Honeywell Helps Yonkers Housing Authority Improve Facilities and Resident Comfort, Trim Utility Bills

Upgrades for Second-Largest New York City-Area Housing Authority Drive Energy Efficiency, Reduce Environmental Impact and Deliver $1.4 Million in Annual Savings

MINNEAPOLIS, Feb. 8, 2011 – Honeywell (NYSE: HON) today announced an $18.8-million energy conservation and building modernization program with the Municipal Housing Authority for the City of Yonkers (MHACY) in New York. The stimulus-supported program will help the housing authority improve its facilities, energy efficiency and resident comfort while reducing emissions and saving an estimated $1.4 million in annual utility costs. It will also create opportunities for local subcontractors, giving the city’s job market a boost.

Backed by three 15-year performance contracts with Honeywell, the program features a mix of conservation measures and equipment upgrades — including a new geothermal heating, ventilation and air-conditioning system — that will impact 19 developments and more than 2,000 apartments throughout Yonkers. The resulting savings, which are guaranteed by Honeywell, will pay for most of the improvements.

In addition, MHACY will use a $4-million American Recovery and Reinvestment Act (ARRA) grant that Honeywell helped secure from the U.S. Department of Housing and Urban Development (HUD) to fund the construction of the geothermal system. Combining the energy savings and stimulus money will allow the housing authority to make the improvements without adding to its budgets.

“We’re making significant changes to our buildings that we otherwise wouldn’t be able to fund,” said Joseph Shuldiner, executive director of MHACY, the second-largest housing authority in the New York City area. “These are upgrades that make our properties more comfortable for residents and more affordable to operate. This work is well aligned with our overall mission to provide safe, sanitary and energy-efficient housing.”

Honeywell will install the geothermal system, which takes advantage of the natural heating and cooling of the earth’s surface, at the housing authority’s John E. Flynn Manor. This renewable energy technology will cool the facility in the summer by dispersing heat into the ground and heat the facility in the winter by using the naturally stored energy in the earth’s crust. It will allow MHACY to replace an oil-fired boiler that is 40 years old and inefficient.

The ARRA grant is part of a broader effort by HUD to help housing authorities reduce carbon output and energy consumption. Once installed, the geothermal system is expected to cut energy costs by $60,000 and carbon emissions by more than 210 metric tons annually. According to figures from the U.S. Environmental Protection Agency, this is equivalent to removing more than 40 cars from the road or planting 44 acres of trees.

Honeywell and MHACY divided the other improvements into two phases according to site size and complexity. Upgrades under both phases include:
-    Retrofitting lighting systems with high-efficiency fixtures;
-    Installing new low-flow aerators and showerheads;
-    Upgrading domestic water heating systems;
-    Implementing building envelope improvements, including roof, window and door sealing, and attic insulation;
-    Upgrading existing oil-fired boilers to operate on oil or natural gas, depending on cost;
-    Installing new high-efficiency boilers and control systems to replace outdated heating equipment at some sites.

[an error occurred while processing this directive]To ensure the measures are sustainable, Honeywell will conduct public informational sessions with residents to discuss the improvements and provide additional energy-efficiency tips.

The MHACY program will also add to the local job market. Honeywell will hire subcontractors, including minority- and woman-owned businesses, to help complete the upgrades. The company estimates the program will create 5,800 man-hours of work for contractors.

MHACY and Honeywell expect to complete all the improvements by year’s end.

“Housing authorities are asked to provide a safe, comfortable environment for their residents, despite increasing budget challenges” said Paul Orzeske, president of Honeywell Building Solutions.

“Honeywell helps progressive organizations like MHACY overcome these challenges by providing the technology and financing tools to deliver lasting improvements. The end result is programs that have a positive impact on the housing authority, its residents and the surrounding community.”

Honeywell International (www.honeywell.com) is a Fortune 100 diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty 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. Honeywell Building Solutions is part of the Honeywell Automation and Control Solutions business group, a global leader in providing product and service solutions that improve efficiency and profitability, support regulatory compliance, and maintain safe, comfortable environments in homes, buildings and industry. For more information about Building Solutions: www.honeywell.com/buildingsolutions.

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