financing

Financing your decarbonization project often means bringing together incentives, loans, and technical help. Because most incentives are paid after the work is complete, many owners need help paying the upfront costs. LADWP (CAMR), the Milken Institute, and Sustento are working together on a Financing Technical Assistance Pilot to make this process easier for affordable housing owners.

Sharing Project Credit Package

You will need to prepare a credit package that lenders can review. This package includes building financials, the scope of work, construction timelines, and your incentive draw schedule. Through the CAMR Financing Pilot, Sustento helps owners gather this information and prepares it in a way that lenders can easily understand.

East Los Angeles Community Corporation (ELACC) Process

ELACC's experience is the clearest proof that stacking incentives with CDFI financing works. For the full breakdown of how they structured it, see Section 3. The key mechanics relevant to financing:

ELACC Success

• Stacked multiple incentives with no major conflicts

For one of their projects, they used CAMR, LIWP, TECH, and AQMD/GoZero, covering about 91% of total project costs.

• Used a CDFI-style financing model (the RETR-Fund) to fill the remaining funding gap.

This approach lets owners move forward with construction while waiting for incentive payments, which are reimbursed only after installation.

The structural lessons:

• Incentives covered most or almost all of a project when stacked correctly.

• A CDFI loan can help bridge the gap when incentives are paid later.

• Lenders look to reserved incentives as the primary repayment source, so secure incentive reservations before closing financing.

• Owners do not need to start with deep decarbonization knowledge; ELACC began with none and still completed a successful project. 

CAMR Financial Technical Assistance (FTA) Pilot

Some owners want to participate in CAMR but cannot move forward without financing. The CAMR Financial Technical Assistance (FTA) Pilot was created to help bridge that gap. The pilot walks owners through a clear process to understand their financial needs, build a complete financing package, and connect with lenders who already understand affordable housing.

1. Pre-Screen the Building’s Financial Health

Review each property’s basic financial information: reserves, debt, net operating income, existing repair needs, and any major risks such as insurance increases or aging systems. This early review helps determine whether financing is needed and whether the building is a good fit for the FTA workflow.

2. Collect Key Project Information

This information forms the foundation of the credit package:

• Property size and number of units

• AMI breakdown and any regulatory agreements

• Scope of Work and budget for each measure

• Expected operating, energy, and GHG impacts

• Incentive amounts for each measure

• Notes from past conversations with the owner 

3. Build the Credit Package

Assemble a full financing package that includes:

• Project scope and budget

• Stacked incentives (CAMR, LIWP, TECH, etc.)

• Remaining funding gap

• Property financials and reserves

• Owner priorities (refi timing, rehab plans, compliance needs) 

The goal is to clearly show lenders the total investment needed, the incentive coverage (typically 30%–80%), and the remaining gap that financing would need to fill.

4. Match Owners with Lenders Through the Milken Institute’s CIC

Once the credit package is complete, Sustento submits the project to the Community Infrastructure Center (CIC). The CIC allows multiple-qualified lenders to review several CAMR projects at once. Lenders then offer 2–3 financing options, which may include:

• Short-term bridge loans

• Contractor financing

• External financing

• ESA (Energy Savings Agreement) or PACE (Property Assessed Clean Energy) options, where appropriate (note that PACE repays through a senior lien on the property-tax bill and requires consent from existing lienholders)

This process saves owners time and gives them access to lenders who already understand preservation-focused decarbonization.

5. Support Decision-Making and Next Steps

The FTA Pilot helps owners review lender offers and understand repayment terms, timelines, and organizational impacts. This includes:

• Identifying who needs to approve financing internally

• Reviewing the authorization form

• Finalizing due diligence items

• Matching with a capital provider

• Confirming next steps and timelines 

Whether or not an owner accepts financing, participating in the FTA Pilot helps LADWP and the City design better programs and strengthens the overall preservation ecosystem.

Role of the Milken Institute

The Milken Institute leads the CIC Platform, recruits lenders, runs deal rooms, and helps match projects to capital providers. Sustento and Milken work together to design the financing process, engage lenders, and guide owners through due diligence, term sheets, and next steps.

Why This Matters for Owners

The Financial Technical Assistance pilot includes:

• Assistance organizing their financial documents

• Help confirming incentive eligibility and timing

• Access to multiple lenders in one place

• A transparent and easier financing process

• Support reviewing loan terms and choosing the best fit 

The goal is to create a repeatable financing model that makes energy upgrades more accessible for affordable housing in Los Angeles and eventually other cities. 

When the financing pieces come together, the project is ready to move forward. Now you can shift from planning to doing, getting permits, scheduling the work, and setting up a construction plan that keeps the building running safely throughout the upgrade.