$15 Million New Construction Future Housing Initiative Announced to Advance Construction of All-Electric, Affordable Homes In NYC
May 1, 2023
Governor Kathy Hochul and Mayor Eric Adams today 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.
, 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."
“Since day one, our administration’s north star has been connecting New Yorkers to safe, high-quality, affordable homes,” said Mayor 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.”
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). 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.
NYSERDA President and CEO Doreen M. Harris said, “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.”
New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, "Today's announcement continues Governor Hochul's commitment to making environmentally sustainable affordable housing available to all New Yorkers. The $15 million Future Housing Initiative will facilitate the development of up to 30 clean, electrified, and affordable buildings for New York City's residents. This program, along with HCR’s Clean Energy Initiative, which is providing streamlined access to affordable housing finance opportunities to developers who can produce energy-efficient, all-electric affordable units, will ensure New York continues to lead the way in realizing a decarbonized housing stock. Together these programs will not only benefit those who will be able to call modern, resilient apartments their home, but will enable entire communities to enjoy improved air quality from reduced building emissions."
New York State Association for Affordable Housing President and CEO Jolie Milstein said, “The central purpose of affordable housing production is to ensure New Yorkers have a safe, high-quality environment to call home – and this mission begins with responsible and sustainable construction practices. The Future Housing Initiative will grant resources to developers and encourage all-electric multifamily buildings for Passive House Certification, which is a major step to reduce building emissions. It’s exactly the kind of investment our city needs to support an increase in affordable housing supply and more sustainable practices in our communities.”
New York City Department of Housing Preservation and Development Commissioner Adolfo Carrión Jr. said, “There is no climate justice without housing justice — that’s why we’re fast tracking equitable decarbonization and building sustainable affordable housing, while focusing on the health and resiliency of our buildings and our neighbors. Thanks to our partners at the state, more developers can reach for Passive House certification for our projects and ultimately provide cleaner, greener affordable housing for New Yorkers.”
New York City Department of Housing Preservation and Development Commissioner Adolfo Carrión Jr. said, “There is no climate justice without housing justice — that’s why we’re fast tracking equitable decarbonization and building sustainable affordable housing, while focusing on the health and resiliency of our buildings and our neighbors. Thanks to our partners at the state, more developers can reach for Passive House certification for our projects and ultimately provide cleaner, greener affordable housing for New Yorkers.”
Chief Housing Officer Jessica Katz said, “New York City must ensure that our transition away from a fossil-fueled economy is fair and equitable. The Future Housing Initiative advances the administration’s commitment to fast-tracking sustainability and healthier living conditions for affordable housing residents. Thank you to NYSERDA for your partnership on this essential effort.”
Chief Climate Officer and New York City Department of Environmental Protection Rohit T. Aggarwala said, “All of New York is committed to fighting climate change, and we are providing the support needed to create energy-efficient homes. The Future Housing Initiative will speed up the creation of 3,000 new, carbon-neutral, affordable homes and, through PlaNYC, we will develop a public solar financing program for existing one-to-four family, low-income homeowners in environmental justice communities. New York is moving aggressively on all fronts to reduce our carbon footprint.”
Deputy Mayor for Operations Meera Joshi said, “Decarbonizing our homes is essential to the health of our city and planet. The Future Housing Initiative will deliver clean energy benefits to thousands of families who will breathe cleaner air, face lower utility bills, and be healthier and safer in their homes and communities. I look forward to working with our leaders as New York City and state deliver on our climate priorities and transform our neighborhoods.”
Mayor’s Office of Climate and Environmental Justice Executive Director Kizzy Charles-Guzman said, “This city and state collaboration is a major step toward a just transition and will create healthier, more sustainable homes while reducing emissions and energy cost burden alike. Housing justice and environmental justice must go hand in hand.”
Brooklyn Borough President Antonio Reynoso said, “The challenges facing our city are many, but by working hand in hand with our state partners, we can get more done than we ever could alone. This partnership, which integrates housing and climate justice together, is a perfect example of that. Thank you to Governor Hochul, Mayor Adams, and the many others who have teamed up on behalf of our city and environment.”
Applications for round one of Future Housing Initiative funding with $7.5 million available open today through HPD and will be accepted through June 1, 2023. A second round will follow in 2024.
for round one of Future Housing Initiative funding with $7.5 million available open today through HPD and will be accepted through June 1, 2023. A second round will follow in 2024.Buildings are one of the largest sources of greenhouse gas emissions in New York City, making up two-thirds of all greenhouse gas emissions generated within the five boroughs. Integrating energy efficiency and electrification in affordable housing developments reduces carbon emissions and results in more sustainable, healthy, and comfortable homes.
The initiative builds upon an earlier partnership to advance electrification in HPD’s preservation pipeline by financing retrofits in existing multifamily buildings. Announced in 2021, the original agreement between NYSERDA and HPD provided deep incentives through the HPD Retrofit Electrification Pilot to support building electrification and energy efficiency retrofits in multifamily buildings in HPD’s preservation pipeline with poorly performing systems where electrification is a big win. This pilot is expected to upgrade approximately 1,200 affordable homes. The partnership combines NYSERDA’s clean energy and technical expertise and HPD’s affordable housing financing and development expertise with a focus on driving the design, construction, and operation of clean and resilient carbon neutral buildings in support of Governor Hochul’s goal to achieve two million climate friendly homes by 2030.
The Future Housing Initiative also delivers on Mayor Adams’ commitments in PlaNYC: Getting Sustainability Done and Housing Our Neighbors: A Blueprint for Housing and Homelessness to improve the health and safety of New Yorkers through housing, including by promoting electrification and sustainability standards for newly constructed, affordable housing. Together, this work will bring the city’s affordable housing creation efforts more closely in line with decarbonization goals and benefit residents through lower energy costs, healthier living conditions, and more sustainable homes.
and Housing Our Neighbors: A Blueprint for Housing and Homelessness to improve the health and safety of New Yorkers through housing, including by promoting electrification and sustainability standards for newly constructed, affordable housing. Together, this work will bring the city’s affordable housing creation efforts more closely in line with decarbonization goals and benefit residents through lower energy costs, healthier living conditions, and more sustainable homes.