This past week, Mayor Bill de Blasio announced the closing of an $89 million loan given to 111 Wall Street through the NYC Accelerator PACE Financing Program to retrofit 900,000 square feet of office space for efficiency, resiliency, and local law compliance. The project is estimated to save $2.5 million in annual energy costs and avoid $750,000 in annual Local Law 97 fines starting in 2030.
The NYC Accelerator PACE Financing Program, administered by the New York City Energy Efficiency Corporation (NYCEEC), was designed to help property owners meet the City’s ambitious carbon emission targets under the Climate Mobilization Act by providing access to low-cost, long-term capital for energy efficiency and renewable energy retrofits.
“Building owners are not alone in the fight against climate change,” said Ben Furnas, Director of the Mayor’s Office of Climate and Sustainability. “The NYC Accelerator PACE Financing Program is an essential tool to decarbonize buildings at scale while shifting the cost burden away from property owners. Our team and partners at NYCEEC stand ready to help building owners and lenders finance green energy projects, reduce operating expenses, and meet local law requirements while cutting down on carbon emissions and improving tenants’ comfort.”
“New York continues to lead by example in addressing our climate crisis,” said Richard Yancey, FAIA, Executive Director, Building Energy Exchange. “PACE financing will provide building owners with a critical tool to make long-term investments in upgrades that unlock deep carbon reduction and energy savings, while creating healthier places to work and live.”
“PACE financing will provide building owners with a critical tool to make long-term investments in upgrades that unlock deep carbon reduction and energy savings, while creating healthier places to work and live.
The loan allows building owners to finance up to 100% of project costs. Unlike conventional financing, loans provided through the NYC Accelerator PACE Financing Program are repaid in installments through a charge on the subject property’s tax bill. Loans are sized according to projected energy cost reductions, so building owners can begin realizing savings from day one.
The program is open to any commercial or multifamily buildings with three units or more, including tax-exempt non-profit and religious facilities, health care facilities, and industrial properties, that meet the requirements and eligibility.
NYC Accelerator Efficiency Advisors can help building owners connect with qualified lenders seeking to provide PACE financing. Financial organizations seeking to originate PACE loans can respond to the Pre-qualified Lender Request for Qualifications.
For more information on PACE Financing, stream our recent Climate Mobilization Act Series: Keeping PACE with NYC program with moderator Sadie McKeown (Executive Vice President, Community Preservation Corporation) and panelists Fred Lee (Co-CEO, NYCEEC), Crystal Smith (Director, New York Market, Greenworks Lending), Simona Li (Senior Project Manager, NYSERDA), and Andrew Chintz (Affordable Housing Specialist, NYC Accelerator).
For more on the 111 Wall Street PACE loan, read the full press release via 1nyc.gov.