chf contractor program_training_v11_110111
DESCRIPTION
Presentation from CHF Contractor Training workshop, Part II of CCSE's Financing Series, held on November 3, 2011 at CCSE.TRANSCRIPT
www.chfloan.org Updated 11/01/11 Page 1
Contractor Training CHF Residential Energy Retrofit Program
Program Training for those Interested in Becoming a CHF Participating Contractor
• 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 Worksheet
Goals for Today’s Training
www.chfloan.org Updated 10/21/11 Page 2
Bright Blue Packet
LEFT SIDE
• Program Flyer
• Term Sheet
• Eligible Counties & Income Limits
• Availability Map
RIGHT SIDE
• Contractor Participation Packet
www.chfloan.org Updated 10/21/11 Page 3
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 tradesmen
www.chfloan.org Updated 10/21/11 Page 4
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 funds
CHF Background / Program Funds
www.chfloan.org Updated 10/21/11 Page 5
Program Available in Over 51 Counties of CA CHF’s Joint Powers Authority Jurisdiction
LASSEN
SIERRA
TEHAMA
MODOC
PLUMAS
NEVADA
EL DORADO
SISKIYOU
DEL NORTE
TRINITY
BUTTE
LAKE
HUMBOLDT
SHASTA
MENDOCINO
YOLO SONOMA
NAPA
SUTTER PLACER
SACRAMENTO
SOLANO
MARIN CONTRA COSTA
SAN JOAQUIN
SAN FRANCISCO
SAN MATEO
ALAMEDA
STANISLAUS
MERCED
MADERA
SANTA CLARA
SANTA CRUZ
MONTEREY KINGS
SAN LUIS OBISPO KERN
SAN BERNARDINO
VENTURA
SANTA BARBARA
LOS ANGELES
ORANGE
RIVERSIDE
SAN DIEGO
IMPERIAL
TUOLUMNE MONO
ALPINE
CALAVERAS
MARIPOSA
INYO
AMADOR
GLENN
COLUSA
TULARE
FRESNO
YUBA
San Jose
Palmdale
SAN BENITO
JPA Membership Status Current Interest Rate
(for CHF Loan)
Member Counties 0% Promotional Rate
Member Counties 3% Interest Rate
Associate Member Counties 3% Interest Rate
Associate Member Cities 3% Interest Rate
www.chfloan.org Updated 10/21/11 Page 6
1. Availability Map
2. Program Term Sheet
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 audits
www.chfloan.org Updated 10/21/11 Page 7
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 programs
www.chfloan.org Updated 10/21/11 Page 8
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 required
www.chfloan.org Updated 10/21/11 Page 9
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.
State Historic Preservation Act (SHPO)
www.chfloan.org Updated 10/21/11 Page 10
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 ratios
www.chfloan.org Updated 10/21/11 Page 11
Income Limits & Interest Rates
MEMBER COUNTY MAX INCOME
(calculated)
CURRENT
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
Income Limits & Interest Rates cont…
MEMBER COUNTY MAX INCOME
(calculated)
CURRENT
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
Income Limits & Interest Rates cont…
ASSOCIATE MEMBER COUNTY MAX INCOME
(calculated)
CURRENT
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
Income Limits & Interest Rates cont…
ASSOCIATE MEMBER COUNTY MAX INCOME
(calculated)
CURRENT
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
Energy Efficiency Improvements
Tier I Tier II Tier III (Our primary focus)
Low cost where
no contractor is
required
Provided by a
Single Source
“Whole-House” Concept
Builds on the concepts of HERS
II and Home Performance with
Energy Star
i.e. weather
stripping & high
efficiency light
bulbs
i.e. air conditioner
replacement
Addresses ALL of home’s
energy-using features
Result = Energy Savings,
improved comfort, air quality,
combustion safety, noise
reduction, etc.
