[ Governor Healey Announces Creation of Massachusetts Community
Climate Bank, Nation’s First Green Bank Dedicated to Affordable
Housing ]
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MASSACHUSETTS GREEN BANK IS CREATED  
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Gov. Maura Healey
June 13, 2023
Mass.gov
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_ Governor Healey Announces Creation of Massachusetts Community
Climate Bank, Nation’s First Green Bank Dedicated to Affordable
Housing _

Massachusetts Gov. Maura Healey, Robin Lubbock/WBUR

 

Boston — Today, Governor Maura Healey announced the launch of the
Massachusetts Community Climate Bank, the nation’s first green bank
dedicated to affordable housing. This landmark initiative, seeded with
$50 million in state funds from the Department of Environmental
Protection, is designed to maximize investment in the reduction of
greenhouse gas emissions from the building sector.  

One of the Climate Bank’s primary goals is to attract private
sector capital and federal funds available under the Inflation
Reduction Act to finance building retrofits aligned with the
state’s long-term climate objectives and new construction of
decarbonized buildings. The bank will focus on the affordable
housing market, where residents bear a disproportionate burden in
energy costs and climate impacts, to promote an equitable energy
transition and to meet the needs of environmental justice
populations. Over time, the bank will diversify investments to
include other decarbonization measures that benefit communities. 

The Massachusetts Community Climate Bank is located
within MassHousing [[link removed]], the state’s
affordable housing finance and investment bank. Massachusetts is the
first in the nation to locate its Climate Bank within its Housing
Finance Agency and to focus its strategy on affordable housing. The
Climate Bank will work in partnership
with the Massachusetts Clean Energy Center
[[link removed]] (MassCEC) and MassDevelopment
[[link removed]]. This collaboration will ensure
that each entity’s capabilities are leveraged to support the
identification, development, financing and execution of clean energy
projects, beginning with the affordable housing sector. 

“The Massachusetts Community Climate Bank will be
our financial engine for moving forward on our climate goals,
relieving the pressure of high housing costs, and creating good jobs
and healthier communities,” said GOVERNOR MAURA HEALEY. “This
first-of-its kind initiative is going to make our state more
competitive, affordable, and equitable – and it’s going to show
that in Massachusetts, we can lead the world by leading with our
values and leaving no community behind. We’re grateful to our
partners at MassHousing, MassCEC, MassDevelopment, our
Congressional delegation, the Legislature, the City of Boston and
the Boston Green Ribbon Commission for their collaboration to make
the Massachusetts Community Climate Bank a reality.” 

“The Massachusetts Community Climate Bank has enormous
potential,” said LIEUTENANT GOVERNOR KIM DRISCOLL. “It can
support deep energy retrofits and investments in energy efficiency
technologies, eliminating emissions and cutting residents’ energy
costs for years to come. It can help nonprofit developers access
capital that makes net-zero development possible, serving hundreds of
families. It can help the state rehab and retrofit older affordable
housing that’s in need of repair by getting access to new federal
climate funds. Each step of the way, it’ll power our mission to make
Massachusetts the world’s climate leader by bringing all the
benefits of a green and resilient economy to all the people of our
state.” 

“Decarbonizing the Commonwealth’s housing stock is a critical
component of our work to build cleaner, healthier communities, while
meeting our ambitious climate goals,” said MASSHOUSING EXECUTIVE
DIRECTOR CHRYSTAL KORNEGAY. “The Massachusetts Community Climate
Bank will allow us to pursue this important work at scale,
accelerating our progress toward a net zero future, and centering
equity for low- and moderate-income households and Environmental
Justice communities.” 

“The launch of the Massachusetts Community Climate Bank is a
tremendous example of the Commonwealth’s continued leadership in
establishing ambitious climate policies that can serve as models for
the nation. By using state funds to unlock substantial federal and
private-sector resources, the Commonwealth is charting a novel form of
public-private partnership to equitably address some of the most
vexing challenges standing in the way of achieving its climate
targets," said CERES PRESIDENT AND CEO MINDY LUBBER.

Low- to moderate-income residents tend to pay a disproportionate
share of their income on energy costs, have less control of their
residences and have fewer resources to invest in measures that will
reduce their emissions and control their energy bills. The Climate
Bank expects to provide low-cost capital and innovative deal
structures to integrate clean energy and efficient technologies into
affordable housing development and preservation and mortgage products
for home improvements.  

