Chf contractor program_training_v11_110111

765 views

Published on

Presentation from CHF Contractor Training workshop, Part II of CCSE's Financing Series, held on November 3, 2011 at CCSE.

Published in: Technology, Business
1 Comment
0 Likes
Statistics
Notes
  • Be the first to like this

No Downloads
Views
Total views
765
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
11
Comments
1
Likes
0
Embeds 0
No embeds

No notes for slide

Chf contractor program_training_v11_110111

  1. 1. Program Training for those Interested in Becoming a CHF Participating Contractor Contractor Training CHF Residential Energy Retrofit Programwww.chfloan.org Updated 11/01/11 Page 1
  2. 2. Goals for Today’s Training • Introduce a New Funding Source for Energy Efficiency Work • Explain How the Program Works • Get You Approved as a Participating Contractor Complete your Contractor Application Packet Take back your checklist of additional documents to return to CHF Walk through the entire Process Flow Walk through the Financial Analysis Worksheetwww.chfloan.org Updated 10/21/11 Page 2
  3. 3. Bright Blue Packet LEFT SIDE • Program Flyer • Term Sheet • Eligible Counties & Income Limits • Availability Map RIGHT SIDE • Contractor Participation Packetwww.chfloan.org Updated 10/21/11 Page 3
  4. 4. What Can the CHF Program Do for You? Provides a cost-effective way to finance “whole-house” energy efficiency improvements 1. Lower cost home upgrades • Provides 100% financing of projects • Can be combined with Energy Upgrade CA and any other local, city, county program 2. Maximize the greatest benefit from improvements: • Lower utility bills • Create a more comfortable home • Potentially increase your home’s value 3. Help your local economy through job creation for contractors and tradesmenwww.chfloan.org Updated 10/21/11 Page 4
  5. 5. CHF Background / Program Funds Supporting homeownership since 1993 – CA Joint Powers Authority (JPA) serving over 51 Counties – Primarily providing loans and grants for “homebuyers” CHF Energy Program Funds – Current Status $19M in funds set aside for CHF Loans $1.4M in funds set aside for CHF Grants • Loan funds currently 80% allocated • Contract ends 03/2012 (or when funds are depleted) • CHF in negotiation with CEC for addt’l $9M in Loan fundswww.chfloan.org Updated 10/21/11 Page 5
  6. 6. DEL NORTE SISKIYOU MODOC Program Available in Over 51 Counties of CA CHF’s Joint Powers Authority Jurisdiction SHASTA TRINITY LASSENHUMBOLDT TEHAMA Current Interest Rate PLUMAS JPA Membership Status MENDOCINO BUTTE (for CHF Loan) GLENN SIERRA COLUSA YUBA NEVADA PLACER Member Counties 0% Promotional Rate LAKE SUTTER YOLO EL DORADO Member Counties 3% Interest Rate SONOMA ALPINE NAPA SACRAMENTO AMADOR Associate Member Counties 3% Interest Rate SOLANO CALAVERAS MARIN CONTRA SAN JOAQUIN TUOLUMNE MONO Associate Member Cities 3% Interest Rate COSTA SAN FRANCISCO ALAMEDA MARIPOSA STANISLAUS SAN MATEO SANTA MERCED CLARA SANTA MADERA CRUZ SAN BENITO FRESNO INYO San Jose TULARE MONTEREY KINGS SAN LUIS OBISPO KERN SAN BERNARDINO 1. Availability Map SANTA BARBARA 2. Program Term Sheet VENTURA LOS ANGELES RIVERSIDE ORANGE IMPERIAL Palmdale SAN DIEGOwww.chfloan.org Updated 10/21/11 Page 6
  7. 7. Financial Assistance Provided 1. CHF Loan – 0-3% fixed interest rate, 15-year fully amortizing loan • 100% financing available • Loan amount = Net project cost after CHF Grants • No downpayment or cash from homebuyer required – No minimum or maximum loan amount – No prepayment penalty – Fixture-filing lien placed on installed equip only 2. Plus CHF Grants: a. 15% of project cost, up to $1,250 per home, AND b. Up to $700 to cover initial and final energy auditswww.chfloan.org Updated 10/21/11 Page 7
