NYC Creates $15M Fund For New Passive House Developments
Developers who build all-electric housing units in New York City that meet stringent sustainability standards can tap a new pool of state funding this year.
The $15M fund, dubbed the New Construction Future Housing Initiative, comes from the $6B clean energy fund administered by the New York State Energy Research and Development Authority, which will work alongside the city’s Department of Housing Preservation and Development.
The program hopes to allow affordable housing projects that plan to close on financing in the next one to two years the chance to grab extra funds, aimed at making properties more energy-efficient or switching from fossil fuels altogether. Developers can use Future Housing Initiative funds to cover $10K of costs per unit, up to $1.5M per project, according to a press release.
Applications for the first round of funding, $7.5M, are open until June 1, with a second round of funding opening up next year. The agencies estimate that the sum will cover 30 projects, totaling 3,000 new units of housing.
“Since day one, our administration’s north star has been connecting New Yorkers to safe, high-quality, affordable homes,” Mayor Eric Adams said in a statement. “This new partnership will do all of that and give us the tools to do it even more quickly."
NYC has a 2050 target to reduce its greenhouse gas emissions by 85%, and it has committed to placing up to 40% of its clean energy investments in disadvantaged communities.
The funding is intended for projects that are not yet in the ground, but are in the early stages of seeking financing and are looking for extra cash to finance a more environmentally friendly multifamily project, a spokesperson for HPD told Bisnow.
Projects applying for the funding should be multifamily properties that will achieve Passive House certification, which is based on energy reduction for heating and cooling functions. Funding can be used for both hard and soft costs, according to the release, but a NYSERDA spokesperson told Bisnow by email that projects must include measures such as installing electric systems for heating and hot water production.
While the first round of applications will close June 1, applicants should request a pre-approval letter to apply before May 15, and submit a full application before the end of the month, per application instructions on HPD’s website.
“Decarbonizing our homes is essential to the health of our city and planet,” Deputy Mayor for Operations Meera Joshi said in a statement. “The Future Housing Initiative will deliver clean energy benefits to thousands of families who will breathe cleaner air, face lower utility bills, and be healthier and safer in their homes and communities.”
The joint announcement from Adams and Gov. Kathy Hochul follows the $229B budget deal reached by Hochul and state legislators last week, almost a month behind deadline and without the governor's signature housing policy proposals.
Hochul's pledge to bring 800,000 new homes to the state in January, based on passing reforms to spur new development in the suburbs and unlock additional density in the city, was killed in negotiations, as was progressive legislators' push for Good Cause eviction measures.