The Climate Bank will accelerate the pace and deepen the impact of
building decarbonization projects by lending directly to building
owners and by attracting and de-risking lending and investment by
private lenders through innovative finance products. It expects
to integrate clean energy into MassHousing’s lending for
affordable housing, create programs for similar affordable housing
projects, and engage capital markets more broadly to invest in
affordable housing decarbonization. 

The Climate Bank aims to take advantage of the periodic cycle of
affordable housing refinance to finance heat pumps, building
envelopes (i.e., efficiency upgrades to windows and walls), heat
pump water heaters, high-efficiency appliances, and solar
panels as a part of the same process as other affordable housing
renovation measures. 

The Climate Bank will also position Massachusetts to compete for
funding from the National Clean Investment Fund under the Inflation
Reduction Act and to anchor engagement with other federal
finance opportunities, such as the United States Department of Energy
Loan Program Office, both key elements of the Biden Administration’s
initiative to advance a just energy transition focused on equity and
environmental justice.   

In Massachusetts, the building sector is responsible for over a
quarter of total greenhouse gas emissions. In Massachusetts cities,
where many environmental justice populations live, buildings can be
responsible for as much as 70 percent of total greenhouse gas
emissions. Unlike cars, buildings last for decades, making the need to
retrofit existing buildings especially important to achieve statewide
decarbonization goals. According to the 2050 Massachusetts Roadmap
report, over 80 percent of the buildings that will exist in 2050 are
already built. 

Massachusetts’ Clean Energy and Climate Plan calls for a 49%
reduction in greenhouse gas emissions from residential heating by
2030, and a 95% reduction by 2050. The Massachusetts Community Climate
Bank is an integral part of the strategy to achieve these emissions
reductions. 

“This innovative initiative represents what is possible when we
prioritize both our clean energy future and expanding access to truly
affordable housing for the hard-working residents of our state. I
applaud the Healey Administration for taking early action to address
two of the most pressing issues we face and thank all of the
legislators who have helped champion and shape this initiative, and I
look forward to seeing the dividends of our green bank investments,”
said SENATE PRESIDENT KAREN SPILKA.

“I thank Governor Healey for her leadership to create the
Massachusetts Community Climate Bank to both encourage private
spending and harness federal funding to further our investment into
the creation of green affordable housing – and to make our
affordable housing greener,” said BOSTON MAYOR MICHELLE WU. “This
work is critical and will complement our efforts in Boston to retrofit
our housing stock and create opportunities for small property owners
to build and renovate greener, healthier buildings for residents to
thrive.” 

On the first full day of her administration, Governor Maura Healey
signed an Executive Order
[[link removed]] creating
an Office of Climate Innovation and Resilience within the Governor’s
Office and establishing the position of Climate Chief. Governor
Healey appointed Melissa Hoffer to this position, which is the first
in the nation at the cabinet level. The office is charged with
harnessing all of the resources and authority available to the
Governor and the executive department to advance the Commonwealth’s
climate innovation, mitigation, adaptation and resilience
policies. The Massachusetts Community Climate Bank is a signature
accomplishment of the Office of Climate Innovation and Resilience,
which worked collaboratively with all partners to advance this
project. 

STATEMENTS OF SUPPORT 

BILL MCKIBBEN 

"We need more homes, and we need efficient homes--here's a way of
getting at two of our most important goals at once. It's the kind of
innovative thinking and doing that sets the Healey Administration
apart." 

LEAH STOKES, PH.D, SENIOR POLICY COUNSEL, REWIRING AMERICA AND
ASSOCIATE PROFESSOR, UC SANTA BARBARA 

“Massachusetts has a visionary plan to lead the country on
electrifying affordable housing. The Massachusetts Community Climate
Bank will be a model nationwide for making sure that climate action
and equity go hand-in-hand. Today is just a beginning for this
Climate Bank. I’m hopeful that the state will secure more funds to
build on this first round of seed funding. Climate change requires
action today. It’s thrilling to see Massachusetts’ leadership with
this Climate Bank.” 

