Recognizing the Benefits of Energy Efficiency in Multifamily Underwriting

Share this Post:
This study has tried to address a key bottleneck for mobilising private capital for building retrofits: the lack of confidence in energy savings for lenders to underwrite loans against. Data for 230+ buildings was analysed to assess total savings achieved and the savings as a percentage of projections. The findings suggest a rationale and methodology for underwriting loans against fuel savings projections.

Retrofitting multifamily buildings in New York City has largely relied on public subsidies, a limited resource that has constrained the industry’s ability to scale. Deutsche Bank Americas Foundation instigated this project to encourage the financial industry to scale up private financing of building energy efficiency retrofits.

A long tradition of public private partnerships in New York City enabled the project to be stewarded by a broad group of practitioners from city and state housing agencies, community development intermediaries, utilities, energy program incentive providers, and other not-for-profit organisations.

An additional study was solicited as a companion document, on the wide ranging benefits of energy efficiency retrofits that accrue to multifamily building owners, tenants and their communities. The link to this relevant briefing can also be found below.