Bank Deems Multifamily Retrofits a Good Investment

By Erin WeaverDeutsche Bank has released a report analyzing actual energy savings achieved through multifamily retrofits and encouraging capital investment in energy retrofits of affordable housing in New York City. A collaboration of the Deutsche Bank Americas Foundation and the Living Cities philanthropic organization, “Recognizing the Benefits of Energy Efficiency in Multifamily Underwriting” analyzes energy savings in 231 multifamily housing projects—a total of 21,000 units—that have already undergone energy-efficiency retrofits. The report provides empirical data for lenders to use in evaluating projections for similar buildings.

Across the board, the improvements translated to savings for owners and tenants. “For half the projects examined,” says Ben Hecht of Living Cities in a press release, “savings alone were sufficient to fully support loans for energy-efficiency capital improvements.”

Multifamily retrofit projects have typically relied on public funds because lenders don’t have the tools to confidently predict a building’s savings potential. Living Cities has announced a grant to the New York City Energy Efficiency Corporation to streamline the process of underwriting multifamily retrofits. More on the report and a background briefing document are available here.