Resilient & Equitable Decarbonization Initiative (REDi)

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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 highly successful Retrofit Electrification Pilot and other joint programs and is an innovative model for streamlining access to financial and technical assistance from New York State.

HPD multi-family (5+ units) retrofit projects receiving city subsidy through an HPD Program are eligible to apply for REDi funding. REDi funds will be provided on a first come, first served basis until funds are exhausted. Note that buildings receiving REDi funds may not also receive funding from certain other sources, as noted in the program term sheets.

Note that all REDi projects are encouraged to seek NYSERDA’s Flextech funding to cover up to 75% of the cost for a targeted study to produce an objective, site-specific, and targeted study on how best to implement clean energy and/or energy efficiency technologies for their project. Buildings < 50,000 should consider applying to NYERDA’s SAMES program. These funds can also help offset the energy portion of an IPNA.

The REDi initiative includes the programs described below:

REDi: Existing Buildings (REDi: EB) is the first initiative to launch under the REDi program. Similar to HPD’s Retrofit Electrification Pilot, program funds will offset the incremental cost of electrification of domestic hot water (DHW) and space heating/ cooling but adds additional funding for electrical upgrades, enhanced envelope and ventilation. Projects that have already applied to the HPD Retrofit Electrification Pilot will not be eligible.

  • 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 a dedicated REDi Technical Assistance Provider (TAP) to design and scope the project. The TAP will also participate in monitoring the construction of the REDi: EB Scope, and work with the contractor to train building residents and staff on system use and maintenance. Projects will be required to comply with all requirements as outlined in the REDi: EB Program Term Sheet, including all applicable Technical Requirements.
  • 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.
  • Program Priorities: The REDi:EB program prioritizes projects where electrification is most beneficial and cost effective, which includes:
    • Buildings currently using oil or electric resistance for heating/ hot water;
    • Full heating systems requiring replacement or extensive modification that are cost effective when factoring in incentives
    • Domestic Hot Water systems requiring replacement in buildings < 7 stories that use oil or electric resistance
    • Electrification of buildings facing flood risk to protect heating and hot water equipment from flooding

Additional details can be found here REDi: EB Program Term Sheet.

REDi: Deep Energy Retrofits (REDi: DEEP) program is the second initiative to launch under the REDi program with a purpose of providing federal Inflation Reduction Act (IRA) funding to projects in HPD’s existing building pipeline. The program will support HPD Sub or Gut Rehab projects pursuing deep energy retrofits and/or designing to Passive House performance standards. The program is accepting applications as of August, 2025.

  • Supported Scopes: Project must achieve 35% or more modeled site energy savings with respect to existing conditions, and scope must include significant envelope work beyond air-sealing, roof work and window replacement. Project teams will be required to work with an approved HER provider. Projects will be required comply with all requirements as outlined in the REDi: DEEP Program Term Sheet, including all applicable Technical Requirements.
  • Funding
    • Funding is available to cover the cost of high-performance construction and will be used to offset the REDi scope items. Funding will be delivered to owner during construction through the normal requisitions process based on milestones as outlined in the REDi: DEEP Participation Agreement.
    • Cost share of 75%, up to $25,000, will be provided by NYSERDA for design funding (scope development and energy audit development)
    • Program Priorities: Large projects where funding is more favorable than REDi: EB, electrification-agnostic projects pursuing deep efficiency, and buildings that do not pay into the Systems Benefits charge.

Additional details, including energy modeling requirements, can be found here: REDi: DEEP Program Term Sheet.

To Apply

Projects will be directed to apply to the REDi: EB or REDi: DEEP 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.

REDi Program Resources

REDi Technical Resources

REDi Design Resources

Code & Zoning Documents

Resident Resources

Other Incentives & Resources

Contact Us

For additional information about the program, please contact us at sustainability@hpd.nyc.gov or redideep@nyserda.ny.gov