HPD Electric Heating Policy

Housing Preservation & Development


HPD Electric Heating Policy


HPD Electric Heating Policy

Electric heating is on the rise for HPD development projects resulting from the City’s decarbonization goals, and Local Laws 97 and 154. As a result, HPD has had to set some new policies around electric heating to ensure that efficient systems are encouraged, poorly performing systems are not allowed, and tenants are protected:

Electric Heating (and Hot Water Heating) primarily using electric resistance (including Electric PTACs, non-cold-climate PTHPs) are not permitted on HPD-subsidized projects due to their high costs to operate. Note that these systems are allowed but strongly discouraged on 421-a and Inclusionary “standalone” projects (without capital subsidy) but must use HPD’s utility allowances for Electric Heating or Hot Water, rather than NYCHA’s allowances if the heating is tenant-paid.

On HPD-subsidized projects, resident-paid electric heating (and hot water heating) is only allowed in certain HPD New Construction Programs and for certain types of projects in HPD’s Preservation Programs. All projects must be pre-approved by HPD Program and HPD Sustainability and must follow the strict protocols of HPD's Resident-Paid Heat Policy, which include:

Only cold-climate Air Source Heat Pumps that are NEEP-listed may be used.

The new HPD utility allowances for cold-climate Air Source Heat Pumps must be used.

The M&O must be adjusted to account for a shift in heating costs.

Regulatory Agreements (or equivalent documentation for coops) will require tenant protections including but not limited to lease riders noting that heat is tenant-paid, distribution of an HPD Resource Packet for Residents, and maintenance requirements for owners.

Heating cost may not be shifted to residents in rent-stabilized buildings.

For additional information, please reach out to the project's HPD Project Manager or HPD's Chief Sustainability Officer.

Packaged cold-climate Heat Pumps (“VRF PTACs”) may be used on HPD-subsidized projects but for rentals, must be wired such that heating is paid by owner. For homeownership/ coop buildings, cold-climate PTHPs may have heating wired to the resident meter.

Visit the Underwriting Electric and High-Performance Buildings webpage for additional resources related to electric heating.