May 29, 2020
From June 1, NYSERDA will implement temporary changes to Green Jobs Green New York (GJGNY) financing. These changes come in the shape of expanded access to GJGNY 0% financing, which will now be on offer to the demographics outlined below. These loans are intended to finance energy efficiency improvements, as well as renewable energy systems for terms of 5/10/15 years.
1 - 4 Family Residential
Small Commercial (100 employees or less)
Nonprofits
This 0% financing will be on offer for a limited promotional period. This period will last either 12 months, or until the available funds are exhausted. Following the completion of this promotional period, rates will return to normal, as outlined below.
Residential Borrowers: 3.49%/6.99%
Commercial/Nonprofit Borrowers: Prime Rate + 2%
The FAQ below, courtesy of NYSERDA, outlines the full criteria & availability of these loans in much greater detail.
1. Is the GJGNY 0% financing available to everyone no matter income level or geographic location?
Yes, the 0% financing will be available to everyone. There are no income or geographic location limits. The financing will be available for all technologies that are financed through the GJGNY loan fund (i.e. energy efficiency, solar, air source heat pump, ground source heat pump, Renewable Heat NY).
2. Is the 0% financing rate only good for the promotional period or for the entire term of the loan?
The 0% rate will be for the entire term of the loan (i.e. 5, 10 or 15 years).
3. How long will the 0% financing be offered?
The 0% rate will be offered for a promotional period of 12 months or when the available funds are exhausted.
4. What does “until available funds are exhausted” mean? Is that in reference to the incentives or will there be a limit set on the available funds for the GJGNY 0% financing offer?
There will be a limit set on the amount of GJGNY loan funds that will be available for 0% financing. For Residential Financing we estimate approximately $20 million to be available to support 0% loans. For Small Commercial/Not-for-Profit we estimate approximately $530,000 will be available to support 0% loans. NYSERDA will provide communication to contractors when funding is exhausted.
5. Is there a payment deferral?
Smart Energy Loans offered through GJGNY during this period will include a grace period of three months before the first payment begins.
6. Why aren’t On-Bill Recovery (OBR) loans receiving a grace period before first payment begins?
The first payment for OBR loans does not occur until one or two billing cycles after the loan is originated which allows for a natural grace period.
7. Will there be any changes to the loan approval criteria for residential customers for the GJGNY 0% financing?
No, the loan approval criteria remains the same and can be found on NYSERDA’s website.
8. Where can I find information on the Small Commercial/Not-for-Profit Financing Program and it works?
Information on the Small Commercial/Not-for-Profit Financing Program can be found on NYSERDA’s website.
9. How long will the approval on the GJGNY 0% financing rate be good until?
The pre-approval on the 0% rate will be valid for 90 days from the date that pre-approval was issued. Executed loan documents must be returned to the loan originator EFS within that 90-day period or the loan pre-approval will expire. If loan documents are not executed and returned by the 60-day mark, the contractor and customer will be sent a reminder advising them of the expiration date and advising them in order to get the 0% financing they must submit any outstanding items and return the executed loan documents OR request an extension within 15 days of the letter.
Customers who reside in regions which are, or were, under an extended PAUSE order will be granted extensions commensurate to the dates applicable to the region. All extension requests will be reviewed by EFS and NYSERDA.
No extensions will be granted beyond 180 days from initial application, customers will be asked to re-apply if that is the case.
10. Does the project have to be completed within the 90 days?
No, the loan documents must be executed and returned within 90 days of the issuance of the pre-approval (see question 9 above). Construction must be completed within one year of pre-approval issuance except in the case of participation in the Contractor Advance Payment program. If the loan is part of the Contractor Advance Payment program then construction must be complete within 180 days of the advance or a written request for an extension must be received by NYSERDA for consideration of approval (please see the Contractor Advance Payment Program participation agreement for details).
11. What if my customer’s loan approval for the 0% financing rate expires but they want to continue with the project?
The customer can re-apply for the loan but to the extent that the funding cap has been exhausted or the 12-month period is over the customer will not receive 0% but the traditional rates of 3.49%/6.99% depending geographical location or documented household income.
12. If my customer already has applied for and/or has been pre-approved for a GJGNY Loan that has not closed yet, will they automatically get the 0% rate?
No. Due to system limitations and for purposes of tracking 0% loan dollars, a customer who has already applied and/or has been pre-approved for a GJGNY loan that has not closed yet must re-apply for the 0% loan. Re-approval will be subject to NYSERDA’s underwriting/credit criteria.
13. Can my customer refinance an existing interest-bearing loan with GJGNY 0% financing?
No, this rate is available only for new projects. Prior completed projects may not receive a GJGNY 0% financing loan. Active loans are not eligible for refinancing.
14. When can a customer start applying for the GJGNY 0% financing?
Customers can start applying for the 0% GJGNY loan on June 1, 2020.
15. What will the residential customer have to provide for documentation when applying?
Documentation requirements vary based on the customer credit criteria and the type of loan (Smart Energy or OBR) being applied for. If documentation is required, the customer will be notified as part of the pre-approval process.
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Sources:
https://www.nyserda.ny.gov/All-Programs/Programs/Residential-Financing-Options
https://www.nyserda.ny.gov/All-Programs/Programs/Small-Business-Financing
All information in this blog post is courtesy of NYSERDA and further information is available from their website.