Electric heating is on the rise for HPD development projects resulting from the City’s decarbonization goals, and Local Laws 97 and 154. As a result, HPD has had to set some new policies around electric heating to ensure that efficient systems are encouraged, poorly performing systems are not allowed, and tenants are protected:
Electric Heating (and Hot Water Heating) primarily using electric resistance (including Electric PTACs, non-cold-climate PTHPs) are not permitted on HPD-subsidized projects due to their high costs to operate. Note that these systems are allowed but strongly discouraged on 421-a and Inclusionary “standalone” projects (without capital subsidy) but must use HPD’s utility allowances for Electric Heating or Hot Water, rather than NYCHA’s allowances if the heating is tenant-paid.
On HPD-subsidized projects, resident-paid electric heating (and hot water heating) is only allowed in certain HPD New Construction Programs and for certain types of projects in HPD’s Preservation Programs. All projects must be pre-approved by HPD Program and HPD Sustainability and must follow the strict protocols of HPD's Resident-Paid Heat Policy, which include:
Packaged cold-climate Heat Pumps (“VRF PTACs”) may be used on HPD-subsidized projects but for rentals, must be wired such that heating is paid by owner. For homeownership/ coop buildings, cold-climate PTHPs may have heating wired to the resident meter.
Visit the Underwriting Electric and High-Performance Buildings webpage for additional resources related to electric heating.