A rendering of the proposed deep energy retrofit, including the solar panels on the roof of the buildings, that will be constructed at Hano Homes by Allston Brighton Community Development Corporation. Photo Credit: Onion Flats Architecture
CEDAC, in partnership with the Massachusetts Housing Partnership, is launching a new predevelopment loan program to help nonprofit and resident-controlled organizations plan for decarbonization and climate resiliency in their affordable housing projects. As described in the CEDAC/MHP Predevelopment Decarbonization Loan term sheet, funding of up to $100,000 per project will be made available at a reduced interest rate of 3%.
These loan proceeds can cover not only decarbonization assessments but also other associated costs, such as design, consultant fees and engineering work, so long as the work will support sustainability and decarbonization. While the primary purpose of the program is to support green retrofit of existing buildings, some funding may also be available to support production of new, high performance affordable housing.
Decarbonization is the reduction of greenhouse gas emissions related to the energy consumption required to operate a building.[1] In multifamily housing, decarbonization can be achieved in many ways, including:
- Reducing heat loss through insulation, installation of energy-efficient windows and doors, and improvements to the building envelope
- Shifting away from fossil fuels as a source of energy, including use of efficient heat pump systems for heating and cooling, and using electric stoves rather than gas
The Massachusetts Clean Energy Plan calls for reductions in greenhouse gas emissions from both residential and commercial building heating systems by 28% below 1990 levels in 2025 and 47% below 1990 levels in 2030. The recently-enacted Affordable Homes Act also requires that state capital funding prioritize projects that include energy efficiency, electrification and decarbonization measures, such as:
- Electric or ground source heat pumps
- Net-zero developments
- Passive House institute certification or equivalent
- All-electric buildings and projects that incorporate green, sustainable and climate-resilient elements
The Massachusetts Draft 2025-2026 Qualified Allocation Plan issued by the Executive Office of Housing and Livable Communities (HLC) incorporates these priorities as part of its competitive scoring system. HLC expects all project sponsors to incorporate Enterprise Green Communities standards into their approach to rehabilitation and urges sponsors to incorporate other green and sustainable development characteristics as well.
In addition, many cities and towns have adopted stretch energy codes and other local laws to reduce greenhouse gas emissions, and many of these requirements apply to existing buildings. This includes Boston’s Building Emissions Reduction and Disclosure ordinance, which sets requirements for large existing buildings to reduce their greenhouse gas emissions over time.
This new CEDAC-MHP predevelopment loan program will serve as an important resource to help affordable housing owners understand both the challenges and opportunities when planning for decarbonization and sustainability in housing preservation projects.
[1] I want to decarbonize my property. What does that mean?
