Home remodel loans aim to cut energy bills

Long Island homeowners who wince at every utility bill can now get some help from Uncle Sam to go green.

Two U.S. cabinet members joined Rep. Steve Israel in Bohemia Thursday to announce PowerSaver, a pilot federal program aimed at helping homeowners find low-cost loans for energy-efficient home improvements.

Housing and Urban Development Secretary Shaun Donovan and Department of Energy Secretary Steven Chu said the loan program could be instrumental in reducing both energy use in homes and the country's overall dependence on foreign fuel.

Calling for the country to "unleash a 21st-century clean energy economy," Donovan said at a news conference at the offices of Bohemia contractor Energy Testing Services that the loan program would encourage homeowners to go green.

The loans are aimed at homeowners who want to reduce utility costs but lack money for renovations, which include adding attic insulation or installing energy-efficient windows.

Participants in the newly launched program can borrow up to $25,000 at interest rates between 5 and 7 percent, which HUD officials say are competitive. Homeowners will work with 18 approved lenders in New York and around the country during the two-year pilot.

"This program is a game-changer," said Israel (D-Dix Hills), noting that the "accessible and affordable financing" will help homeowners make better energy choices for their houses.

Donovan said the pilot is expected to administer 30,000 loans in the next few years, and create 3,000 jobs in the home renovations industry. Data from homes in the pilot program will be analyzed for effectiveness in lowering utility costs and energy consumption.

The federal program has a local counterpart. The New York State Energy Research and Development Authority offers low-interest loans of up to $13,000 for green renovations.

Next week, the Town of Islip will announce it is opening an office on Main Street in Bay Shore to help residents apply for these state-run loans. Working with the state agency and the Community Development Corporation of Long Island, the town hopes to educate residents about energy loss within their homes and the various programs available, a spokesman said.

"Every single homeowner, regardless of income, can use this program and save money," said Marianne Garvin, chief executive of the Long Island agency.

An Islip Town staff member will be available to help residents process applications for home energy-efficiency audits and low-interest loans for potential upgrades.

With Sarah Crichton