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Multifamily Green Financing Program

General Information and Structure

Cinnaire Lending, Various Lenders
Lending Type: 

Cinnaire Lending (the CDFI arm of Cinnaire, previously Capital Fund Services) secured a contract with the MI State Energy Office to support a loan loss reserve for lenders financing efficiency projects. The loan loss reserve (LLR) covers up to 25% of the loan (just for the efficiency component if the project is broader than just efficiency). The financing is available only through Michigan Saves' authorized network of contractors. Michigan Saves manages coordination of additional incentives, e.g. utility rebates, tax credits and provides overall management of the program, including marketing and project inspection. Several lenders involved in the program were leasing companies, several were CDFIs and one was a PACE lender. Cinnaire solely provided the LLR. The money provided to Cinnaire by the State Energy Office for the LLR is a "repayable grant" – unspent dollars will be sent back at the end of the contract period. There have been no requests for compensation from the LLR to date. Other features of the program include the availability of up to 50% prefunding for approved contractors for transactions over $5,000 and low fees ($250-$500).

Active or Closed Program?: 
Years Offered: 
Eligibility Criteria: 
Partial loan guarantee is only available to multifamily properties
Type of Financing: 
Loan Size Range: 
Type of Improvements Covered: 
Typical improvements include LED lighting replacement, high efficiency HVAC, EnergyStar appliances, insulation, caulking and weatherstripping, energy-efficient windows and doors, and water conservation measures.

Financing Details

When is the Product Applicable?: 
Interest Rate: 
As low as 5.9% - tiered based on risk, project size and term
Up to 7 years


Impact : 
The program hoped to achieve $16M of financing ($4M was provided by the state energy office for a LLR), but that amount was not achieved. The program supported about $5.5M of improvements over 6 years.

Additional Information

Point of Contact: 
Program coordinator: Todd O'Grady [email protected]