Mayor Newsom, Recurve founder Matt Golden, Assessor-Recorder Phil Ting, and others announce SF Sustainable Financing Program

San Francisco Mayor Gavin Newsom announced on Monday that San Francisco is introducing legislation to help finance new residential and commercial energy efficiency and renewable energy projects. San Francisco Sustainable Financing Program (SF²) is modeled after similar programs adopted by cities such as Berkeley and Palm Desert, in which the loan for improvements is attached to the property, rather than the individual, and will be paid back through property taxes over the life of the financing.

San Francisco Sustainable Financing (SF2) Highlights:

• Establishes a citywide “Mello-Roos” Special Tax District.
• Residential and commercial buildings of all sizes will be eligible.
• Some of the eligible upgrades include: insulation, replacing windows, upgrading heating systems; water efficiency upgrades—such as installing low flow toilets, potable water offsets, irrigation measures, storm water management improvements; financing will also be available for installation of renewable energy generation on buildings, such as solar arrays, solar water heaters and wind turbines
• Program phases in a mandate of a whole home energy efficiency audit and the installation of energy efficiency upgrades before renewable energy generation improvements.
• Private capital to fund the retrofits through Renewable Funding, LLC.
• Program participants can deduct the interest component of their solar financing tax on their tax returns.
  Similar programs exist currently in Berkeley and Sonoma, and others are under development around the state, but San Francisco’s is the most aggressive and includes comprehensive water and energy efficiency improvements as well as renewable generation like solar.

According to Inhabitat, the genius of San Francisco Sustainable Financing is that it will leverage private market lending and available state and federal grant dollars to help home and business owners overcome the costs of green improvements without financial risk to San Francisco taxpayers. Up to $150 million has been set aside for this new program. This is different than cities with similar “repayment through property tax” solar and environmental improvement programs, where public or City investment dollars are used for financing instead.