Recently I’ve had the opportunity to participate in a number of processes regarding strategies to increase the energy efficiency of our existing housing stock. While it is exciting to observe the efforts being made in this area, it is disheartening to see the many misperceptions related to the financing aspects. It is frustrating to watch how these misunderstandings are sabotaging this unique opportunity.
It is likely that I have personally done more Energy Efficient Mortgages (EEMs) and other energy financing structures over the past 18 years than anyone else in the nation. I have trained, taught, and consulted on these opportunities. In addition, I created a program to promote Energy Financing that is being offered throughout the State of California right now and another specifically for the Sacramento Region. I think it is fair to say that I have a little bit of legitimate expertise in this area. When you combine that with so many years of actually providing energy financing structures to real live people on real houses, it is probably also fair to say that I just might have some insights that have been lacking in some of these discussions.
This is not to suggest that there are not some very bright and capable people involved in this process. I am sure that eventually they will figure out some very innovative ideas that will work. I am just suggesting that we do not need to wait for them when there are so many opportunities that already exist today that are being completely overlooked or misunderstood.
I can fully appreciate that the financing area is much more complex than most people originally realized but many of the strategies that have been attempted are counter-productive. There are people out here who actually know and use these programs. When properly utilized they work extremely well. I could not continue to stand by while so many people are struggling with this when some of us know effective ways to utilize the existing structures.
I am truly grateful for the opportunities I was given to participate on both the Valley Vision Green Building Task Force (GBTF), and Sacramento Mayor Kevin Johnson’s GreenWise Task Force. This gave me the opportunity to interact with people who sometimes had very different perspectives than I did. It also gave me an opportunity to appreciate that most of them are open to new ideas if they are properly explained. This was a very powerful discovery.
I think our Mayor is correct when he states that our Region is in a very unique and strategic position to lead innovation in the energy conservation area. In addition to clarifying the opportunities for people to upgrade the energy components of their home, I have developed a model called the HERE Model. The HERE Program integrates the ARRA energy stimulus incentives into the home buying process in a way that will ignite energy retrofits while stimulating home sales, creating an exponential benefit.
This is a model that will ensure that just about every single buyer that is using FHA financing will include energy retrofitting in the process. I know that it is not much in the greater scheme of things but this model would have conservatively resulted in around $40,000,000 in retrofits in Sacramento County last year if only buyers of houses built before 1990 had decided to take advantage of this. Under this structure, it would be hard to conceive of a buyer who didn’t include energy retrofitting.
In keeping with the Mayor’s request that we all find the ways to offer what we can here, this model can be easily replicated throughout the State and the Nation. This will not only promote retrofitting but it will stimulate home sales in the process.
I now appreciate in a way I never did before that people may not understand some parts of this, and they may even be doing some things that are counter-productive, but they are really trying hard to make this work. I can’t stand by and watch people struggle when there is such an advantageous solution that literally addresses many other problems in the community while creating a tremendous demand for energy retrofitting.
Sacramento 1st DBA Comstock Mortgage – Lic : 01390474
Kevin Nunn – NMLS 305826 / DRE 01158674
