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Energy Services Agreement and Power Purchase Agreement at Continental Plaza


Chicago , IL

Project Overview

PNC Bank
Lender Type: 
For-profit lender
Affordable Community Energy (ACE)
Property Type: 
Property Ownership: 
Deal Overview: 

Continental Plaza is a 1950s building that provides 164 affordable, one-bedroom apartments for seniors. To fulfill the U.S. Department of Energy’s Better Buildings Challenge, Hispanic Housing Development Corporation formed Affordable Community Energy, a unique mission-driven energy services company model. Through lighting, HVAC, solar photovoltaic, combined heat and power, and water conservation upgrades, ACE helped Continental Plaza reduce its 2014 utility costs by over $47,000. Retrofit measures resulted in over $784,000 in potential added property value.

Improvements Covered: 
Energy efficiency, Renewable energy, Water efficiency
Type of Project: 
Total Units: 
Scope of Efficiency Work: 
The renovations included installing an extensive solar photovoltaic system on the Chicago rooftop, which generates about 200,000 kWh each year, and a micro combined heat and power system—a relatively new concept for multifamily housing in the United States—to generate electricity from wasted heat energy from the building’s domestic hot water. In addition, a 10-year shared-savings energy performance contract and power purchase agreement gives the owner the added benefit of a third-party providing the operations and maintenance necessary to sustain the efficiency savings throughout the contract.

Financing Details

Financing Type: 
HUD loan, Energy Services
HUD Energy Innovation Fund Grant
State and utility incentives
Other Sources: 
New Markets Tax Credits, Solar Investment Tax Credits
Completion Status: 

Underwriting Considerations

Project Affordability Criteria: 
This is a subsidized property

Additional Information