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Low-Income Multifamily Energy (LIME) Loan

General Information and Structure

Capital For Change and Connecticut Green Bank
Lending Type: 

The LIME loan program funds energy improvement projects for low- and moderate-income properties (where at least 60% of units serve renters at 80% or lower of Area Median Income) and is geared towards mid-cycle energy improvements. The LIME Loan program is delivered through a partnership with Capital for Change, a local CDFI (formerly known as Connecticut Housing Investment Fund) and provides unsecured loans that cover 100% of project costs, require no money down, and are repaid from energy cost savings for terms up to 20 years. Projected energy savings are used to cover the debt service of the loan. The Green Bank supports LIME with a $625,000 loan loss reserve and provided $3.5 million to capitalize the initial $5 million loan fund.

Active or Closed Program?: 
Years Offered: 
2013 - Present
Eligibility Criteria: 
Income eligible properties: At least 60% of units must be designated affordable to households at no greater than 80% of Area Median Income
Type of Financing: 
Loan Size Range: 
$10,000 - $1,000,000+
Type of Improvements Covered: 
Any activity that generates quantifiable energy savings. Up to 25% of loan proceeds may be used for non-energy efficiency improvements (structural, health/safety, etc.), provided there are sufficient savings to carry the costs.

Financing Details

When is the Product Applicable?: 
Interest Rate: 
Visit www.ctgreenbank.com/multifamily for current rates
5-20 years

Additional Information

Point of Contact: 
[email protected] and (860) 257-2333
Program Notes: 
1.3x or greater project energy savings coverage ratio is required, or 1.1x or greater energy savings ratio for solar-only projects. If a property is currently rented, owner must demonstrate 12 months of positive net operating income prior to subject improvements. Evidence of assets sufficient to pay six months' worth of interest payments is also required. Rent restrictions: A one-year freeze on rent increases greater than the CPI cost-of-living may be required for properties where tenants do not pay their own utility bills, and the units are not currently governed by rent restrictions.