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Energy Retrofit Finance:

A Win-Win-Win Solution
for the GSEs, Property Owners, and the Eniron!ent
Submission for FHFA RFI: Proposed Single Security Structure
Rogier Fentener van Vlissingen
With a view to the possible re-emergence of the overnment-!ponsore"
#nterprises $!#s% from conservatorship& an" the "esire for a single sec'rit(
str'ct're& there is an opport'nit( for the !#s to a"" val'e to propert( mar)ets
an" re"'ce len"ing ris) b( proactivel( incorporating green energ( retrofits an"
resilienc(* +t the time of p'rchase or refinancing& the financial interests of
propert( owners an" the !#s are aligne"& an" the creation of a single sec'rit(
str'ct're provi"es the nat'ral opport'nit( to incorporate some new feat'res to
s'pport energ( retrofit financing an" val'e creation*
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,hese s'ggestions propose the incl'sion in the mortgage len"ing process of
efficient an" effective integral financing options for energ( retrofits& which will
s'pport propert(-appreciation& han" in han" with a re"'ction in --
emissions* .o e/ha'stive treatment of these options is attempte" here*
Understood properly, this confluence of on-site renewable energy technology,
which moves energy from liabilities to assets, with financing based on energy
savings, can simultaneously maximize GHG-reductions and property values. It
is thus a tool for energy policy as much as a support for property values i.e.
collateral values!, implying a reduction of mortgage ris". +s an integral part of
this paper& we will loo) at how the in"'str( has foc'se" on s'ppl(-oriente"
len"ing sol'tions& t(picall( in some form of asset bac)e" finance0incl'"ing
1ropert( +ssesse" 2lean #nerg( $1+2#% an" other prevalent mo"els0an"
assess the limits of their effectiveness an" long-term "esirabilit(*
!'perior alternatives are conceivable& partic'larl( b( foc'sing on propert(
val'es an" the "eman" si"e& incl'"ing an important constr'ctive role for the
!#s0the special foc's of this paper* ,o"a( 'tilit( reg'lation is changing to
enable more co-investment* !'ch a role wo'l" s'pport the overall !# mission&
an" 'ltimatel( wo'l" a"" to sharehol"er val'e b( re"'cing ris)* +t the same
time it s'pports both propert( owners an" national energ( polic(& while also
enabling m'nicipalities to benefit from propert( enhancements an" better living
3n general& it sho'l" be note" that the mar"et for financing energy retrofits is
dominated by supply-driven solutions, and vendor-driven financing and sales
until now& an" foc'se" on what is eas( to sell an" finance& not what a""s the
most val'e to a propert(* With onl( slight e/aggeration& the c'rrent spate of
incentives an" programs are to the benefit of hardware vendors and energy
companies, not property owners* 2lean energ( will be a "ominant val'e
"eterminant in the real estate mar)et& "riven b( the nee" for resilienc( an" lower
--emissions* 3t is time that serio's financing options become available for
'pgra"ing the ho'sing stoc)& allowing propert( owners to reb'il" wealth*
3ncrease" len"er ris) to the !#s will accr'e from a fail're to a""ress these
iss'es at this time* ,he "evelopment of a single sec'rit( str'ct're provi"es the
right opport'nit(* Well-"esigne" financing options wo'l" ens're rising
collateral val'es han"-in-han" with energ( 'pgra"es* 3t sho'l" also be note"&
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with a view to climate change& that resilienc( increases with clean energ(
Analytical Foundation
#nerg( efficienc( has been the most pop'lar approach& b't the res'lting
programs benefit the 'tilit( in"'str( more than propert( owners* #nerg(
efficienc( cannot an" will not eliminate --emissions in a meaningf'l an"
s'staine" wa(* +t best it can achieve a temporar( abatement& b't at the cost of
prolonging the 'se of fossil f'els& if not increasing it $lowering the cost%& th's it
increasing --emissions in the long-r'n* #nergy efficiency is also self-
defeating financially, because it is a limit-function, producing diminishing
returns. !'ccessive energ( efficienc( investments become e/ponentiall( less
