Newark Housing Authority Energy Performance Contract

The Newark Housing Authority (NHA) entered into a $49.5 Million Energy Performance Contract to finance the purchase and installation of capital equipment for the first phase of its energy efficiency program. This equipment upgraded the Authority’s infrastructure and reduced its energy costs. NHA, the eleventh largest in the nation needed a financing partner whom they could rely on. The financing partner would need to not only provide a competitive interest rate but also need access to larger than usual amounts of capital and expertise in navigating the complex steps in complying with the Department of Housing and Urban Development (HUD) to ensure a timely closing.

After a thorough review, the Authority selected Grant Capital Management as its financing partner. Noticing a significant drop in interest rates, Grant Capital approached the Authority two years after the successful funding of NHA’s project, offering to refinance the debt. The lower interest rate offered by Grant Capital Management provided savings of over $3.5 million to NHA.

Six years after funding the first phase of NHA’s energy efficiency program, Grant Capital Management was selected again by the Authority as its funding partner for the second phase energy performance contract. This second phase had a project cost of $84 million, which at that time made it the largest energy performance contract in the history of HUD’s energy performance contracting program. Grant Capital Management delivered on its promise to fund the project fully, on time, and at a competitive rate.