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A COMPREHENSIVE ENERGY CONSERVATION PROGRAM SERVING 1-4 UNIT <br />OWNER OCCUPIED PROPERTIES IN SUBURBAN RAMSEY COUNTY <br />How the Proiect Meets HUD Criteria <br />The proposed project is a two tiered program of low interest <br />installment loans and deferred loans for energy conservation <br />improvements in 1-4 unit owner occupied pr"perties. The program <br />meets HUD criteria by restricting the loans to low and moderate <br />income househulds" Within the City of _ there are <br />approximately people who would be income eligible for <br />the program (household annual adjusted income not exceeding <br />$24,V00)" <br />The project's benefits to the community are manifold. The low and <br />moderate income population benefits both from interest rates far <br />below the market standard, and the positive impact of reduced <br />space heating costs an household expenses" In addition, energy <br />efficiency investments stimulate the local economy by providing <br />new jobs, improving the housing stock and reducing the drain of <br />energy dollars from the state economy. Finally, the program is <br />designed to serve that segment of the community which existing <br />snbsidired loan programs do not reach. <br />The program will be administered by the Energy Resource Center <br />(ERC), a non-profit 5()1 c 3 corpnrati"n operated as a <br />public/private partnership between the City of St" Paul and <br />Northern States Power Co. One of the ERC`s primary objectives is <br />to develop low-interest regenerative capital pools for energy <br />efficiency investments in residential properties~ Since its <br />inception in 1981, the ERC has originated over $b million in <br />single family loans and $1 million in multi-family loans. <br />The ERC will secure a hard dollar match of $300,000 in MHFA Home <br />Improvement Loan Program funds. These funds will be used to <br />increase participation in the proposed loan program. In <br />addition, use of MHFA funds allows the ERC to spread start-up and <br />operational costs over more units (loans), waking the program <br />more cost effective. The ERC expects the community to assist in <br />marketing the program. <br />Main Elements of the Program <br />The program proposes to provide a loan pool of $230^000 from CDDR <br />funds and $300,0()0 from MHFA funds for use in a two-tier program. <br />Each tier uses a separate financing mechanism to address the <br />targeted sectors of the low-income market. <br />�� <br />� <br />