1. 1 | TAP Webinar eere.energy.gov The Parker Ranch installation in Hawaii DOE Technical Assistance Program March 17, 2011 CDFIs: Opportunities for Partnerships with Energy Efficiency Programs

2. 2 | TAP Webinar eere.energy.gov What is TAP? DOE’s Technical Assistance Program (TAP) supports the Energy Efficiency and Conservation Block Grant Program (EECBG) and the State Energy Program (SEP) by providing state, local, and tribal officials the tools and resources needed to implement successful and sustainable clean energy programs.

3. 3 | TAP Webinar eere.energy.gov How Can TAP Help You? TAP offers: One-on-one assistance Extensive online resource library, including:  Webinars  Events calendar  TAP Blog  Best practices and project resources Facilitation of peer exchange On topics including: Energy efficiency and renewable energy technologies Program design and implementation Financing Performance contracting State and local capacity building

4. 4 | TAP Webinar eere.energy.gov The TAP Blog Provides a platform for state, local, and tribal government officials and DOE’s network of technical and programmatic experts to connect and share best practices on a variety of topics. Access the TAP Blog! http://www.eereblogs.energy.gov/tap/

5. 5 | TAP Webinar eere.energy.gov Accessing TAP Resources 3) Ask questions via our call center at 1-877-337-3827 or email us at solutioncenter@ee.doe.gov solutioncenter@ee.doe.gov We encourage you to: 1) Explore our online resources via the Solution CenterSolution Center 2) Submit a request via the Technical Assistance Center Technical Assistance Center

6. 6 | TAP Webinar eere.energy.gov Title: Developing Low-Interest Retrofit Loan Programs for the Multifamily Sector Host: Sarah Busche and Karlynn Cory, NREL Date: March 23, 2011 Time: 3:00 - 4:15 PM EDT Title: Ask the Expert: Energy Savings Performance Contracting Host: Meg Giuliano, ICF; Karl Berntson and David McGeown, SRA; and Doug Dahle (NREL) Date: March 24, 2011 Time: 1:30 - 3:00 PM EDT Title: Qualified Energy Conservation Bonds (QECBs): Updates From the Field Host: Elizabeth Stuart, LBL Date: March 28, 2011 Time: 2:00-3:30 PM EDT Title: Developing an Evaluation, Measurement, and Verification Plan: Residential Retrofits Host: Julie Michals, NEEP Date: March 29, 2011 Time: 2:00 - 3:00 PM EDT Upcoming Webinars For the most up-to-date information and registration links, please visit the Solution Center webcast page at www.wip.energy.gov/solutioncenter/webcastswww.wip.energy.gov/solutioncenter/webcasts Please join us again:

7. 7 | TAP Webinar eere.energy.gov The Parker Ranch installation in Hawaii The Opportunity Finance Industry March 17, 2011 The Opportunity Finance Industry Created by: Opportunity Finance Network, Wanda Speight, EVP, Finance

8. 8 | TAP Webinar eere.energy.gov Opportunity Finance Network Opportunity Finance Network (OFN) is the nation’s leading network of community development financial institutions (CDFIs), with 184 high-performing CDFI Members that serve low-income and low-wealth people and communities in all 50 states and mange more than $9 billion in capital. For more than 25 years, OFN has been the leading catalyst in the CDFI industry, focusing on and excelling at: –Understanding and assessing CDFI performance; –Building deep and broad public support for opportunity finance; –Convening practitioners and partners to share knowledge about practice and strategy; and –Driving strategic innovation.

9. 9 | TAP Webinar eere.energy.gov The Opportunity Finance Industry The opportunity finance industry is a leading source of innovative, market-based solutions for economically distressed communities and underserved people across the United States. CDFIs are leaders of this mission-driven industry, which over the past 30 years has grown to include revolving loan funds, venture funds, banks and credit unions managing over $30 billion in total assets. Serving all 50 states and a growing number of Native unions, CDFIs currently provide more than $5 billion annually in loans, investments, and financial services to urban, rural, and Native communities.

10. 10 | TAP Webinar eere.energy.gov The CDFI Footprint & Impact The opportunity finance industry is diverse. Individual CDFIs focus on the unique market conditions of the communities where they operate. Many CDFIs are engaged in housing, while others focus on small business or community development. CDFIs my also provide retail financial services, financial education, and technical assistance to small businesses. CDFIs in the US 572 community development loan funds 203 community development credit unions 139 community development banks 25 venture capital funds Customer Profile 70% low-income 60% are minority 52% are female Assets & Financing $29.4 billion in assets & $20.5 billion in financing outstanding Annual Net Charge-Offs 2009 CDFI: 1.78% 2009 FDIC-insured: 2.49% 2008 CDFI: 0.93% 2009: FDIC-insured: 1.28%

