Massachusetts Community
Climate Bank Launches First Consumer Loan Product
The new $20 million Energy Saver Home Loan Program will help homeowners make clean energy
improvements that cut energy usage and greenhouse gas emissions
BOSTON – Governor Maura Healey announced today that the Massachusetts Community Climate Bank has launched a new $20 million program, the Energy Saver Home Loan Program, to help
low- and moderate-income homeowners make clean energy improvements to their homes.
The Massachusetts Community Climate Bank (MCCB) is the
first green bank in the United States to focus on decarbonizing affordable
housing, and the Energy Saver Home Loan Program is the MCCB’s first consumer
product. The new loan program will lower barriers to clean energy adoption and
assist property owners to cut their energy use and reduce or eliminate their
reliance on fossil fuels by providing affordable financing and high-touch
customer service features.
“Last year, we were proud to launch the Massachusetts
Community Climate Bank – the nation's first green bank dedicated to affordable
housing. Today, we are thrilled to take its work to the next level with the
launch of its first consumer loan product that will help people across the
state afford energy efficient homes,” said Governor Maura Healey. “Low- and
moderate-income families disproportionally carry the burden of both climate
change and the high cost of housing. Programs like this will help provide affordable
financing options for homeowners to support our clean energy transition. We
congratulate the teams at the Office of Climate Innovation and Resilience and
MassHousing for their leadership.”
“The Massachusetts Community Climate Bank addresses two
of our most pressing challenges — climate change and the high cost of housing,”
said Lieutenant Governor Kim Driscoll. “This new consumer loan program will
help us move forward on our climate goals and make housing more
affordable.”
“I am thrilled about the Community Climate Bank’s new
Energy Saver Home Loan Program! For the first time, low and
moderate-income homeowners will have concierge support—a real person—to walk
them through, every step of the way, what needs to be done to make their home
more energy efficient, switch to clean energy, and take care of coordinating
all the eligible rebates in addition to flexible low-cost financing,” said
Climate Chief Melissa Hoffer. “The Community Climate Bank took the initiative
to find out what customers want, and designed a program that delivers. This
will be a hassle-free experience for busy homeowners. Getting fossil fuels out
of your home and reaping the savings from clean energy should be easy, and
thanks to the Community Climate Bank, now it will be!”
The housing stock in Massachusetts is among the oldest in
the United States and Massachusetts homes are some of the most reliant in the
country on oil heating. Residential and commercial buildings are responsible
for 30 percent of all greenhouse gas emissions in Massachusetts, and 60 percent
of building emissions are generated by single family and small multi-family
homes. Transitioning these homes to clean energy is a core component of
Massachusetts’s ambitious goal of achieving net zero carbon emissions in the
year 2050.
The Energy Saver Home Loan Program is designed to
accelerate the adoption of clean energy technologies by low- and
moderate-income homeowners.
The new loan program will provide flexible financing for
a wide range of residential clean energy projects that support emissions
reduction and healthier homes. Eligible homeowners may use Energy Saver loans
to finance health and safety improvements such as roof replacement and oil tank
removal, home weatherization, electrical system upgrades, heat pumps, new
efficient appliances and fixtures, and installation of rooftop solar panels,
battery storage and EV charging stations. To receive financing through the
program, home improvements must reduce total energy usage by at least 20
percent.
The Energy Saver Home Loan Program is unique in its
ability to finance a larger amount (up to $100,000) in home improvements,
including improvement costs eligible for clean energy rebates, utility
incentives and tax credits. Financing will feature affordable loan terms with
no upfront cash required. The new loan program will finance the cost of
approved improvements, with rebate and incentive proceeds – including existing
Mass Save and new federal rebates expected to be made available later this year
– being used to pay down a portion of the loan amount. This provides bridge
financing, helping customers with the upfront costs associated with
weatherization, electrification and solar projects while they await rebates and
tax credits.
The MCCB financing will come in the form of a low-cost,
long-term subordinate mortgage. Interest rates will range from 0.5 percent to 2
percent, depending on household income. Mortgages will have a 240-month term,
allowing for lower monthly payments. Loans will include an 18-month
interest-only period, providing consumers with low-cost bridge financing for
clean energy incentive and rebate programs, and will be serviced at
MassHousing’s Mortgage Servicing Center.
