One-Stop Energy Efficiency Shop for Multifamily Building Owners
Energy is one of the least predictable operating costs in multifamily buildings. With more than 75 percent of buildings in Chicago built before 1942 and lacking basic energy efficiency improvements, many owners can save substantially on utility and operating expenses. CIC’s Energy Savers program is a one-stop-shop to better understand your building, reduce your operating costs, and improve your return on investment.
How it Works
CIC and our Energy Savers partner, Elevate Energy, will connect you with the most cost-effective solutions for your investment. Some important features of the program are:
- Free, comprehensive building energy assessment
- Access to utility rebates and incentives to lower your loan amount or out-of-pocket expense
- Assistance with equipment maintenance and performance optimization
- Financing at up to 90% loan to value and 1.15 Debt Service Coverage Ratio
- Typical recommendations include air sealing and insulation, new lighting, efficient boilers, boiler controls, thermostats, low flow water fixtures, and more.
For a typical 24-unit building the annual savings can add up to $10,000 per year. Some owners have saved as much as 40% on their energy bills through this program. Other potential benefits include:
- Lower vacancy rates/reduced turnover
- Higher rental incomes
- Improved tenant comfort, health, and safety resulting in fewer complaints
- Improved Net Operating Income (NOI) with additional cash for capital improvements
To get started, ask your CIC loan officer about getting a free energy assessment, or contact CIC at (312) 258-0070 or firstname.lastname@example.org. Energy Savers loans can be combined into an acquisition or refinance of your building.
Energy Savers History
In 2012, CIC received $14.5 million for low-cost energy loans and administration from Bank of America and the John D. and Catherine T. MacArthur Foundation. In addition, the Chicago Metropolitan Agency for Planning (CMAP) and the City of Chicago invested $2.75 million and $1 million, respectively, to fund a loan loss reserve for the CIC Energy Savers program.
With these generous investments, CIC’S Energy Savers program became a model for energy-efficiency financing nationwide. From program inception through 2016, CIC provided $23.6 million in loans and grants to finance energy-saving retrofits, assisting 10,000 units.
Based on the success of the Energy Savers program, CIC incorporates energy and water retrofits as part of its regular mortgage lending program.
Photo: Marc PoKempner