  8. 8. Leveraging Utility Rebates/Incentives • Rebate and other Grants programs – Can be combined with CHF Program – Can be used as sales incentives / cash in pocket to borrower (CHF will finance entire project cost) – Major utility company’s rebates listed on EUC website www.energyupgradeca.org • Contractor’s must meet any special training requirements of other programswww.chfloan.org Updated 10/21/11 Page 8
  9. 9. Property Eligibility • Subject Property – Single-family, 1-4 unit, residential property • Manufactured & mobile homes NOT eligible • Modular homes are eligible – Property must be free of any judgments, tax or mechanic liens – Rental properties are permitted – Homes > 45 years of age may require additional approval from State Historic Preservation Office (SHPO) – No appraisal on house requiredwww.chfloan.org Updated 10/21/11 Page 9
  10. 10. State Historic Preservation Act (SHPO) Purpose: To ensure proposed projects will have no adverse effects on any historic resources Basic Rules of Thumb 1. Property < 45 Years of age = Exempt from SHPO approval a. Unless project includes roofing, window repair or installation, or solar installation 2. Property > 45 Years of age = a. You will have to review list of exemptions and type of work. b. If not exempt, SHPO direct review and consultation will be required.www.chfloan.org Updated 10/21/11 Page 10
  11. 11. Applicant(s) Qualifications • Applicant(s) = All parties on title – Must have a current source of income – Must be current on mortgage and property taxes – Must meet the program income limit • Max Income Limit = 160% Area Median Income (AMI) • Income Limit is based on the combined income of any parties on title – No credit check – No minimum credit score required – No maximum debt-to-income ratioswww.chfloan.org Updated 10/21/11 Page 11
  12. 12. Income Limits & Interest Rates MAX INCOME CURRENT MEMBER COUNTY (calculated) INTEREST RATE Alpine County $133,760 0% Amador County $106,880 0% Butte County $92,640 0% Calaveras County $110,080 0% Colusa County $86,880 0% Del Norte County $86,240 0% El Dorado County $120,160 3% Glenn County $80,000 0% Imperial County $71,040 0% Inyo County $103,360 0% Lake County $86,720 0% Lassen County $97,440 0% Madera County $86,080 0% Mariposa County $93,920 0% Merced County $80,800 0%www.chfloan.org Updated 10/21/11 Page 12
  13. 13. Income Limits & Interest Rates cont… MAX INCOME CURRENT MEMBER COUNTY (calculated) INTEREST RATE Modoc County $74,720 0% Mono County $119,200 0% Napa County $136,000 0% Nevada County $114,560 0% Placer County $120,160 3% Plumas County $89,440 0% San Benito County $125,280 0% Shasta County $93,120 0% Sierra County $113,440 0% Siskiyou County $79,520 0% Sutter County $93,760 0% Tehama County $72,960 0% Trinity County $76,160 0% Tuolumne County $105,280 0% Yolo County $121,280 0% Yuba County $93,760 0%www.chfloan.org Updated 10/21/11 Page 13
  14. 14. Income Limits & Interest Rates cont… MAX INCOME CURRENT ASSOCIATE MEMBER COUNTY (calculated) INTEREST RATE Alameda County $147,680 3% Contra Costa County $147,680 3% Fresno County $87,520 3% Humboldt County $87,840 3% Kern County $85,280 3% Kings County $85,760 3% Los Angeles County (City of Palmdale) $102,400 3% Mendocino County $87,200 3% Monterey County $108,480 3% Riverside County $100,000 3% Sacramento County $120,160 3% San Bernardino County $100,000 3% San Diego County $119,840 3% San Joaquin County $104,640 3%www.chfloan.org Updated 10/21/11 Page 14
  15. 15. Income Limits & Interest Rates cont… MAX INCOME CURRENT ASSOCIATE MEMBER COUNTY (calculated) INTEREST RATE San Mateo County $162,560 3% Santa Clara County (City of San Jose) $165,760 3% Santa Cruz County $134,720 3% Solano County $130,400 3% Sonoma County $130,400 3% Stanislaus County $97,760 3% Tulare County $78,080 3% Ventura County $140,960 3%www.chfloan.org Updated 10/21/11 Page 15
