Boston-based WinnCompanies has launched a pilot program to finance energy-efficient retrofits for low-income housing in Massachusetts, Connecticut and New York City.

Open Market ESCO will support energy efficiency in an estimated 1,200 units and allow property owners to pay for the upgrades through reduced energy costs. The $9 million pilot program was created in collaboration with the Local Initiatives Support Corp. (LISC) and established in part with a $5.25 million grant from the U.S. Department of Housing and Urban Development’s energy innovation fund.

Open Market ESCO creates a new multifamily energy loan fund and integrates it with an energy services company and provides property owners with energy conservation services for 12 to 15 years.

To qualify for the program, low-income housing developments must have the potential to save at least 20 percent on their energy costs. Property owners will not take on new debt or incur significant upfront costs that would typically be associated with retrofit projects. The costs are covered by monthly energy savings, with a portion of savings being shared with property owners.

LISC, a national nonprofit that works to revitalize low-income communities, is providing an $8 million loan to the pilot.