Beyond traditional financing mechanisms, these options are available for consideration to make energy efficiency upgrades in multifamily buildings:
NYSERDA offers building developers, owners, and managers a unique opportunity to obtain low-interest financing on energy-saving building and renovation projects through private commercial lenders.
Here is how it works. NYSERDA provides lenders up to 50% of the loan principal, to a maximum of $5,000 per unit or $500,000 per energy-saving project, at a 2% interest rate. For example, a borrower who requests $50,000 to fund an approved project will pay market-rate interest on only $25,000; the remaining $25,000 will have a 2% interest rate.
For any questions, contact James Mannarino at firstname.lastname@example.org or 212-971-5342 x3020.
Any existing residential building, including gut-rehab projects, with five or more units in New York State is eligible. Both market-rate and affordable housing projects are eligible.
Getting started. The first step is to find a NYSERDA Multifamily Building Solutions Provider or a Multifamily New Construction Partner. Your Partner will walk you through all necessary steps for developing an Energy Reduction Plan and qualifying your plan for low-interest financing. Then you select a lender of your choice.
Use your lending power to create energy savings in New York State through low-interest financing. It can serve as a powerful marketing and business development tool for your lending institution. Being able to lend money at a below-market rate gives you a number of advantages, including:
- Enhancing your position against competitors who don’t participate
- Gaining experience in an emerging sector of the financing industry
- Introducing you to new customers who may benefit from your other services
Getting started. Once you are working with a customer that has completed a NYSERDA-approved Energy Reduction Plan and a signed Pre-Approval form, complete and submit the Participation Agreement to NYSERDA.
The New York City Energy Efficiency Corporation (NYCEEC) is a financial services nonprofit organization that provides innovative financing solutions and technical expertise to help New York City building owners save money and transform their properties into cleaner, greener, and more affordable buildings.
NYCEEC works closely with borrowers to structure loans that meet their needs and achieve cost and energy savings.
Benefits to borrowers include:
- Flexible and innovative loan structures that can match construction milestones and bridge incentive payments
- Financing to cover the cost of equipment, construction and eligible soft costs such as energy audits
- Engineering support and technical guidance to help borrowers maximize cost and energy savings
Getting started. Visit NYCEEC’s website to learn how you can finance your clean energy upgrades and start saving money.
PACE Financing through EnergizeNY
Low-cost and long-term Property Assessed Clean Energy (PACE) financing can be used for energy efficiency improvements to multifamily properties. PACE financing is available through the Energy Improvement Corporation’s EnergizeNY Finance program in participating municipalities. Under the PACE financing model, a property owner opts to finance energy improvements via a special tax charge to the property. Terms and rates are much more favorable to the borrower than what would be available through standard commercial financing, especially for affordable-rate buildings.
Under PACE, the property owner chooses a Multifamily Performance Partner who develops an Energy Reduction Plan, which identifies the cost of a scope of work and the eligible PACE loan amount. The loan funds are disbursed to the property owner after construction is complete. That loan is then repaid through an assessment on the annual property taxes. For bridge and construction loans, you can leverage the NYSERDA Financing option.
Getting started. Visit the EnergizeNY website for more information on how to finance upgrades to multifamily properties.