Over the next two years, Enterprise Community Partners and a network of partners will catalyze $50 million in building improvements in low-income communities to improve health, sustainability, and resilience outcomes. The Enterprise Green Finance Platform has mobilized a significant new pipeline of projects, reaching new housing owners that have long-deferred building performance improvements.
The Enterprise Green Finance Platform is comprised of industry experts with a record of structuring complex financial solutions for affordable housing, clean energy investments, and business development. This blend of technical assistance, pre-development funding, payment assurance, and impact investment for projects within the pipeline will help building owners and property managers get to yes in greening their properties.
The Platform Team will build and support a network of service providers. Seven service providers with market leadership in developing affordable housing are engaged through the Platform, including several geographic markets. The Team will structure agreements that encourage the network to share pipeline and blend financing products at the project level, and integrates workforce planning and training to translate newly catalyzed economic activity into jobs.
The Platform Team will also host a customized suite of financial products. The Team can reduce fragmentation by customizing solutions at the project level, to transform successful approaches into a standardized set of product offerings. Customized Financing/Business Models include: Energy Service Agreements (ESAs), Public Purpose ESCO (PPESCOs), Civic PACE financing (PACE), Solar (PPAs or Community Shared Solar), and district-scale, micro-grids, or energy storage.
Finally, the Platform Team will raise Pre-development and Impact Investment funds to move the market. Through service providers, the team has a pathway to investable properties across the country. Building scalable, replicable models relies on philanthropic capital to mitigate risk and attract private capital to get to scale. This commitment is targeting $50 million of activity, but the pipeline is approaching $150 million.
Phase 1: Early Platform Development
Required time for completion of Phase 1: Four weeks (July 2016)
Task 1: Develop network of service providers, including workforce planning and training, new business development strategies, market expansion plans, and refined service offerings. (July 2016)
Task 2: Secure initial capital to support platform offerings and operations. (September 2016)
Phase 2: Market Development And Execution Of Exemplary Projects
Required time for completion of Phase 2: 16 weeks (November 2016)
Task 1: Proof of Concept: Project Execution with Engaged Owner (November 2016)
Task 2: Platform Build-out: Broaden Product Offerings and Originate Additional Pipeline (November 2016)
Task 3: Capitalize Platform, Customize Credit Enhancement and Philanthropic Offerings, and Increase Funder Support (November 2016)
Phase 3: Platform Expansion And Scaling
Required time for completion of Phase 3: Ongoing through October 2018
Task 1: Exemplary Project Execution (December 2016)
Task 2: Identify Pathway to Stabilize Capitalization and Funding for Operational Support (March 2016)
Task 3: Increase Platform Value Through Additional Products and Service Providers (Ongoing through 2018)
The Enterprise Green Finance Platform seeks three different types of capital. Philanthropic or other grant resources for pre-development work, Program-Related Investment and market rate capital for structuring project financing using the products identified and supported through the platform. Given the challenges of creating significant scale of work in affordable housing sectors and in low-income communities, a holistic approach offers a clear delineation of upstream, pre-development resources to help service providers work with building portfolio owners. The ability to tailor projects, customize financial products and build service provider capacity is essential to replication and scale.
The Enterprise Green Finance Platform would benefit from broader visibility in an effort to bolster greater support for activities that deliver meaningful benefits to societys most vulnerable people. The need and the work are not well understood outside of narrow industry communications channels.
The Enterprise Green Finance Platform has multiple implementation partners and excellent best practice information. Collaborative work with regional partners, housing authorities, non-profit building owners, and individual service providers will provide technical assistance and capacity building, and project and financial structuring support. Low-cost capital in the form of pre-development support, credit enhancement, and impact investment will be harnessed to meet the needs of building owners portfolios and unlocking project pipelines.