New York City Finances Switch to Cleaner Heating Oils
Building owners in New York City that use the dirtiest heating oils and are now required by law to phase it out will have access to more than $100 million in special financing to help cover their upfront costs, Mayor Michael R. Bloomberg announced on Wednesday.
The financial incentives are meant to prod buildings to convert to less polluting heating oil or to natural gas as soon as possible and help the city meet its goal of reducing soot pollution by 50 percent over the next two years. About 10,000 buildings are affected by the phase-out.
Under a partnership with the city, several banks and financial institutions – including Chase, Citi, Deutsche Bank, Hudson Valley Bank and the Community Preservation Corporation — will set aside $90 million in market-rate loans specifically for the conversions. The city is creating a $5 million loan-loss reserve fund to leverage that money, officials said.
Another $18 million in low-cost loans is available for mixed-income residential buildings.
The partnership also includes the Environmental Defense Fund, an environmental group that will offer buildings free technical assistance to evaluate their options and arrange natural gas heating with a utility company.