Heat Pump Pilot Among Energy Upgrades at Hamilton Heights HDFC

A Hamilton Heights HDFC is pioneering a new heat pump design as part of a trio of energy efficiency measures financed by a $236,000 loan from the New York City Energy Efficiency Corp. (NYCEEC). The heat pumps are expected to meet between 50% to 70% of the domestic hot water needs for the residents of the Residencia Esperanza co-op. This means the 25-unit pre-war building will still run its oil-fired boiler but alleviate some of its reliance on fossil fuels. “We need to be as creative as we can to lower emissions affordably,” says David Stoler, the board’s co-treasurer.  

The heat pump design has come about through a NYSERDA pilot project for scalable and financeable electrification. The pilot’s goal is to create a blueprint for contractors to more easily install heat pumps for domestic hot water and eliminate the need for costly individualized engineering plans. “We are not trying to meet all the domestic hot water load,” says Nicole Ceci, principal mechanical engineer at Steven Winter Associates, the firm designing the heat pump configuration for Residencia Esperanza and partnering with NYSERDA for the pilot. “This approach makes it very simple to size and design,” she says. 

This innovation is part of a broader set of improvements addressing two critical issues at the co-op — outdated infrastructure and carbon emissions. The NYCEEC Multifamily Express Green (MEG) loan secured by the board will cover the cost of a roof replacement and solar panel installation in addition to the electric heat pumps. “The roof and boiler are well past their lifespan, so it gives us an opportunity to take care of Local Law 97 and address some underlying infrastructure issues,” Stoler says. With the heat pumps taking some of the burden off the boiler, the system should require less maintenance.

HDFCs have some flexibility in meeting Local Law 97 emission thresholds, but still need to take energy conservation steps such as upgrading lighting, weatherization and air sealing, by Dec. 31, 2024. The roof at Residencia Esperanza is very old. “We have to pay for repairs all the time due to leaks,” Stoler says. Thankfully, the improvements are also expected to lower the building’s energy costs, with the solar installation fully offsetting the energy consumption in the building's common areas. “Our maintenance, even with the loan, is going to be less,” he says. 

NYC Accelerator, the city-funded sustainability assistance program, played an important role as the building considered its options. Originally the board hoped for a more ambitious electrification project, but increasing the electrical capacity would have cost $800,000. “That is way past our budget,” Stoler says. The closing of the MEG loan follows a particularly difficult period for the building after emergency facade repairs two years ago drained the co-op’s entire reserve fund. To replenish the account, the board secured a Small Business Administration loan as part of the Covid-era relief programs. Although this increased the co-op’s annual expenses, it provided the building with some financial cushioning. “The loan had particularly generous terms, so we are using some of that to pre-pay installers for these upcoming projects before we can draw on the MEG loan,” Stoler says.

MEG loans have standardized documents and condensed due-diligence processes to ensure a relatively simple and speedy application process, typically closing in six weeks. At Residencia Esperanza, the loan application began in May and closed in July. “It was fast once we identified what we were doing and had the project lined up,” Stoler says. The work is also eligible for  incentives through Con Edison’s Multifamily Energy Efficiency program.