High Performance Building Program (HPB)

The High Performance Building Program (HPB) is a financial assistance initiative administered by the Pennsylvania Department of Community and Economic Development (DCED) and the Department of Environmental Protection (DEP) under the Commonwealth Financing Authority (CFA). This program aims to support the construction or renovation of buildings that meet high-performance energy efficiency and environmental sustainability standards. The funding provided through the program helps cover cost premiums associated with the design and construction of high-performance buildings in Pennsylvania. The HPB program is available to small businesses and individuals. Eligible applicants include small businesses with 100 or fewer full-time employees that are constructing or renovating buildings for their own use. Individuals constructing or renovating a primary residence may also apply. However, projects involving rental or leased residential buildings are not eligible. To qualify, projects must meet or exceed high-performance building standards such as the National Green Building Standard (NGBS), Green Building Initiative (GBI) Green Globes (minimum 3 Globes), or the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) Gold certification. Funds awarded under the program can be used for a variety of project-related expenses, including land acquisition, site preparation, planning and design, construction costs, commissioning, and certification fees. Administrative costs are capped at 2% of the program grant. Ineligible costs include lobbying expenses, debt refinancing, and costs incurred before receiving funding approval. Applicants must provide matching funds at a 1:1 ratio, meaning they must secure an equal amount of funding from private or public sources. HPB funds are available in the form of loans, grants, and guarantees. The maximum loan amount for small businesses is $2 million, while individuals may apply for loans up to $100,000. Grants are available up to $500,000 or 10% of total eligible building costs, whichever is lower. Applicants may apply for either a grant or a loan but not both for the same project. If a project fails to meet the required performance standards within 180 days of completion, the full amount of the grant or loan must be repaid. The program also offers guarantees, which serve as financial security for loans in case of default. Applicants must submit an online Single Application for Assistance through the DCED website. Applications must include documentation such as project descriptions, financial statements, funding commitment letters, environmental impact assessments, and proof of compliance with state planning and zoning requirements. Once an application is approved, a commitment letter is issued, and funds are disbursed in installments throughout the construction process. Loan repayment terms can extend up to 10 years, with interest rates based on the 10-year Treasury rate plus 250 basis points. Compliance and monitoring requirements include adherence to Pennsylvania’s nondiscrimination policies, conflict-of-interest disclosures, record-keeping, and compliance with the Pennsylvania Prevailing Wage Act for applicable projects. Approved projects must also provide post-construction verification of high-performance building certification and submit an audit from a Certified Public Accountant (CPA) for grants exceeding $100,000. For inquiries, applicants can contact the PA Department of Community and Economic Development, Center for Business Financing – Site Development Division, at (717) 787-6245 or email ra-dcedcbf@pa.gov. Additional information and application materials are available at dced.pa.gov.