PON 1606 - Residential Loan Fund Program

The New York State Energy Research and Development Authority (NYSERDA) announces Program Opportunity Notice (PON) 1606 to seek applications from 1) Eligible Participating Lenders who wish to offer their customers access to the Residential Loan Fund Program; and from 2) Eligible Borrowers seeking an Interest Rate Reduction on Loans from Participating Lenders to finance the purchase and installation of qualified energy efficiency improvements.

A Borrower’s access to the Residential Loan Fund is contingent upon prior approval through the Home Performance with ENERGY STAR Program.

The Residential Loan Fund currently offers Eligible Borrowers an Interest Rate Reduction of up to 4.0% or 400 basis points less than a Participating Lender’s normal market interest rate on Loans up to $20,000, except up to $30,000 for customers in the Consolidated Edison service territory, for a term of up to ten (10) years.  Eligible Borrowers must use funds for the purchase and installation of qualified energy efficiency improvements.  The Interest Rate Reduction may be capped by NYSERDA so the interest rate charged to the Borrower is not lower than 3.0%.   

NOTICE Effective January 11, 2010:

• Participants in the PV and Wind Incentive Programs are no longer eligible for participation in the Residential Loan Fund.
  

The Residential Loan Fund Program is a component of New York Energy $mart^SM, a public benefit program designed to lower electricity costs by encouraging energy efficiency.  One of the goals of the Residential Loan Fund is to demonstrate to financial institutions the economics of lending for energy efficiency and renewable energy projects.

Eligibility Requirements

Eligible Participating Lenders include commercial banks, savings and loan associations, credit unions, farm credit associations, community development financial institutions, and other financial institutions regulated by New York State and Federal regulatory agencies, as well as leasing subsidiaries of bank holding companies or bank-owned leasing companies.  For purposes of the Loan fund, references to Loans shall include Leases. Approval of a Participating Lender shall be at the sole discretion of NYSERDA.

Eligible Borrowers must be approved for financing through a Participating Residential Loan Fund Lender, and use the funds for the purchase and installation of certain eligible energy efficiency improvements to qualified Existing 1- to 4- Family Homes that are assessed the System Benefits Charge (SBC) by one of the following investor-owned gas or electric utilities:

• Central Hudson Gas & Electric Corporation
• Consolidated Edison Company of New York, Inc.
• National Grid
• New York State Electric & Gas Corporation
• Orange and Rockland Utilities, Inc.
• Rochester Gas and Electric Corporation.

Assisted Home Performance Program Lenders (RFQ 925)

Residential Loan Fund Lenders who wish to participate in NYSERDA’s Financing for Assisted Home Performance with ENERGY STAR^® program may obtain detailed program information below.