pro"'ctive 'ntil at some point no amo'nt of mone( will increase efficienc(*
Financiall(& the p'rs'it of energ( efficienc( is an incremental approach that
constantl( see)s the most 5savings6 for the lowest cost& which literall( "oes not
a"" 'p beca'se of "iminishing ret'rns* ,he preocc'pation with energ( efficienc(
ma( have "iverte" the attention from serio's investment in renewable energ(&
beca'se it never sees the long tail of $near-%7ero energ( bills that wo'l" be
rea"il( apparent if people prepare" a 40-(ear .1V of their energ( "ecisions* 3n
c'rrent programs& short-term savings have tr'mpe" long-term investment
ret'rns& an" asset appreciation* ,he "eman" si"e is a ver( goo" place for
renewable energ( investment& one propert( at a time*
$enewable energy on the other hand does directly replace fossil fuel and
reduce GHG-emissions& b( switching from carbon-energ( to on-site generation
of clean& renewable energ(& be it solar& win"& geothermal& or water* Financiall(& it
moves energ( from liabilities to assets& beca'se it becomes part of permanent
b'il"ing infrastr'ct're*
1* %hanges to the energy infrastructure of a property re&uire life-cycle
planning, because of engineering interdependencies. ,he c'rrent vog'e
of technolog(-level incentives ten"s to invite s'b-optimal
implementations0t(picall( better energ( efficienc( 5mo'se traps*6
Vario's government-sponsore" incentive programs ten" to 'n"ermine
goo" planning beca'se the( aim for a one-time goal at a single point in
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time& while a propert( has a long 'sef'l life& incl'"ing several replacement
c(cles of energ( infrastr'ct're*
2* 8verall& the planning of energy retrofits should be done for the whole
property, and with a '(-year planning horizon, on a net present value
basis )*+!* ,he foc's nee"s to be on creating asset val'e*
4* Generating technologies should be planned carefully, as property
appreciation will critically depend on successful on-site generation*
.ote9 1assive improvements "irectl( re"'ce installe" capacit( $capital
re:'irements% in the case of renewable energ(& whereas in the case of
fossil f'els& the savings from passive meas'res will primaril( come from
re"'cing f't're energ( bills*
4* 3n general& technolog( choices sho'l" balance appropriate generating
choices with s'itable conservation an" passive sol'tions& incl'"ing energ(
harvesting opport'nities* 8n a performance basis& here are some
eothermal9 400; efficienc( $one <o'le in& fo'r <o'les o't%*
!olar thermal9 =p to 9>; efficienc( $an" there is val'e in cheap
storage9 hot water%*
Win"9 3n the right locations more effective than solar 1V*
!olar 1V9 oing from c'rrentl( 1?-20; efficienc( to 22-2?;
efficienc( in the ne/t generation* 3t is also the easiest to install an"
sell& b't that ma( precl'"e e/amination of better options*
Finance: %n Search of Superior Solutions
+fter "eca"es of energ( efficienc( programs& energ( bills st'bbornl( remain a
fre:'ent ob<ect of scorn* ,he e/ception is a vibrant b't still small marginal
activit( in net 7ero constr'ction* -owever& b( an" large there are alwa(s more
ol" b'il"ings than new& an" there is an opport'nit( for energ( retrofits b't
ins'fficient s'pport to ma)ing it happen on an( significant scale* .otabl( the is
also little or no s'pport for approaching it as an investment opport'nit( that
increases propert( val'es*
,o s'mmari7e the problems& the combine" effect of the c'rrent energ( relate"
programs an" incentives lea"s 's to miss the forest for the trees& an"
economicall(& the beneficiaries of these programs are primaril(9
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#nerg( companies @ ,he in"'cement of some energ( savings
achieves c'stomer retention& while giving propert( owners s'b-
optimal o'tcomes*
#:'ipment man'fact'rers @ ,he t(pical 5self-li:'i"ating6 an" 5no
mone( "own6 offers are "eceptive& beca'se the( cherr(-pic) the
financial carr(ing capacit( of propert( owners& an" pro"'ce s'b-
optimal choices*
Finance companies - the eas( sol'tions $s'ch as solar 11+s% sell more financing
faster than what wo'l" be the right sol'tions for propert( owners* ,h's the