  16. 16. Energy Efficiency Improvements Tier I Tier II Tier III (Our primary focus) Low cost where Provided by a “Whole-House” Concept no contractor is Single Source required Builds on the concepts of HERS II and Home Performance with Energy Star i.e. weather i.e. air conditioner Addresses ALL of home’s stripping & high replacement energy-using features efficiency light bulbs Result = Energy Savings, improved comfort, air quality, combustion safety, noise reduction, etc.www.chfloan.org Updated 10/21/11 Page 16
  17. 17. Looking at Your Home as a “System” Solar panelsInefficient Insufficient or lighting Cool roof low-grade insulation in attic Inefficient Leaky windows appliances Old heating or Old or cooling system inefficientwater heater Bad duct systems Insufficient Leaky air spaces insulation in basementwww.chfloan.org Updated 10/21/11 Page 17
  18. 18. Whole-House Approach (Tier III) Before & After Priorities Examples of Energy Audit Eligible Work Initial energy assessment Prioritizes lowest • Insulation and computer modeling cost/highest benefit • Sealing air spaces to predict energy savings • Duct work • BPI person on staff with Contractor • Lighting • Windows Final energy audit done Renewables • Cool Roof by a 3rd party HERS II (i.e. solar) • Replacing equipment Rater • Only considered with energy efficient • Check equip was after energy models installed correctly efficiency work • HVAC unit • Verify predicted energy • Requires at least • Water heaters savings are still on 10% min in energy • Other appliances target efficiency is met • Solar panelswww.chfloan.org Updated 10/21/11 Page 18
  19. 19. Financial Feasibility Requirement NET Cash-flow Neutral or Positive Guideline • The monthly payment for CHF Loan must be off-set by the savings from the project • Financial review takes into consideration various factors: – Cash rebates, incentives and tax credits expected – Standard equipment replacement costs – Energy savings • Worksheet and training provided TODAY for Participating Contractorswww.chfloan.org Updated 10/21/11 Page 19
  20. 20. Actual Project – See the Program in Action Without CHF Financing With CHF Financing Item Subtotal Totals Item Subtotal Totals Home Improvements $20,686 Home Improvement $20,686 Contract (same work) • Foam seal attic • Energy efficient HVAC CHF Grants - $1,950 • Improve/insulate • $1,250 for project ductwork • $700 for inspections • Improve insulation CHF Loan (0%) $18,736 $105 / mo Energy Upgrade CA - $4,000 Net Out of Pocket Cost $0 Utility Rebate Tax Credit (HVAC unit) - $500 Net Out of Pocket Cost $16,186 Expected energy $2,089 / annual savings (+40%) $174 / month Energy Upgrade CA Utility - $4,000 Expected energy $2,089 / annual Rebate savings (+40%) $174 / month Tax Credit (HVAC unit) -$500 $4, 500 in rebates; can be used as cash in the homeowners’ pocket OR to pay-down the CHF Loan)www.chfloan.org Updated 10/21/11 Page 20
  21. 21. 1475 See the Program in Action – Project #2 (Actual Project) Without CHF Financing With CHF Financing Item Subtotal Totals Item Subtotal Totals Home Improvements $14,985 Home Improvement $14,985 Contract (same work) • Duct replacement • Energy Efficient HVAC CHF Grants - $1,950 • Attic Insulation • $1,250 for project • Exhaust Fans • $700 for inspections • Garage Vent CHF Loan (3%) $13,035 $91 / mo • Water Heater Net Out of Pocket Cost $0 Energy Upgrade CA - $4,000 Utility Rebate Net Out of Pocket Cost $10,985 Expected energy $2,154 / annual savings (+40%) $179 / month Energy Upgrade CA Utility - $4,000 Expected energy $2,154/ annual Rebate savings (+40%) $179 / month $4,000 in rebates; can be used as cash in the homeowners’ pocket OR to pay-down the CHF Loan)www.chfloan.org Updated 10/21/11 Page 21
