This article was published on TBL Fund’s blog to inform affordable housing providers and stakeholders in California about a new financing structure that allows solar adoption despite restrictive primary loan terms. It was written to support outreach around SOMAH-funded opportunities and drive interest from housing developers and mission-aligned partners.

For many owners of multifamily affordable housing (MFAH) properties, the case for solar energy is clear. Lower utility bills, long-term sustainability, and improved quality of life for tenants. But there’s a hidden barrier that often blocks progress: restrictive primary debt.

Loans from HUD, Fannie Mae (FNMA), and Freddie Mac (FDMAC) often prohibit additional secondary debt—meaning property owners can’t access traditional solar financing without
navigating slow and complex approval processes. Even when the financial benefits of solar are compelling, this roadblock has stalled countless projects.

A Game-Changer: TBL Fund + Finance for Impact + SOMAH

Thanks to California’s Solar on Multifamily Affordable Housing (SOMAH) program, a new path forward has emerged. In partnership with our nonprofit ally Finance for Impact (FFI), TBL Fund developed an innovative solution that eliminates the need for property owners to take on debt or provide upfront capital.

Here’s how it works:

• FFI Temporarily Owns the System:
  • The property grants FFI a no-cost roof lease. In return, FFI installs and owns the solar system and delivers electricity through a no-cost Power Purchase Agreement (PPA).
• TBL Fund Provides the Financing:
  • TBL Fund lends to FFI—not the property owner—using anticipated SOMAH rebates as the primary source of repayment.
• Ownership Transitions After Installation:
  • Once the SOMAH rebate is received and the loan is repaid, ownership of the solar system is transferred to the property—at no cost.

The result? The property gains the full benefit of solar energy savings, without debt, without delay, and without out-of-pocket cost.

The Impact Is Significant

With nearly $100 million in annual SOMAH funding, this model creates an unprecedented
opportunity to:

• Reduce tenant energy costs and improve housing affordability
• Add long-term value to properties—without increasing debt load
• Support workforce development in California’s clean energy sector
• Help the state meet its ambitious climate and equity goals

This Isn’t Just a Financing Strategy—It’s a Movement

TBL Fund’s partnership model unlocks solar adoption for properties that have long been excluded due to financing restrictions. It’s a win-win for communities, housing providers, and the planet.

Let’s break down the barriers—and build a more sustainable future together.