financiall( co'nter-pro"'ctive $for propert( owners% 5sol'tion selling6 of single
technologies& "riven alwa(s b( the 57ero-"own6 self-li:'i"ating finance mo"el&
that ta)es a"vantage of the propert( owner& res'lting in wi"el( s'b-optimal
*,%# *roperty ,ssessed %lean #nergy! finance& was s'ppose" to be a
ma<or part of the answer& b't it has not live" 'p to its promise& even as it is
gaining some traction in commercial mar)ets* ,he name implies that it is
abo't clean energ( $i*e* renewable energ(%* ,he theor( was that it wo'l"
provi"e the long term financing for energ( retrofits& an" since it sho'l"
a"" val'e to the propert(& it sho'l" improve collateral val'es an" re"'ce
len"ing ris)* 3n theor( also& len"ing ris) wo'l" be re"'ce" b( collection
thro'gh the propert( ta/ rolls& with a first lien that ha" priorit( over the
first mortgage* -owever& the latter proviso ran afo'l of ris) aversion an"
the !# g'arantees*
,he 1+2# camp contrib'te" to the stalemate& beca'se the( promote"
energ( efficienc( an" not long-term capital improvements with renewable
retrofits* 3n "oing so& 1+2# ha" been co-opte" b( the energ( efficienc(
movement& achieving mostl( mo"est improvements& an" ma"ing the
cardinal mista"e of financing short-term improvements with long term
money* +s a res'lt& the ma<orit( of 1+2# financings are for energ(
efficienc( pro<ects& which wo'l" ten" not to be s'pportive of b'il"ing
e:'it( in the long term an" th's collateral val'e0even if the( provi"e a
short term lift*
.ote9 3n the "ialog with Fannie Aae an" Fre""ie Aac& at the height of the
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mortgage melt"own& some evi"ence was pro"'ce" of re"'ce" "efa'lt ris)
for more energ( efficient properties* -owever& this ma( seem tr'e in the
short-term& in the long-term it is li)el( to be ineffective as a ris) mitigant&
beca'se of "iminishing ret'rns& increasing net-7ero constr'ction& an"
greater prevalence of more "rastic retrofits that are increasingl( becoming
economical* ,his sho'l" have been the p'rview of 1+2#& b't with the
mission "rift from clean energ( to energ( efficienc(& the movement faile"
to i"entif( the tr'e economic val'e of shifting energ( from liabilities to
assets as the proper ob<ect for its financings* -ypical energy efficiency
financings are short-term fixes and achieve ./-0/1 reductions in energy
bills and GHG-emissions!. -hey should not be financed with long-term
money. Well-planne" renewable energ( retrofits can achieve ?0; an"
higher re"'ctions in energ( bills $an" --re"'ctionsB%& an" are
appropriatel( finance" with long-term mone(* 2ecause renewable energy
moves energy from liabilities to assets, it permanently improves the
value of properties*
+sset-bac)e" e:'ipment loans an" leases $mislabele" as 5green6 if <'stifie"
from energ( savings% are programs that benefit technolog( provi"ers $li)e
solar 1V%& an" not primaril( propert( owners* ,hese financing programs
are growing in significance an" treate" favorabl( b( the government
$incl'"ing allowing thir" part( provi"ers to capt're ta/ incentives an"
renewable energ( cre"its& which b( rights sho'l" accr'e to propert(
owners%* ,hese forms of finance have 'n"esirable si"e-effects that are
rarel( consi"ere"* !pecificall(& the( are 'se" b( sellers to promote specific
technologies $that are easiest to sell an" install%& not b'il"ing-appropriate
sol'tions& an" in a great man( cases pro"'ce s'b-optimal res'lts from the
stan"point of ma/imi7ing propert( val'es b( minimi7ing energ( bills* ,he
sales strateg( is 's'all( to "eliver to propert( owners a self-li:'i"ating
$57ero-"own6% proposition& prioriti7ing what can easil( be finance" above
what is optimal for the energ( ho'sehol" of the propert(* ,his process
cherr(-pic)s the li:'i"it( of the owners& an" compromises their capacit(
to finance real sol'tions*
1ower 1'rchase +greements $11+s% have vali" 'ses& b't ma( have
'ninten"e" conse:'ences in resi"ential mar)ets* ,he( pass on to the
propert( owner a 20-(ear energ( contract 's'all( for a nominal savings&
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when alternative sol'tions might be more appropriate an" co'l" eliminate
