Resilient & Equitable Decarbonization Initiative (REDi)

Overview: To reach New York City and New York State’s ambitious climate targets and to reduce the barriers to decarbonizing affordable housing, HPD’s REDi program provides funding to build capacity and scale up equitable decarbonization, beneficial electrification, and resiliency within the HPD development pipeline and as outlined in HPD’s Design Guidelines. The REDi program is a long-term joint HPD-NYSERDA initiative that builds on HPD’s Retrofit Electrification Pilot and other joint programs and is an innovative model for streamlining access to financial and technical assistance from New York State. REDi funding is secured directly through HPD, without requiring an application to NYSERDA.

REDi: Existing Buildings (REDi: EB) is the first initiative to launch under the REDi program, with a goal of scaling up beneficial electrification within HPD’s multifamily retrofit pipeline. Similar to HPD’s Retrofit Electrification Pilot, this program will fund electrification of domestic hot water (DHW) and space heating/ cooling but adds additional funding for enhanced envelope and ventilation and provides higher per/project funding limits.

Program Eligibility: Multifamily (5+) buildings in projects receiving city subsidy through an eligible HPD Program are eligible to apply for REDi funding.

Funding: Funding is available to cover the incremental construction costs required to electrify DHW and space heating and to improve envelope performance. Funding will be provided on a first come, first served basis, and will be used to offset the REDi scope items. REDi: EB funding matches HPD subsidy and will be placed in the project’s servicing account alongside all other sources and may be drawn down during construction through the normal requisitions process as outlined in the REDi: EB Participation Agreement. Because funding is limited, there are per building limits and per project caps for multi-building projects. Details and program requirements are provided in the REDi: EB Program Term Sheet.

REDi: EB Funding is sourced from the utility System Benefit Charges (SBC) and as a result, buildings funded with REDi: EB funds must be served by Con Edison.
As of April 2025, funds from the Affordable Housing Reinvestment Fund (“AHRF”) Offset Program (a.k.a. The GreenHOUSE Fund), will flow through the REDi: EB program. Buildings funded with AHRF funds are subject to the same requirements as REDi: EB, but do not have to be Con Edison customers. However, buildings subject to LL97 emissions limits (under Article 320 of LL97) are not eligible for AHRF Offset funds.

Supported Scopes: Projects will implement one, two or all three of the pre-defined REDi: EB scopes. The borrower’s project team will work closely with the program’s dedicated NYSERDA Technical Assistance Provider (TAP) to design and scope the project and estimate project costs and energy savings. The TAP will also assist with bidding and procurement, monitor construction of the REDi: EB Scope, and help train building residents and staff on system use and maintenance. In addition to electrifying DHW and/or heating systems and/or achieving advanced envelope and ventilation, projects will be required to install compatible energy efficiency measures and comply with all requirements as outlined in the REDi: EB Program Term Sheet and including all applicable Technical Requirements.

Program Priorities: EB program prioritizes projects where electrification is most beneficial and cost effective, which includes:

Heating systems that use oil or electric resistance as a primary heating fuel
Steam heating systems that require replacement or extensive modification
Domestic Hot Water systems requiring replacement in buildings < 7 stories that use oil or electric resistance
Heating and Domestic Hot Water systems located in basements and cellars in flood-prone buildings where electrification will protect equipment from flooding

Note that projects may also seek NYSERDA’s Flextech funding to cover up to 75% of the cost for a targeted study on how best to implement clean energy and/or energy efficiency technologies into their project.

To Apply

Projects will be directed to apply to the REDi: EB after completing their HPD Pre-Scoping consultation and once HPD determines REDi program eligibility. The project team will use the REDi Application Form on the HPD Preservation Design Guidelines Workbook to assess the compatibility of the project with the REDi:EB Program, and submit it, along with their IPNA and 2 years of utility bills, to HPD Sustainability, at sustainability@hpd.nyc.gov for further review and approval.