HUD and NYCHA Announce Nation's Largest Energy Performance Contract

On April 9, Secretary Julián Castro visited Breukelen Houses in New York to announce the nation's largest energy performance contract with, Senator Charles Schumer, Mayor Bill de Blasio, New York City Housing Authority Chair Shola Olatoye, and Director of the Mayor's Office of Sustainability Nilda Mesa announced the launch of the largest energy savings program for any public housing authority in the country. Through a series of competitive Energy Performance Contracts (EPC), it is estimated that at least $100 million in work will occur across nearly 300 NYCHA developments to upgrade and retrofit thousands of buildings, dramatically reducing greenhouse gas emissions and generating tens of millions of dollars in cost savings, as well as creating more than 500 jobs.

The EPC, facilitated by HUD, is part of the Mayor's sweeping green buildings plan and commitment to an 80 percent reduction in greenhouse gas emissions by 2050. New York City is the largest city in the world to make that commitment. In addition to contributing to the City's work to dramatically reduce emissions, NYCHA can mitigate the impact of rising utility costs through a reduction in consumption and help preserve funds for vital repairs and other building upgrades by leveraging alternative sources to finance energy and water upgrades.

"We're committed to investing in our nation's affordable housing future in a way that makes both economic and environmental sense. The Energy Performance Contract we're implementing for New York City's public housing communities - the largest energy savings program for any public housing authority in the nation - achieves that goal," said HUD Secretary Julián Castro. "Today's news is more than just a victory for public housing families - it's also a win for every New Yorker, and it sends a clear signal that every community in this great city will share in New York's sustainable future."

The first RFP for the initiative, to be issued by NYCHA on April 16, will seek an energy services company (ESCO) that can maximize both energy savings and cost savings across89 properties housing 87,000 apartments - or approximately 50 percent of NYCHA's public housing portfolio - representing over 200,000 residents. NYCHA's annual utility cost for these 89 developments is almost $300 million. Subsequent RFPs will seek the same competitive bids for additional properties, ultimately reaching nearly 300 developments with the potential to cut energy and reduce emissions, creating the equivalent environmental impact of taking tens of thousands of cars off the road.

HUD is providing NYCHA with dedicated technical assistance, helping to determine the scope of the EPC and how it can be integrated into NYCHA's long-term capital plans. HUD's technical assistance will also identify potential energy conservation measures, quantify their potential savings, and rate and rank these potential measures based on savings potential, costs, and prioritized capital needs. In addition, HUD will allow NYCHA to allocate savings to future, innovative energy efficiency and water-saving projects, further helping the Authority's bottom line.

To learn more about HUD's Energy Performance Contracting with Public Housing Authorities, click here, or to learn about HUD's broader sustainability efforts, visit hud.gov/resilience.

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