April 7, 2017
The cash-strapped New York City Housing Authority (NYCHA) found an ingenious way to pay for $56 million in lighting, water conservation and heating upgrades to nearly 20,000 apartments at 16 housing projects.
Bank of America Merrill Lynch gave NYCHA a 20-year loan to pay for the work, based on more than $3.5 million-a-year in likely energy savings. It’s NYCHA’s first “Energy Performance Contract.” The Authority is planning three more, worth a total of $300 million.
“At a time when NYCHA is facing steep budget cuts and 17 billion dollars in unmet capital needs, these Energy Performance Contracts redirect energy cost savings into energy efficiency upgrades that improve resident quality of life,” said Bomee Jung, vice president of energy and sustainability for NYCHA. “Every dollar saved will help us preserve and maintain public housing.”
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