New York City Department of Housing Preservation and Development

Energy Cost Reduction at Mitchell-Lama Housing Developments

The New York City Department of Housing Preservation and Development (HPD) supervises 135 privately owned and privately managed housing developments that were created under the New York State Private Housing Finance Law (the Mitchell-Lama Law). Energy costs are significant at the developments, as they are estimated to account for nearly half of the developments’ operating costs. We analyzed energy use at 57 of the 135 developments and found that, with increased oversight and direction by HPD, energy costs at these developments could be reduced by more than $7 million a year through conservation measures and competitive purchasing practices. We also concluded that significant reductions in energy costs were possible at the developments we did not formally analyze. We recommended that HPD create an energy unit to monitor energy costs and promote conservation programs at the developments, and actively work with the managing companies to facilitate the implementation of conservation and other cost-saving measures. We also recommended that the savings from such measures be used to pay any mortgage and real estate tax arrears owed to New York City by the housing companies, or to make needed repairs and capital improvements at the developments.

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