  22. 22. HOMEOWNERS: How to get started 1. Contact a CHF Participating Contractor (list available at www.chfloan.org) 2. Setup your home assessment 3. Discuss your options / improvements 4. Contractor will help you apply for the CHF financing & grants 5. Get CHF approval of loan/grant & project 6. Sign loan documents 7. Energy upgrade!www.chfloan.org Updated 10/21/11 Page 22
  23. 23. Break Up next… Contractor Participation Requirementswww.chfloan.org Updated 10/21/11 Page 23
  24. 24. Why Become a CHF Participating Contractor Challenge Solution Lack of employment New jobs created through energy efficiency and solar projects Can’t close deals because • 0-3% Loan from CHF homeowner lacks cash • 15% Grant from CHF Homeowner hesitant • In- and Out-Inspections are FREE to because of cost for home homeowner assessment • $700 Grant from CHF for inspections Costs money to advertise • CHF advertises program / EUC also • Marketing templates available from CHF • CHF provides direct referrals to Participating Contractors • Participating Contractors listed on CHF & EUC websiteswww.chfloan.org Updated 10/21/11 Page 24
  25. 25. Contractor Participation Packet • Participation Checklist • Participation Agreement • Waste Management Plan Docswww.chfloan.org Updated 10/21/11 Page 25
  26. 26. Contractor Participation Requirements • General Class B Contractor License • Standard Insurance Requirements (Comm. Gen. Liability, Workman’s Comp & Surety Bond) • Employ a BPI Certified Analyst on Staff (www.bpi.org) • Required Experience: 1. “Whole House Performance” 2. EnergyPro Modeling & Analysis Software 3. Proof of two (2) whole-house performance projects (analysis and installation) completed by contractor during the preceding 24 months.www.chfloan.org Updated 10/21/11 Page 26
  27. 27. Contractor Participation cont… • Follow Standard Loading Order Principals – Energy efficiency first, renewable energy last • Coordination with Local Workforce Investment Boards (WIBs) – Contact your local office (www.cwib.ca.gov) – One-Stop Career Centers for assistance with job training, job placement and business services – Quarterly reporting to CHF is required • File a Waste Management Plan with CHF – Assistance is provided by CHF (today) • Attend CHF Trainingwww.chfloan.org Updated 10/21/11 Page 27
  28. 28. Waste Management Plan (WMP) • Required by CEC • Indicates How Your Business Manages It’s Waste Stream – How much of your waste is dumped versus diverted? – How close are you to meeting the voluntary California target of 50% minimum diversion? – Where do you dump or divert? – Do you handle hazardous waste? How? • Can you use the generic Waste Management Plan as your starting point?www.chfloan.org Updated 10/21/11 Page 28
  29. 29. WMP Requirement cont… Required Documents WMP Plan (MS Word) (Doc #390228) WMP Certification & Compliance Form (Doc #390244) Generic WMP Worksheet (Excel Spreadsheet)www.chfloan.org Updated 10/21/11 Page 29
  30. 30. Using the Generic WMP Worksheet • Assumes Industry Averages for Waste Streams • Customizing Detail: – Company Info – Dumped or Diverted – Location – Number of Jobs Contemplated • Include completed & calculated worksheet when submitting your WMP to CHFwww.chfloan.org Updated 10/21/11 Page 30
  31. 31. DARK Blue Folio (Program Docs) The Process Flow in 4 Stages 1. Loan & Grant Application 2. Loan & Grant Approval 3. Project Installation 4. Project Completion & Fundingwww.chfloan.org Updated 10/21/11 Page 31
