Energy Savers offers low-income loans

by Carol Crump
Thursday, September 25, 2008 8:43 AM MDT

Making older homes more energy efficient could mean the expense of installing a new furnace or storm windows and exterior doors.

For some homeowners, a Wyoming Community Development Authority (WCDA) program called Wyoming Energy Savers could make the extensive remodeling project affordable.

The last Housing Condition Report done by the Wyoming Community Development Authority found 25,000 Wyoming rates as substandard by the counties' appraisers.

With energy prices soaring, the agency that finances affordable home building and rehabilitation worked with the state's banking community to put together an assistance program that is available across Wyoming.

Wyoming Energy Savers is a loan program designed to address the need for essential, cost-effective, energy-efficient home improvements, according to information from the WCDA.

From $1,000 to $7,500 in funding is available for new furnaces, insulation, weather stripping, programmable thermostats, exterior storm windows and doors to bring existing homes up to energy efficiency.

The initial $5 million allocation in the program -- most of which is still unspent -- is available to any Wyoming homeowner who meets the program's income limits.

Qualification for the program is based on total annual household income of the homeowner or home mortgage holder, family size and county median income, said WCDA's Deputy Director Cheryl Gillum.

There are no credit requirements, and the appraised value of the home to be rehabilitated is not taken into consideration.

Homeowners who apply to the program must be current on their monthly mortgage payment, real estate taxes and homeowner's insurance.

A Wyoming Energy Savers loan becomes a first or second mortgage on the property and the borrower will sign a promissory note.

"Some people are a little concerned with putting mortgages on property," Gillum said.

"They'll be able to make the loan payment with the energy savings" from a more energy-efficient home, she said.

Either a deferred or an amortized loan is available. Loans are originated by local banks and secured by WCDA, which collects the loan payments. The repayment is invested back into WCDA housing programs.

Families with a total family income up to 50 percent of the median area income are eligible for either deferred or amortized loans.

In Natrona County, a family of four with a combined income of $30,350 would have the income of 50 percent of the area median income. The family would qualify for a deferred loan. A single-person household would qualify at $21,250.

The interest rate on a deferred loan is 3 percent simple interest, spread over as long as 30 years.

There is no monthly repayment on a deferred loan, which comes due and payable only when the house is transferred, sold or no longer the borrower's principal place of residence.

Amortized loans at 4 percent interest, for from one to 96 months, are available for those with a total family income of 80 percent or below of the area median income.

In Natrona County, a family of four with a total annual family income of $48,550 or a single person household with $34,000 would qualify for a Wyoming Energy Savers amortized loan. The loan is repaid monthly.

The program that was started three years ago "isn't moving very quickly," possibly because the public is unaware, Gillum said.

The WCDA board will re-examine Wyoming Energy Savers at its June meeting. They could decide to reallocate the money to another housing program if the loan program is still underutilized.

"Now is the time" to use the program, before the winter heating season begins, Gillum said.

For information about Wyoming Energy Savers, contact a local bank, credit union or the WCDA office at 265-0603 or info@wyomingcda.com.

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