, April 23, 2014 Honeywell (NYSE:HON)
today announced it is helping Harrisburg Housing Authority (HHA) lead an initiative to refurbish and reopen the vacant Jackson Towers apartment complex in Harrisburg, Pa., to provide valuable affordable housing for local residents in need.
The 159-unit Jackson Towers has been vacant for more than nine years. The housing authority will finance a majority of the $21-million renovation through guaranteed energy savings from previous Honeywell-led improvements at other properties $10.8 million in anticipated savings in total. Those prior efforts have helped HHA save nearly $1.3 million in annual utility and operating costs through efficiency and comfort upgrades in more than 1,700 housing units.
The new project was made possible after changes to Pennsylvania legislation in 2010 that allows housing authorities to extend the terms and associated guarantees of existing performance contracts by up to eight years, for a maximum of 20 years. HHA can leverage the continued savings to help restore Jackson Towers as a result.
In addition, Honeywell will work with area contractors to complete most of the upgrades, helping create or sustain an estimated 110 jobs during the construction phase of the project.
"The Jackson Towers renovation is a showcase of the value of thoughtful public-private partnerships," said Senghor Manns, CEO and president of Harrisburg Housing Authority. "The project not only elevates our mission to improve the quality of life for residents, it will help change the notion of public housing. We would not be in a position to bring this facility back to life important for the entire City of Harrisburg without partners like Honeywell and the ability to reinvest the energy savings they're able to deliver."
Public housing authorities in particular have a significant need for this type of financing.According to the U.S. Department of Housing and Urban Development, annual funding levels for public housing authorities have decreased from $3 billion in 2000 to $1.8 billion in 2013. In addition, average utility costs per unit increased more than 40 percent from 2004 to 2011 due to higher energy rates and building systems that have exceeded their useful life.
"Performance contracts provide a valuable means for public entities with lean budgets to improve facilities that communities depend on," said Paul Orzeske, president of Honeywell Building Solutions. "With funding enabled through guaranteed savings, these projects can effectively pay for themselves. That's a win for everyone."
As part of the HHA project, Honeywell will install energy-efficient windows, and modern heating and cooling equipment, and update the building envelope to minimize the loss of conditioned air. The company will also put in a new elevator system and emergency generator, and upgrade exterior insulation and finishing systems in the 14-story complex.
A global leader in energy-saving technology and services, Honeywell has completed almost 5,700 guaranteed efficiency projects around the world, which includes work for dozens of housing authorities. The result is an estimated $6-billion decrease in collective energy and operational costs.
These projects help public-sector customers to pay for needed upgrades to aging and inefficient facilities and infrastructure with the savings the improvements deliver. Without performance contracts, vital enhancements are often delayed or abandoned, or organizations have to tap into scarce tax dollars.
For more information visit Honeywell Building Solutions
or follow HoneywellBuild
) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; turbochargers; and performance materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London, and Chicago Stock Exchanges. For more news and information on Honeywell, please visit www.honeywellnow.com
This release contains certain statements that may be deemed "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements. We identify the principal risks and uncertainties that affect our performance in our Form 10-K and other filings with the Securities and Exchange Commission.