  32. 32. Phase 1: Loan & Grant Application 1. Pre-screening 2. Verify exemption or request approval from State Historic Preservation Office (SHPO) 3. Contractor performs Initial Energy Audit & Completes Financial Feasibility Analysis 4. Submit Loan & Grant Application Packagewww.chfloan.org Updated 10/21/11 Page 32
  33. 33. Phase 2: Loan & Grant Approval 1. CHF reviews Loan & Grant Application Package – Funds are on a first come, first serve basis – Incomplete applications will hold up a reservation – CHF will extend or denied credit to Applicant(s) and notify both Applicant(s) and Contractor – Upon credit approval, CHF will provide Loan Documents to Contractor for Applicant(s) signature 2. Contractor returns signed Loan Documents to CHF with an estimated completion date for the projectwww.chfloan.org Updated 10/21/11 Page 33
  34. 34. Phase 3: Project Installation 1. Upon receipt of signed Loan Docs, CHF will wait mandatory 3 business days for Applicants “Right-to-Cancel” period 2. If Right-to-Cancel is not received, CHF will issue Notice of Loan & Grant Approval to Contractor 3. Contractor may start the project 4. All retrofit work must be completed as set forth in Home Improvement Contract and Initial Energy Auditwww.chfloan.org Updated 10/21/11 Page 34
  35. 35. Phase 4: Project Completion & Funding 1. Contractor orders Final Energy Audit from an independent 3rd-party HERS II Rater 2. Contractor requests Closing Docs from Title Company 3. Contractor requests Applicant(s) signature on Closing Docs 4. Contractor returns signed Closing Docs to CHFwww.chfloan.org Updated 10/21/11 Page 35
  36. 36. Phase 4: Project Completion & Funding 5. Contractor releases liens and sends Final Docs to CHF 6. CHF reviews and approves Completion and Funding Package and notifies Title Company to release Funds to Contractor 7. CHF send Home Performance Data Labels to Homeowner to place on installed equipment – (report will be published to CHF website)www.chfloan.org Updated 10/21/11 Page 36
  37. 37. Break Up next… Financial Feasibility Requirement Financial Feasibility Worksheetwww.chfloan.org Updated 10/21/11 Page 37
  38. 38. Financial Feasibility Requirement NET Cash-flow Neutral or Positive Guideline • The monthly payment for CHF Loan must be off-set by the savings from the project • Financial review takes into consideration various factors: – Cash rebates, incentives and tax credits expected – Standard equipment replacement costs – Energy savings • Let’s complete the Worksheet!www.chfloan.org Updated 10/21/11 Page 38
  39. 39. CHF Support Services • Website: www.chfloan.org • Customer Service Dept: M-F 8AM – 5PM (855) 740-8422 info@chfloan.org • Additional “Procedures Training” after Contractor is Approved to Participate • CHF Marketing Supportwww.chfloan.org Updated 10/21/11 Page 39
  40. 40. www.chfloan.org Updated 10/21/11 Page 40
  41. 41. www.chfloan.org Updated 10/21/11 Page 41
  42. 42. www.chfloan.org Updated 10/21/11 Page 42
  43. 43. www.chfloan.org Updated 10/21/11 Page 43
  44. 44. CHF Marketing Materialswww.chfloan.org Updated 10/21/11 Page 44
  45. 45. Thank You For Your Participation CRHMFA Homebuyers Fund (CHF) 1215 K Street, Suite 1650 Sacramento, CA 95814 (855) 740-8422 www.chfloan.org info@chfloan.org Presentation contains program highlights only. Income limits and other program guidelines apply. Contact CHF for full program guidelines and participation requirements. The CHF Residential Energy Retrofit Program is sponsored by CRHMFA Homebuyers Fund (CHF), a government entity in California. Funding for the program is made possible through a grant award from the Energy Commission of the State of California.www.chfloan.org Updated 10/21/11 Page 45

×