders negotiate new pool terms • Terms are set with signed dollar commitments • Loan pool is closed with lead lenders • Additional participants are approached to invest

  33. Loan Pool • Key Terms • Pool Borrower is INHP • Collateral is the mortgages we make • 90/10 - Lender & INHP split • 180 day default buy-back • Borrower 30 year $$ = perfect hedge • Quarterly draw with interest rate set on draw date

  34. Loan Pool Proven track record More than 20 years and 6 loan pools • Totaling nearly $120 million • Never a loss to the lender • Five prior pools paid in full

  35. EcoHouse Loan Pool • New Loan Pool for the EcoHouse Project • Part A – Secured, secondary mortgages • Part B – Unsecured note loans • Shorter loan terms = shorter loan pool • Different rate index • But, same borrower / underwriting profile as prior pools • Collateral = $3 million loan loss reserve

  36. EcoHouse Project • INHP will: • Provide below-market rate, fixed-rate, fully amortizing loans for energy upgrades • Bring together available resources • Project management • Rebates - utility participation • Additional programs when homeowner needs go beyond eligible measures

  37. Basic Terms

  38. Upcoming Webinars Please join us again: Title: Developing Low-Interest Retrofit Loan Programs for the Multifamily Sector  Host: Sarah Busche and Karlynn Cory, NREL Date: March 23, 2011 Time: 3:00 - 4:15 PM EDT Title: Ask the Expert: Energy Savings Performance Contracting  Host: Meg Giuliano, ICF; Karl Berntson and David McGeown, SRA; and Doug Dahle (NREL) Date: March 24, 2011 Time: 1:30 - 3:00 PM EDT Title: Qualified Energy Conservation Bonds (QECBs): Updates From the Field Host: Elizabeth Stuart, LBL Date: March 28, 2011 Time: 2:00-3:30 PM EDT Title: Developing an Evaluation, Measurement, and Verification Plan: Residential Retrofits Host: Julie Michals, NEEP Date: March 29, 2011 Time: 2:00 - 3:00 PM EDT For the most up-to-date information and registration links, please visit the Solution Center webcast page at www.wip.energy.gov/solutioncenter/webcasts

More Related