Vail Daily letter: I told you so – again
Vail, CO Colorado
Well, I tried to tell people the true facts months ago, before the ballot 1A vote, that this energy loan was bad and it would be hard to buy or sell a house with this loan-lien on it.
Now the Vail Daily on May 12 and Eagle County confirm my facts that I told you all about and they disputed months ago.
I was right – again.
I do research, I read the fine print, and I do not believe the propaganda spewed by corrupt politicians and greedy, money-hungry proponents.
Remember that before the ballot 1A vote, supporters also said people would have to have a credit check and that there would have to be a payback on your energy-loan improvements before you could get the loan.
Well, it seems that they lied – again.
Now no credit check, and it is up to the homeowner if the energy loan will pay itself back.
They know that not many people will qualify with a credit check, and they know that payback on solar or energy improvements is not likely.
Eagle County wants your money. At 6 percent interest, plus fees, they will get it. So they have changed their tune, and as long as you have paid your property taxes for three years, then you get the loan.
Here is some fine print on the application that you have to sign to get the loan: “I understand that participation in the Energy Smart Loan Program in no way guarantees energy savings or reduced utility costs.”
Right there in black and white, no guaranteed payback, and yet people are lining up for this costly loan. Amazing.
This is a hidden lien that will be hard to find on any tax paperwork, but believe me, you will want to do due diligence on any house you want to buy in Eagle County because you could get stuck with a $45,568 hidden lien on top of your purchase price and above the home’s appraised value.
What bank or smart person wants to touch that in today’s economy?
No seller or real estate agent is going to openly disclose this lien to you because then the house you are looking at is about $45,000 more than the neighbor’s and will not appraise for that amount.
Here is some math: A $30,000 energy loan with 1 percent administration fee is $300 due up front. At 6 percent for 15 years, it is $15,568.27 in interest. Total loan is $45,568.27. Monthly payment is $253.16. So in order for you to come out ahead with this energy loan, you will have to have an energy savings of more than $253 per month, not counting your administration fee.
Those figures also do not take into account regular maintenance costs and repairs on a 15-year-old system that raises your monthly costs.
Let’s hope Fannie Mae and Freddie Mac do not agree to this loan-lien.
I said it from Day 1 and am saying it again: This energy loan-hidden lien is a bad idea, and it will and already has cost all us taxpayers.
The initial million dollars is your tax money that they are loaning back to you, and it is not costing them one penny in bond fees. It is a clear case of corruption because they say they are not getting all that 6 percent interest, but they are. Their costs are taken from the 1 percent application fee. The 6 percent interest is all the county’s.
Where did the county find the money to pay the wages of staff working on it because no money is coming in?
Why not find some more money and keep some of our schoolteachers for our kids?
I guess if you keep the masses uneducated, you can get them to pass a ridiculous energy-smart loan.
Frank Lorenti, Minturn