Governor Hochul Announces Effort to Advance Energy Efficient Housing in New York

New Efficient Homes New York Program Will Deliver More Affordable High-Performance Homes For New Yorkers

September 25, 2026

Governor Hochul today announced program support to deliver more affordable, high-performance and healthier energy-efficient housing for New Yorkers. The newly launched New Efficient Homes New York program, administered by the New York State Energy Research and Development Authority (NYSERDA), is a suite of offerings intended to strengthen New York’s support for the full life cycle of residential new construction projects by helping owners, developers, and design teams incorporate energy-efficient design and offset the cost of construction. The progran includes support for new heat pumps and other enhanced design support and is part of Governor Hochul's "Let Them Build" agenda.

“New York is committed to building the housing we need while ensuring future homes are energy-efficient, comfortable and affordable," Governor Hochul said. "Today’s announcement is another example of how we are advancing the “Let them Build” agenda by implementing programs that lower upfront costs and provide the necessary tools and resources to construct modern homes in communities across New York State.”

The $135 million investment includes $100 million now available to support residential new construction at every stage of development through the State’s New Efficient Homes New York program. In addition, more than $12 million has been awarded to 10 demonstration projects that are advancing best-in-class, climate-friendly multifamily buildings across the state through the Buildings of Excellence Competition, which is also making $20 million in new funding available through the competition.

NYSERDA President and CEO Doreen M. Harris said, “New construction projects represent an opportunity to integrate the latest high-performance technologies and building solutions into our homes. With strong support from Governor Hochul, NYSERDA’s new suite of residential programs support projects from start to finish — from design and construction, through to delivery, and demonstrate how homes across New York State can be built to use energy more efficiently, improve comfort and protect against extreme weather.”

The support includes:

$75 Million New Efficient Homes New York: Heat Pump Incentive

The New Efficient Homes New York: Heat Pump Incentive program supports the adoption of cold climate air source heat pumps (ASHP) and ground source heat pumps (GSHP) throughout new single-family and small homes, as well as new multifamily buildings under 50,000 square feet across New York State. Today, $75 million is available to developers and home builders on a per dwelling unit basis with additional funding for projects located within disadvantaged communities, as identified by the Climate Justice Working Group. Selected projects are required to fully electrify their heating, cooling and ventilation (HVAC) systems through the installation of high-performance heat pumps. Projects featuring a GSHP must meet full-home electrification requirements as outlined in the solicitation. NYSERDA is now accepting applications on an open enrollment basis until December 15, 2029, at 3:00 p.m. EST, or until funds are fully committed.

Funding for this program is through the Regional Greenhouse Gas Initiative.

$25 Million New Efficient Homes New York: Enhanced Design Support

NYSERDA’s New Efficient Homes New York: Enhanced Design Support program provides funding for flexible design support and planning activities, including training and resources, for residential new construction, gut rehabilitation, or adaptive reuse projects across the state. Today, $25 million is now available for home builders, developers and design firms for single-family and small homes, along with architecture and engineering firms for multifamily projects. Incentives are available on a per dwelling unit basis for single-family and small homes and per square foot allocation for multifamily buildings. Participating projects must fully electrify their HVAC systems and be in the early design phase of the project development.

NYSERDA is now accepting applications on an open enrollment basis until December 15, 2029, at 3:00 p.m. EST, or until funds are fully committed.

This offering is funded through the Regional Greenhouse Gas Initiative and the New York State Public Service Commission’s 2025 Energy Efficiency and Building Electrification (EEBE) Order which funds statewide market development programs from 2026 through 2030. EEBE funding for this program will be exclusively used for affordable large buildings where at least 25% of units are for households at or under 80% of Area Median Income (AMI).

More Than $30 Million Buildings of Excellence Competition

Today, NYSERDA has awarded more than $12 million to 10 multifamily projects advancing best-in-class, energy-efficient multifamily buildings in New York through the Buildings of Excellence (BOE) Competition, which was launched in 2019 to recognize and reward the design, construction and operation of resilient, climate-friendly multifamily buildings that are healthier for residents and their communities.

