Governor Hochul and Mayor Adams Launch New $15 Million Effort to Build All-Electric, Affordable Homes in NYC

 

Future Housing Initiative Will Speed Up Creation of 3,000 New, Carbon-Neutral, Affordable Homes

Supports Shared Climate Goals of Reducing Greenhouse Gas Emissions by 85 Percent by 2050, Delivering More Than 35 Percent of Benefits of Clean Energy Investments to Disadvantaged Communities

 Governor Kathy Hochul and Mayor Eric Adams today launched the Future Housing Initiative, a new partnership investing $15 million to fast-track the creation of 3,000 energy-efficient and all-electric affordable homes in New York City. The new effort is a significant step toward goals outlined in the state Climate Leadership and Community Protection Act — including reducing greenhouse gas emissions 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're taking a major step forward in our commitment to ensure a more sustainable, affordable, and equitable future for New Yorkers," Governor Hochul said. "I'm proud to partner with Mayor Adams on this critical effort, which will help us reach our nation-leading climate goals, improve access to affordable housing in our communities, and build a healthier, greener New York for all."

Mayor Eric Adams said, "Since day one, our administration's north star has been connecting New Yorkers to safe, high-quality, affordable homes. This new partnership will do all of that and give us the tools to do it even more quickly. In New York, we are tackling the climate crisis head-on, and I want to thank Governor Hochul for working with us to deliver the greener, cleaner, more prosperous future New Yorkers deserve."

Formally titled the New Construction Future Housing Initiative, this effort is the result of an expanded memorandum of understanding between the New York State Energy Research and Development Authority (NYSERDA) and the New York City Department of Housing Preservation and Development (HPD). The initiative aims to streamline 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 Future Homes standards, such as electrification of hot water and heating systems in design and construction to provide energy savings, resiliency, and improved air quality for future residents.

Funded through NYSERDA's $6 billion Clean Energy Fund, the Future Housing Initiative offers building owners and developers up to $10,000 per unit and up to $1.5 million per project to fund the construction of high-performance, all-electric multifamily buildings that 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 that encompass approximately 3,000 dwelling units.

Applications for round one of Future Housing Initiative 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, making up two-thirds of all greenhouse gas emissions generated within the five boroughs. Integrating energy efficiency and electrification in affordable housing developments reduces carbon emissions and results in more sustainable, healthy, and comfortable homes.

The initiative builds upon an earlier partnership to advance electrification in HPD's preservation pipeline by financing retrofits in existing multifamily buildings. Announced in 2021, the original agreement between NYSERDA and HPD provided deep incentives through the HPD Retrofit Electrification Pilot to support building electrification and energy efficiency retrofits in multifamily buildings in HPD's preservation pipeline with poorly performing systems where electrification is a big win. This pilot is expected to upgrade approximately 1,200 affordable homes. The partnership combines NYSERDA's clean energy and technical expertise and HPD's affordable housing financing and development expertise with a focus on driving the design, construction, and operation of clean and resilient carbon neutral buildings in support of Governor Hochul's goal to achieve two million climate friendly homes by 2030.

The Future Housing Initiative also delivers on Mayor Adams' commitments in PlaNYC: Getting Sustainability Done and Housing Our Neighbors: A Blueprint for Housing and Homelessness to improve the health and safety of New Yorkers through housing, including by promoting electrification and sustainability standards for newly constructed, affordable housing. Together, this work will bring the city's affordable housing creation efforts more closely in line with decarbonization goals and benefit residents through lower energy costs, healthier living conditions, and more sustainable homes.