Hartford Business Journal

www.HartfordBusiness.com March 13, 2017 • Hartford Business Journal 17 REPORTER'S NOTEBOOK Lenders wary of residential clean energy program The quasi-public Connecticut Green Bank is taking another stab at creating an energy- efficiency lending program for homeowners, something that exists in just a handful of states. A proposed bill currently before legis- lature's Energy & Technology Committee would create a residential version of the state's Commercial Property Assessed Clean Energy program, or C-PACE. It's the Green Bank's flagship program and has grown to one of the largest in the country. Since its creation in 2012, C-PACE has fun- neled $95 million in public-private financing to more than 150 commercial, industrial and multi-family landlords in the state. The funds can be used to install efficient lighting, HVAC systems, windows and a variety of other equipment. Building owners repay the loan through a special assessment on their property tax bills over 20 years or less. That assessment mechanism is part of the challenge in implementing a residential ver- sion of the program (R-PACE), which state policymakers have been eying for years. Mortgage lenders are wary of R-PACE because the assessments — which are simi- lar to property tax liens used by local gov- ernments — could effectively cut them in the creditor line in the event of a foreclosure. They also worry that assessments will make it more difficult to sell residential mortgages to the secondary market. Meantime, Realtors worry that the resi- dential clean energy program could harm the housing market and make it more difficult to sell foreclosed properties — an already com- plicated process. However, Green Bank CEO Bryan Garcia and General Counsel Brian Farnen told legis- lators last week that, in a foreclosure situ- ation, the bill would only give priority to the portion of a PACE assessment in arrears. "I assume it's not worth it for them to foreclose on such a small piece that's in arrears," Farnen said. He added that no residential program in any state has foreclosed on a single borrower. The Federal Housing and Finance Admin- istration threw a wrench in the R-PACE hopes of many states in 2010 when it directed Fannie Mae and Freddie Mac — major acquirers of U.S. mortgages — not to purchase home loans with PACE liens attached. More recently, there have been several pos- itive developments for PACE advocates. The Federal Housing Administration last year said it would insure mortgages that have PACE liens as long as certain criteria are met. The Department of Energy also issued guidance in November instructing how PACE programs should be designed. Farnen said the proposed bill follows that guidance, which includes pro- visions meant to protect consumers. In some states, homeowners have report- edly signed up for PACE financing, some- times with a door-to-door salesman, without fully understanding the terms or how much their property tax bill would increase. Protections built into the Connecticut bill include caps on the amount of the assessment compared to the fair-market value of the prop- erty and contractor licensing requirements. – Matt Pilon 2017 There are many outstanding women who are senior level executives, entrepreneurs and CEO's. The Hartford Business Journal will celebrate 8 of those women at the Annual Women in Business Luncheon. These women have mastered their industries and are admired by the business community. Join us in celebrating the feats of these strong and remarkable business women; eight outstanding women will be showcased in a special section of the Hartford Business Journal and recognized at the Annual Women's Business Luncheon! Presented By: 8 Remarkable Women In Business Winners to be announced in the Hartford Business Journal April 3, 2017 Special Issue – In Print + Digital! TICKETS: Single Ticket Rate $85 each; Table of 10 / $800 Register online at www.HartfordBusiness.com Click on 'Our Events' QUESTIONS? Contact Kaleigh Hickey at khickey@HartfordBusiness.com or 860-236-9998 ext. 137 #HBJWIB Event Sponsors: Education Leadership Sponsor: Media Partner: Event Partners: Official Promotional Products Provider EVENT & TRAVEL PARTNERS Presenting Sponsor: Awards Luncheon honoring 8 Remarkable Women in Business Keynote Speaker Teresa C. Younger President and CEO, Ms. Foundation for Women 2008 Women in Business Honoree SAVE THE DATE! WEDNESDAY May 10, 201711:00a.m.–1:45p.m. Hartford Hilton 315 Trumbull St., Hartford Bryan Garcia, CEO, Connecticut Green Bank New downtown eatery feeds on Hartford traffic Gyro & Kabob House has occupied and opened in the former Jojo's Coffee Roasting Co. space at 22 Pratt St., next door to Sorella Restaurant, in downtown Hartford. Owner Kevin Tos, of Waltham, Mass., said he chose downtown for his second New Eng- land location serving all-day breakfast, sand- wiches and wraps because "I saw potential here. A lot of people come from other towns to work here.'' "I wanted to be somewhere in the area of Pratt and Main Street, because that's the best space in the area,'' Tos said. Proximity to the XL Center and the impending arrival this fall of foot traffic to UConn's new downtown campus were pluses, he said. 901 Main Street Associates LLC is land- lord. Jojo's closed in Jan. 2015. Tos said he previously owned Massachu- setts restaurants in Westfield and Springfield before debuting his first Gyro & Kabob House in suburban Boston. By St. Patrick's Day, Tos said hours Monday to Saturday, from 7 a.m. to 5 p.m., for his approximately 2,000-square- foot eatery will extend into evenings, and will eventually include Sundays. – Gregory Seay Gyro & Kabob House, 22 Pratt St., downtown Hartford. H B J P H O T O | G R E G O R Y S E A Y

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