NEW YORK CITY — New York City-based affordable housing lender Community Preservation Corp. (CPC) has launched a new public/private partnership that will provide $1 billion to multifamily building owners in New York City for energy-efficient building renovations. The CPC Green Initiative will be incorporated into the lender's existing multifamily loan program. It will identify energy-efficient improvements that can be made, add the improvements to other upgrades planned for the property and provide the financing to make the measures affordable. The CPC also plans to monitor the renovations on a long-term basis to measure effectiveness.
For each project, CPC expects to provide a total of $80,000 to $100,000 per apartment, including $5,000 to $50,000 in energy retrofits and other improvements. The program intends to target low- and moderate-income multifamily buildings, including cooperatives. The private financing portion of the initiative will also include a variety of subsidy programs. Many green retrofitting funding programs already exist, but the CPC Green Initiative will combine the programs as a single resource.
Of the $1 billion set aside for the program, $500 million will be provided by Freddie Mac and $300 million will come from the New York State and New York City public employee pension funds. Private lenders will provide $150 million, with initial investments of $15 million from Deutsche Bank, $10 million from HSBC, up to $10 million from Morgan Stanley. CPC participating institutions will provide the final $50 million.
In addition, the State of New York Mortgage Agency is providing mortgage insurance for the pension funds, and the New York City Department of Housing Preservation & Development will support the Green Initiative through its Participation Loan Program. Other agencies providing assistance include the New York State Division of Housing & Community Renewal; the New York City Department of Housing, Preservation & Development; the New York State Energy Research & Development Authority; and utility companies Con Edison and National Grid. The law firm White & Case will provide pro bono legal support for the Green Initiative.
In a statement, Michael Lappin, president and CEO of CPC, said, “Our realistic goal is to increase fuel and electrical efficiency of existing apartment buildings by 20 percent or more, reducing a prime source of greenhouse gas emissions in our cities. We anticipate funding retrofits for up to 15,000 apartments over the next few years. But to change the urban landscape, we will also need to adjust the financing landscape.”
— Coleman Wood