Residential Direct Loan COVID-19 Assistance: New Loans with Funding in April and May 2020
I have just signed as a Borrower a Consumer Loan Note or Note, Disclosure and Security Agreement, as may be applicable. My solar system is currently being installed and I anticipate installation to be completed and my loan to be funded before May 31, 2020.
All new loans funded during the months of April and May 2020 shall have the option to defer loan payments for the first six months, as long as all required loan and program documents are executed and received by HGIA. Should you opt-in, these are the benefits that you will receive:
- There is no payment due for the first six months. On month 7, your principal and interest payment amount due will resume and be charged as a Program Charge on your monthly electric utility bill, which is also the first month of your on-bill loan repayment. On month 7 you will see a prorated Program Charge that is less than your regular Program Charge amount, depending on the start of your utility billing period. Thereafter, you will see the regular Program Charge amount on your monthly utility bill. Your final on-bill Program Charge will be another prorated amount to make whole the prorated amount from the first month.
- No interest will be charged or accrued during the concurrent six-month period that there is no payment due. Starting on month 7 and with your first, your annual fixed interest rate will be reduced to 5.50% from 5.99% until the loan is paid in full.
The six-month temporary loan payment deferral is available until May 31, 2020. If we do not receive your executed program documents by May 31, 2020, you will no longer be eligible for opting in.
Here are some FAQ to help:
I want to opt-in, but I am told I need to sign an additional program document. What is it? As part of the terms and conditions of the GEMS Financing Program, you granted HGIA a security interest in the Energy Improvement financed via your executed Consumer Loan Note or Note, Disclosure, and Security Agreement, as may be applicable. Unfortunately, the State’s Land Court system does not accept UCC-1 Financing Statements and instead requires an additional document titled “Purchase Money Mortgage” (“PMM”). Please be assured that this document only grants HGIA a security interest in the equipment we financed, as originally agreed. It is not a mortgage over your real property. Unfortunately, Land Court also requires this document to be notarized. For notary services, we recommend checking with your bank or credit union for availability. There are also mobile notary services available if you are unable to leave your home. We appreciate your cooperation and will be contacting you directly when we receive your request to opt-in for the Program Charge reduction and deferral, to provide you an estimated time frame to receive the PMM document and answer any additional questions you may have.
I don’t want to opt-in to the six-month temporary loan payment deferral. What happens then? If you do not want to defer your loan payments, then no further action is required. There will be no changes to your current Obligation term and payments. You will continue to see your original monthly Program Charge on your utility bill and your Obligation Maturity Date will remain the same.
Can I pay off my loan? If you opt-in to the six-month temporary loan payment deferral, you will not be able to pay off your loan during the six-month deferral period. Should you want to pay off your loan within the next six months, please contact us at [email protected] or 808-587-3868. If you want to pay off at a later time, you can still do so with no prepayment penalty.
What if I need additional payment assistance beyond the six-month temporary loan payment reduction and deferral period? Please check our website for updates. At this moment we only have approval for the six-month deferral period. Our staff and Board of Directors will continue to monitor the economic impact of COVID-19, and any changes to the Temporary COVID-19 Assistance will be posted on our website.