ARRA Resources for WeatherizingMultifamily Housing:

A Unique Opportunity to Help Low Income Families and Reduce Energy Consumption

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The Good News…

“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 ProgramsU.S. Department of Energy

From DOE Memorandum to Grantees:

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The Bad News…

“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 ProgramsU.S. Department of EnergyJanuary 27, 1984

From DOE Memorandum to Grantees:

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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

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Many Factors InfluenceWAP 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

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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

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HUD-DOE PartnershipStreamlines Eligibility

Housing Program

Income Eligibility Protection from Rent Increases

Ensure Benefits Accrue to Tenants

Project-based Sec. 8, Public Housing

HUD has identified income eligible properties

Requirement met if contract expires in 3 yrs or beyond

Up to states to set policy

LIHTC HUD/DOE working together to identify income eligible properties

Up to state or local WA P provider to determine

Same as above

Sec. 515 RD has identified income eligible properties

Up to state or local WAP provider to determine

Same as above

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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

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

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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

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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

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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.

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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.

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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.

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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.

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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?

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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

Todd Nedwick

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

For more information: