April 05, 2015
Guest Column: Financing Clean Energy Real Estate Projects
New York City Energy Efficiency Corporation: Providing Loans for Clean Energy Projects
By Fred Lee, Guest Columnist
New York City Energy Efficiency Corporation (NYCEEC) is a non-profit specialty finance company that provides financing solutions for clean energy projects that save energy or reduce greenhouse gases. NYCEEC’s team of financial experts and engineers works together with clients to customize and structure loans that meet their needs.
NYCEEC offers several financial products—green mortgages, equipment loans and energy services agreements—that can be used alone or potentially packaged for optimal financing execution. NYCEEC finances energy efficiency, cogeneration, renewables, demand management and fuel conversions, as well as project-related soft costs, such as engineering surveys and building training.
NYCEEC finances projects across all building types and neighborhoods, including affordable and market-rate multifamily, commercial, industrial and institutional buildings. NYCEEC also works with all incentive providers, with generally no additional program requirements.
NYCEEC’s flexible financing can accommodate projects with more complex construction schedules, and can also bridge timing gaps between incentive payments and construction milestones. Recently, NYCEEC provided a green mortgage for a new construction Passive House multifamily condominium in Manhattan. NYCEEC also worked closely together with a project developer to provide construction and permanent financing for a cogeneration plant at a new manufacturing facility in Staten Island.
Small property owners have also benefited from NYCEEC’s financing, which can fund up to 100% of project costs. In Brooklyn, a five-unit rental brownstone sought financing to implement cost-saving recommendations from its energy audit. NYCEEC’s technical and financial expertise helped the building owner prioritize the upgrades, including an oil to natural gas conversion, lighting, heating controls, insulation and high efficiency boilers. NYCEEC’s loan covered 100% of the project costs, and energy cost savings will repay the entire loan. Without going out-of-pocket, the property owner increased tenant comfort with minimal disruption and improved building performance.
NYCEEC is committed to providing financial solutions for cost-effective, clean energy projects that help building owners save money and cut greenhouse gases. Contact us today to learn more.
Fred Lee is the Director of Legal and Business Development for NYCEEC. In that capacity, he manages NYCEEC’s day-to-day legal affairs, in addition to leading underwriting and execution of new transactions.
Mr. Lee has experience in clean tech, real estate finance and the public sector, including at the New York City Economic Development Corporation, as project lead on a variety of energy efficiency and renewable energy projects, and as a structured finance attorney focused on securitization of real estate related securities.
He holds an MBA with a concentration in real estate finance from Columbia Business School and a JD from Cornell Law School. He also holds a BA in Political Science from Amherst College.