Loan plan rewards homeowners for green upgrades
July 21, 2009
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| Greener: Solar panels would be part of a loan program that could make The City even more environmentally friendly. (Getty Images) |
SAN FRANCISCO — Solar panels, low-flush toilets and other Earth-friendly upgrades could be a lot easier to purchase with a new initiative that would turn
The City into a green loan zone.
Mayor Gavin Newsom and Supervisor Eric Mar will introduce legislation this week that would allow homeowners to receive loans to make environmental improvements to their properties and then pay back the money through extra property taxes.
The idea mimics a similar Berkeley program in which homeowners can install electric and thermal solar systems and make energy-efficiency improvements to their buildings, then pay for the cost through 20 years with an annual tax.
The special tax is voluntary and allowed by state law. In Berkeley, a homeowner who buys a $12,000 solar panel pays approximately $900 per year, or $75 per month.
Both residential and commercial buildings are eligible for the loans, and the San Francisco model would apply not only to energy-saving equipment such as solar panels, but also for water-saving fixtures.
San Francisco already has some of the strictest environmental building codes in the nation. Legislation passed in 2008 requires most new commercial buildings to be certified by Leadership in Energy and Environmental Design standards created by the U.S. Green Building Council.
Newsom has already pledged to tighten those rules to apply to existing buildings. This latest green idea may provide a way to finance improvements that could soon become mandatory.
“It will be the biggest revolving fund that we know of out there,” Newsom said. “To Berkeley’s credit, it’s really well-conceived and thought out.”
The loan is attached to the property rather than the individual, leading to some concern that an owner will spruce up the property and then flip it, leaving renters in the lurch.
Mar said he’s working on a provision that would prevent quick sales, and he’s talking with community members to make sure everyone is on board.
“We think a green loan program would do a lot to meet our climate change goals,” Mar said. “There are over 300,000 buildings in The City, and we need to focus on them to reduce greenhouse gases.”
The first pot of money is expected to come from a private source. The City is working with Renewable Funding LLC to start the program.
The Board of Supervisors must approve the legislation.
bbegin@sfexaminer.com
