Bank Gives a Nudge to Loans for Dome Houses

Financing of dome homes may become a bit easier soon. Bank of America is preparing guidelines to its underwriters under which loan requests for geodesic residential domes may be considered.

A bank spokesman explained that, while previously the decision whether to consider such an application was made by each underwriter in each case, the effect of the new guideline will be to tell the underwriters that such applications can be considered.

The decision whether to grant any loan, of course, will continue to be made on the merits of the individual application and, he added, the bank is now applying more stringent criteria.

The spokesman also indicated the new guideline is a result of a decision by a federal secondary-market purchaser to begin buying mortgages on dome houses. He also said it is not an endorsement of domes, since the bank does not endorse any specific type of housing.

The bank--quite correctly--said it was not a major policy change. Riverside-based Monterey Domes, one of the nation’s largest dome manufacturers, said--also quite correctly--that the new guideline will encourage the purchase of domes as affordable alternative housing and commented:

“Bank of America has signaled to the rest of the financial community that dome housing is a viable investment. . . . Up until now no large lender had a formal policy accepting dome housing.

“Dome homes, which are known for their energy-efficient designs, low construction costs and beauty, will be all the more available and attractive to new home buyers.

“The dome home is one of the fastest growing and most popular new forms of housing. ‘With Bank of America’s new loan policy, geodesic dome housing’s future is now brighter than ever.”

The federal Solar Bank has awarded $20.1 million to fund subsidies to low- and moderate-income people on the local level for energy conservation and solar energy improvements. They will be shared by 49 states (Alaska was left out in the cold), five territories, the District of Columbia and an Indian assistance coordinator.

Samuel R. Pierce Jr., secretary of Housing and Urban Development, said the new funding includes Wyoming, South Dakota and the Virgin Islands for the first time, brings the solar bank’s total awards to $80.4 million and “will help these participants (the local jurisdictions) provide subsidies to those who are most affected by the high cost of energy.”

As of Aug. 6, the department said, $28.9 million in solar bank funds has generated more than 39,000 projects, leveraging about $50 million in additional private and local government investments. It estimated the energy savings are equivalent to 300,000 barrels of oil a year.

The awards finance such improvements as insulation, thermal windows, efficient heating systems and other weatherization measures in buildings completed before 1980 and solar energy projects.

The bank’s president-designate, Richard Francis, said, “States and territories, with a direct knowledge of their citizens’ needs, can allocate the funds most efficiently and effectively. Eligible individuals should apply for assistance through the state agencies that administer the program.”

Low-interest energy loans totaling $1,481,993 have been made by the California Energy Commission to three cities, three medical centers and two school districts under the Energy Conservation Assistance Act loan program.

The loans are to be used for projects such as lighting, heating and air-conditioning modifications, street-light conversions, energy management systems and co-generation equipment. The commission forecasts annual savings totaling about $667,000 from the projects.

Recipients are the cities of Burlingame in San Mateo County, Shafter in Kern County and Los Alamitos in Orange County; Western Medical Center in Santa Ana, St. Mary’s Hospital and Medical Center in San Francisco, and Natividad Medical Center in Salinas; Anaheim Union High School District, Anaheim, and Mount Diablo Unified School District, Contra Costa County.

Energy Commissioner Arturo Gandara commented, “These loans will prove a sound investment for the state and loan recipients because they provide an opportunity for these public-supported institutions to reduce their energy consumption, which results in lower operating costs.

“These are not one-time savings; they will continue throughout the coming years.”