Topic Overview

Energy and water costs are commonly the largest single housing expense after food and shelter for lower-income families. Often, utility costs are an overlooked component of housing costs. Yet, utility costs often represent 14 percent or more of lower-income annual gross incomes and account for nearly one-fourth of total housing costs. When rent and utility payments are combined, the housing often is not affordable for low-income families.

The average U.S. household spends about $1,300 each year on utility bills. By making energy saving improvements to homes, energy bills can be reduced by about 30 percent. Additionally, awareness of common problems, coupled with proper use of existing technologies and management practices, can reduce utility costs significantly at a relatively low initial cost, thereby greatly increasing housing affordability for low- and moderate-income families.

After completing this topic, you will be able to:

• List the reasons why energy efficiency is important.
• Explain how energy efficiency relates to the affordability of a housing unit.
• Describe the impact of energy efficiency to low-income families.
• List ways energy is wasted in existing buildings.

This topic will cover the following subjects:

• Use of Energy and Affordability. Inefficient use of energy presents a serious challenge to the continued affordability of a housing unit and particularly impacts low-income families. As more families cannot afford their rent and utility payments, it is necessary for grantees to take measures to stop energy inefficiencies.
  
  
• Energy Efficiency and Housing Rehabilitation. Often, energy is wasted in existing buildings and units. Common problems contribute to the inefficient use of energy, therefore increasing the overall cost of the unit. By identifying these common problems and developing programs that coordinate rehabilitation and energy conservation work, a grantee can reduce the high costs caused by inefficient use of energy.