HUD recently announced FHA PowerSaver, a $25 million two year pilot energy retrofit loan program to select areas.  San Diego is included in this pilot program. The pilot loan program is exclusively for energy retrofits.  The program is currently seeking lenders interested in participating in this pilot project.  Interested lenders must be active FHA Title One lender.  For further qualifications, please visit Appendix A of HUD’s Press release.

PowerSaver Loan will be similar to the FHA Title 1 home improvement loans.  PowerSaver is specific to only energy retrofit improvements like air sealing, insulation, heating/cooling systems and water heaters.

PowerSaver is only applicable to single family homes.  Borrowers are required to have a FICO score of 660 or higher and debt-to-income ratio cannot exceed 45%.  Loans will be limited to a 15 year loan.

According to Recovery Through Retrofit report, 130 million homes generating 20% carbon dioxide emissions.  Energy Retrofits can lower energy use up 40% per home and lower associated greenhouse gas emissions.

Homeowners can save thousands of dollars in leveraging these programs at the same time contributing to sustainability.  “This is a timely solution for the emerging Energy Retrofit industry” said Will Johnson, Energy Auditor with Inspection Perfection.  “This fills an important void of financing for anticipated Energy Retrofit rebates.  2011 will be the year for Energy Retrofits.”

For complete press release and to participate as a lender, please visit:  http://www.sdinspection.com/HUD_PowerSaver_Pilot.pdf

The emergence of the Energy Retrofit market will deliver attractive value and savings for homeowner and buyers.   2011 will bring rebates, increase home value, immediate comfort and energy savings.

As much as all this value for homeowners delivers, one of the key incentives is to stimulate the economy and the ailing construction industry.  Construction is suffering unemployment anywhere from 25% to 38%.   We have a depression industry inside our lackluster economy.

Several rebates are slated for the beginning of 2011.  SDG&E’s Energy Upgrade California will be available first.  National HomeSTAR awaits senate approval.  Chula Vista launched Home Upgrade/Carbon Downgrade.  City of San Diego also has plans to also offer energy retrofit rebates.

Energy Retrofits
The Energy Retrofit market is a great opportunity for contractors.  Energy Retrofits will create immediate work and add incremental work for any remodels.  It will also launch contractor into a new specialization as a Home Performance Contractor.

Certification
Contractors must be certified as Home Performance Contractors.  Certification is required through Building Performance Institute (BPI) as a Business Analyst and House Envelope.   Also required certification is a Home Energy Rating Service as a HERS II designation.

Training
Now is the time for contractors to take advantage of subsidized training from government grants.  Center for Sustain Energy & Cuyamaca College are presently offering BPI training free for qualified attendees.   Other training companies and colleges have access to Workforce development funds for companies to get their employees trained.  Please see table below for further information.

This is a new market niche that will only grow from government policies, rising energy costs and limitation of natural resources.  With existing inventory of pre 1980 homes, there’s a solid future of improving residential energy efficiency for a long time to come.

Homeowner and Home buyers can take advantage or existng and upcoming rebates to improve energy efficiency.  This will reduce capital investment while at the same time lowering energy costs and improving sustainability.   More rebates are scheduled for 2011.  Homeowners, buyer,  real estate agents & lenders will leverage these programs to stimulates business in the struggling construction and real estate industy. 

For further information please visit: http://tinyurl.com/39xn4v3

Statewide Energy Retrofit Rebate programs initiated it’s first “soft launch” in San Diego this week.  SDG&E  is working with the Center for Sustained Energy who will be managing the program.  This launch is targeted towards contractors to provide energy retrofit services.  The actual program is scheduled to be available to homeowners the beginning of 2011.

• Some of the highlights
• Rebates $1,000 – $4,000
• Basic Retrofit – $1,000
• Advanced – $1,250 – $4,000 based on energy efficiency improvements

Program requires home energy audits to test insulation, air leakage, & duct testing and more.  For the advanced rebates, a before and after will audit is required to measure the energy efficiency improvements. 

Rebates to be processed through SDG&E

Training –

Orientation is required and Free offered at the Center for Sustained Energy

Home Performance Contractors – Requires BPI Certification as a Building Analyst.  Additional training will be required based on contractors skills.    BPI training will be offered FREE  (3 day) by Center for Sustained Energy .

More Rebates coming

City of Chula Vista has announced a similar program.  San Diego will also launch a similar program.  Homeowners will be able to submit for both rebates.    Not to mentioned existing rebates currently.

This is a great opportunity for homeowners to maximize existing rebates, improve value, experience energy savings, immediate comfort and sense of comfort improving sustainability for everyone.

