Renovate America, a leading U.S. provider of home-improvement financing, announced today that it has closed a $200 million credit facility with Bank of America N.A. to support the continued expansion of the HERO Program, the nation’s largest form of Property Assessed Clean Energy (PACE) financing. The credit facility will provide Renovate America with enhanced liquidity and will further diversify the company’s funding profile. Renovate America now has five warehouse lenders in aggregate, up from three last year.
Since launching just over five years ago, the HERO program has been used to finance energy and efficiency improvements across 90,000 homes. HERO empowers homeowners to replace their windows and doors, upgrade their HVAC, go solar, and more, and pay for the improvements over time at a fixed interest rate via an additional, voluntary line item on their property taxes. The products installed must meet federal and state efficiency standards, and many homeowners are able to lower their monthly utility bills as a result.
Renovate America offers a tech-enabled market platform for home improvement and commercial retrofits that empower communities to modernise and make their housing stock more efficient while giving small businesses the tools they need to grow. In addition to financing home improvements through an unsecured lending product, Benji, Renovate America offers communities the HERO Program. HERO is the leading residential Property Assessed Clean Energy (PACE) program in the U.S. and has financed more than $2.1 billion of home improvements in partnership with local governments. It is estimated that HERO is on track to save its customers nearly $3.5 billion in energy and water bills, and has created over 18,000 local jobs that cannot be offshored or automated. Renovate America has built the world’s largest green bond platform, with a volume of originations that enables securitization of HERO PACE bonds multiple times a year, attracting international investment to meet U.S. clean-energy objectives.