Financing for affordable multifamily energy efficiency projects

The Affordable Multifamily Financing program targets multifamily properties where at least 50% of the units are income restricted.

Like all of the programs highlighted on GoGreen Financing, the Affordable Multifamily Financing program is designed to encourage growth in private market lending and features a credit enhancement to help financing entities mitigate risk. It is designed to leverage and complement existing state and utility efforts to encourage affordable multifamily properties to install energy efficiency retrofits.

Property must receive electric and/or gas service from any of the following investor-owned utilities (IOU):*

  • Pacific Gas and Electric Company (PG&E®)
  • San Diego Gas & Electric Company (SDG&E®)
  • Southern California Edison (SCE®)
  • Southern California Gas Company (SoCalGas®)

Financial products supported

Energy service agreements, savings-based payment agreements, leases and loans with no maximum financing amount set by the program.

  • Participating financing companies may have requirements that are more stringent.

Projects to be financed

At least 70% of the financed amount must be Energy Saving Measures or demand response. Up to 30% of the financed amount may fund nonenergy efficiency improvements. Financing for distributed generation (DG) improvements like solar photovoltaic (PV) may be included but will not receive a credit enhancement.

View the Energy Saving Measures list+.

Eligible properties

Affordable multifamily properties of five or more units, where at least 50% of the units are restricted to income-eligible households. The property must be subject to deed restrictions that require the owner to keep rents affordable for a minimum of 5 years.

Repayment options

Affordable multifamily housing property owners can choose to repay their financing in two ways:

  1. Direct to finance company
  2. On-bill repayment for master-metered multifamily properties (available in 2020)

For more information

For more information on the Affordable Multifamily Financing program, please contact the following program administration representative:

Susan Mills
SMills@sto.ca.gov

Now open for finance company enrollment

Regulations for the Affordable Multifamily Financing program were approved by the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) in April 2019 and went into effect on May 9, 2019. The program is now enrolling finance companies.

Please visit CAEATFA’s website for the latest updates on the Affordable Multifamily Financing program.

affordable multifamily housing upgrades

Benefits for customers

  •  Access to attractive financing that can be used to update aging, inefficient multifamily properties.
  •  Complements existing affordable multifamily energy efficiency programs that offer rebates or incentives by offering attractive financing for “out of pocket” costs.
  •  No financing maximum set by the program (participating finance companies may have their own min/max finance limits). The first $1 million in financing will be credit enhanced.
  •  At least 70% of the financing must be used for qualified energy efficiency measures and associated costs, but up to 30% may be used for noneligible measures. Finance companies may finance distributed generation, such as solar PV, but will not receive a credit enhancement for that portion of the financing.
  •  Supports energy service agreements, which can assist in complementing the typical affordable multifamily debt structure.

Benefits for finance companies

  •  Mitigate credit risk. The first $1 million of every enrolled financing product will receive a 15% credit enhancement.
  •  Access loan loss reserve funds to recover up to 90% of potential losses.
  •  Program integrates with IOU and state-administered rebates and incentives that are marketed statewide.
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