FOR IMMEDIATE RELEASE: January 8, 2018
CONTACT: firstname.lastname@example.org | (212) 306-3322
NYCHA ANNOUNCES $103 MILLION IN NEW ENERGY CONTRACTS TO IMPROVE EFFICIENCY AND HEATING AT 41 developments
Two Energy Performance Contracts (EPC) will upgrade lighting and heating systems, building ventilation systems and water conservation at 41 developments, benefitting over 65,500 NYCHA residents.
These new EPCs will save NYCHA $8.6 million annually while reducing energy by approximately 15 percent.
NYCHA’s Sustainability Agenda is on track to achieve its $300 million goal to upgrade and retrofit up to 120,000 apartments, benefiting nearly 262,000 NYCHA residents.
NEW YORK – Today, the New York City Housing Authority (NYCHA) announced it has closed financing on two Energy Performance Contracts (EPC) worth $103 million. These contracts will further reduce energy costs and improve energy efficiency across NYCHA’s portfolio and bring NYCHA one step closer to its NextGeneration Sustainability Agenda goal of $300 million in EPC financing by 2025.
The BQDM and Sandy-A EPCs are NYCHA’s second and third projects in the large-scale EPC series, a U.S. Department of Housing and Urban Development (HUD) program. The primary goal of both EPCs is to modernize NYCHA’s mid-century heating systems to deliver more consistent and comfortable heat. With modernized distribution controls, the heating system will be able to provide heat based on the indoor temperature. Both projects are slated to begin construction in March 2018.
“Energy Performance Contracts are an important financing tool that helps NYCHA address critical infrastructure needs, like replacing inefficient and aging boilers. EPCs will improve the quality of life for our residents and reduce energy costs,” said NYCHA Chair and CEO Shola Olatoye. “Programs like this are critical as we work toward transforming our developments into sustainable communities through our NextGeneration NYCHA Sustainability Agenda.”
“NYCHA’s ambitious Energy Performance Contracts show the power of public-private partnerships,” said Lynne Patton, HUD Regional Administrator for New York and New Jersey. “While a private energy services company shoulders the risk and the up-front costs, residents and taxpayers will reap the benefits of more efficient and resilient housing. It’s a win-win situation.”
“Retrofitting our city’s one million buildings is critical as we work hard to meet our climate goals and create a healthier, more fair and more sustainable NYC,” said Mark Chambers, Director of the Mayor’s Office of Sustainability. “NYCHA is the largest public housing authority in North America and we applaud their bold announcement today which has both the vision and the scale to truly drive necessary reductions in greenhouse gas emissions from NYC’s built environment.”
“Constellation is proud to help NYCHA achieve its efficiency, sustainability and carbon reduction goals while reducing its overall energy costs and improving energy reliability for its residents,” said Michael D. Smith, senior vice president, Distributed Energy for Constellation. “Constellation is dedicated to helping all of its customers operate in a cost effective, reliable and environmentally responsible manner, and this project is a prime example of that commitment.”
Chris Giuliano, head of Energy Services Finance for Bank of America Merrill Lynch, said, “We are pleased to continue supporting the New York City Housing Authority’s energy efficiency initiative with these two new Energy Performance Contracts. Energy efficiency is a key business focus for us and an important part of Bank of America’s $125 billion environmental business commitment to address climate change and demands on natural resources.”
The BQDM EPC, a $60 million project designed to take advantage of a Con Edison incentive program targeting electric load reductions, will include upgrades to building automation heating controls, exterior and interior LED lighting, and water conservation for 16,811 units at 23 developments in Brooklyn.
The Sandy-A EPC, a $43 million project designed to capture utility cost savings generated by FEMA-funded work under the NYCHA Sandy Recovery and Resiliency program, will include upgrades to building automation heating controls, exterior and interior LED lighting, water conservation, and building ventilation improvements for 11,650 units at 18 developments across Queens, Brooklyn and Manhattan. For the Sandy-A EPC, NYCHA will now be able to provide more comprehensive investments in heating infrastructure upgrades beyond the current FEMA scope.
NYCHA will work with Constellation New Energy as the contractor, and Bank of America provided the financing on both EPCs.
The benefit of an EPC is that it enables housing authorities to achieve energy and water savings without having to provide up-front capital dollars. In an EPC, a private lender provides construction funds for the installation of these measures and the debt is repaid by the utility savings generated by the work over a period of up to 20 years.
NYCHA has been working with HUD on these large-scale EPCs worth approximately $300 million, representing the largest energy savings program for any public housing authority. Together, they will enable NYCHA to upgrade 120,000 apartments at up to 130 developments, or 67 percent of the Authority’s building portfolio, benefiting nearly 262,000 residents.
The EPC program is part of the NextGeneration NYCHA Sustainability Agenda commitment to reduce energy consumption by 20 percent by 2026 and the Mayor’s commitment to achieve an 80 percent reduction in greenhouse gas emissions by 2050. New York City is the largest city in the world to make that commitment. As the city’s largest residential landlord, NYCHA is committed to helping the city achieve its emission-reduction goals.
Since the release of NYCHA’s Sustainability Agenda last year, the Authority has been working with government and private sector partners to provide better service for residents, reduce energy and costs, and curb the effects of climate change. In addition to the EPCs, work is underway to upgrade heating, hot water, interior and exterior lighting, and ventilation systems in buildings across the city through various energy programs.
List of Developments
BQDM - EPC
About the New York City Housing Authority (NYCHA)
NYCHA’s mission is to increase opportunities for low- and moderate-income New Yorkers by providing safe, affordable housing and facilitating access to social and community services. More than 400,000 New Yorkers reside in NYCHA’s 326 public housing developments around the five boroughs, and another 235,000 receive subsidized rental assistance in private homes through the NYCHA-administered Section 8 Leased Housing Program. For more information, visit www.nyc.gov/nycha and for regular updates on NYCHA news and services, connect with us via www.facebook.com/NYCHA and www.twitter.com/NYCHA.