N.Y. General Municipal Law § 119-gg: Sustainable energy loan program

§ 119-gg. Sustainable energy loan program. 1. The legislative body of

any municipal corporation may, by local law, establish a sustainable

energy loan program using federal grant assistance or federal credit

support or monies from the state of New York or any state authority as

defined by section two of the public authorities law available for this

purpose.

2. Such program may make loans to the owners of real property located

within the municipal corporation to finance the installation of

renewable energy systems and energy efficiency improvements, related

energy audits and renewable energy system feasibility studies, and the

verification of the installation of such systems and improvements. No

municipal corporation shall make such a loan to an owner of property

that has received a loan from another municipal corporation pursuant to

this article.

3. Each such local law establishing the sustainable energy loan

program shall provide for the criteria for making such loans and the

terms and conditions for repayment of such loans. The sustainable energy

loan program shall use such lists of cost effective energy efficiency

improvements for different building types as are approved by the

authority.

4. The municipal corporation shall verify and report on the

installation and performance of renewable energy systems and energy

efficiency improvements financed by the loan program in such form and

manner as the authority may establish.

5. Every loan made under the sustainable energy loan program shall be

repaid over a term not to exceed the weighted average of the useful life

of such systems and improvements as determined by the municipal

corporation. The municipal corporation shall set a fixed rate of

interest for the repayment of the principal amount of each loan at the

time the loan is made.

6. a. For loans made to an owner of real property that is a commercial

entity, not-for-profit organization, or entity other than an individual,

the municipal corporation shall have the authority to impose

requirements on the maximum amount that may be borrowed through such

loan, which may consider factors including but not limited to the

property value, projected savings, project cost, and existing

indebtedness secured by such property.

b. For loans made to an owner of real property who is an individual,

the principal amount of each such loan, excluding interest, shall not

exceed the lesser of ten percent of the appraised real property value or

the actual cost of installing the renewable energy system and energy

efficiency improvements, including the costs of necessary equipment,

materials, and labor, the costs of each related energy audit and

renewable energy system feasibility study, and the cost of verification

of such renewable energy system and energy efficiency improvements.

7. No such loan shall be made for energy efficiency improvements

unless determined to be appropriate through an energy audit, and no such

loan shall be made for a renewable energy system unless determined to be

feasible through a renewable energy system feasibility study.

8. The loan made under the sustainable energy loan program shall

constitute a lien upon the real property benefitted by such loan.

9. The municipal corporation may require the loan made under the

sustainable energy loan program to be repaid by the property owner

through a charge on the real property benefitted by such loan. Such

charge shall be on the real property and shall be levied and collected

at the same time and in the same manner as municipal taxes, provided

that such charge shall be separately listed on the tax bill, and

provided further that in the event such charge should not be paid in a

timely manner, no other municipal corporation shall be required to

credit or otherwise guarantee the amount of such unpaid charge to the

municipal corporation which authorized the loan, notwithstanding any

provision of law to the contrary.