Bank of America announced a new $55 million program to encourage energy-efficiency improvements to older buildings, including affordable housing.
The competitive program will provide low-cost loans and grants to Community Development Financial Institutions (CDFIs) specializing in financing energy-efficiency improvements.
Noting that CDFIs are developing innovative solutions to address barriers that have kept many property owners from financing important upgrades that can save energy and money, Bank of America officials said they will select up to 12 CDFIs “with the most effective solutions for funding to scale on a national level as part of its new program.”
The $55 million includes $50 million in low-cost, long-term loans to CDFIs with innovative energy-efficient retrofit programs that finance the up-front investment costs for building owners to make improvements. The energy-cost savings realized over time will create cash flow to repay the loan.
An additional $5 million in grants will be awarded to help with staffing, training, reserves, and marketing needs associated with the implementation of the programs.
Once the CDFIs have made loans to property owners, Bank of America will work with them to collect pre- and post-retrofit data to measure program outcomes.
Applications are available at www.cybergrants.com/boa/energyefficiency.
Winning programs and partners will be announced in November.