Highlights of today’s awarded demonstration projects include:

• Affordable Housing: Eight of the buildings will serve low- to moderate-income customers; six will be located within disadvantaged communities.
• Zero Emissions: All awarded projects are zero emissions, meaning there is no use of fossil fuel combustion on-site for daily operations.
• Passive House Standard: Eight of the projects are committed to meeting a Passive House standard, meaning design and construction will be executed to extremely energy-efficient standards, while also achieving high levels of comfort, health and resiliency for the occupants in the building.
• Solar Energy Inclusion: All projects incorporate solar generation, three of which include energy storage.
• The Blue Ribbon for Design Excellence: Three projects were recognized by a jury of distinguished professionals for overall design excellence, including integration of energy saving and resiliency measures into overall design goals.

The 2026 BOE Competition awardees include:

Central New York: $2.4 million, 2 projects

• Polaris: Ithaca Neighborhood Housing Services, Inc. and Sustainable Comfort, Inc. – Auburn, NY*
• Syracuse Bread Factory: Syracuse Bread Factory LLC and Ashley McGraw Architects – Syracuse, NY**

New York City: $9.7 million, 8 projects

• 153 Nevins: Fifth Avenue Committee, Inc. and Ettinger Engineering Associates – Brooklyn, NY*
• 1931 Lafayette - North Tower: Strada Development LLC and Gilbane Development Company – Bronx, NY**
• Arverne East - Building I: The Bluestone Organization, MEGA Contracting Group and Ettinger Engineering Associates – Far Rockaway, NY
• Bergen Green: 516 Bergen Apex Building Group, Bridge Street Development Corporation and DAMORE STUDIO – Brooklyn, NY
• Hillside - North Building: Mural Real Estate Partners and Ettinger Engineering Associates – Queens, NY
• Hillside Grove I: Hillside Grove Families LLC, Volunteers of America - Greater New York, and Spatial Equity Co and Purpose by Design Architects PLLC – Staten Island, NY**
• ipHaus 722 Lafayette Gateway Project: Innovate Prefabricate – Bedford-Stuyvesant, Brooklyn, NY
• JASA – Far Rockaway: JASA Corporation and Curtis+Ginsberg Architects – Far Rockaway, NY

*Project is Buildings of Excellence winner located in a disadvantaged community.

**Project is Buildings of Excellence winner and a Blue Ribbon for Design Excellence winner while also located in a disadvantaged community.

Building on the BOE awards, NYSERDA is making an additional $20 million available today through the next round of the BOE Competition, with project applicants eligible to receive up to $1.5 million in funding. This latest round of funding welcomes applications for new construction multifamily projects that employ high-performance envelopes, support converting institutional, office, or retail space to housing, and demonstrate cost compression in high rise buildings. Special consideration may be offered for projects that are or will be located in disadvantaged communities. BOE is structured to prioritize funding for projects leveraging innovative technologies that minimize energy use during peak times, rely on refrigerants with lower environmental impact and are resilient to climate hazards such as flooding and extreme heat. Projects employing GSHP systems for space conditioning will have access to a higher level of funding.

Proposals will be accepted through January 20, 2027, at 3:00 p.m. Visit NYSERDA's website for more information on this funding opportunity .

These announcements build on the success of NYSERDA’s BOE competition, which has awarded a total of 88 state-of-the-art new construction and gut-renovation projects, with 52 located in disadvantaged communities. Almost three-quarters of previous BOE Competition winners serve affordable housing markets. Visit NYSERDA's website for a complete list of all BOE-awarded projects.

Funding for the BOE is through the Clean Energy Fund and the Regional Greenhouse Gas Initiative.

New York State Public Service Commission Chair Rory Christian said, “Investing in the design and construction of housing with modern, cost-effective, energy-efficient technologies will increase New Yorkers’ access to homes that are healthy, safe and comfortable. Providing market support helps to develop the tools and resources critical to managing home energy use — not only helping to address energy affordability but also resiliency and reliability for the homeowner and the electric system.”

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas said, “Governor Hochul understands that building more housing and building smarter go hand in hand. New Efficient Homes New York will give developers the resources and support they need to incorporate high-performance, energy-efficient systems from the earliest stages of a project, helping lower costs while creating healthier and more comfortable homes for New Yorkers. Together with the continued success of the Buildings of Excellence Competition, these investments will help us expand housing supply, advance innovative building practices and deliver the modern, sustainable homes communities across New York need.”