?0-100; of energ( cons'mption* 1ropert( owners also ten" to get st'c)
with technolog( ris)s& s'ch as with solar panels from 2014 that are 1?-1C;
efficient& while the mar)et is slate" to move to 22-2?; efficienc( within the
ne/t two (ears*
3n short& the financing choices that the mar)et provi"es favor e:'ipment ven"ors
an"/or energ( companies& not to mention finance companies an" not primaril(
the propert( owners* +s a res'lt there is an 'ntappe" potential to "rive "eman"-
si"e sol'tions that are s'pportive of propert( val'es& while helping the transition
to lower --emissions* We believe it is in the interest of the !#s to activel(
s'pport this process& b( pla(ing a constr'ctive role an" reg'lating it& instea" of
ignoring it or resisting it* ,he res'lt wo'l" be an all aro'n" Dwin-win-winD
sol'tion for the !#s& propert( owners& an" the environment*
Financing Alternaties: Eoling $andscape
,he emergence of a more holistic approach that ma( ta)e shape in the f't're
came in the form of the recent energ( ta/ overha'l propose" b( then !enator
Aa/ Ea'c's* ,he proposal fell short in that it onl( a""resse" the s'ppl( si"e of
the gri"9 'tilit( scale pro<ects* +lso& it ignore" the "eman" si"e& where with
to"a(6s technolog( the greatest changes are possible* -owever& the central
concept was right9 to stop s'bsi"i7ing specific technologies& b't simpl( to set
overall goals for --re"'ction* 3ncreasingl(& the "ialog is abo't --
emissions re"'ction* ,he c'rrent mishmash of incentives simpl( sets people 'p
to ma)e at least partiall( self-"efeating "ecisions* 8nl( an integral retrofit for the
whole propert( can ens're increases in collateral val'es*
GSE Opportunity
+s green finance m'st move to a more holistic0whole propert(0approach an"
shift awa( from s'ppl(-si"e& energ(-efficienc( approaches an" a""ress "eman"-
si"e& onsite energ( generation& there appears to be an 'nprece"ente"
opport'nit( for the !#s that co'l" be transformative for environmental an"
energ( policies& while creating val'e for propert( owners& an" re"'cing ris) for
the mortgage in"'str(* ,his potential co'l" be reali7e" if the !#s wo'l"
activel( incl'"e energ( retrofits in the options for long-term mortgages that
:'alif( for incl'sion in the single sec'riti7ation str'ct're*
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Aore homeowners wo'l" be able to participate in on-site energ(
generation as well as en<o( greater mar)et val'e for their homes*
3ortgage lenders wo'l" benefit from more rob'st portfolios in which the
cre"it of the 'n"erl(ing assets will be stronger*
o +s the loans for homes with energ( retrofits season& financial ris)
will "ecrease at an accelerate" rate compare" with tra"itional
mortgages* ,he net operating e/penses for energ( will "ecrease
more :'ic)l( over time $if not t'rn reven'e positive% res'lting in
faster& more rob'st "ebt service coverage ratios* !imilarl(& the loan-
to-val'e ratios will "ecline more :'ic)l(& since the val'e of the total
home will increase "'e to the energ( retrofit per se*
G4#s wo'l" benefit from an increase" pipeline of mortgages with an
enhance" 'n"erl(ing cre"it that wo'l" be eligible for sec'riti7ation*
o ,his in t'rn co'l" help strengthen investor confi"ence in the
secon"ar( mar)et an" bolster a""itional li:'i"it( to the ho'sing
an" green energ( mar)et*
,he environment wo'l" benefit from the greater an" more rapi"
"eplo(ment of green infrastr'ct're*
Suggested Approaches
-istoricall(& there has been a misse" opport'nit( for the !#s an" 1+2# to
wor) han"-in-han" with financing green energ( retrofits* + ma<or show stopper
has been the re:'irement b( 1+2# to hol" a first lien on the propert( terms
'nacceptable to the !#s& b't pre"icate" on a concept of 1+2# that "i" not
incl'"e len"ing stan"ar"s to ens're asset appreciation* !ince then& 1+2# has
primaril( finance" energ( efficienc( for commercial properties*
Foo)ing forwar"& there are several wa(s the !#s co'l" be constr'ctive to
propert( owners an" the interests of their sharehol"ers ali)e& s'ch as the
approaches s'ggeste" above* -ere are some more s'ggestions9
