Commercial Frequently Asked Questions

SmartBuildings Detroit Grant Funds
Green Fund Revolving Loan Fund

WHAT IS THE SMARTBUILDINGS DETROIT PROGRAM AND HOW IS IT FUNDED?

The Economic Development Corporation of the City of Detroit (EDC) is implementing the SmartBuildings Detroit program using a $10 Million US Department of Energy grant to encourage the installation of energy efficiency improvements for commercial, institutional and public buildings in downtown Detroit to optimize the performance of city real estate. The Program leverages other incentives and energy optimization programs available to commercial property owners. The SmartBuildings Detroit Program is part of the statewide BetterBuildings for Michigan Program.

WHAT IS THE GOAL OF THE PROGRAM?

The Program will help demonstrate how energy efficiency improvements can help make a wide range of older commercial properties economically viable.

IS THERE A SPECIFIC PROGRAM AREA?

Yes. The Program Area is generally bounded by the Detroit River on the south, the Lodge Freeway (M-10) on the west, Seward on the north and the Walter Chrysler Freeway (I-75) including the Eastern Market area on the east. Please see map for specific Program area.

HOW IS THE MONEY BEING SPENT?

$2.9 million has been allocated for direct assistance to owners of buildings in the program area to make energy efficiency improvements. About $6.1 million has been allocated for energy saving work on key public buildings, such as the Coleman A. Young Municipal Center and the Cobo Convention Center, as well as other downtown institutions such as Wayne State University and the Detroit Medical Center.

WHAT FINANCIAL ASSISTANCE IS AVAILABLE UNDER THE PROGRAM?

Two forms of assistance are available: loans and grants. They may be used separately or together.

  1. 1. The SmartBuildings grant is an incentive that can leverage other private and public sources of funding at a 5:1 ratio up to the maximum assistance of $100,000 per project.
    Example: For a $60,000 energy improvement project, a property owner could apply for a $10,000 incentive grant; and she would be required to finance the additional $50,000 through other sources.
  2. 2. The Green Fund will offer loans to cover 40% of eligible project costs, up to the maximum assistance of $100,000 per project.
    Example: For the same $60,000 energy improvement project, the property owner could apply for a $24,000 Green Fund loan. The loan would be considered part of the 5:1 match. If an owner also received a $10,000 incentive grant, she would be responsible for the remaining $26,000 for the project.

WHAT ENERGY IMPROVEMENTS ARE ELIGIBLE?

In general, any improvements identified in an energy assessment for the building are eligible. These might include:

Building Enclosure Insulation and weatherization, glass replacement.
Building Systems Interior and exterior lighting and electrical, HVAC, low flow water/plumbing.
Alternative Energy Generation Solar panels, geothermal, wind, & water systems

WHO IS ELIGIBLE TO APPLY UNDER THE PROGRAM?

Property owners and tenants of commercial buildings within the Program Area, including owners of mixed-use projects, and residential projects with 5 or more units.

HOW DO I APPLY?

Property owners within the Program Area must submit an application for funding to be considered. Individual projects are approved by the EDC Board of Directors, with a funding agreement executed between the EDC and the participant. The Green Fund loan application and loan criteria are also available from the EDC.

Applications can be obtained at the DEGC web site www.degc.org, or by contacting:

      SMARTBUILDINGS DETROIT PROGRAM
      Economic Development Corporation of the City of Detroit
      500 Griswold, Suite 2200
      Detroit, MI 48226
      313.963.2940

WHAT INFORMATION WILL I NEED TO APPLY?

The application asks for information to track, measure and verify data collected on key indicators for all individual projects including: name of participant, size and type of building(s), type of occupancy, energy usage (pre and post energy retrofit improvement), and cost and type of energy efficiency measures being installed. Additional detailed information about the energy efficiency measures installed will be required as projects move forward.

HOW DO I GET HELP WITH MY APPLICATION?

Henry Ford Community College (HFCC) is assisting the EDC in holding workshops and coordinating preliminary energy assessments for prospective commercial applicants to help educate commercial property owners on the benefits of energy efficiency improvements and to encourage participation in the Program.

Information is also available at the Detroit Economic Growth Corporation (DEGC) web site: www.decg.org.