State Senator Kevin Parker said, “New Yorkers deserve housing they can afford to live in, not just housing they can afford to move into. This investment helps us build smarter by making energy efficiency and lower utility costs part of the housing equation from day one. If we’re serious about affordability, we have to build more housing, lower energy costs, and make sure working families aren’t left behind.”

Assemblymember Didi Barrett said, “Addressing New York State’s critical need for more housing with significant incentives to ensure energy-efficient construction is a smart way to help us address two important statewide priorities. And with oil prices continuing to surge, this announcement couldn’t come at a better time. I thank Governor Hochul for her leadership in identifying the need to meet New Yorkers where they are and making this funding available.”

Assemblymember Linda B. Rosenthal said, “The promise of a greener and more sustainable New York is on the horizon. Using NYSERDA's newly funded suite of programs, developers will receive expert design and construction guidance as well as heat pumps and other tools to build modern, affordable and energy-efficient housing for New Yorkers. I am pleased that in partnership with the State Legislature, Governor Hochul is working to provide the necessary tools and resources to build more environmentally sound housing across the state. I look forward to advocating for more funding for this approach in next year’s budget.”

Senator Patricia Fahy said, "The cheaper New York makes it to build residentially, the faster we will build new homes and units, and the quicker we will build ourselves out of the current housing crisis. As we seek to increase the supply of housing units, especially new ones, incentivizing developers and homeowners to include cheaper, energy-efficient upgrades will help to expedite new residential housing construction and bring new units on the market. Reducing our reliance on fossil fuels and demand on the energy grid helps to alleviate growing utility costs while giving developers the tools they need to accelerate construction is exactly how we comprehensively address the housing crisis here in the Capital Region and beyond. Thank you to Governor Hochul and NYSERDA for working with our industry leaders and workers to announce this new, innovative program."

Assemblyman Angelo Santabarbara said, “New York needs more housing that people can afford, and we should also think about what those homes will cost families in the years ahead. Investments in energy efficiency can help lower monthly bills, make homes more comfortable and support the construction of more affordable housing right here in our communities. This is about building for the future and helping families keep more of what they earn. By investing in housing and lowering everyday costs, we can make our communities stronger and make New York a better place to live, work and raise a family.”

American Institute of Architects New York (AIA New York) Executive Director Jesse Lazar, Assoc. AIA, said, “AIA New York is proud to support efforts that make high-performance, healthy housing more achievable across New York State. By supporting energy-efficient design and construction at every stage of development, the New Efficient Homes New York program can help architects, owners, and developers create housing that is more resilient, sustainable, and affordable. We are pleased to see this work build on the success of the Buildings of Excellence competition and demonstrate how thoughtful design can help address both our climate goals and the urgent need for quality housing.”

Passive House Accelerator Founder Michael Ingui said, “These programs help move high-performance housing from something special to simply the way we build, ensuring buildings are beautiful, healthy, comfortable and use dramatically less energy. NYSERDA has played a huge role in helping teams try new ideas, prove what works and then share those lessons with the industry. Every successful project makes the next one a little easier.”

The Architectural League of New York Executive Director Jacob Moore said, “In today's environment of shrinking federal support and distracted public attention, NYSERDA's work to catalyze and spotlight designers' and developers' ambitious efforts to create a more resilient, low-carbon future for New Yorkers is truly invaluable. The Architectural League remains proud to work with NYSERDA to make overall design quality—including integral relationships with building sites; strong connections to community assets, including public transportation; and focused emphases on health, comfort, and aesthetic delight—an essential focus of Buildings of Excellence projects, and are excited to work with them more broadly to promote this vital role for the public sector.”

CHARGE Agenda

The Clean, Highly Affordable, Reliable Grid Expansion (CHARGE) agenda is a comprehensive plan to keep the lights on and costs down for New Yorkers while achieving a reliable, zero-emission grid. The five-pronged strategy focuses on driving down consumer costs, holding energy companies accountable, building clean energy at scale, modernizing the state's aging grid, and growing a clean economy with family-sustaining jobs. Through bold initiatives like the Ratepayer Protection Plan, historic transmission buildouts, and a new 8.4-gigawatt "Nuclear Backbone," the CHARGE agenda ensures an affordable, resilient, and self-sufficient energy future that prioritizes everyday ratepayers while building a cleaner, more sustainable New York.

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