As Housing and Energy Costs Continue to Rise, Ygrene Becomes First PACE Financing Provider to Complete 25 Multifamily PACE Upgrade Projects
May 6, 2015
SANTA ROSA, CA -- On the heels of an announcement by Governor Brown and the U.S. Department of Housing and Urban Development declaring support for Multifamily PACE, Ygrene Energy Fund Inc. today announced that it has completed 25 multifamily PACE upgrade projects. Ygrene, a leading PACE financing provider, is the first and only PACE provider to complete energy upgrade projects for multifamily housing ranging from 6 units to as many as 184 units, with market values up to $9.1M.
The diversity of projects covered by Ygrene Works speaks to the versatility of the program as well as its potential to address this historically underserved market. The benefits of multifamily PACE projects include 100% financing for building upgrades with no out-of-pocket costs, non-recourse to the owner – the financing stays with the building upon sale, and a non-callable 20-year fixed rate. It can also help improve a multifamily housing project's balance sheet, and is both tax efficient and tax deductible. On average, no payment is required for the first 12 months.
"Between local rebates and Ygrene financing, it's a no-brainer for my clients," said Michael Grossberg, a Sacramento-based contractor who worked on several of Ygrene's multifamily projects. "Federal rebates sparked an initial interest amongst property owners for energy efficiency, renewable, and water conservation retrofits, and when the funding dried up, Ygrene was right there to help continue to make these projects a reality."
In January 2015, Governor Brown and the US Department of Housing and Urban Development announced a series of actions aimed at expanding financing for energy improvements in multifamily housing. The Governor established a Multifamily PACE Pilot which will enable PACE financing for certain multifamily properties, including specific properties within HUD, the California Department of Housing and Community Development, and the California Housing Finance Agency's portfolios, opening up financing to a new segment of commercial PACE projects.
"In today's market the majority of renters are paying for their own gas & electricity, so anything we can do to upgrade our property to make it more appealing, including double paned windows and other energy saving upgrades, is a nice differentiator. Ygrene's financing has made that possible," said Dick James, owner of DJA Properties. "We've completed 9 property upgrades with Ygrene and have another 6-8 in the pipeline. Their contractors are professional, efficient and a pleasure to work with and I look forward to completing more projects with them in the future."
Commercial PACE programs serving the multifamily housing market are central to making affordable housing more energy efficient. According to HUD, there are more than 3 million multifamily housing units in California alone, and improving the energy efficiency of these buildings nationwide by 20% would save nearly $7 billion in energy costs each year and cut 350 million tons of carbon pollution in a decade.
"The support that Governor Brown and HUD have shown multifamily PACE programs showcases the true potential of PACE to accelerate energy efficiency and conservation efforts in a completely underserved market – multifamily housing," said Stacey Lawson, CEO of Ygrene Energy Fund. "The recently developed HUD guidelines are the first of their kind and we are excited to see PACE become part of the toolkit to help meet our climate goals with regard to multifamily housing. As homeownership continues to decline in the US, we believe it is critical to provide multifamily units with the same financing benefits we've been offering in the residential and commercial sectors for the past five years."
About Ygrene Energy Fund
Ygrene Energy Fund is the leading developer and administrator of clean energy financing programs throughout the United States. The fully funded Ygrene Works program provides immediately accessible financing for renewable generation, energy efficiency and water conservation upgrades to both residential and commercial property owners at no upfront costs. Over the next five years, the Ygrene Works program is projected to create tens of thousands of local jobs and invest hundreds of millions into local economies. Learn more at www.ygreneworks.com.