“The Energy Saver Home Loan Program takes advantage of
MassHousing’s statewide reach, high-touch customer service model, and expertise
serving needs of lower and moderate-income homeowners,” said MassHousing CEO
Chrystal Kornegay. “This new loan product will empower homeowners across
Massachusetts to help advance our state’s ambitious clean energy goals, while
slashing their home energy usage and making their homes healthier and more
comfortable.”
“The Energy Saver Home Loan Program is a game changer for
our residents looking to get fossil fuels out of their home and reduce their
energy costs,” said Energy and Environmental Affairs Secretary Rebecca Tepper.
“Reducing emissions from buildings are essential to meeting our climate
targets. With the innovative solutions offered by the Climate Bank, Mass Save,
and historic federal funds, Massachusetts residents will see more efficient,
cleaner, healthier homes.”
"Congratulations to the Massachusetts Community
Climate Bank on launching this new loan product for low- and moderate-income
homeowners,” said Housing and Livable Communities Secretary Ed Augustus. “The
flexibility it provides will allow people to improve their homes and reduce
their carbon footprint at the same time."
The Energy Saver Home Loan Program is designed
specifically to meet the needs of low- and moderate-income
homeowners.
The loan program will employ flexible underwriting
requirements and repayment structures that will lower the monthly costs
associated with clean energy improvements. The program builds on MassHousing’s
existing network of partner lenders and the Agency’s decades of experience
supporting Massachusetts homeowners.
The new loan program also offers new consumer supports
not available through other publicly supported home energy programs across
Massachusetts. The program will provide homeowners with wraparound customer
service that will make clean energy improvements more accessible to
consumers.
The MCCB will administer the Energy Saver Home Loan
Program in partnership with service providers across Massachusetts, who will
help consumers to develop a customized home improvement plan, find quality
contractors, and access available rebates and incentives to make the project
more affordable. The high-touch program model will reduce barriers and connect
consumers with resources more quickly and effectively. All In Energy, the Cape
Light Compact and CET will provide consumer-facing concierge services. Abode
Energy Management will serve as the program’s statewide energy services
provider.
The Energy Saver Home Loan Program is available to all
income-qualified Massachusetts homeowners. The program may be used to finance
energy improvements in either owner-occupied single-family homes, or in
owner-occupied multifamily homes with up to 4 residential units. Homeowners
earning less than 135 percent of the area median income are eligible for
financing. Income limits vary by county and range from $190,775 in greater
Boston to $124,875 in Berkshire County.
The MCCB has allocated up to $20 million for the program,
with a goal of committing up to 1,000 loans over the next two years. The
program is designed to be scaled up with federal Inflation Reduction Act
resources.
MassHousing will work with a network of originating
lenders to support the program. Participating lenders include Avidia Bank, Bank
of Canton, Bristol County Savings Bank, Cape Cod Five Cents Savings Bank, Fall
River Five Cents Savings Bank, Fidelity Cooperative Bank, Greylock Federal
Credit Union, Holyoke Credit Union, Mill Cities Community Investments, Monson
Savings Bank and The Cooperative Bank. The program is open immediately and
homeowners may check their eligibility and begin the application process by
visiting www.massclimatebank.com.
The MCCB is an ambitious new climate finance initiative announced by Governor Maura Healey in June 2023. Located
within MassHousing, the MCCB’s initial focus is to support decarbonization
strategies in the residential sector, specifically in the low- and
moderate-income multifamily rental and single-family homeownership
markets.
The MCCB is the first climate bank in the nation to
launch with a specific focus on decarbonizing affordable housing. MassHousing
is drawing on its decades of housing finance and investment expertise and
lending capabilities serving these markets to advance the MCCB mission. The
Climate Bank was established with $50 million in seed funding from the
Massachusetts Department of Environmental Protection’s Climate Mitigation
Trust. The Energy Saver Home Loan Program will utilize a portion that that seed
funding.
From day one, the Healey-Driscoll administration has been
committed to making Massachusetts a global leader in climate resilience and the
clean energy economy. On Governor Healey’s first day in office, she established
the nation’s first cabinet-level Climate Chief to coordinate climate policy
across all executive agencies. Focused on making Massachusetts the world’s
climate innovation lab, she recently proposed a $1 billion, 10-year investment
in climatetech which will create thousands of good-paying jobs. Additionally,
the administration has aligned state capital investment with mandated emissions
reduction targets, established a clean energy innovation pathway for high
school students, and filed an historic housing bond bill that would provide
$150 million to decarbonize state-owned public housing and incentives for
development of energy efficient, fossil-fuel-free homes.