11. 11 | TAP Webinar eere.energy.gov The CDFI Footprint & Impact CDFIs by the Numbers –35,624: Job created or maintained via small business and microenterprise opportunity finance; –60,205: Affordable housing units constructed or renovated with CDFI investments; –16,405: Responsible mortgages financed to first-time and other homebuyers; –$20.5 billion: Total CDFI direct opportunity finance outstanding. CDFI Data Project FY 2008

12. 12 | TAP Webinar eere.energy.gov For more information please visit: www.opportunityfinance.net www.cdfifund.gov

13. 13 | TAP Webinar eere.energy.gov The Parker Ranch installation in Hawaii CDFI Approach to Energy Efficiency March 17, 2011 Enterprise Cascadia John Berdes, President Adam Zimmerman- Sr. Vice President

14. 14 | TAP Webinar eere.energy.gov Product: Standardizing a Customized Need CO2 Matters: Energy usage screen –Prioritize the greatest CO2 impact Low Touch Underwriting –Non-Traditional: Utility payment history, FICO >590 –IT Platform: Linked to utilities and loan management Product Specifications –Rate: 5.99% (3.99% for <250% Federal Poverty) –Term: 20 years –Security: subordinated lien on property –Servicing: on bill of utility providing energy for heat –Risk: Cash funded loan loss reserve: 10% –Affordable: Goal is net zero impact on the family budget Delivery financed by fees not interest margin

15. 15 | TAP Webinar eere.energy.gov Outputs 2010 Actual 2011 Projected (Portland/Oregon + Seattle) Homes Retro-fitted 367 Homes Retro-fitted 1,500 Loans Dollars Outstanding $4,658,464 Loans Dollars Outstanding $20,000,000 Simple ROI 5.17% Simple ROI 5.5% Participating Contractors 21 Participating Contractors 50

16. 16 | TAP Webinar eere.energy.gov Why? CDFI Brand: If we don’t the carbon economy will be just about carbon, not opportunity Positioned: Seizing the opportunity at the earliest stages of an emerging industry Policy: Removing the obstacles to policy innovation and unleashing huge demand –In turn creating markets that deliver outcomes Regional: CO2 demands regional response and aggregated resources Resource: Substantial and sustained to bottom line

17. 17 | TAP Webinar eere.energy.gov Outcomes (12/31/10) Access to Credit (Inclusion) Access to Opportunity (Jobs) % Borrowers < Median HH Income 58% % of Loan $ Paid as Wages 65% % Borrowers Non-White 13.8% Average Wage $25.02 % Borrowers in CDFI Tracts 29% % of Employees Women/Minority 51% % Subordinated Debt 98% % of Employees with Health Care 65% Metric Tons CO2/Year 350

18. 18 | TAP Webinar eere.energy.gov Market-Maker Goal: Shift the residential energy efficiency market to an environment where action to improve the efficiency of homes is as easy as buying a car with better gas mileage. Standardized product offering with options Standardized & auditable performance rating Widely branded “outlets” for sales Affordable, easy to access financing terms Warranty and peace of mind (value proposition) Ultimately, the product must remove obstacles to policy decisions that drive markets to “value” efficiency

19. 19 | TAP Webinar eere.energy.gov Cross Selling: Aligned Products Efficiency Contractor Finance Goal: Support business productivity and growth to meet demand Provide access to working capital Blanket loan agreements for individual contract advances Incent quality assurance Build credit management capacity Enhance relationships with suppliers and subs Lay groundwork for supply chain management Start Up for New Entrants Goal: Create access to the market for emerging firms historically under-represented in this space. Program preference for underserved and rural firms Dedicated technical assistance, training, and certification support CDFI capital enhanced by community partners Partnerships with existing firms

20. 20 | TAP Webinar eere.energy.gov Liquidity Drives the Bus Mandate: Setting the pace on the product and TBL tactics demands setting the pace on liquidity Now: $10M pilot, Q2-11: Replicable, marketable –Tiered PRI/SRI/Market with 20-30% guarantee –Yield below market in the 5.5% range –Right regional players at the table Challenges: price point; portfolio performance; underwrite; maturities; market place Bottom Line: Liquidity must value the outcomes and the pace of achieving them

21. 21 | TAP Webinar eere.energy.gov The Parker Ranch installation in Hawaii City of Indianapolis- Office of Sustainability and INHP Partnership March 17, 2011 John Hazlett- City of Indianapolis, Office of Sustainability Becca Murphy- INHP, EcoHouse Project Manager Joe Huntzinger- INHP, VP of Lending, Corporate & Capital Development

22. 22 | TAP Webinar eere.energy.gov Office of Sustainability Created in October 2008 City-wide effort across City departments Public-Private Partnership Approach Focus on long-term cost savings, building our economy, improving the local environment and enhancing our quality of life www.sustainindy.org

23. 23 | TAP Webinar eere.energy.gov DOE BetterBuildings Grant Funding Background: –2009 Recovery Act –$482M allocated to BB Program –34 Grant Recipients Total –City of Indianapolis awarded $10M

