ComEd Energy Efficiency Program Provides $8 Million in Incentives to Support 57 Affordable Housing Developments
- ComEd has provided more than $8 million in incentives via 57 projects, or approximately 3,300 affordable-housing units since 2017.
- The Affordable Housing New Construction (AHNC) offering provides technical assistance and incentives to developers of new and renovated affordable housing projects to help them exceed requirements of the Illinois Energy Conservation Code.
- The energy-efficient features not only improve the comfort of residents but also help reduce energy costs and carbon emissions.
- None.
Insights
From an energy policy perspective, the initiative by ComEd to provide incentives for the development of energy-efficient, affordable housing is a strategic move that aligns with broader sustainability and social welfare goals. By facilitating the construction of 3,300 units that surpass the Illinois Energy Conservation Code, ComEd is contributing to the reduction of the carbon footprint associated with residential buildings. This is significant given that buildings account for a considerable percentage of energy consumption and carbon emissions globally.
Furthermore, the long-term implications for stakeholders include lower energy costs for residents and potentially enhanced property values due to the increased desirability of energy-efficient homes. However, the upfront costs for developers may be higher, which could influence the affordability aspect unless offset by the incentives provided. The success of this initiative could serve as a model for other regions, encouraging the adoption of similar energy-efficient standards in construction.
Examining the financial impact, the $8 million investment in energy efficiency could lead to significant savings for residents in energy costs, translating into a higher disposable income and potentially stimulating local economies. For ComEd, the incentives could be seen as a strategic investment that may lead to an increased demand for their services in the long run, as more energy-efficient buildings are constructed. Additionally, by positioning themselves as a company invested in sustainable development, ComEd could potentially enhance its corporate image, which may have positive ramifications for investor sentiment and stock performance.
It is also pertinent to consider the opportunity cost of these incentives. The funds allocated could have been used for other initiatives and the return on investment should be compared to alternative projects. Nonetheless, the societal benefits and alignment with regulatory trends towards energy efficiency could justify the expenditure.
The real estate market could be influenced positively by projects like Encuentro Square. Energy-efficient, affordable housing is increasingly in demand and developments that meet these criteria could see higher occupancy rates and lower tenant turnover. The initiative might also spur competition among developers to incorporate similar energy-saving features, potentially raising the standard for new construction projects. This could benefit the real estate market by attracting environmentally conscious tenants and investors looking for properties with lower operating costs and modern amenities.
However, the scalability of such projects and their impact on the broader housing market should be monitored. The balance between the need for affordable housing and the desire for energy-efficient features must be carefully managed to ensure that the supply meets the demand without inflating costs to a point where affordability is compromised.
89-unit Encuentro Square in Chicago’s Logan Square neighborhood is latest development project to break ground
Through ComEd’s Affordable Housing New Construction (AHNC) offering, the energy company offers technical assistance and incentives to developers of new and renovated affordable housing projects to help them exceed requirements of the Illinois Energy Conservation Code, which sets minimum efficiency standards in new construction for a structure's walls, floors, ceilings, lighting, windows, doors, duct leakage, and air leakage. These features not only improve the comfort of residents of these units, they also help the units become more energy efficient, which helps reduce energy costs.
“ComEd’s AHNC offering helps advance our goal of empowering developers to adopt higher efficiency equipment that will lower energy use, reduce carbon emissions and enhance air quality across all of our communities,” said Gil C. Quiniones, CEO of ComEd. “By collaborating with affordable housing developers, ComEd helps ensure families have equal access to housing and features that will help them manage both energy use and bills.”
Encuentro Square
The latest project to break ground is ComEd’s collaboration with Evergreen Real Estate Group and Latin United Community Housing Association (LUCHA) on the Encuentro Square development in Chicago’s Logan Square/Humboldt Park neighborhoods. The first phase of this project, in partnership with the
When completed in late-2024, onsite amenities for the first phase will include a teaching kitchen, lounge, community room, children’s room, and community support services. Sustainable design features include high-efficiency HVAC equipment, LED lighting fixtures and ENERGY STAR®-certified appliances.
“Evergreen Real Estate Group is proud to be part of the collaboration between business, government and community that is providing critical affordable housing options for families along the 606 Trail,” said David Block, Director of Development at Evergreen Real Estate Group. “In addition, providing quality, energy-efficient units further ensures that families continue to have options in developing neighborhoods. This project will be an exclamation point where the 606 begins to the west.”
ComEd is a unit of
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Source: ComEd
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