Building for Tomorrow is Better for Business Today - New York YIMBY

New York State is doubling down on a simple premise: building multifamily housing that barely touches the planet makes sound financial sense for the developers footing the bill.

New York YIMBY reported that the New York State Energy Research and Development Authority launched the seventh round of its Buildings of Excellence Competition. The agency is dangling $20 million in funding for high-performance multifamily housing projects across the state, offering individual developments up to $1.5 million to prove that green construction pays for itself.

Why does this matter right now? Developers face brutal financing costs, high material prices, and a severe housing shortage. By injecting capital into projects that ditch fossil fuels, the state is trying to push the construction industry toward greener practices without letting the bottom line collapse.

Dividing the Pot for Tall Buildings and Affordable Units

The latest funding breakdown targets specific types of development where carbon cuts matter most. NYSERDA set aside $15 million exclusively for buildings at least eight stories tall, leaving $5 million for structures seven stories or shorter.

Affordability remains baked into the rules. At least $10 million is locked in for affordable housing projects. Meanwhile, developers converting former office, retail, or institutional spaces into apartments get special consideration, as do projects located inside disadvantaged communities.

Since its launch in 2019, the Buildings of Excellence Competition has funneled cash to 88 projects across its first six rounds, covering 121 separate buildings. Those efforts have yielded 6,993 units designated as Lower Median Income housing. Roughly 75 percent of all funded projects have committed to Passive House certification, and 52 of the developments sit squarely within disadvantaged communities.

The September Precedent and What Comes Next

This seventh round follows closely on the heels of NYSERDA’s September 2026 announcement, which doled out more than $12 million to 10 multifamily projects in the sixth round. Eight of those selected developments landed in New York City, pulling in about $9.7 million, while two projects in Central New York shared a $2.4 million slice.

Every single one of those 10 projects operates entirely without on-site fossil fuel combustion, and eight of them are slated to meet rigorous Passive House standards. But the state wants more than just a handful of green showcases. Awardees from the current round must share their design choices, construction costs, and actual performance data to give the wider industry a working playbook.

Applications for the seventh round are due on January 20, 2027, at 3 p.m. Developers hoping to grab a share of the money can find guidelines and application materials directly on the NYSERDA Buildings of Excellence Competition site.