Oct 1 2009
The Community Preservation Corporation (CPC), a non-profit affordable housing lender, is leading a new public/private partnership to provide $1 billion in construction and mortgage loans to owners of affordable multifamily rental and coops for energy efficient upgrades and property retrofits.
CPC announced the program together with government chartered mortgage investor Freddie Mac, City and State public employee pension funds, several private financial institutions, State and City government agencies and utility companies.
The $1 billion includes $500 million available from Freddie Mac, $300 million from the New York State and New York City public employee pension funds, $150 million from private lenders -- with initial investments of $15 million from Deutsche Bank, $10 million from HSBC, plus additional investments from other major institutions, including up to $10 million from Morgan Stanley -- plus $50 million from CPC’s participating institutions. The State of New York Mortgage Agency is providing critical mortgage insurance, and the NYC Department of Housing Preservation and Development will also be supporting the initiative through its Participation Loan Program.
The goal is to increase fuel and electrical efficiency of existing apartment buildings by 20% or more, with the financing of retrofits for up to 15,000 apartments over the next few years.
The CPC Green Initiative makes energy efficient retrofitting a fundamental part of the multifamily lending process by:
- identifying needed energy efficiency improvements for each building through an energy audit,
- adding these measures to other plans to upgrade the building(s) involved, and
- providing the financing and public supports to make the retrofits feasible and affordable
While the program’s focus is local, it is designed to be replicable in other areas, incorporating existing tried and proven energy improvements. The program can also open new markets for suppliers and providers of energy efficient products and services, creating green jobs and enhancing the potential for new technologies.
The program can make a major impact in New York where buildings are a prime source of greenhouse gas emissions.
Source: http://www.communityp.com/