News: Brokerage

New York energy code and NYSERDA incentive changes - by James Moriarty

Photo of James Moriarty of Sustainable Comfort James Moriarty, Sustainable Comfort

Last week brought two major energy efficiency changes to the New York multifamily development market; the adoption of a newer, more stringent energy code, and significant changes to the New York State Energy Research and Development Authority (NYSERDA) incentive programs.

On March 9, the New York Code Council voted to adopt the 2015 International Energy Code (IECC), effective this October. This change impacts R-2, R-3, and R-4 multifamily developments up to three stories in height, as well as single family homes. The 2015 IECC adoption represents a significant increase in energy code requirements, as compared to the 2009 IECC, which New York is currently following for residential building.

At the same time, NYSERDA released an update to the Low Rise Residential New Construction Program, with changes to the incentive structure for market rate and low to moderate income units.

The code change significantly impacts market rate multifamily developments because every multifamily unit will now require blower door testing and duct leakage testing by a qualified third party, mechanical ventilation, and more stringent envelope and mechanical requirements.

The NYSERDA changes are a big deal for affordable developments, while the code changes do not impact them much because they already are obliged to meet these requirements for NYSERDA, and they typically have been mandated to pursue NYSERDA incentives. This means less money will be available for the same performance than in the past. However, NYSERDA is offering its highest incentive to net-zero developments, which may drive more developments to pursue higher performance. In competitive funding applications, pursuing higher performance and net-zero could provide a competitive advantage.

For market rate developers, the NYSERDA incentives could be used to offset some of the newly mandated requirements of the 2015 IECC. Leveraging the NYSERDA incentives could make meeting the new code requirements more cost effective.

Partnering with an experienced Home Energy Rating System (HERS) Rating company, such as my company Sustainable Comfort, Inc. can help market rate developments meet the new code requirements and secure incentives to make it affordable. A HERS rater can run the required testing and demonstrate code compliance for your project.

A HERS rater is also required to pursue the NYSERDA incentives, and working with an experienced HERS rater is the best path to turning these changes into a financial benefit.

Sustainable Comfort is a green building and energy efficiency consulting firm with expertise in multifamily housing. SCI specializes in LEED for Homes, Energy Star Homes, Enterprise Green Communities, Passive House, HERS Rating, state incentive programs, and code compliance. The firm is also involved with the property management and development of multifamily buildings.

James Moriarty, HERS rater, RESNET quality assurance designee, is with Sustainable Comfort, Inc., Worcester, Mass.

Photo of Blower Door Blower Door
MORE FROM Brokerage

Century Cricket Centre to open first U.S. location near Bryant Park in 14,000 s/f lease

Manhattan, NY Century Cricket Centre, an Australian-backed indoor cricket and sports-tech concept, will open its first U.S. location in a 14,000 s/f at 25 W. 39th St. near Bryant Park following a 15-year lease arranged by Lee
READ ON THE GO
DIGITAL EDITIONS
Subscribe
Columns and Thought Leadership
Hunt commercial real estate question and answer: The total cost of relocation - by David Hunt

Hunt commercial real estate question and answer: The total cost of relocation - by David Hunt

You have a right to be concerned. I am always surprised at the companies that will negotiate the price of their new facility down to the last dollar, without thoroughly analyzing their
The death of the generic offering memorandum: What buyers expect in 2025 - by Kimberly Zar Bloorian

The death of the generic offering memorandum: What buyers expect in 2025 - by Kimberly Zar Bloorian

There was a time when an offering memorandum (OM) was pretty bare bones, some photos, a few bullet points on income, and a rent roll thrown in at the back. That used to get the job done. Not anymore. In 2025, buyers are sharper, faster, and more selective. They’re looking
Artificial intelligence in lending - by Lindsay Mesh Lotito

Artificial intelligence in lending - by Lindsay Mesh Lotito

Artificial intelligence (AI) is beginning to help transform lending by enhancing decision-making, improving risk management and streamlining operations. With AI-powered tools that analyze vast amounts of data, lenders are able to assess borrower creditworthiness more accurately and efficiently. AI can evaluate a wide range of factors,
New York’s streets are full again, and the retail numbers prove it - by Noam Aziz

New York’s streets are full again, and the retail numbers prove it - by Noam Aziz

Walk down any New York block this year and you can feel it. The sidewalks are crowded, the storefronts are lit, and the energy that defines this city is back at full volume.