NEW YORK, NY — The Community Preservation Corporation is a key player in a new public-private partnership that will provide $1 billion in construction and mortgage loans for energy efficient upgrades and property retrofits of affordable multifamily rental and coop buildings.
The Green Financing Initiative's goal is to increase fuel and electrical efficiency of existing buildings by at least 20 percent through retrofits for up to 15,000 apartments over the next few years.
CPC, Freddie Mac, New York City and state public employee pension funds, several private financial institutions, state and city government agencies and utility companies announced the program yesterday.
The $1 billion in loans that are to be made available to eligible building owners includes $500 million from Freddie Mac, $300 million from the New York State and New York City public employee pension funds and $150 million from private lenders -- among them initial investments from Deutsche Bank, $15 million and HSBC, $10 million; and as much as $10 million from Morgan Stanley. Another $50 million is coming from CPC's participating institutions.
The state of New York Mortgage Agency is providing mortgage insurance for the program, and the NYC Department of Housing Preservation and Development will support the effort through its Participation Loan Program.
The program is the latest in a series of ambitious initiatives announced in New York in recent weeks to green the city's buildings. Although intended as a local program, the initiative is intended to be a replicable strategy to make existing buildings more energy efficient.
Image CC licensed by Flickr user Ed Yourdon