Commercial, Finance - August 19, 2022
Valley National Bank to Fund ESG Loans
Valley National Bank announced a partnership with The Community Preservation Corporation (CPC)to fund up to $100 million in permanent loans that meet various ESG standards such as green building practices and reduced emissions.
CPC and Valley are working to address the impacts of climate change through the mortgage process by incenting developers to reach further with a lower rate and higher leverage.
On August 9, 2022, Valley closed its first ESG-linked loan through its new partnership with CPC. The $1.9 million loan was provided to 1 Solstice Lane LLC in Geneva, New York through the CPC’s Sustainable Mortgage Program. 1 Solstice Lane is a 12-unit apartment complex which was completed this past January. It has received multiple sustainable incentives from NYSERDA and NYSEG programs. The property has multiple EV charging stations, is employing highly efficient heat pump systems for heating, cooling and hot water, and has a rooftop solar array sized to cover all electricity used by the building making this project Net Zero Energy.
“Decarbonizing the built environment through the financing of sustainable and affordable housing is a critical part of CPC’s mission as a nonprofit housing finance company. As an institution that shares our commitment to ESG principals, Valley was a natural fit for this partnership,” said Sadie McKeown, President of The Community Preservation Corporation in a statement. “With such a prevalent influence over the economics and condition of our housing stock, the lending industry has a tremendous opportunity to take the lead in advancing practices and policies that improve the financial and physical quality and sustainability of the buildings and communities in which we live and work.”