Leaky House? County Offering Low-Interest Loan Program to Help

A new, low-interest loan program is now available to St. Louis County residents to help improve energy efficiency in their homes.

The program, called St. Louis County SAVES (Sustainable and Verifiable Energy Savings), was unveiled at a news conference Tuesday in Clayton. Qualified applicants can borrow between $2,500 and $15,000 at a 3.5-percent interest rate to make energy-efficient home improvements.

Residents who live in incorporated cities within the county may apply, but the city in which they live must first enter into a cooperative agreement with St. Louis County SAVES. The with St. Louis County, so residents there may apply for program now. and is expected to consider approving the measure at its June 6 meeting.

The loans can be used for projects that could help reduce utility bills, including air and duct sealing, new windows, doors and roofs, and high efficiency heating, air-conditioning and water-heating equipment. Review the PDF file available on this page for a complete list of eligible improvements.

“The benefit is twofold,” County Executive Charlie Dooley said. “We’re helping homeowners in the county go green, and we’re putting people back to work.”

Applicants must live in St. Louis County in an owner-occupied home, have a credit score greater than 660 and a debt-to-income ratio of 45 percent. The loan’s annual percentage rate will vary depending on the amount and length of the loan.

Anne Klein, the county’s director of energy sustainability, said the county obtained the $10.4 million in federally subsidized energy conservation bonds through the Missouri Department of Economic Development. She said the county’s borrowing rate is less than 1 percent, which is why it can offer the 3.5-percent interest rate to applicants.

“If a homeowner applied for a home improvement loan through a bank, the interest would probably cost between 8 and 9 percent,” she said.

She also noted that residents must use contractors who have applied and are authorized to participate in the program. Only nine contractors have been accepted into the program so far.

“We are looking for additional contractors to join the program,” Klein said. “They have to have proper qualifications and licenses and go through an orientation class. Our first class was Friday."

For the first six months of the program, homeowners would not need to have a home-energy assessment before applying for the loan, Klein said.

But Marc Bluestone, president of Home Green Home, said that the cost of a home assessment—which averages between $400 and $500—could result in a savings. His company specializes in energy auditing and is an authorized program contractor.

“It only takes three to four hours, and it identifies precisely what improvements you need,” he said.

The program is a joint partnership between St. Louis County, Earthways Center—a division of the Missouri Botanical Garden—and Abundant Power Solutions of North Charlotte, NC.

St. Louis County is the primary sponsor. Earthways Center will be providing contractor training, energy efficiency verification and marketing support for the program. Abundant Power, which has rolled out similar programs in Alabama and South Carolina, will facilitate the loans.

For more information or to apply for a loan, go to the St. Louis County SAVES website.