1* For new mortgages or refinancings on e/isting properties& create an option
or incentive for energ( retrofits an" resilience* When an e/isting propert(
passes han"s is the right time for a retrofit* What matters is the right
'n"erwriting criteria& which sho'l" incl'"e a minim'm of ?0; --
re"'ction& an" appropriate resilience consi"ering 'p"ate" F#A+ floo"
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maps& or the evolving national floo" ins'rance program parameters an"
the pro<ect sho'l" be base" on a positive 40-(ear .1V of the contemplate"
investment in !GR# $!ite Gerive" Renewable #nerg(%& ta)ing into acco'nt
an( available incentives*
2* .ote that the nee" for !GR# is generic& wherever it is economical*
,he nee" for resilience is closel( relate"& as "ictate" b( location&
an" len"s a""itional 'rgenc( to achieving a meas're of energ(
in"epen"ence& an" possibl( nee"s to incl'"e water an"/or sewer
infrastr'ct're& partic'larl( in floo" prone comm'nities*
,s long as there is not a reasonable finance option in play that
supports e&uity building, property owners will be limited to
supposedly 5green6 finance options, that have sub-optimal results
for their properties, and impair repayment ability and wealth
4* Reg'late retrofit refinancings& again& if a proper !GR# retrofit an"
refinancing can increase collateral val'e& b( replacing the long-term
liabilit( of energ( bills& with renewable energ( assets& an" associate"
energ( efficienc( meas'rs& this is constr'ctive*
4* !'pporting an 'pgra"e to 1+2# ma( be an option* ,he !#s co'l" allow
1+2# on the con"ition of an effective 'n"erwriting polic( as s'ggeste"
above $minim'm ?0; - re"'ctions an" 40-(ear positive .1V%* Going
so "oes not remove the iss'e of the priorit( of the lien altogether& b't it
"oes ens're that collateral val'es increase& an" since the 1+2# finance
will t(picall( be self-li:'i"ating& it will enhance li:'i"it( for the owners*
.ote that the ?0; - re"'ction minim'm will effectivel( e/cl'"e all
energ( efficienc( len"ing from the mi/& an" s'pport long-term capital
improvements with !GR# an" other resilience meas'res as nee"e"*
?* !'pporting secon" mortgage retrofits* 2reating stan"ar"i7ation of secon"
mortgages for !GR# retrofits*
6* ,here ma( be other options* 3n general& we sho'l" recogni7e that on the
margin& mar)ets are moving to net-7ero constr'ction& an" 2alifornia is
even man"ating it for new constr'ction b( 2020* .ew Hor) is p'rs'ing
massive --re"'ctions also& an" more an" more states are establishing
clear goals& while economicall( the tipping point has been reache"& not for
all applications& b't a growing n'mber* ,his means that there will be a
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potential for a tremen"o's overhang of ba" properties that cannot ma)e
an effective energ( conversion& an" that will en" 'p slowl( becoming
'nsalable* 3n short& "oing nothing increases ris)*
,he wa( forwar" is to enable financings along the lines of what 1+2# co'l"
have been b't is not "oing& namel( s'pport e:'it( b'il"ing b( owners*
&oint %nterests
,here are n'mero's areas of <oint interest& starting with overall economic
improvement& an" progress in environmental an" climate change "imensions*
!pecificall( the following sho'l" be note"9
,he !#s an" their sharehol"ers have a <oint interest with propert(
owners in increasing asset val'es*
A'nicipalities have an interest in environmental $air :'alit(%& an"
economic improvements& as well as real estate appreciation& even if the(
agree to e/emptions from real estate ta/ appraisals for the finance perio"*
1oliticall(& it is appropriate that the !#s pla( a role in reg'lating the
finance of energ( retrofits in a wa( that s'pports national energ( polic(
an" climate change priorities* G8#& #1+& F#A+ an" other agencies at a
state an" fe"eral level sho'l" be part of the "isc'ssion& b't "o not have
the specialist perspective of ho'sing finance an" its potential to serve
energ( polic(* ,he bea't( is& that if it is "one right we are b'il"ing asset
val'e in the nations ho'sing stoc) han" in han" with effective
environmental improvement an" climate change policies*