RICHARD KAUFFMAN, CHAIR, NEW YORK STATE ENERGY RESEARCH AND
DEVELOPMENT AUTHORITY (NYSERDA) 

"Climate banks have demonstrated that they can unlock private capital
to accelerate investments in sustainable infrastructure. The
Massachusetts Community Climate Bank promises to focus the proven
capacity of climate finance on the important challenge of affordable
housing. We look forward to collaborating with them to build healthy
communities.” 

AMY LONGSWORTH, EXECUTIVE DIRECTOR, BOSTON GREEN RIBBON COMMISSION 

"The GRC is grateful to have been in a position to work with the City
of Boston and the Massachusetts Clean Energy Center on the
developmental stages of the Massachusetts Community Climate Bank and
very pleased to see the Governor and leaders of key Commonwealth
agencies now collaborating to make the Bank a reality, including
pursuing serious funding opportunities at the federal level. It is a
great demonstration of seamless cooperation between leaders in the
Healey and Wu administrations and the private sector to build
something very important that will really move the needle on climate
resilience and carbon mitigation in hard-to-reach sectors of our built
environment in Boston and across the state.”  

KAREN KELLEHER, EXECUTIVE DIRECTOR, LOCAL INITIATIVES SUPPORT
CORPORATION (LISC) BOSTON 

“Today’s investment in decarbonizing affordable housing in
Massachusetts is climate forward and equity forward. Through creation
of the Mass Climate Bank, the Healey-Driscoll Administration is
positioning the Commonwealth to lead on the critical task of
decarbonizing old and new buildings, by investing first in low-income
people and environmental justice communities."   

AARON GORNSTEIN, PRESIDENT AND CEO, PRESERVATION OF AFFORDABLE HOUSING
(POAH) 

“We are grateful to Governor Healey and Lieutenant Governor Driscoll
for addressing two of the most important issues facing our
Commonwealth:  the need for greater housing affordability and
tackling climate change.  We have great confidence
that MassHousing can expand and deploy these funds effectively so
more low- and moderate-income families can benefit from living in
energy-efficient homes.  This new Green Bank, along with forthcoming
federal funds from the Inflation Reduction Act, will have an
unprecedented impact on the sustainability of our housing stock in
every region of the state.”  

ELIZABETH TURNBULL HENRY, PRESIDENT, ENVIRONMENTAL LEAGUE OF MA   

“Buildings account for over 30% of the Commonwealth’s carbon
emissions, and roughly three-quarters of today’s built environment
will still be standing in 2050. Establishing a statewide framework for
financing building decarbonization will enable us to leverage private
funding and federal dollars to make progress toward our 2030 climate
goals and beyond. The Administration’s continued focus on equity and
affordability in both housing and climate justice remains essential to
ensuring that all Massachusetts residents can share in the cost
savings and health benefits that these improvements bring.”  

CHRISSY LYNCH, SECRETARY-TREASURER, MASSACHUSETTS AFL-CIO 

"The Massachusetts Community Climate Bank will help our state tackle
the dual crises of climate change and inequality, allowing us to
harness federal investments under the Inflation Reduction Act to
invest in our communities, cut pollution, and create high-quality
union jobs throughout Massachusetts. We look forward to working with
Governor Healey and our state leaders to ensure this critical new
institution embraces a worker-centered and equity-focused approach to
building the clean energy economy." 

REBECCA DAVIS, CHIEF OPERATING OFFICER, MASSACHUSETTS COMPETITIVE
PARTNERSHIP 

"As the urgency of climate action grows, so does the need for
innovative financial mechanisms that facilitate the transition to a
low-carbon economy. We applaud the Healey-Driscoll Administration for
this important step of establishing a green bank, which will enable
affordable housing providers to reduce their carbon footprint and
enhance the quality of life for residents. We firmly believe that
cross-sector collaboration is critical to drive innovation, scale up
sustainable practices, and create a more resilient future." 

RON O'HANLEY, CHAIRMAN AND CHIEF EXECUTIVE OFFICER, STATE STREET 

“The creation of the Massachusetts Community Climate Bank positions
the state as a leader in the transition to a sustainable and clean
economy, and we applaud the Healey-Driscoll Administration for this
important step forward. This strategic move will facilitate focused
and market-oriented clean energy investments within the state. The
launch of a green bank focused on affordable housing sets a strong
precedent for other regions and allows for collaboration that will
drive impactful change for the environment while also addressing key
housing needs." 

* Green bank
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* Climate Change
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* Housing Crisis
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