CAI-NJ Apr. 2022

HIDDEN MONEY... from page 30.

a financial conundrum. Unfortunately, this situation can often result in special assessments, an increase in monthly fees, or even third-party bank loans. However, there are other options available to associations to help them cover the costs of such projects. Utility providers often offer their customers financial incentives to complete energy-efficient upgrades to their sites. For example, PSE&G offers a “Residential Multifamily Housing Program,” which can provide substantial financial incentives. Once a site has completed an application and has been approved for the program, the project will begin with a free on-site energy audit. After the audit, PSE&G will recommend energy efficiency upgrades available to the site, along with the associated costs of the projects. All upfront costs of the project will be paid for directly by PSE&G. Upon completion of the project, PSE&G will only require the site to repay a portion of the costs via a thirty-six month interest-free loan. The exact repayment percentages vary based on the specific sites and projects but can be as low as 30%. A similar program offered by another major New Jersey utility provider, JCP&L, is called the “Direct Install” program. The terms of this program are very similar

would be eligible for an incentive of $1,500 toward the purchase of the station, as well as an additional $5,500 for costs of installation and other necessary costs to ready the unit for use. Another area for financial savings for associations may arise when there is a need for large capital projects. Upgrading major mechanical components of a site can provide an oppor tunity to install new high-efficiency components. Tackling these green initiatives can pose a new set of obstacles, the largest of which tends to be the financial burden associated with a capital project. Replacing an HVAC system in a single-family home carries a much smaller price tag than the replacement of an entire boiler and cooling system of a high-rise building. Although the high-rise may have a larger number of owners contributing toward the cost of the project, they will ultimately be at the mercy of the financial decisions of current and past boards. If reserves have not been adequately funded, or if the boiler and cooling system required replacement sooner than anticipated by the engineer, the association may find itself in

Expertise. Focus. Solutions. Put the leading bank for community association management companies to work for you with individualized service, custom technology and smart financial solutions.

cit.com/cab Let’s get started. Nicole Skaro, CMCA VP, Regional Account Executive 908.524.8741 | Nicole.Skaro@cit.com

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