The Malden Housing Authority (MHA) and Siemens Building Technologies (Siemens) today announced the launch of a comprehensive $11.2 million energy-efficiency renovation project in MHA federally assisted public housing developments that will deliver significant savings to the authority while increasing the MHA’s sustainability.
“The work we now begin with Siemens Building Technologies to create more efficiency, cost savings, and sustainability, while improving the quality of our affordable housing for our residents, shows the power of public private partnerships,” said Steve Finn, the MHA’s Executive Director. “This cutting-edge approach to energy efficiency was made possible through the innovative funding created by MassDevelopment and East Boston Savings Bank. Working together, we can improve the quality and energy efficiency of our assisted housing while protecting our environment.”
Siemens Building Technologies Division under contract with the Malden Housing Authority will manage an array of energy conservation renovations on the Authority’s housing units and conduct annual measurement and verification of utility consumption and the resulting savings. The Authority will use the savings to further upgrade the housing units to make them more efficient by installing new water-saving toilets and showers, energy efficient lighting system, and site basing heating and hot water systems while decommissioning a 70–year-old central power plant at the MHA’s Newland Street development.
“This project captures Siemens’ commitment to implementing our Energy Performance contracting to help cities and towns lower costs and improve communities through greater energy efficiencies and sustainability in their public buildings and housing units,” said Tom Foley, Northeast Zone Manager of Siemens Building Technologies, Inc. “We look forward to working with the City of Malden and the Malden Housing Authority to upgrade the units with systems that will decrease utility consumption and allow the Authority to put those savings into further improvements that will continue to reduce costs for the city.”
As part of an unprecedented financing arrangement, MassDevelopment, the Commonwealth’s finance and development agency, issued an $11.2 million tax-exempt bond on behalf of the project. East Boston Savings Bank purchased the bond, allowing the MHA to contract with Siemens to upgrade facilities and install efficiencies that will create more savings by reducing utility consumption. This is the first time MassDevelopment has issued a tax-exempt bond in support of a public housing authority for financing energy efficiency improvements and installation of conservation measures. For the bond financing agreement, the MHA and East Boston Savings Bank entered into an interest rate swap agreement with the bank’s financial partner. The swap allowed East Boston Savings Bank to offer MHA a fixed rate loan at a savings of 1 ¼ basis points from quoted market interest, facilitating the MHA’s closing of the deal.
“This low-cost financing supports the Malden Housing Authority’s efforts to improve affordable housing for low-income families by reducing energy costs and consumption in its public housing units, adding to the Commonwealth’s overall goal of increasing sustainability through new technologies,” said Benny Wong, vice president of investment banking at MassDevelopment. “The Malden Housing Authority’s commitment to and Siemens expertise in this project mark a step forward for creative and sustainable successes at public housing authorities.”
“East Boston Savings Bank is committed to working with the MHA and other public housing authorities seeking to finance energy savings contracts in order to continue and improve affordable housing in the communities we serve,” said Richard J. Gavegnano, Chairman and CEO of East Boston Savings Bank. “We worked with our partners at MassDevelopment to make this important project work on behalf of the residents of the Malden Housing Authority and the city of Malden.”
Work on the project has begun, and is expected to continue to completion by December, 2014