Florida Housing Coalition Annual Conference Tuesday, Oct 31, 2017
Doug Coward Executive Director Background, History, Strategy, Partnerships, Lending Programs, Types of Improvements, Trends and Next Steps. Duanne Andrade Chief Financial Officer Impacts, Capital Providers, Funding Types, Loan Products, Special Programs, Lending Criteria, and Results.
In 2009, St. Lucie County was selected as 1 of 22 local governments in America to receive seed funds from the U.S. Dept. of Energy (DOE) to create an innovative local clean energy financingprogram (i.e., green CDFI) SELF became an independent, non-profit 501(c)(3) in 2010. Staff of 7, overseen by a 7 member Board of Directors. SELF s loan program became operational in the Spring of 2011, and started as a pilot program in St. Lucie County SELF was certified as a Community Development Financial Institution (CDFI) in 2012 and recertified statewide in 2014.
Rebuild and empower underserved communities by providing access to affordable and innovative financing for sustainable property improvements
BUILDING SCIENCE EXPERTISE ACCESS to FAVORABLE FINANCING (Financial Inclusion) PROJECT MANAGEMENT
SELF LENDING PROGRAMS Community Development Financial Institution (CDFI). Residential Loans (Florida) Worldwide Crowdfunding For Veterans & Women Residential Loans (Florida) Property-Assessed Clean Energy Land Secured Assessments Res. & Com. (St. Lucie Only)
Community Development Financial Institutions (CDFI) are private financial institutions dedicated to delivering responsible, affordable lending to help low-income and disadvantaged people. SELF is dedicated to servicing market niches often underserved by traditional financial institutions. Underbanked. CDFIs must direct at least 60% of their financial product activities to one or more eligible low-income target markets, targeted populations, and investment areas. SELF has consistently exceeded these minimum CDFI lending thresholds. TARGET MARKET best described by United Way s acronym ALICE Asset-Limited, Income-Constrained, Employed. SELF was certified in 2012, and re-certified statewide in 2015.
Energy Conservation and Efficiency (e.g. weatherization, highefficiency AC, LED) Renewable Energy (e.g., solar water heaters, solar PV panels, solar attic fans, solar A/C systems) Wind-HazardMitigation (e.g., roofs,windows,hurricane shutters) Water Conservation (e.g., high-efficiency irrigation systems) Water Quality (e.g., septic tank conversion, sewer line replacement) Aging in Place and Disability Products (e.g., wheelchair ramps, walk-in showers)
PACE Anchored by several billion dollars of successfully completed projects in California, and has now spread to more than half of the United States. Florida adopted PACE enabling Legislation in 2010, and it has rapidly advanced in the last several years. California also offers some Lessons Learned. SOLAR CO-OPS (bulk-rate rooftop solar PV). FL SUN and elsewhere throughout the United States. SUNSAVERS (Pilot in St. Lucie County) Combining affordable wholesale solar PV prices with 3 local clean energy financing programs.
Solar PV prices are currently about $3.50 watt in Florida and can be reduced by 30-40% with bulk-rate purchase price of $2.00 watt. The typical house in FL needs an 8 kw (8,000 watts) solar PV system to meet all household electricity demand - Net-Zero Home. Retail = 8,000 watts x $3.50 per watt = $28,000 Wholesale = 8,000 watts x $2.00 per watt = $16,000 With 30% federal tax credit ($4,800), Net Cost = $11,200 ROI is 6 years energy savings pays off original investment. Homeowner saves over $30,000-$40,000 through 25 year warrantied-life of the system.
Duanne Andrade Chief Financial Officer
TYPES OF FUNDERS
CAPITAL PROVIDERS *************************************************************************** Total Investors: 23 Total: $6.73 M Faith Based: 15 Banks/Financial: 4 Impact Investors: 1 Government:2 Crowdfunding: 1
SPECIAL PROGRAMS ********************************************************************* Worldwide crowdfunding platform Peer-to-peer lending Total Raised = $428,000 SELF is one of a dozen approved field partners in North America. This innovative crowdfunding program promotes clean energy, green jobs, and helps to alleviate poverty. Target Groups: 1) Women 2) Veterans SELF also works with Veteran programs to support job training and employment opportunities for veterans.
LOAN PRODUCTS ********************************************************************* Amounts: $1,000-$50,000 Terms: Fixed interest rates CDFI Resiliency Loans: 1 6 yrs. / 7-9.5% KVA: 5 yrs./ 5% No minimum credit required No asset guarantees required Average Loan size: $8,500 Average Interest rate: 8.75% PACE: Voluntary Add Valorem Assessment. Asset backed. 5 20 yrs./ 7-8.54% (* St. Lucie County only)
Lending Criteria for CDFI Program ********************************************************************* Qualifying Criteria Must have provable Income Must have min 6 months of current mortgage payments Must have property taxes current Must provide proof of home ownership SELF pulls credit and reports loans to credit Bureau Approval Criteria Ability to repay (disposable income) Ability to provide co-signer or cash collateral as additional security if low disposable income. Securities added: UCC to removable items i.e.- A/C system.
TRIPLE BOTTOM LINE IMPACTS ************************************************************************ Social - Comfort, health, quality of life, safety Environmental - Co2 emission reduction. Advancement of clean energy. Education and awareness of energy efficiency and sustainable home improvements. Increasing climate resiliency. Economic - Increased home equity and resale value Reduce operating costs (i.e., energy & insurance) Local job creation through approved contractors Safeguarding of home, often the family s largest asset
*********************************************************************** Completed 1,100 + energy audits Closed 706+ loans totaling $5.7 Million Grew from 5 Counties to 22 Counties across the state 72% of loans have been in LMI census tracts, 50% for seniors, 40% for women, and 20% for veterans Default rates are average 1%; Clients have reduced average household energy consumption by 23% Reduced 1,000 + metric tons of CO2 emissions Enhanced comfort, health and quality of life. Increased home equity and safety Local job creation (i.e., construction industry). 200+ approved contractors. (#1 contractor has completed more than $1 million of projects financed by SELF.)
*************************************************************************** My roof began leaking after Hurricane Matthew, and my bank wouldn t extend a loan to me to fix it. I was so scared that my roof was going to collapse. A friend told me that she was going through the SELF program so I called them and I was approved for a loan and able to get a new roof. I m so happy that I don t have to worry anymore! My air conditioner stopped working as soon as I bought my home. No one was going to lend me money to fix it, because I had no equity and my credit wasn t good enough for a personal loan. The company who came out to look at the A/C said it was too old to repair and gave me SELF s information. I was approved very quickly and they made sure I could afford my payments. SELF really took care of me.
********************************************************************* Lillieth: https://www.youtube.com/watch?v=fpmdudf euli Frances: https://www.youtube.com/watch?v=cbpff92mw4
AWARDS ****************************************************************************** National Achievement Award for local energy programs from the National Association of Counties (NACo) - 2012 Green Business of the Year award from the South Florida Chapter of the U.S. Green Building Council - 2013 Identified by the Opportunity Finance Network as 1 of 5 trailblazing CDFIs in America 2015 Exceptional Non-Profit in Innovation award from 211/TC - 2015 Highlighted in the White House report on Innovative Financing for Clean Energy Technologies 2016 Identified by U.S. DOE staff as a shining legacy of the Better Buildings Neighborhood Program and featured in their national newsletter of the Better Buildings Network 2017 Non-Profit of the Year finalist from 211/Treasure Coast - 2017
Contact Information ********************************************************************** Tel. #(772) 468-1818 www.solar energyloanfund.org Facebook/solarenergyloanfund