Iolans now may complete applications for no-interest loans to make homes and small businesses more energy efficient. City Administrator Judy Brigham said forms were available in the city clerk’s office or online at www.energy-trax.com.
Iola is the first city to have access to the federal stimulus money set aside in Kansas for the loans which will pay for a variety of energy-efficiency measures such as insulation or replacing heating and air-conditioning units. The Kansas Corporation Commission has $34 million for the program, which will be in a revolving fund replenished by payments participants make through utility bills, Brigham said.
Initially, Iolans who enroll will have their homes or small businesses — Brigham thinks most in Iola will qualify — surveyed at a cost of $500. The surveys, done by representatives from the Kansas Energy Office, will take into account all ways energy can be saved. With the survey information in hand, applicants then may elect to borrow up to $20,000 for a home or $30,000 for a business for 15 years interest-free. Repayment will be through payments added to monthly utility bills.
“We’re just the conduit for the loan payments,” Brigham said, with total utility bills expected to remain rather static as savings from improvements match monthly loan payments. The $500 survey cost will be included in the loan principal. Savings to match payments won’t be guaranteed, though, she said.
Those who don’t follow through with improvements will be required to pay the $500 survey costs, but that also will be amortized over a year’s time as part of the person’s utility bill.
Brigham said she was excited at the prospect of what the program would mean to Iola and Iolans. Energy-efficiency improvements will increase the value of homes and businesses and the result will help hold down energy consumption for years to come.
“That will help the city by lowering our peak electric demand in summer, which increases our unit costs,” Brigham said.
Local contractors will be involved.
“We’re planning several meetings to give people information about the program and the first will be for local contractors,” who will be encouraged to bid on improvements, she said. Other meetings are scheduled for landlords and homeowners.
A component of the program, Brigham noted, is that landlords may participate, with loan repayment made by renters through monthly utility bills. Also, she noted, people who participate and sell a property before the loan is repaid may pass along debt service, as a part of the new owner’s utility bill, or may pay off a loan as part of the sale agreement.
No-interest energy loans available
