Housing initiative will speed up creation of 3,000 new, carbon-neutral, affordable homes in NYC

This spring, Governor Kathy Hochul and Mayor Eric Adams 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.”

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).

“Since day one, our administration’s north star has been connecting New Yorkers to safe, high-quality, affordable homes,” said NYC Mayor Eric Adams. “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.”

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.
“The Future Housing Program will demonstrate to the affordable housing market a highly replicable new construction solution. By creating a smoother process for developers and providing technical assistance and incentives as part of the financing cycle with HPD, we are advancing energy efficiency and electrification while supporting development of much-needed affordable housing for New Yorkers,” said NYSERDA President and CEO Doreen M. Harris.

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