www.chfloan.org Updated 10/21/11 Page 16
Looking at Your Home as a “System”
Old or
inefficient
water heater
Insufficient or
low-grade
insulation in
attic
Old heating or
cooling system
Leaky air spaces
Bad duct systems
Inefficient
lighting
Inefficient
appliances Leaky windows
Insufficient
insulation in
basement
Cool roof
Solar panels
www.chfloan.org Updated 10/21/11 Page 17
Whole-House Approach (Tier III)
Before & After
Energy Audit
Priorities Examples of
Eligible Work
Initial energy assessment
and computer modeling
to predict energy savings
• BPI person on staff with
Contractor
Prioritizes lowest
cost/highest benefit
• Insulation
• Sealing air spaces
• Duct work
• Lighting
• Windows
• Cool Roof
• Replacing equipment
with energy efficient
models
• HVAC unit
• Water heaters
• Other appliances
• Solar panels
Final energy audit done
by a 3rd party HERS II
Rater
• Check equip was
installed correctly
• Verify predicted energy
savings are still on
target
Renewables
(i.e. solar)
• Only considered
after energy
efficiency work
• Requires at least
10% min in energy
efficiency is met
www.chfloan.org Updated 10/21/11 Page 18
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 Contractors
www.chfloan.org Updated 10/21/11 Page 19
Actual Project – See the Program in Action
Without CHF Financing
Item Subtotal Totals
Home Improvements $20,686
• Foam seal attic
• Energy efficient HVAC
• Improve/insulate
ductwork
• Improve insulation
Energy Upgrade CA
Utility Rebate
- $4,000
Tax Credit (HVAC unit) - $500
Net Out of Pocket Cost $16,186
Expected energy
savings (+40%)
$2,089 / annual
$174 / month
With CHF Financing
Item Subtotal Totals
Home Improvement
Contract (same work)
$20,686
CHF Grants
• $1,250 for project
• $700 for inspections
- $1,950
CHF Loan (0%) $18,736 $105 / mo
Net Out of Pocket Cost $0
Expected energy
savings (+40%)
$2,089 / annual
$174 / month
Energy Upgrade CA Utility
Rebate
- $4,000
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
See the Program in Action – Project #2 (Actual Project)
Without CHF Financing
Item Subtotal Totals
Home Improvements $14,985
• Duct replacement
• Energy Efficient HVAC
• Attic Insulation
• Exhaust Fans
• Garage Vent
• Water Heater
Energy Upgrade CA
Utility Rebate
- $4,000
Net Out of Pocket Cost $10,985
Expected energy
savings (+40%)
$2,154/ annual
$179 / month
With CHF Financing
Item Subtotal Totals
Home Improvement
Contract (same work)
$14,985
CHF Grants
• $1,250 for project
• $700 for inspections
- $1,950
CHF Loan (3%) $13,035 $91 / mo
Net Out of Pocket Cost $0
Expected energy
savings (+40%)
$2,154 / annual
$179 / month
Energy Upgrade CA Utility
Rebate
- $4,000
$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
1475
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
Break
Up next…
Contractor Participation Requirements
www.chfloan.org Updated 10/21/11 Page 23
Challenge Solution
Lack of employment New jobs created through energy efficiency
and solar projects
Can’t close deals because
homeowner lacks cash
• 0-3% Loan from CHF
• 15% Grant from CHF
Homeowner hesitant
because of cost for home
assessment
• In- and Out-Inspections are FREE to
homeowner
• $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 websites
Why Become a CHF Participating Contractor
www.chfloan.org Updated 10/21/11 Page 24
Contractor Participation Packet
• Participation Checklist
• Participation Agreement
• Waste Management Plan Docs
www.chfloan.org Updated 10/21/11 Page 25
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
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 Training
www.chfloan.org Updated 10/21/11 Page 27
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
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
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 CHF
www.chfloan.org Updated 10/21/11 Page 30
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 & Funding
www.chfloan.org Updated 10/21/11 Page 31
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 Package
www.chfloan.org Updated 10/21/11 Page 32
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 project
www.chfloan.org Updated 10/21/11 Page 33
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 Audit
www.chfloan.org Updated 10/21/11 Page 34
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 CHF
www.chfloan.org Updated 10/21/11 Page 35
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
Break
Up next…
Financial Feasibility Requirement
Financial Feasibility Worksheet
www.chfloan.org Updated 10/21/11 Page 37
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
CHF Support Services
• Website: www.chfloan.org
• Customer Service Dept:
M-F 8AM – 5PM
(855) 740-8422
• Additional “Procedures Training” after
Contractor is Approved to Participate
• CHF Marketing Support
www.chfloan.org Updated 10/21/11 Page 39
www.chfloan.org Updated 10/21/11 Page 40
www.chfloan.org Updated 10/21/11 Page 41
www.chfloan.org Updated 10/21/11 Page 42
www.chfloan.org Updated 10/21/11 Page 43
CHF Marketing Materials
www.chfloan.org Updated 10/21/11 Page 44
Thank You For Your Participation
CRHMFA Homebuyers Fund (CHF)
1215 K Street, Suite 1650
Sacramento, CA 95814
(855) 740-8422
www.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