Mayor Thomas M. Menino announced that the Boston Redevelopment Authority approved $1 million in funds at its board meeting tonight to support the City’s effort to provide renewable energy and energy efficiency measures in existing affordable multi-family rental properties. Together with $1 million in recovery act funds that the City received, the $2 million will leverage millions more in new funding recently allocated from Massachusetts utility companies. While some of Boston’s affordable housing stock is new and built to current, more stringent energy efficiency standards, much of Boston’s affordable housing stock is old and inefficient, resulting in higher energy costs for building owners and low income tenants. In addition to providing immediate and positive economic impacts for the owners and tenants of the affordable properties, the initiative will spur green-collar job creation.

“These funds will provide a significant boost to the quality of our affordable housing stock while reducing energy costs for our most vulnerable residents,” Mayor Menino said. “Additionally, I’m proud that these efforts will create more green-collar job opportunities.”

Beginning this spring, utility companies in Massachusetts will offer a new multi-million dollar energy efficiency retrofit grant program for existing low-income multi-family properties owned by public housing authorities and non-profits. This program will provide owners direct services that will benchmark a development’s energy use and in most cases complete a comprehensive energy audit. The City, through its Renew Boston initiative, will use the $2 million to either double the number of units that benefit from this program or provide resources for proven energy efficiency strategies not funded by utility companies.

The BRA will reserve up to $500,000 of its funding allocation for solar thermal systems. Solar thermal systems will offset heating costs and greenhouse gas emissions from water heated by fossil fuels; often natural gas. The BRA funded solar thermal incentive will complement an existing solar thermal incentive provided by local gas utility National Grid in which the utility pays 50% (up to $100,000) of commercial scale solar hot water heating system costs if the system design meets their performance standards.

“I’m proud that we’re able to allocate this $1 million from our affordable housing program funds to support this important initiative. These funds will ensure that our affordable housing stock is truly affordable,” said John F. Palmieri, Director of the BRA.

The City of Boston and the BRA will provide funding preference for projects that have completed energy audits and demonstrate cost effective construction plans, are ready for retrofit construction work to begin, demonstrate the use of Boston-based professionals and contractors, and leverage other resources to further improve energy efficiency. The funds will be available to both non-profit and for-profit owners of affordable rental housing.

“I applaud the BRA’s decision for making these additional funds available as it will strengthen the City of Boston’s collective effort to help Boston residents make their homes more efficient while also helping cut their energy bills,” said James Hunt, the City’s Chief of Environmental & Energy Services.

Media Contact: Jessica Shumaker, BRA, 617.918.4446.

Release Date: March 16, 2010