Governor Andrew M. Cuomo yesterday announced that New York State has secured international certification of nearly $100 million in new “Green Bonds” to drive the development of housing that has a positive impact on the environment and climate. New York is now the first state in the nation to have its affordable housing bonds certified by The Climate Bond Standards Board, on behalf of the Climate Bonds Initiative, an international not-for-profit organization supporting financing for projects around the world that help reduce the impact of climate change.
Governor Cuomo added that the “Green Bonds will provide hundreds of new housing units to New Yorkers in need, while reducing carbon emissions, mitigating the impact of climate change and creating a more sustainable future for all New Yorkers.”
New York State Homes and Community Renewal’s Housing Finance Agency will issue the bonds under its new Green Bond program, funding four developments that will inject nearly $200 million in economic activity into local economies and create more than 640 green, affordable and supportive apartments for Kings, Westchester, Monroe, and Orange County residents.
In 2016, the Governor announced the Clean Energy Standard, mandating that 50 percent of New York’s electricity comes from renewable resources by 2030. Beginning on January 1, 2017 all Homes and Community Renewal new construction multi-family projects will adhere to green standards.
As part of this initiative, Homes and Community Renewal is partnering with Enterprise Community Partners, a national leader in the development of affordable housing in New York and throughout the United States. Enterprise has developed criteria to certify ‘Green Communities,’ including design, location/neighborhood, environmental and other site improvements, water conservation, energy efficiency, materials, healthy living, building operations and resident engagement. Homes and Community Renewal is working with Enterprise to qualify their Green Communities standard as a proxy to achieve Climate Bonds Initiative certification.
To be certified as a Climate Bond, a bond offering needs to meet rigorous criteria relating to reporting and transparency and the green characteristics of the underlying assets. Eligible projects funded with the bonds need to be clearly identified; internal processes and controls to ensure tracking of proceeds have to be set up; and reporting regarding assets involved is required. The bond needs to be verified by an independent external verifier approved by the Climate Bonds Initiative Board. Lastly, the issuer of a green bond has to commit to ongoing annual reporting of the assets funded with the green bond proceeds. This is to satisfy investors that the projects remain in service as initially described. The Climate Bonds Initiative is an investor-focused not-for-profit, promoting large-scale investment in the low-carbon economy.
