Items Types:
For Meeting of:
September 8, 2014
District: ALL From:
Contract ID: Document Number:
Exhibits: Yes On File (City Clerk) : Yes Draft Only: No
Grant Received by City?: No

Funding agreement with the Solar and Energy Loan Fund

Last August, Council adopted the Green Works Orlando Community Action Plan, which set aggressive targets to reduce community energy use and greenhouse gas emissions. The plan set forth recommendations to create finance opportunities that enable homeowners and businesses access to affordable financing for energy efficiency and renewable energy programs. 

This funding agreement is with the the Solar and Energy Loan Fund (SELF), a community-based lending organization that focuses on financing energy efficiency and renewable energy improvements, with an emphasis on underserved populations. SELF is a 501(c)(3) and certified Community Development Financial Institution, requiring a significant portion of their loans to be issued in  low to moderate income census tracts. SELF was created in 2010 and closed over 250 loans totaling more than $2.5 million. Homeowner loan defaults working with SELF are well under 1%.  Through this agreement, SELF intends to issue a minimum $3 million in residential efficiency loans by 2018 in Orlando.

Beyond issuing loans, SELF provides credit counseling, energy education, energy audits, contractor screening and will support construction related jobs in the community.  In other communities where they operate, SELF has provided loans to homeowners that faced emergency air conditioner replacements, but lacked the financial means to pay for it.  As of today, the City has few options to where they can direct people that face this challenging situation. 

For these reasons, SELF provides a vital public service that is not addressed by the private or non-profit sectors.

The funding agreement is using non-general fund revenues.  The Green Works Orlando program has negotiated a series of energey efficiency tax deduction sales.  The revenues from those sales were designated for the use of community energy programs. 

The agreement will provide the first year of operating funds ($100,000) in order for SELF to scale-up within Orlando. Funds will be used by SELF to fund first year operational costs, including staffing, community education, marketing, office space, etc.  By Year 2, SELF should have generated sufficient loans and/or other grant proceeds to maintain self-sufficiency within the City. 

Fiscal & Efficiency Data:

Recommended Action:
Approval and execution of the funding agreement, subject to review and approval of the City Attorney's Office.   

Agenda Item attachment(s) on file in the City Clerks Office.

Note: All agenda items must be in the City Clerk's office by Noon Friday, six(6) business days prior to the regular Monday City Council meeting.

Contact: Jon Ippel
Approved By:

Department Date and Time
Budget Outside Routing Approval 9/2/2014 1:25 PM
City Clerk 9/2/2014 1:32 PM

Name: Description: Type:
SELF.Agreement.2014.8.12.14_(2)_FINAL.doc Funding agreement with the Solar Energy Loan Fund Backup Material
Fiscal_Impact_Statement_SELF.doc Fiscal Impact Statement Backup Material

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