Governor Hochul and Mayor Adams launch $15M Future Housing Initiative for 3,000 Affordable, Energy-Efficient Homes in NYC

NEW YORK — On Monday, Governor Kathy Hochul and Mayor Eric Adams launched the Future Housing Initiativea new partnership investing $15 million to accelerate the creation of 3,000 affordable, energy-efficient, all-electric homes in New York City.

The new effort is a significant step toward goals outlined in the state’s Climate Leadership and Community Protection Act, including reducing greenhouse gas emissions by 85 percent by 2050 and delivering 35-40 percent of the benefits of clean energy investments to disadvantaged communities, as well as the city’s green building goals under Local Law 97.

“With the Future Housing Initiative, we are taking a big step forward in our commitment to ensure a more sustainable, affordable and equitable future for New Yorkers,” said Governor Hochul. “I am proud to partner with Mayor Adams on this critical effort, which will help us achieve our nation-leading climate goals, improve access to affordable housing in our communities, and build a healthier, greener New York for all.”

This effort, formally titled the New Construction Future Housing Initiative, is the result of an expanded memorandum of understanding between the New York State Energy Research and Development Authority (NYSERDA) and the Department of Housing Preservation and Development. New York City (HPD).

The initiative is intended to expedite the delivery of development financing and grants to affordable housing projects currently in HPD’s new construction pipeline. Funding will cover the incremental costs of implementing high-performance, all-electric Homes of the Future standards, such as electrification of heating and hot water systems in design and construction to provide energy savings, resiliency, and improved air quality. for future residents.

“Since day one, the lodestar of our administration has been connecting New Yorkers to safe, affordable, high-quality homes,” said Mayor Eric Adams. “This new partnership will do all of that and give us the tools to do it even faster. In New York, we are tackling the climate crisis head-on, and I want to thank Governor Hochul for working with us to deliver a greener life, a brighter future.” clean and prosperous New Yorkers deserve.

The initiative was made possible by NYSERDA’s $6 billion Clean Energy Fund, which enabled the Future Housing Initiative to offer building owners and developers up to $10,000 per unit and up to $1.5 million per project to finance the construction of high-performance all-electric multi-family buildings. which will achieve “Passive House” certification, the gold standard for sustainable construction, with drastically reduced energy use and carbon emissions.

Development teams will also receive technical assistance support to facilitate the necessary design work. The program will support up to 30 projects encompassing approximately 3,000 housing units.

“The challenges facing our city are many, but by working hand in hand with our state partners, we can do more than we could alone,” said Brooklyn Borough President Antonio Reynoso. “This association, which integrates housing and climate justice, is a perfect example of that. Thank you to Governor Hochul, Mayor Adams and the many others who have come together on behalf of our city and the environment.”

Las requests for the Future Housing Initiative’s first round of funding with $7.5 million available open today through HPD and will be accepted through June 1, 2023. A second round will follow in 2024.

Buildings are one of the largest sources of greenhouse gas emissions in New York City, accounting for two-thirds of all greenhouse gas emissions generated in the five boroughs. Integrating energy efficiency and electrification into affordable housing developments reduces carbon emissions and results in more sustainable, healthy, and comfortable homes.

The initiative builds on a previous partnership to promote electrification on HPD’s preservation pipeline by funding retrofits in existing multi-family buildings. Announced in 2021, the original agreement between NYSERDA and HPD provided strong incentives through HPD’s retrofit electrification pilot to support building electrification and energy-efficient retrofits in multi-family buildings in HPD’s preservation pipeline with low-energy systems. performance where electrification is a big win.

This pilot project is expected to improve approximately 1,200 affordable homes. The partnership combines NYSERDA’s clean energy and technical expertise and HPD’s affordable housing development and financing expertise with a focus on driving the design, construction, and operation of clean, resilient, carbon-neutral buildings in support of the Governor Hochul’s goal of achieving two million climate-friendly homes by 2030.

“All of New York is committed to fighting climate change, and we’re providing the support needed to create energy-efficient homes,” said Rohit T. Aggarwala, Director of Climate and Environmental Protection for the City of New York. York. “The Future Housing Initiative will accelerate the creation of 3,000 new, affordable, zero-carbon homes and, through PlaNYC, we will develop a public solar financing program for low-income, one- to four-family homeowners in existing communities. of environmental justice. New York is moving aggressively on all fronts to reduce our carbon footprint.”