Oct 1 2009
Deutsche Bank last week announced at the annual meeting of the Clinton Global Initiative that it has joined with the non-profit Community Preservation Corporation (CPC) to create a revolving loan fund supporting The New York Building Retrofit Program.
The goal of the program is to finance residential property energy efficiency retrofits in multifamily buildings throughout New York’s neighborhoods. With cities as major contributors to global warming and buildings responsible for up to 70% of urban carbon emissions, the program is a practical model for cities to meet their carbon reduction goals.
The program has a total fund target of $150-200 million for the construction revolving loan fund; Deutsche Bank is committing $15 million to the fund along with a commitment of $25 million from CPC. Deutsche Bank, as Agent Bank, is working with CPC to arrange additional funding from environmental and commercially motivated investors. The New York Building Retrofit Program is a component of CPC’s Green Financing Initiative, which includes permanent take out financing provided by City and State public employee pension funds. Additional public sector partners include: the State of New York Mortgage Agency, which is providing mortgage insurance; the New York City Department of Housing Preservation and Development, which will support the program through its Participation Loan Program; and the New York State Research and Development Authority, which offers energy efficiency incentive programs. The law firm of White & Case is providing pro bono legal support to the effort.
"Deutsche Bank's global commitment to carbon reduction includes helping our cities develop innovative models to finance building energy efficiency upgrades. By arranging private capital for CPC's comprehensive building retrofit initiative, New York City achieves a commercially sustainable system to lower fuel costs and reduce carbon emissions while bringing jobs and economic vitality to our neighborhoods,” said Seth Waugh, CEO Deutsche Bank Americas.
Through the program, CPC will offer property owners comprehensive energy auditing services, the integration of all public incentives and benefits, contracting guidance, and a total financing package that enables retrofits to occur as part of a refinancing of existing mortgage debt. In its initial one-year phase, the program is expected to refinance and retrofit 1,500 to 2,500 housing units and will reduce energy and water costs for property owners of multifamily buildings.
“Improving the energy efficiency of buildings is the most cost-effective strategy for carbon reduction. This program’s focus on multifamily residential buildings, a huge segment of the city’s carbon footprint, will significantly contribute to Mayor Bloomberg’s PlaNYC 2030 goals,” said Gary Hattem, Managing Director of Deutsche Bank’s Community Development Finance Group. “Perhaps more important, however, is the fact that the benefits of retrofit programs extend to building residents themselves, and we’re excited to support an initiative which will derive measurable environmental, economic, and health benefits in New York City.”
“Our realistic goal is to increase fuel and electrical efficiency of existing apartment buildings by 20% or more, reducing a prime source of greenhouse gas emissions and pollutants in our cities,” said Michael Lappin, CPC President and CEO. “We can change the urban landscape by changing the multifamily real estate financing landscape.”
Source: https://www.db.com/index