Catalyst Fund: Multifamily Gap and Health & Safety Financing Loan

General Information and Structure

Lender:

Connecticut Green Bank

Lending Type:

Green Bank

Jurisdiction:

This is a term loan that provides gap financing enabling qualifying energy improvements to be implemented as well as health and safety measures as needed. Owners must complete an energy opportunity assessment and/or audit appropriate to the project and satisfactory to the Green Bank in order to identify the full set of energy upgrades that will deliver a positive ROI, thereby increasing the value of the property. Catalyst funds are intended to support investments in comprehensive, deeper energy improvements as well as remediation of health and safety issues that enable these improvements. One example of the use of this product is is Success Village, a 924-unit housing co-operative in Bridgeport and Stratford. A $165,000 loan will cover a phase one pilot that includes asbestos removal from piping on the central heating system which was installed in the 1960s. Completion of the pilot will inform design, engineering and implementation of health and safety and energy upgrades for the full property.

Active or Closed Program?:

Active

Years Offered:

2015 - Present

Eligibility Criteria:

Residential MF with 5+ units owned privately or by non-profits or housing authorities

Type of Financing:

Mini-Permanent/Permanent

Loan Size Range:

Up to $300,000 (higher amounts subject to approval)

Type of Improvements Covered:

Up to 100% of the loan may be used for health and safety issues. Electric/gas utilities' criteria for rebates as specified in a LOA. Eligible measures are those under CGB C-PACE or Smart-E programs; Fuel conversions; Energy storage; Electric vehicle charging stations; Other upgrades with a commercial record of realized savings, as approved; Project commissioning; Energy performance monitoring.

Financing Details

When is the Product Applicable?:

Acquisition

Mid-cycle

Refinancing

Interest Rate:

Project-dependent / +3%

Maturity:

Up to 20 years

Security:

Secured

Additional Information

Point of Contact:

[email protected] and (860) 257-2333

Program Notes:

Prepayment allowed with no penalty. Subordinate, secured debt. Unsecured debt may also be considered based on requirements of existing debt and property/project financials.

Link to Additional Information:

https://ctgreenbank.com/programs/multifamily/catalyst-fund/