Enterprise Community Partners Inc. and the Washington state Housing Finance Commission (WSHFC) have joined forces to create the Washington Green Communities Retrofit Loan Fund, a $2 million financing pool available to owners of multifamily affordable housing properties in the state of Washington.

The fund will target properties in rural and urban areas that were financed through the federal low income housing tax credit (LIHTC) program. As part of the financing process, the properties will undergo a full energy audit to determine potential savings to be derived from the retrofit.

"We are pleased to offer this opportunity at a time when finding options to finance retrofitting activities is a top priority for the affordable-housing community," says M.A. Leonard, vice president and Pacific Northwest impact market leader of Enterprise Community Partners, a Columbia, Md.-based nonprofit.

"Reducing carbon emissions, while increasing the health benefits and utility savings of a building, is a win-win to the building owner, the resident, and the surrounding neighborhood," Leonard says. "We look forward to working with the affordable-housing developers who apply for these loans."

The average multifamily affordable-housing property incurs annual utility costs of more than $700 per unit. Through retrofitting activities that reduce energy and water consumption, building owners can save an estimated 15 percent to 20 percent, Enterprise Community Partners says. While the program currently is in the pilot stage, Enterprise and WSHFC estimate that about 20 loans will be made through the Washington Green Communities Retrofit Loan Fund, with loans averaging around $100,000.

"Greening and preserving affordable multifamily housing is an important component to our work at the commission," says Steve Walker, director of the Housing Finance Commission's tax credit division and a former Spokane contractor. "This fund offers developers a viable option to maintain affordability while achieving sustainability. We are excited to join Enterprise in this new venture."

Through its Green Communities initiative, Enterprise operates a number of retrofit pilot programs in large U.S. cities. It says that since 1982 it has raised and invested more than $10 billion in equity, grants, and loans to help finance more than 270,000 affordable rental and for-sale homes across the U.S. It says it currently is investing in communities at a rate of $1 billion a year.