The Neighborhood Energy Loan Program targets small- and medium-sized multifamily building owners with a program that combines energy retrofit financing with a refinancing of the building's underlying debt and a holistic approach that considers all of the capital needs of a property. The program also provides a harmonized delivery system so that building owners can access a 'one stop shop' for various public incentive and subsidy programs. In addition the program manages access to skilled professionals at all levels of the intervention --from building energy audits, to construction supervision to superintendent training to systems performance monitoring.
CPC and Deutsche Bank, working as Agent Bank, expect to raise million in commercial and philanthropic capital for the pilot's first year. Their goal is to enable billion in residential retrofits over the next decade.
CPC as the implementing partner would: provide construction and permanent financing, structuring energy retrofit into building's total financial and physical needs; refinance properties' underlying debt; provide technical assistance to borrowers during financing and construction phase; ensure quality implementation of energy audits; simplify application and documentation required for various subsidy programs provided by government and utility sources, real estate taxes and abatements, and low-cost grants and loans.
Building upgrades include: improvements to mechanical systems, such as plumbing, electrical, meters, etc.; air sealing and weatherizing building envelope; health and safety improvements such as lead paint abatement and mold remediation; improved management through ongoing training; sizeing heating and hot water systems; reduce water usage with low-flow fixtures. Properties are expected to achieve 20 - 40 percent reduction in energy usage.
Deutsche Bank will also partner with a research institution to: document the costs and benefits of energy retrofits so that data can be used to change retrofit finance underwriting standards analyze the supply chain and small business development implications of scaling up this sector; and identify weatherization and building management workfore training needs.
Retrofitting existing buildings has long been recognized as the 'low hanging fruit' of combatting climate change. According to the Clinton Climate Initiative, 75% of greenhouse gas emissions come from cities, and the PlaNYC 2030 report states that buildings are responsible for 69% of New York City's carbon emissions. Although retrofit technologies and strategies are well-known, significant logistical and financial barriers remain that have prevented building retrofits to achieve scale. For example, unsophisticated building owners may have difficulty: initiating energy audits; making capital upgrades in their buildings without certainty that operating costs will be reduced; accessing various public or utility subsidy and incentive programs; supervising construction of retrofit projects, etc. Deutsche Bank, working through its longstanding nonprofit partner Community Preservation Corporation (CPC), is developing a financing and operational capacity to rapidly scale-up building retrofits by creating a one-stop shop that would faciliate these retrofit programs and motivate building owners to address climate change issues by retrofits attractive bottom-line propositions.
SEEKING: financial assistance, best practice information; media and marketing opportunities
Deutsche Bank seeks additional financial resources in the form of commercial capital for the maintream retrofit program, and philanthropic loans for the high mission-impact, high-need buildings. It is also looking for philanthropic grants to help it arrange for research and evaluation for the initiative. It is looking for marketing opportunities to help bring in new investors/lenders to the program, and media support to help disseminate best practices.
OFFERING: financial assistance, implementing partnership, best practice information, media and marketing assistance.
Financial Resources: Deutsche Bank has committed $15 million in financing to the NYBRP, alongside CPC's commitment of $10 million. Deutsche Bank has also committed $500,000 of philanthropic loan capital to the high mission-impact program. A number of other financial instutions and foundations have provided soft commitments of over $50 million (formal commitments pending; it is expected that most of these to be formally committed by the CGI announcement). Implementing Partners: CPC will identify properties, originate all retrofit loans, provide technical assistance to borrowers to identify energy auditors and to supervise upgrade work. Best Practice Information: Over the last year, CPC hired a new Vice President of Energy Efficiency with 20+ years of experience in building energy work. Media/Marketing: Deutsche Bank has longstanding relationships with local, national, and international media.
