Groundbreaking Financing for Energy Upgrades in Affordable Housing: "The Pay from Savings Approach"
Bright Power - April 19, 2018 - How do affordable housing organizations lower operating costs while keeping tenants comfortable? The obvious solution: upgrade buildings to use less energy and water and deliver better comfort. But it’s not so easy to secure funds to pay for efficiency upgrades. Even with incentive funds that are available from utilities and the government, owners have to get creative. With the “Pay from Savings” financing model, owners can complete efficiency improvements when they are needed most, rather than waiting for refinancing or taking out a secondary loan.
In 2016, Mercy Housing, one of the largest affordable housing nonprofits in the country, sought out assistance in upgrading its California portfolio of nearly 100 properties and 6,500 units.
Read about Mercy's partnership with Bright Power and the Affordable Community Energy Services Company to create a groundbreaking "pay from savings" financing approach.