With cold weather upon us and heating costs rising, Carroll County employee Andrea Gerhard's recent presentation to the Board of Commissioners regarding the Energy Saver Loan Program was timely. Carroll County homeowners in need of improvements to increase their home energy efficiency can apply for a low-interest loan to install features that will save money and resources. The Carroll County Energy Savers Loan Program originated from "stimulus money" in 2009 and is a successful model with government and business working together.
In 2009, the Obama administration distributed $3.2 billion nationwide as part of the American Recovery and Reinvestment Act. (As an aside, I recently mistakenly referred to the ARRA as "America Works," blurring real life and fiction as I used the title given by imaginary President Frank Underwood of "House of Cards" to his stimulus project.) The intention of this expenditure was to fund jobs and stimulate the economy. Money was earmarked into different categories, and this Carroll County fund was established from money designated to energy efficiency and renewable energy programs.
While billions of dollars were originally spent, Carroll County has been recognized by the federal government for being one of only a small handful of successful revolving loan programs. The $250,000 allocated to this program has been lent out and repaid. Homeowners have been able to hire contractors to make money-saving improvements to their homes with a low-interest loan. This provided work opportunities that may not have been there otherwise.
Current outstanding dollars are being paid back and are all compliant. To date, over $350,000 has been lent and approximately $120,000 is available now. In a shining example of success, the money continues to be recycled in our local community and will become available as current projects are paid off.
With no promotion dollars allocated, Gerhard simply contacted Carroll County contractors to let them know about the availability of these low-cost loans. Improvements that can qualify are ones that provide renewable energy or improve energy efficiency. Examples of renewable energy projects would be installing solar panels or geothermal heating and cooling technology. Energy efficiency improvements would be projects like installing additional insulation, replacing out-of-date hot water heaters or replacing windows or storm doors. Applicants are required to obtain a home energy audit to show that the project will have energy-saving value.
I commend Carroll County government for the program they put into place. Recognizing that their skills were evaluating projects and not determining credit worthiness, they partnered with a local bank, Farmers & Merchants. The applications are examined by Carroll County to make sure they meet the criteria and have no outstanding property taxes or zoning violations. They are then sent to the bank for loan approval. In this program, the loans are only available to homeowners for their principal residence.
In a world where government waste is commonplace, we can be proud of how Carroll County government staff put this money to good use. We can also be proud of our fellow citizens that borrowed the money and paid it back. Again, there is too much news about defaulting on student loans and mortgages. It is great to live in a county where a loan program can be this successful!
So, if the recent windy days have you feeling drafts from old, inefficient windows, or you know your attic could use some additional insulation to keep you cozy this winter, I encourage you to look at this program for project funding. The maximum amount that can be borrowed is $15,000. The interest rate is 2.5 percent, which is a savings over what it would cost to borrow using a home equity line of credit or some other funding source. Let's continue to have those Carroll County contractors working.
For more information about the loan program, call the Department of Planning office at 410-386-2145.
Karen Leatherwood writes from Eldersburg. Reach her at leatherwoodkarenm@gmail.com.
