Valley Bank and The Community Preservation Corporation Commit Up to $100 Million to Finance ESG Loans Focused on Sustainability
August 18 2022 - 9:00AM
Business Wire
The relationship will support commercial real
estate financing for new construction tied to ESG principles.
Partners announce first ESG loan closing for
Net Zero Energy, multifamily project in Geneva, NY.
Valley National Bank (NASDAQ:VLY) today announced a new
partnership with The Community Preservation Corporation (CPC) to
fund up to $100 million in permanent loans that meet various
Environmental, Social and Governance (ESG) standards such as green
building practices and reduced emissions. CPC and Valley are
working to intentionally 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. The increased comfort and reduced utility costs associated
with these features has helped drive the successful lease-up of the
facility.
“As one of the premier regional banks in the country with more
than 90 years of service, we understand the critical role we play
in creating a sustainable future throughout the communities we
serve,” remarked Christopher J. Coiley, Valley Bank’s Head of the
Commercial Real Estate Lending Group. “In CPC, we’ve found the
perfect partner to help us fulfill that promise. As we move
forward, we’ll continue to work with aspiring and innovative
entrepreneurs who are making a positive impact on the local
community and helping us create a more sustainable future for
everyone.”
“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. “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.”
“From a developer perspective it is exciting to work with
lending and origination partners who understand the financial
benefits of sustainable design and construction,” said Solar
Village Company partner Ryan Wallace, developer of 1 Solstice
Lane.
Valley is committed to building a responsible and sustainable
future for the communities it serves. In recent years, the Bank has
dedicated significant resources to making ESG a strategic priority.
In early 2020, the Bank created an ESG Council to bring together
leadership across the entire organization to provide direction to
its ESG efforts. Since that time, Valley has made significant
strides forward in its ESG-related initiatives. You can learn more
about Valley Bank’s cultural, social and environmental initiatives
by reading its ESG Report.
A certified carbon neutral company, CPC is committed to
financing, advising on best practices, and advocating for solutions
and policies to decarbonize the built environment and increase
investments in the green economy. Since launching its
sustainability platform, the company has financed over 11,000
sustainable, high-performance multifamily units, inclusive of
approximately 1,540 units over the past fiscal year. As part of its
commitment to advocacy and knowledge sharing, CPC has created a
variety of publicly available resources including comprehensive
guides to financing high-performance buildings, and regularly
convenes webinars and other public forums to support and promote
energy efficiency and decarbonization in the multifamily
sector.
About Valley As the principal subsidiary of Valley
National Bancorp, Valley National Bank is a regional bank with
approximately $54 billion in assets. Valley is committed to giving
people and businesses the power to succeed. Valley operates many
convenient branch locations across New Jersey, New York, Florida
and Alabama, and is committed to providing the most convenient
service, the latest innovations and an experienced and
knowledgeable team dedicated to meeting customer needs. Helping
communities grow and prosper is the heart of Valley’s corporate
citizenship philosophy. To learn more about Valley, go to
www.valley.com or call our Customer Service Center at
800-522-4100.
About The Community Preservation Corporation (CPC) CPC is
a nonprofit multifamily finance company that was founded in 1974 to
provide financial resources to stabilize and revitalize underserved
communities. Today, CPC uses its unique expertise in housing
finance and public policy to expand access to affordable housing
and drive down the costs of housing production, advance diversity
and equity within the development industry, and impact the effects
of climate change in our communities through the financing of
sustainable housing. Since its founding, CPC has invested over $14
billion to finance the creation and preservation of more than
225,000 units of housing through its lending and investing
platforms. CPC is a carbon-neutral company and has been rated AA-
by S&P. Visit CPC at communityp.com, and on Facebook, Twitter
and LinkedIn.
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Pam Golden GLA Communications pam@glapr.com 973-564-8591
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