January 14, 2016
For the last several years, the Green Jobs-Green New York (GJGNY) residential loan program has assisted homeowners with loans to participate in energy efficiency and renewable energy projects within New York State. In an announcement made in Oct of 2015, two increases were put in place to transition interest rates available to some higher income homeowners to sustain the program so that it will continue to assist New York homeowners in the years to come. Low and middle income homeowners will not be impacted. These changes were necessary to keep this program in place for the benefit of all homeowners.
The interest rate increases that will take effect for loan applications received on or after February 1, 2016 are as follows:
- Consumers with household income less than or equal to 80% AMI (Area Median Income) or SMI (State Median Income) -- No change in 3.49% interest rate*
- Consumers with household income over 80% to 120% AMI or SMI -- Increase to 4.99% interest rate*
- Consumers with household income over 120% AMI or SMI -- Increase to 5.99% interest rate*
Additionally a secondary increase will take effect for loan application received on or after April 1, 2016 and these increases, which will only effect homeowners on the higher end of the income scale, are listed below. If you are uncertain if you will be effected by the changes that will take effect on April 1, 2016, Green Team LI can assist you in determining your status.
- For energy efficiency loans, the rate will be 7.99%*
- For PV loans, the rate will be 9.99%*
- Combination PV and energy efficiency projects will receive the PV interest rate of 9.99%*
- Solar Thermal and Renewable Heat NY projects will receive the energy efficiency interest rate of 7.99%*
*This interest rate applies to On-Bill Recovery Loans and Smart Energy loans which include automatic payment deduction from a checking account. Interest rates for Smart Energy loans that include standard billing by mail from the Loan Servicer are 0.5% higher than the rate shown here.
It should be noted that if you have a loan application that is in and still under review, your possible loan will be under the current interest rates even if your loan approval does not occur until after the January 31st deadline
With the first deadline on January 31, 2016 approaching, home owners who wish to apply for GJGNY loans should submit their application on or before January 31st before the affected interest rates change. Click on the image below to read the entire memo from NYSERDA. If you have further question, please feel free to call Green Team LI at 631.813.4446 and we will be happy to answer any questions you may have.