Policy 'iscussion Points
=ltimatel(& the "ecisions are polic(-oriente" an" will li)el( begin at the !#
e/ec'tive level* -igh-level :'estions as an initial basis for "isc'ssion incl'"e9
3f the !#s consi"er wor)ing with 1+2#&
o Wo'l" the !#s consi"er a financial bri"ge pro"'ctI +n" offer a
roll-'p in the o'ter (ears*
1 ,he !#-1+2# tension appears to lie primaril( at the initial transaction level& in which the
!#s "iverging concern is more that of affor"abilit( $e*g*& f'lfilling ma/im'm "ebt-to-e:'it(
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o Wo'l" the !#s& 1+2# consi"er a pari pass' lien stat'sI
Wo'l" the !#s consi"er going it alone an" incl'"e DgreenJ retrofits
"irectl( in its portfolioI =n"er what con"itionsI
-ow co'l" the !#s wor) "irectl( with F#A+ to create resilienc(
investment incentives for renewable energ(I
re:'irements% while 1+2#6s "iverging concern is more of the lien position* 8ver time& as the
loan seasons& the asset val'e will increase an" the loan-to-val'e wo'l" "ecrease& an" those
initial transaction concerns wo'l" "iminish* Aoreover if the loan was self li:'i"ating
compare" to energ( costs& the concern is moot from the o'tset* 8ther possibilities incl'"e
man"ator( accelerate" principal re"'ctions after the energ( 'pgra"es are pai" for& perhaps
on a fift(/fift( basis*
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1* !teve -allett& The Efficiency Trap @ e/plains from an economic an"
environmental s(stems point of view wh( energ( efficienc( is largel(
co'nter pro"'ctive* http9//www*stevehallett*com
2* Gavi" 8wen& The Conundrum @ e/plains from a broa" economic point of
view& mo"ele" on biological s(stems& shows wh( energ( efficienc(
achieves the opposite of what we thin) an" has the 'ninten"e"
conse:'ence of ma)ing the problem worse* http9//www*"avi"owen*net
4* A( blog& at www*vliscon(*com e/plores economic& financial&
environmental an" engineering stan"point wh( energ( efficienc( benefits
onl( the sharehol"ers of energ( companies an" e:'ipment ven"ors& not
propert( owners& an" what to "o abo't it* +nswer9 create propert(
appreciation with !GR# $!ite Gerive" Renewable #nerg(%* enerall( the
blog is a complete inventor( of the wh(s an" hows an" wherefores of
energ( retrofits to e/isting properties*
4* ,he #1+6s #nerg( !tar 1ortfolio Aanager is the best tool for life-c(cle
planning of energ( 'pgra"es& even tho'gh it presents information in
terms of Denerg( efficienc(&J however it6s framewor) can simpl( be
e/ten"e" with a 40 (ear .1V& in or"er to capt're the effect of the long tail
of Dno energ( bills*J =nfort'natel( also& it is not c'rrentl( 'sef'l for single
famil( resi"ences*
?* + parallel program& which is aime" at the resi"ential mar)et& the -ome
#nerg( Har"stic)& is more D'ser frien"l(J b't 'tterl( co'nterpro"'ctive
financiall(& beca'se it enco'rages helter-s)elter spen"ing on incremental
Denerg( efficienc(J witho't ta)ing into acco'nt the "iminishing ret'rns of
s'ch an approach& nor capt'ring the potential val'e enhancement of long
term capital improvements* 3t wo'l" be worthwhile to wor) with #1+ to
provi"e an e/tension to the program that co'l" help mo"el the potential
for val'e creation& an" therefore a better eval'ation of financing options
an" s'bsi"ies*
,he #1+6s -ome #nerg( Har"stic) is an e/ample of how the tra"itional
recommen"ation for energ( efficienc( above all is "angero's to (o'r
financial health as a propert( owner& as "isc'sse" here9
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6* 3ncentives* 3t sho'l" be note" that the entire c'rrent framewor) of
technolog(-level incentives is co'nter pro"'ctive& in the sense that it has
acco'ntants "esigning energ( s(stems& "riven b( ta/ incentives* ,he
#nerg( !tar label an" the ta/ incentives associate" with it are "isr'ptive to
so'n" retrofit planning& an" lea" to s'b-optimal "esigns* 3t is to be hope"
that in f't're a single ob<ective can be set9 overall --re"'ction& which
can be accompanie" with incentives for over ?0; re"'ctions& in or"er to
stim'late serio's 'pgra"es* 7inance programs can be designed now to
shift the focus from e&uipment finance to property finance.