HPP Loan Program Sponsored by: California Alternative Energy and Transportation Financing...

HPP Loan Program

Sponsored by: California Alternative Energy and Transportation Financing Authority

August 31, 2012

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About the program

• An unsecured, loan loss reserve, Home Performance loan program supporting the energy efficient upgrade needs of our community.

• This program is sponsored by The California Alternative Energy and Advanced Transportation Financing Authority

• CAEATFA Program information and website.• http://www.treasurer.ca.gov/CAEATFA/abx1_14/index.asp

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This program offers the following:

• Available on owner and non-occupied property.  

• This program is unsecured, offering an interest rate of 5.50 %.

• Application fee waived through 12/31/12. • Available only under the Home Performance

Program (HPP) and must conform to SMUD’s HPP program requirements.

Eligibility Requirements• Residential property of three (3) units or less.• A minimum of 2 or more eligible energy efficiency measures are

required resulting in an overall electricity savings of 15% (or more). • Eligible improvements must have:

– Pre-project energy assessment – in accordance with HERS Whole House or BPI Building Analyst requirements.

– Post-project energy assessment – evaluation by independent third-party inspector who is HERS Whole House Rater or a BPI Building Analyst.

• Program is available through December 31, 2014 and may end earlier if loan loss reserve funds are fully subscribed.

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Program Guidelines• Ownership of the subject property must be legally vested

in the name(s) of the loan applicant(s).• Loan applicant(s) must be current on mortgage and

property tax payments.• Loan applicant(s) are not in default or in bankruptcy

proceedings.• The maximum loan amount may not exceed ten percent

(10%) of the property value or $20,000 maximum.• Value established through county assessor’s valuation or

drive-by appraisal or full appraisal dated within 6 months of application (by licensed appraiser).

• Maximum term of loan shall not exceed ten (10) years. • The program will end no later than December 31, 2014.

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Customer Profile• Minimum FICO, Owner-Occupied 680• Minimum FICO, Non-Owner Occupied 720• Target Debt Ratio, 40%• Stable and continuing source of income• Acceptable SMUD payment history on

electric account and if applicable, SMUD EE loan(s).

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Required Documentation

• SMUD:• Residential Loan Application• Income documentation• Loan Agreement and Disclosure• Home Performance Measure Eligibility Information• Home Performance Payment Authorization• Exhibit A – SMUD Contractor’s Contract Attachment• CAEATFA:• All applicable building permits• Test-in and Test-out Assessment Reports• Eligible Improvements Specification Report• Certificate of Completion• http://treasurer.ca.gov/caeatfa/abx1_14/reserve.asp

Contractor Certificate of Completion Page 1

Contractor Certificate of Completion Page 2

Contact information

• For additional information you may contact:

• Van Mattison 916-732-6449• Van.Mattison@smud.org

• Nadine Espinosa 916-732-5420• Nadine.Espinosa@smud.org

• Daryl Beatty 916-732-6421 • Daryl.Beatty@smud.org

• Lisa Cameron 916-732-5736• Lisa.Cameron@smud.org

• Jim Mills• James.Mills@smud

• CAEATFA Link http://www.treasurer.ca.gov/CAEATFA/abx1_14/index.asp