24. 24 | TAP Webinar eere.energy.gov Near Eastside Sweeps Grant Program Near Eastside Sweeps Grant Program –Retrofit 800 homes, 200 businesses and 20 non-profits (churches and community centers) –$1,500 per home, $2,000 per business/non-profit will be available as a grant –Eligible measures will include: Air Sealing and insulation HVAC equipment upgrades Duct repair and sealing Water Heater upgrades Lighting

25. 25 | TAP Webinar eere.energy.gov Loan Program Partnership with INHP Key points: INHP’s track record and history with the City Acknowledge and work through issues early in the negotiation process Respect the organization’s mission, organizational structure and existing relationships with lenders Value institutional knowledge

26. 26 | TAP Webinar eere.energy.gov INHP 22-year-old, independent, housing nonprofit  501 (c)(3)  CDFI Mission: To increase safe, decent, affordable housing opportunities that foster healthy, viable neighborhoods Our mission is both people and place based  People – ANYONE with a real or perceived barrier to homeownership  Place – targeted neighborhoods of Indianapolis

27. 27 | TAP Webinar eere.energy.gov INHP Programs Comprehensive education—prepares our clients for success Homeownership preparedness Post-purchase support Credit, budgeting, financial planning, and more Financing options—helping clients access a loan program that meets their needs First mortgages Emergency repairs Accessibility loans Down payment assistance

28. 28 | TAP Webinar eere.energy.gov Lending Demographics (2010)

29. 29 | TAP Webinar eere.energy.gov Service Area As a nonprofit, INHP concentrates loan efforts to specific areas and families Within the defined (tan) target areas: Verified income up to 120% of the Area Median Income (AMI) as defined by HUD, based on family size. Within the remainder of Marion County, City of Indianapolis: Verified income cannot exceed 80% of the AMI as defined by HUD, based on family size.

30. 30 | TAP Webinar eere.energy.gov Targeted Income Metric A family of 4 with an income of $54,950 is at 80% of AMI A family of 2 with an income of $65,940 is at 120% of AMI

31. 31 | TAP Webinar eere.energy.gov Public, Private, Philanthropic Partnerships INHP’s partnership network Board strength and composition Area Community Development Corporations and nonprofits City and state government Local businesses and lenders Since, just 2000: Nearly 12,500 families have completed an INHP homeownership program INHP, with its lender partners, has invested more than $200 million in mortgages for Indianapolis families

32. 32 | TAP Webinar eere.energy.gov Loan Pool Structuring a Loan Pool Previous pool leaders negotiate new pool terms Terms are set with signed dollar commitments Loan pool is closed with lead lenders Additional participants are approached to invest

33. 33 | TAP Webinar eere.energy.gov Loan Pool Key Terms Pool Borrower is INHP Collateral is the mortgages we make 90/10 - Lender & INHP split 180 day default buy-back Borrower 30 year $$ = perfect hedge Quarterly draw with interest rate set on draw date

34. 34 | TAP Webinar eere.energy.gov Loan Pool Proven track record More than 20 years and 6 loan pools Totaling nearly $120 million Never a loss to the lender Five prior pools paid in full

35. 35 | TAP Webinar eere.energy.gov EcoHouse Loan Pool New Loan Pool for the EcoHouse Project Part A – Secured, secondary mortgages Part B – Unsecured note loans Shorter loan terms = shorter loan pool Different rate index But, same borrower / underwriting profile as prior pools Collateral = $3 million loan loss reserve

36. 36 | TAP Webinar eere.energy.gov EcoHouse Project INHP will: Provide below-market rate, fixed-rate, fully amortizing loans for energy upgrades Bring together available resources Project management Rebates - utility participation Additional programs when homeowner needs go beyond eligible measures

37. 37 | TAP Webinar eere.energy.gov Basic Terms

38. 38 | TAP Webinar eere.energy.gov Title: Developing Low-Interest Retrofit Loan Programs for the Multifamily Sector Host: Sarah Busche and Karlynn Cory, NREL Date: March 23, 2011 Time: 3:00 - 4:15 PM EDT Title: Ask the Expert: Energy Savings Performance Contracting Host: Meg Giuliano, ICF; Karl Berntson and David McGeown, SRA; and Doug Dahle (NREL) Date: March 24, 2011 Time: 1:30 - 3:00 PM EDT Title: Qualified Energy Conservation Bonds (QECBs): Updates From the Field Host: Elizabeth Stuart, LBL Date: March 28, 2011 Time: 2:00-3:30 PM EDT Title: Developing an Evaluation, Measurement, and Verification Plan: Residential Retrofits Host: Julie Michals, NEEP Date: March 29, 2011 Time: 2:00 - 3:00 PM EDT Upcoming Webinars For the most up-to-date information and registration links, please visit the Solution Center webcast page at www.wip.energy.gov/solutioncenter/webcastswww.wip.energy.gov/solutioncenter/webcasts Please join us again: