Green Loans

The new Condominium Act permits developers to obtain a Green Loan, and to take advantage of Smart Energy Recovery services. Our program provides a step by step guide of what is needed to qualify for the loan. We also supply a funding commitment to the developer for their construction financing, to demonstrate the income savings that will be generated.  As the developer, you will be responsible for certain legal fees, and a 4.5% broker fee, all of which can be rolled into the Green Loan.

What is a Green Loan?

• It is used to fund the additional capital costs to make the condominium more energy efficient
• The loan is paid back by the energy savings generated for the condominium owners
• Principle and interest of the loan equals, or is less than, the amount of utility cost savings generated by the energy efficient upgrades & installations
• The energy savings generally provide more funds than the capital costs of the upgrades and thereby generates bottom line revenue

Benefits of a Green Loan

• Ability to consider a large menu of energy efficient upgrades & systems and have the items paid by the eventual owners as part of their condominium fees;
• Ability to market a “GREENER” project;
• Loan is amortized over 15 years so any payback of less than 15 years could result in additional profit to the Declarant and reduced condominium fees to be more competitive in the market;
• All costs and fees associated with the green loan can be rolled into the loan;
• Condominium Fees will be escalated at a slower pace than others as part of their fees are now a fixed loan rather than utilities subject to rate increases
• Commitment Letter can be used in proforma to assist in construction financing by showing additional revenue;
• Smart Energy Recovery is available to consult and assist with the process at no additional costs;