Multifamily Energy Loan Program FAQ

Who is eligible to apply for the Multi-family Energy Conservation Loan Program?

An eligible applicant is any person, group, or corporation holding title to an eligible building. Management agencies may apply on behalf of an owner, but will not be permitted to sign loan documents without the legal appointment of the owner. Public housing is not eligible. Loans will be issued to corporations, however, personal liability may be required of the corporate principal. Click here for a MEL Fact Sheet

What is an Eligible Building under the Multi-family Energy Conservation Loan Program?

Any building within the State of Connecticut owned by an eligible applicant and containing five dwelling units or more will be eligible for financing. Buildings containing commercial space must be at least two-thirds residential by floor area. Buildings that provide temporary housing (hotels, motels, etc.) are not eligible.

How much money can I borrow?

The amount of money that you may borrow under the MEL Program ranges from $3,500 per unit up to a maximum of $100,000 per building.

How is the interest rate determined?

There are three below-market interest rates offered under this program: 0%, 3%, or 6%. The rate is determinted by the income of the tenants living in the building. Furnaces and boilers that meet the following criteria are eligible for 0% financing: 1) Energy-star rated for Natural Gas; or 2) > 84% Efficiency for Oil or Propane.

What are the terms of the loan?

Repayment of the loan is figured for a maximum period of 10 years. Borrowers may repay the loan sooner if desired with no prepayment penalty.

Do I need excellent credit to qualify?

Yes, CHIF will look to see that all of your credit is current. The applicant's credit history, especially pertaining to mortgages on the building to be improved, will be a major consideration in the loan approval process.

How long is the application process?

The application process averages about 2-3 weeks from the time we receive your application in our office to the actual closing of the loan. If you qualify for a MEL loan, you will sign closing documents before the work begins. Once the work has been completed, you and your contractor will sign forms to verify all improvements have been installed, and your contractor will be paid directly by the Connecticut Housing Investment Fund, Inc. (CHIF).

Do I need an estimate or proposal to send in with my application?

No, you do not need to send an estimate or proposal with your application. However, final estimates or bids will be required prior to closing.

What other materials should I submit with my application?

A separate application must be submitted for each building under consideration. You should also include the following with your application: copies of the past two years' federal tax returns with schedules, $50 non-refundable application fee, a tenant list, and if available, an estimate for the work to be performed and a copy of the contractor's license.

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