NYC expands finance pool for office-to-residential makeovers

New York City administration officials took a stride toward spurring more office-to-residential conversions by expanding a long-term financing option used in clean energy construction.In late June, the city made embodied carbon eligible for financing under its Commercial Property Assessed Clean Energy program, known as C-PACE. Embodied carbon refers to emissions locked into a building’s existing concrete, steel and glass.It’s the kind of bureaucratic tweak that rarely makes headlines outside real estate finance circles. For the Big Apple, it could help city leaders turn more obsolete buildings into much-needed housing.The city is the only municipality nationwide to implement the embodied carbon change. Colorado is the only state where embodied carbon is included in law.This change became effective shortly before structural problems at one of the city’s largest conversion projects raised safety and cost concerns last month. Ensuing conversations focused on design and engineering hurdles as inspectors swept through the city checking other projects. They found problems but determined none presented a hazard to public safety. The episode also served as a reminder that conversions cost ...