NYCEEC Loans Can Help Affordable Co-ops and Condos Go Green

NYCEEC Loans Can Help Affordable Co-ops and Condos Go Green
Written by Publishing Team

December 22 2021

For cooperatives and low- and middle-income condominiums, the Climate Mobilization Law It loomed like a dark cloud. It has paintings in these buildings that raise a perplexing question: How can we pay for the retrofits that will reduce the buildings carbon product Enough to satisfy the law and avoid heavy fines?

Partial answer comes from New York City Energy Efficiency Corporation. (NYCEEC), a non-profit lender dedicated to financing green energy projects. It works jointly with the city department Preserving and developing housing (HPD), offers interest-free loans to low- and middle-income condos and co-ops that want to explore ways to increase the energy efficiency of their buildings. these pre-development loans It can pay for energy audits, architectural and engineering studies, analysis of cost savings and scope of work for projects that will lower a building’s energy costs. These projects include installing solar panels, updating windows, doors, building casings, electrical, battery storage and more.

“In order to receive construction financing from HPD, councils need an integrated assessment of material needs,” he says Jay Murphys, director of business development at NYCEEC. “We are able to provide financing for pre-development work. What we are trying to do is encourage these kinds of green measures in affordable housing communities.”

For eligible buildings, loans are Without Benefits reach to $100,000 and bear 2% to 3% Large loan rate. Loans usually last for two years, and there are no upfront fees. (NYCEEC also administers the city Rated clean energy The loan program, which allows cooperatives to pay for energy-efficient retrofits by charging a property tax bill.)

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“Pre-development loans are not construction loans,” Mervis stresses. “It is designed to get building owners to get to the point where they can get permanent financing. They need a loan to bridge the gap as they assess the scope of the project. Then they should look for lenders that meet their construction needs.”

The pre-development loan program is currently focused on financing small projects in small buildings. “But we’d like to see pre-development funding of $5 million,” says Mirvis.

Over the 11 years of its existence, NYCEEC has financed the greening of more than 11,000 units of affordable housing. Funding has been one of her most noteworthy recent projects $6.9 million In pre-development costs in the past Green Point Hospital Campus in Brooklyn, where a $213 million net energy project will add 310 affordable housing units and redevelop a 200-bed homeless shelter.

“A lot of co-ops and condos may not realize that this pre-development money is available to them,” Mirvis says, adding that councils can get more information by emailing NYCEEC at Visit their website by clicking here.

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