HUD Archives: News Releases

HUD No. 10-71
Adam Glantz
(212) 264-1100
For Release
October 28, 2010

First Public Housing Complex in NYC to utilize Geo-Thermal Heating System

NEW YORK - U.S. Housing and Urban Development Secretary Shaun Donovan, Congressman Charles Rangel, Congresswoman Carolyn Maloney and New York City Housing Authority (NYCHA) Chairman John Rhea today
announced Recovery Act funding to 344 East 28th Street in Manhattan for the installment of a geo-thermal heating system.

"I am delighted that Recovery Act funding is being used to modernize 344 East 28th Street in Manhattan, and I applaud Chairman Rhea and NYCHA for targeting this funding to this development," said Secretary Donovan. "These monies are being used by communities all across this great nation to rebuild their infrastructure, and move into the 21st century by creating smarter, sustainable and economically competitive communities. In New York City,
hundreds of families' lives will be improved by making this development more energy efficient and safer; while simultaneously, creating needed jobs and cost savings for NYCHA."

"HUD has no higher priority than improving people's lives and strengthening neighborhoods," said Regional
Administrator Adolfo Carrión. "This funding creates environmentally responsible and safer housing, as well as
improving the aesthetics at 344 East 28th Street. I applaud Mayor Bloomberg and NYCHA Chairman John Rhea
for their leadership in reducing New York's carbon footprint."

The development is a 26-story building consisting of 225 apartments that will receive $650,000 in Recovery Act funding, plus an additional $500,000 from NYCHA to modernize its heat and hot water system. Since the building
lacks a boiler system, it is forced to purchase high pressure steam that is directly piped into the development from
the Con Edison Utility Company. This is a very costly system, averaging at least double that of heating gas per
therm. To lower cost and improve energy efficiency, NYCHA researched the matter and chose a hybrid geothermal water heating system for the building that is used by a neighboring housing authority. This system is being used
more and more by housing authorities, reflecting a trend toward utilizing renewable energies, while simultaneously burning less fossil fuels.

"No one understands better the needs of our public housing agencies more than President Barack Obama and our
HUD Secretary, Shaun Donovan. That is why nearly two years after it was first passed, the President's economic stimulus package continues to provide our cities with the critical funding needed to maintain and improve public housing," said Congressman Charles Rangel. "In these tough economic times, we have no choice but to pull together and find ways to do more with less. By incorporating green technology in the way we maintain our buildings, we not only provide communities with better services and local jobs, but also give cities the flexibility to invest these
energy savings in their long-term needs."

"The Recovery Act funding we're announcing today is the result of many levels of government working together for the common good," said Congresswoman Carolyn Maloney. "This $650,000 federal investment, matched with
$500,000 in NYCHA funding, will create a hybrid geothermal water heating system for 344 East 28th Street that will
be cheaper and far more environmentally-friendly than the system it's replacing. This is a win-win for our community and yet more proof that the stimulus package is working. I applaud President Obama, Secretary Donovan, Chairman Rhea, and my good friend Charlie Rangel for delivering this funding this development, and for their steadfast work to help our economy and our community."

In addition to the installation of a geo-thermal heating system, NYCHA will also provide the development's apartment units with radiator valves and traps, public and apartment energy-efficient lighting upgrades, and apartment temperature sensors in a minimum of 20% of the apartments. These upgrades will enhance the heat distribution and reduce the electrical demand throughout the building.

HUD has obligated over 50 percent of its $14 billion in Recovery Act funding to modernize and make "green" its public housing stock. The New York City Housing Authority received $423 million in Recovery monies for energy efficiency and conservation upgrades that will improve the quality of life for its residents.

"This comprehensive program will significantly and effectively advance the combined HUD/NYCHA agenda on
promoting sustainability, by implementing renewable technologies and energy efficiency and conservation measures," said NYCHA Chairman John B. Rhea. "We appreciate the support and efforts on our behalf from Secretary Donovan
and NYC Congressional delegation members Congresswoman Carolyn Maloney and Congressman Charles Rangel. This new technology is consistent with the City of New York's goals to preserve public housing and ensure a sustainable quality of life to citizens of New York City and for future generations to come."

"This is a wonderful announcement for the people of public housing, and is very supportive of NYCHA's unwavering commitment and overall efforts in going green," said NYCHA Commissioner Margarita Lopez, who is also coordinator
of the Authority's Green Agenda. "The geo-thermal technology shows what we can do creatively and innovatively
as NYCHA leads the way in its use of renewable energies and fossil fuel reduction, ensuring a healthier environment
for our residents and for the planet."


HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at and


Content Archived: January 25, 2012