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  • 1. ARRA Resources for Weatherizing Multifamily Housing: A Unique Opportunity to Help Low Income Families and Reduce Energy Consumption
  • 2. The Good News… From DOE Memorandum to Grantees: “DOE wants grantees and subgrantees to increase their service to renters…DOE anticipates a significant increase in the number of rental dwelling units served by the WAP. If this does not occur, DOE will revisit the issue and consider the imposition of mandatory requirements to achieve the goal of this policy.” Director, Division of Weatherization Assistance Programs U.S. Department of Energy National Housing Trust, Weatherizing Multifamily Housing
  • 3. The Bad News… From DOE Memorandum to Grantees: “DOE wants grantees and subgrantees to increase their service to renters…DOE anticipates a significant increase in the number of rental dwelling units served by the WAP. If this does not occur, DOE will revisit the issue and consider the imposition of mandatory requirements to achieve the goal of this policy.” Director, Division of Weatherization Assistance Programs U.S. Department of Energy January 27, 1984 National Housing Trust, Weatherizing Multifamily Housing
  • 4. ARRA Weatherization Overview  Weatherization Assistance Program (WAP) received $5 billion over three years, up from $250 million annually  Statewide average expenditure limit per home is $6,500  Households w/ incomes at or below 200% of poverty or 60% of state median income are eligible.  All funds must be spent by March 2012 In a typical year, 15-20% of WAP units are multifamily, yet one half of income eligible households are renters.* *Source: American Housing Survey 2007 National Housing Trust, Weatherizing Multifamily Housing
  • 5. Many Factors Influence WAP Implementation  State Agency Level May be unfamiliar with affordable housing programs Set rules for multifamily and who to prioritize  Local Provider Level May be unfamiliar with multifamily housing programs/types of affordable housing Varying technical experience with multifamily buildings Single-family wait lists National Housing Trust, Weatherizing Multifamily Housing
  • 6. Multiple Eligibility Requirements for Multifamily  Household Income Level: - At least 66% of units must be occupied by households with incomes at 200% of poverty or less.  No rent increases for reasonable period  No excessive enhancement to the property’s value  States may require landlord contribution  Weatherization benefits must accrue to tenants National Housing Trust, Weatherizing Multifamily Housing
  • 7. HUD-DOE Partnership Streamlines Eligibility Housing Income Eligibility Protection from Ensure Benefits Program Rent Increases Accrue to Tenants Project-based HUD has Requirement met Up to states to set Sec. 8, Public identified income if contract expires policy Housing eligible properties in 3 yrs or beyond LIHTC HUD/DOE Up to state or Same as above working together local WA P to identify income provider to eligible properties determine Sec. 515 RD has identified Up to state or Same as above income eligible local WAP properties provider to determine National Housing Trust, Weatherizing Multifamily Housing
  • 8. Multifamily Weatherization = Direct Benefits to Tenants  Reduction in tenant paid utilities  Stable operating costs helps secure long-term affordability  Improved comfort  Property utility savings can be re-invested in the property to provide enhanced resident services  Leverage extended long-term affordability DOE: State agencies can take into consideration benefits other than reduced utility savings when ensuring benefits accrue to tenants. National Housing Trust, Weatherizing Multifamily Housing
  • 9. State Approaches to Advancing Multifamily Weatherization State WAP agencies set aside $ for multifamily housing, including subsidized housing - Florida has allocated 20% for multifamily; Kansas set aside 25%; New York has set aside $50 million Coordination with state housing finance agencies - New Jersey, Pennsylvania, Rhode Island, Vermont state HFAs have been allocated WAP $ for multifamily National Housing Trust, Weatherizing Multifamily Housing
  • 10. State Approaches to Advancing Multifamily Weatherization (con’t) Encourage local providers to pursue multifamily properties - Ohio and Oregon are urging local WAP providers to consider multifamily applications - Minnesota HFA developing partnerships with local providers Do not require landlord contributions - Kansas and Virginia have waived this requirement; Other states give providers the discretion to waive this requirement on case by case basis Expanded definition of tenant benefit to include preservation - Washington state National Housing Trust, Weatherizing Multifamily Housing
  • 11. Rhode Island WAP  Rhode Island Office of Energy Resources has partnered with Rhode Island Housing to administer $6 million multifamily program.  Application deadline is April 26  Funding priorities: - Low-income elderly, disabled or families with children - Developments in which tenants pay own utilities - High energy burden households or properties w/ high costs - Developments that will leverage additional resources  Minimum of 15 years of affordability required National Housing Trust, Weatherizing Multifamily Housing
  • 12. Massachusetts WAP  MA Dept. of Housing and Community Development has set aside $6 million for preservation properties with expiring subsidies; currently nearly $1.3 million has been committed.  $25 million for public housing properties  No landlord contribution required.  Local WAP providers are free to pursue multifamily properties outside of the set asides, but many providers have long waiting lists of single-family households. National Housing Trust, Weatherizing Multifamily Housing
  • 13. Connecticut WAP  Dept. of Social Services has allocated $20 m to the Dept. of Economic and Community Dev. to weatherize state-financed public housing.  1st priority for elderly households who pay for heat directly.  Landlord contribution requirement waived for state-financed public housing.  HUD assisted units may be weatherized based on funding availability. Priority will be given to HUD units in which residents pay for their heat. National Housing Trust, Weatherizing Multifamily Housing
  • 14. Maine WAP  MaineHousing is currently reviewing its multifamily policy.  Proposing to limit the percentage of multifamily units weatherized per year to the proportion of eligible consumers living in multifamily housing in each county.  Multifamily properties must have resident-paid utilities (without utility allowances) to be eligible. National Housing Trust, Weatherizing Multifamily Housing
  • 15. Vermont WAP  Coordination between state WAP agency and VT Housing and Conservation Board, VT HFA, and local WAP providers.  Energy survey of owners to determine priority properties for WAP and other funding.  Identified 729 units in 89 properties to receive WAP services. National Housing Trust, Weatherizing Multifamily Housing
  • 16. Going Forward…  State advocacy is important- There are good examples of state level coordination  Partnering with local WAP providers important as well  Must make the case that weatherizing affordable housing benefits tenants  How to apply Weatherization funds in LIHTC properties without affecting eligible basis? National Housing Trust, Weatherizing Multifamily Housing
  • 17. Resources  Enterprise/National Housing Trust Partnership  State and local best practices  “Green Mini Loans”- eligible uses include third party expenses needed to apply for federal stimulus funds  nhtinc.org and enterprisecommunity.org  Additional resources:  DOE Multifamily Guidance/Lists of Income Eligible Properties http://apps1.eere.energy.gov/wip/eligibility_hud.cfm WAPTAC.org National Housing Trust, Weatherizing Multifamily Housing
  • 18. For more information: Todd Nedwick National Housing Trust  E-mail: tnedwick@nhtinc.org  Address: 1101 30th St, NW, Suite 400 Washington, DC 20007  Phone: (202) 333-8931  Web: www.nhtinc.org National Housing Trust, Weatherizing Multifamily Housing