Program Funds NYC Low-Income Housing Renewable Energy Upgrades

NEW YORK CITY — Affordable housing owners in New York City soon could add renewable energy upgrades in their homes paid for by a new pilot program.

The $24 million program, which launches this fall, will support upgrades to approximately 1,200 units — affecting 3,000 residents of low- to moderate-income housing, Gov. Kathy Hochul's office said in a news release.

The money will be provided by the New York State Energy Research and Development Authority in partnership with the city's Department of Housing Preservation and Development.

"The climate crisis is a global problem that demands a global response, and that's why it's so important that New York State and New York City pool their resources and work together to reduce carbon emissions," Hochul said in a statement. "This new partnership between NYSERDA and HPD will make it easier for affordable housing developments in New York City to access funding and retrofit their buildings for clean energy usage."

Improvements include transitioning from fossil fuel-based heating and cooling to "highly efficient" heat pump technology, which will increase energy efficiency, lower greenhouse gas emissions and provide "superior indoor environmental quality," a release stated.

The project is in line with New York State's goal to reduce greenhouse gas emissions by 85 percent by 2050, officials said in the news release.

"Through this partnership, we will demonstrate a simplified process for electrifying affordable housing, while developing replicable new retrofit approaches in order to reduce statewide emissions," NYSERDA President and CEO Doreen M. Harris said in a statement. "The funding will support our ongoing efforts to decarbonize the State's existing building stock while ensuring a just transition to a clean energy economy that provides all residents access to the far-reaching benefits of energy efficiency and electrification."

Funding for the initiative will come from NYSERDA's $5.3 billion clean energy fund, which is designed to "reshape the State's energy efficiency, clean energy, and energy innovation programs" according to the NYSERDA website.

Funds will go directly to project developers and will be used to cover the costs of electrifying buildings already regulated by the HPD and implementing other performance improvements that will reduce energy consumption and improve residents' health and safety, officials said.

The money will also fund performance improvements to homes' building envelopes — the physical separator between the conditioned and unconditioned environment of a building — and hot water distribution, according to a release.

Funding will vary based on the demonstrated need and scope of work, according to the news release. Applications will be accepted upon the program's launch until the end of 2024, or until funds have been exhausted.