Financing an Equitable Energy Transition

Since the rollback of the Inflation Reduction Act (IRA), federal subsidies targeting energy conservation and renewables have decreased. These legislative changes are hindering progress within the New York City affordable housing sector in meeting climate goals. However, energy opportunities in affordable housing can still be realized with funding provided by government subsidies used in housing, incentives offered by investor-owned utilities, and private capital from mission-driven financial institutions.

This course will assist students in understanding the complexities of mixing private and public funding to bridge the housing gap while achieving climate goals at the same time. Through a structured hierarchy of debt and equity, called a capital stack, students will explore the ways in which expanding energy investments in affordable housing reduce tenant energy burden and improve building performance.

Students will learn fundamental concepts of real estate finance like project feasibility, the sources and use of capital, and the project development process.