Chf contractor program_training_v11_110111

www.chfloan.org Updated 11/01/11

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


Bright Blue Packet

LEFT SIDE

• Program Flyer

• Term Sheet

• Eligible Counties & Income Limits

• Availability Map

RIGHT SIDE

• Contractor Participation Packet


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


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


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


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


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


http://www.energyupgradeca.org/

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


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)


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


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 %


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 %



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 %



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 %


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.


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


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


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


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


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

See the Program in Action – Project #2 (Actual Project)

Without CHF Financing


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


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

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!


Break

Up next…

Contractor Participation Requirements


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


Contractor Participation Packet

• Participation Checklist

• Participation Agreement

• Waste Management Plan Docs


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.


http://www.bpi.org/

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


http://www.cwib.ca.gov/

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?


WMP Requirement cont…

Required Documents

WMP Plan (MS Word)

(Doc #390228)

WMP Certification &

Compliance Form

(Doc #390244)

Generic WMP Worksheet

(Excel Spreadsheet)


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


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


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


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


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


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


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)


Break

Up next…


Financial Feasibility Worksheet



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!


CHF Support Services

• Website: www.chfloan.org

• Customer Service Dept:

M-F 8AM – 5PM

(855) 740-8422

[email protected]

• Additional “Procedures Training” after

Contractor is Approved to Participate

• CHF Marketing Support


http://www.chfloan.org/

mailto:[email protected]

CHF Marketing Materials


Thank You For Your Participation

CRHMFA Homebuyers Fund (CHF)

1215 K Street, Suite 1650

Sacramento, CA 95814

(855) 740-8422

www.chfloan.org

[email protected]

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.


http://www.chfloan.org/

mailto:[email protected]

Chf contractor program_training_v11_110111

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