Residential Modified On-Bill Program COVID-19 Assistance
I originally signed as a Borrower a Consumer Loan Note or Note, Disclosure, and Security Agreement, as may be applicable. But I am now paying my loan as a monthly Program Charge on my utility bill.
You should have received a letter from Concord Servicing Corporation that allows you to opt-in to a six-month temporary loan payment reduction and deferral. If you have not received the letter, please contact us at [email protected] or 587-3868.
Should you opt-in to the six-month temporary loan payment reduction and deferral, these are the benefits that you will receive:
- Your monthly Program Charge on your utility bill will be reduced to $1.00 per month for a total of six months. On the first month of the reduced Program Charge being in effect, you will see a reduced Program Charge that is less than your regular Program Charge amount but greater than $1.00 due to a proration of the new Program Charge, depending on the start of your utility billing period. Then for the next 5 months you will see a $1.00 Program Charge. On month 7, your Program Charge will again be greater than $1.00 but still less than your regular Program Charge amount due to the remaining proration from the first month. From month 8 onward, your Program Charge will change to a new regular Program Charge amount that reflects the lowered interest rate discussed below.
- No interest will be charged or accrued during the concurrent six-month period that your Program Charge is $1.00 per month. On month 7, the portion of the Program Charge that isn’t a proration of the reduced $1.00 charge will carry an interest charge at a new annual fixed rate of 5.50% (reduced from the original 5.99%) until the loan is paid in full and will be reflected as a new Program Charge on your utility bill.
- Your Loan Maturity Date will be extended by an additional 6 months and you will continue to be charged the new Program Charge amount for an additional 6 months until the new Loan Maturity Date.
The six-month temporary loan payment reduction and 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 confused on who needs to sign the letter I’ve received from Concord. All individuals who signed the original Consumer Loan Note as a Borrower must sign the letter. Only then will the letter will constitute as a Deferral Agreement. If more than one individual signed as a Borrower, each individual can submit the signed signature page electronically, by facsimile, or by mail as indicated at the end of the letter.
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 Green Energy Money $aver On-Bill Program, you granted HGIA a security interest in the Energy Improvement financed via your executed Participant Agreement. 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 reduce and defer your Program Change, 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 reduction and 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.
Why reduce the monthly Program Charge to $1.00 and not $0.00? If we could, we would have reduced the Program Charge to $0.00 per month. However, due to technical limitations, we are unable to institute a $0.00 monthly Program Charge. The next best option is a $1.00 monthly Program Charge.
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.