Encourage any contractors to evaluate becoming a Home Performance contractor.  For further details, please contact us at (888) 552-4677 or info@sdinspection.com

SDG&E will launch their Energy Retrofit program, Energy Upgrade California, a 13 Million dollar, homeowner rebate program in the coming months.  

FREE training is offered to educate Contractors interested in participating into this program and future energy retrofit programs.  This is an important first step in breaking into the Energy Retrofit program.
From the Center for Sustained Energy
The purpose of this message is to invite you to participate as a lead contractor in our initial Energy Upgrade California Orientation Workshops on Tuesday, September 28 or Wednesday, September 29 from 5:00 to 8:30PM at the California Center for Sustainable Energy in San Diego.

The workshop will begin with a 1-hour overview of the Energy Upgrade California program. This will be followed by an in-depth discussion of the program details including the contractor qualification process, workforce development and training opportunities, program and contractor marketing resources, project eligibility guidelines for San Diego Gas & Electric’s rebate component , rebate application processes and a brief building performance overview. Not only will this session be the first step for you to become a EUC Participating Contractor in San Diego County, it will also give us a chance to solicit feedback on what works and doesn’t work for you as contractors.
Who needs to attend?
• Business Owner/Executive – Required
• Project Supervisor, Foremen and/or Lead Installer – Required
• Administrative Staff – Strongly Recommended
Dinner will be provided.

Please follow this link to register for these workshops:

• Tuesday, September 28, 5:00 – 8:30PM: http://energycenter.org/index.php?option=com_civicrm&task=civicrm/event/info&reset=1&id=360
• Wednesday, September 29, 5:00 – 8:30PM: http://energycenter.org/index.php?option=com_civicrm&task=civicrm/event/info&reset=1&id=361

Each member of your company that will be attended must be registered. 

	The emergence of the Energy Retrofit market will offer homeowners a great opportunity to improve the efficiency of their property.  There are pending rebate programs at every governmental level and utility companies.  In addition, these programs will stimulate services for realtors, lenders, energy auditors and the ailing construction industry.  At the end of the day, the homeowner wins leveraging possibly multiple rebates, energy mortgages while enjoying immediate comfort and reduced energy costs.
	Rebate Programs Rebates range from $1,000 up to $8,000 for consumers committed to maximizing their energy efficiency.  Consumers are expected to save from $200 – $500 a year in energy costs.
	Financing Programs – Energy Efficiency Mortgages Some financing options are still pending.  Energy Efficiency Mortgages (EEM) are available today with FHA loans.  EEMs extend the loan amount to include energy improvements.   The cost of the energy improvements must be offset by the energy savings.  EEMs require an energy audit to determine improvements that would yield the best return.
	EVERYONE WINS Home Owners/Home Buyers Unlike any other time, homeowners will be highly incented with financing and rebates for energy efficiency improvements.  Homeowners will reduce their costs of installation, utilize financing incentives while enjoying immediate comfort and reduced energy bills. Contractors One of the biggest drivers behind many of the rebates is to stimulate the ailing construction industry.  These rebates  creates thousands of project for San Diego County.  Contractors will be required to become certified home performance contractor.  At this time, there are still grants available for contractors to offset their costs. Real Estate Industry—Realtors, Lenders, Energy Auditors Service providers for the RE industry will benefit from these programs.  Helping any client maximize these programs, creates immediate value, savings and comfort.  This will also give any service provider an edge improving their value to their clients.  Conclusion As incentive programs are available now, it will be critical to fully leverage all available programs when you’re ready for home improvements or purchase.  For further information, please contact us at (888) 552-4677 or visit our website at www.sdinspection.com.

Demand for 203K construction loans has exploded in the last several months.   This is attributed to more clients are learning about the 203k program from lenders and realtors.   In addition, Fixers and REO properties sales  are more available.   This could be attributed to overall increase in values may be squeezing some investors from flipping REOs compared to last year.

This is a great program for buyers seeking value and strong desire to add their own design and decorating taste.  Since it piggybacks on FHA loan, with low down payment (3.5%) and low interests rates, there is nothing close in financing costs.

 There is also a great opportunity to leverage energy efficiency improvements with FHA Energy Efficiency Mortgage(EEM).  EEM extends the loan amount for energy improvements based on energy cost savings.

 The program is not without some challenges.  The process can be more complex involving contractors, and 203K consultant in addition to lenders, realtors and appraisers.   Program has been around since the 60’s, some of the provisions are out of date and vague.  But mostly, there is a  lack of recent experience with realtors and lenders.  

Active 203K consultants are a great resource.  Their current experience can be beneficial, avoid costly pitfalls and  help with resources of other experienced lenders & contractors.  To learn more about this 203K program, talk a local 203K consultant.   Check HUDs website  https://entp.hud.gov/idapp/html/f17cnsltdata.cfm.

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