Multifamily units who received energy upgrades
homes owned by low-income households
Low-income households in Philadelphia who are energy burdened
Weatherization deferral rate due to home condition
Low-income households who own and rent their homes in Philadelphia often live in older, less efficient homes, and less healthy homes. These households often struggle to maintain their homes or, as renters, are unable to make those investments. Living in poorly maintained homes has serious consequences for households’ cost of living, and their health and safety. Philadelphia is building programs to bring more investment to low-income households to make them more affordable, healthier places to live.
Built to Last Program
The Philadelphia Energy Authority (PEA), with the leadership of Councilmember Derek Green and a core group of coalition partners and advocates, is rethinking how Philadelphia can improve housing for low-income homeowners.
PEA is acting as an administrative backbone to allow housing programs to layer and streamline their services, and will add construction management services, additional grants and financing as needed. Built to Last seeks to restore the safety, health, affordability and comfort of existing affordable housing in a way that improves the long-term quality of Philadelphia’s housing, builds community wealth, and helps families avoid displacement and stay in their homes.
PEA will manage two pilots in 2021 that will serve 40-50 homes each. For each pilot, PEA will work with low-income homeowners who have already applied for a housing improvement service who are living in neighborhoods with high poverty rates.
PEA will assist the households with enrolling in all available benefits, evaluate their home restoration needs, and coordinate service delivery and supplemental funding. Pilot households will earn below 150% of the Federal Poverty Level and own their homes.
The Philadelphia Energy Authority strives to eliminate the financial barriers to energy upgrades by making clean energy accessible and affordable. Energy upgrades provide significant benefits to multifamily housing units, including increasing the property value, lowering its day-to-day operating costs, and reducing its carbon footprint. Multi-family buildings have unique features, financing structures, opportunities and requirements when it comes to energy efficiency.
Multifamily Housing Financing Products
PEA’s Affordable Multifamily Housing Program operates in conjunction with Inclusive Prosperity Capital (IPC) to provide several lending products as well as tailored guidance and resources for prospective partners. PEA and IPC offer assistance and financing solutions to help streamline the process of executing energy upgrades on affordable multifamily housing units. Our lending products include the Navigator Pre-Development Loan, the Catalyst Term Loan, solar PPAs, long term ownership or debt capital for community solar projects, and solar and storage loans.
Navigator Pre-Development Loan
The Navigator Pre-Development Loan provides an unsecured line of credit to finance pre-development energy projects in affordable multifamily properties. The Navigator Loan also allows owners to connect with technical service providers for project analysis, design, and implementation.
Navigator Pre-Development Loan Application:
Catalyst Term Loan
The Catalyst Term Loan provides unsecured financing for new construction and renovation projects, including low- and moderate-income multifamily properties and community based non-profit organizations. This loan can contribute to:
- Energy efficiency or renewable energy upgrades,
- Performance auditing and verification, and
- Remediation for health and safety
Catalyst Term Loans can be repaid through energy cost savings with up to 20-year terms.
- Catalyst Term Loan Fact Sheet
- Catalyst Term Loan Frequently Asked Questions
- Catalyst Term Loan Financial Screening Guidance
- Catalyst Term Loan Required Documents
Catalyst Term Loan Application:
Multi-Family Housing Pilot
PEA assembled a team for a multifamily pilot project, which is serving as the model for scaling up across Philadelphia. The implementation partners for the Multi-Family Affordable Housing Pilot are Mission First Housing Group, Friends Rehabilitation Program, BlocPower, CMC Energy Services, Stratis IOT, PECO Energy, and Philadelphia Gas Works. Phase 1 included auditing of the Mission First Housing Group and Friends Rehabilitation Program properties, totaling 189 units. CMC Energy Services collected key data on the properties and installed utility-funded measures to address electricity and gas consumption. Along with the energy conservation, CMC and Stratis IOT installed networked smart thermostats, which now allow BlocPower to collect aggregated and anonymous data on the conditions that tenants experience, which allowed BlocPower to refine their recommendations for larger investments in energy conservation.
PEA is leveraging the experience from the pilot project to provide technical assistance to property owners who are looking for ways to improve the energy performance of their buildings and to help cut utility costs for tenants.