There are three basic organizational management model options when adding an energy efficiency component to your rehabilitation program. These models are from the Energy Conservation and Housing Rehabilitation Under the HOME Program Model Guide (HUD-1469-CPD-May 1994).

1. Housing Rehabilitation Agency Lead Model.
   • The Grantee employs the local energy conservation company on a subrecipient or contractual basis for advice on energy efficiency techniques and practices and to repair equipment.
   • The Grantee pays for the rehabilitation and manages the project.
   • The energy conservation agency serves only as contractor.
     
     Many grantees operate their housing rehabilitation program in this manner. The Grantee contracts with an energy conservation agency as it would with any contractor.
     
     
2. Housing Rehabilitation Agency Lead/Joint Funding Model.
   • The Grantee is the lead agency on the rehabilitation project and the energy conservation agency provides construction services as well as funding for the project.
   • The Grantee and energy conservation agency share the costs of the project by contributing their own funding sources towards the project at hand.
     
     It is essential that both parties ensure that energy conservation criteria as well as HUD funding requirements are met. This will require:
     • Eligibility reviews to be conducted by both the energy conservation agency and the Grantee.
     • See Models for Joint Housing for more detail.
       
       

   The two agencies will determine which agency will pay for the individual repair. For example, the Grantee may elect to cover the structural repairs and the energy conservation agency may elect to pay for the replacement of a furnace and windows.
   
   

3. Energy Conservation Agency Lead Model.
   • The environmental energy conservation agency takes on the role of the Grantee in the first model.
   • The environmental conservation agency expands its ability to provide energy related rehabilitation by increasing its funding sources.
     
     Many Weatherization Assistance and Low-Income Energy Assistance programs in rural areas function in this manner, since there are no housing rehabilitation agencies or programs available. In this scenario, a State Grantee may convince the energy agency in expanding its operations to include general rehabilitation in exchange for State funding to the energy agency.