(Opinion) A unique solution for keeping homeowners warm

Giving homeowners a choice in energy cost savings for their manufactured home

 UTILITIES

After four winters in New Hampshire as a Southern transplant, I’ve learned how much pride is on the line for those who choose to wait until after Nov. 1 to turn on their heat.

I’ve also learned how fast heating costs can rise as temperatures fall.

As the New Hampshire Community Loan Fund and many other organizations work to help more Granite Staters become successful homeowners, we cannot forget that it’s more than just a high mortgage payment that can make housing unaffordable.

Here in New England, we have some of the highest electricity and home heating costs in the country. For manufactured home owners, the costs can be even higher, with 40% facing a high energy burden.

This means they spend 6% or more of their income on energy.

The Community Loan Fund helps around 130 families each year purchase manufactured homes with fair, fixed-rate, long-term mortgages. Last year, we launched a program designed to help more of them purchase Energy Star-certified manufactured homes, designed to be more energy-efficient than traditional, site-built homes, leading to lower utility bills, increased comfort and reduced environmental impact.

But Energy Star-certified homes come with a higher price tag, and convincing homebuyers to spend more today in anticipation of potential savings tomorrow presented a challenge. Another hurdle was finding local manufactured-home retailers that sold these homes. Options were limited, because there wasn’t a market for them.

So, we got to work. And with education and incentives, we’ve started to change the market.

First, we reached out to retailers and coached new homebuyers on the potential cost savings.

We also adjusted the assistance we provided to homebuyers with low incomes to incentivize Energy Star-certified home purchases. Our traditional down payment and closing cost assistance loan provided up to $25,000 with no interest for newly built homes. Last year, we began offering an additional $10,000 with no interest if borrowers chose to purchase a new Energy Star-certified home. Since launching this program, we’ve seen a huge shift in borrower demand. Sixty-nine percent of the new homebuyers we provided down-payment assistance to in 2024 selected Energy Star manufactured homes — compared to none the year before. And, retailers have added Energy Star homes to their display lots so buyers can see the features and understand the benefits.

Developing a uniquely New Hampshire solution meant giving borrowers a choice.

“We’ve always wanted to make sure that our borrowers are treated like anybody else that gets a mortgage,” said Kathi Paradis, our vice president of lending. “They get to make the choice. They can buy a standard manufactured home, or they can buy an Energy Star home that might result in energy cost savings for them.”

It’s been so popular we now market the program as “first come, first served” and are currently raising additional capital to meet demand.

In June, the New Hampshire Community Development Finance Authority awarded the Community Loan Fund $262,500 in tax credits — which can be purchased by businesses — to help families with low incomes purchase new, affordable, Energy Star-certified manufactured homes.

We know that homeownership creates long-term housing stability, builds wealth and provides more economic opportunities. In other words, it allows more people, families and workers to live and thrive in our state.

Let’s keep working toward innovative solutions that help New Hampshire families afford their homes for the long term.

Steve Saltzman is the president & CEO of New Hampshire Community Loan Fund.