New York Construction Report staff writer
New York City has introduced the GreenHOUSE fund to help affordable housing developments meet emission reduction goals outlined in Local Law 97. This initiative reinvests proceeds from carbon offset purchases to facilitate the electrification and decarbonization of rent-regulated apartments and low-income cooperatives.
Local Law 97, enacted in 2019, imposes stricter emissions limits on large buildings, allowing them to purchase offset certificates for a portion of their emissions. The GreenHOUSE Fund will channel funds into affordable housing projects that may struggle to finance necessary upgrades.
Officials are also advocating for the J-51 tax incentive, which would provide further financial relief for cooperatives and condominiums seeking to reduce emissions. This tax incentive, recently passed at the state level, is intended to help low- and moderate-income multifamily buildings cover compliance costs associated with Local Law 97.
“This program is designed to ensure that the transition to greener buildings is affordable and accessible for all New Yorkers, particularly those in underserved communities,” said Meera Joshi, deputy mayor for operations.
The Department of Buildings will soon make offset certificates available for property owners, with an expected cost of $268 per ton of carbon emissions. This funding mechanism is projected to enhance the energy efficiency of many affordable housing developments throughout the city.
