Energy Efficiency in HUD Programs

Information by State  Print version   ENERGY STAR HUD Joins Partnership to Increase Energy Efficiency, Affordability in Public Housing HUD, EPA, and DOE signed a formal partnership to promote ENERGY STAR throughout HUD's affordable housing programs. more... | Press Release | ENERGY STAR | HOME and ENERGY STAR Want More Information? Q. Can HUD programs be used to assist in paying utility bills? A. The primary program for assisting low income households with their utility bills is the Low Income Home Energy Assistance Program (LIHEAP) administered by the Office of Community Services, Department of Health and Human Services. Call 1-866-674-6327 for information about how to get assistance in your state or see the website. Community Development Block Grant (CDBG) funds can be used for utilities in an emergency for up to three months. See 24CFR570.207(b)(4). McKinney Act program funds can be used to prevent homelessness under conditions identified in 24CFR 576 and Section 414(a)(4) of the Act. HOME program funds cannot be used for such utility assistance.

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Federal Housing Administration   Public and Indian Housing   Community Planning and Development   Office of Healthy Homes and Lead Hazard Control

Federal Housing Administration (FHA)

FHA Energy-Efficient Mortgages

In 1992 Congress mandated a pilot demonstration of energy-efficient mortgages (EEMs) in five States. In 1995 the pilot was expanded as a national program. FHA insured 16,000 EEMs in FY1998 (1.5 percent of total FHA loans) 30,044 EEMs in FY1999 (2.3 percent of total FHA loans) and 28,578 in FY2000 (3.1 percent of total FHA loans).

EEMs recognize that reduced utility expenses can permit a homeowner to pay a higher mortgage to cover the cost of the energy improvements on top of the approved mortgage. FHA EEMs provide mortgage insurance for a person to purchase or refinance a principal residence and incorporate the cost of energy-efficient improvements into the mortgage. The borrower does not have to qualify for the additional money and does not make a downpayment on it. The mortgage
loan is funded by a lending institution, such as a mortgage company, bank, or savings and loan association, and the mortgage is insured by HUD.

Home Energy Rating Services

For sources of home energy ratings, visit:

• Residential Energy Services Network (RESNET)
  Visit RESNET for background information on home energy ratings and energy efficient mortgages, plus a listing of certified home energy ratings by state.
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• National Center for Appropriate Technology (NCAT)
  Offers a Home Energy Rating Service with certified energy raters to help developers or homeowners achieve Energy Star ratings.
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Public and Indian Housing (PIH)

Public Housing Utility Efficiency Programs

HUD’s Office of Public and Indian Housing (PIH) has been working actively with local public housing authorities (PHAs) to reduce the cost of utilities. Efforts include:

	Establishing requirements and incentives to encourage lower consumption.
	Providing incentives to use innovative funding techniques and reduce utility rates.
	Providing technical assistance to PHAs to increase their application of cost-effective energy conservation.
	Launching an initiative with DOE to use Rebuild America partnerships to help PHAs undertake energy conservation measures.
	Contracting with the National Center for Appropriate Technology (NCAT) to establish and manage a clearinghouse to assist public housing authorities with energy efficiency.
	Establishing PHA assessment systems that include evaluation of energy-efficiency efforts.

Community Planning and Development (CPD)

The major CPD funding of $6 billion for Community Development Block Grants and HOME assistance is provided by formula to states, localities and non-profit organizations for use within broad guidelines related to eligible activities. In addition, $800 million is made available by competition to local providers of assistance for the homeless. The emphasis therefore will continue to be on energy advice and guidance. Localities commit considerable funding for rehabilitation of buildings to meet local code standards.

For the community and economic development funding, including Empowerment Zones and Enterprize Communities, the Department wishes to assure that the development is done with the utmost energy efficiency and, where possible, that the community is able to offer reliable reasonably priced energy to encourage that development.

Community Development Block Grant (CDBG)

Congress gave the Community Development Block Grant (CDBG) Program Act of 1974, as Amended (P.L. 93-383), a special energy mandate in 1980 that still supports use of CDBG funds for such eligible activities as improving energy efficiency in property rehabilitation and helping neighborhood groups carry out energy conservation projects.
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HOME
The National Center for Appropriate Technology (NCAT) announced a new service for Community Housing Development Organizations and builders that participate in HUDHOME programs. The “affordable sustainability technical assistance” (ASTA) Web site was launched on Tuesday, March 13, 2001.

HomeASTA is designed to provide technical assistance to recipients of HOME grants to incorporate sustainable design into affordable housing. The Web site serves the needs of the affordable housing developer by providing step-by-step recommendations on how to make single-family home construction projects more sustainable in the areas of resources, energy use, and occupant health. The site offers an overview of the principles of sustainable design to introduce their application in affordable housing. Links to additional sources of detailed information help to illustrate how actual projects are realizing the tremendous potential for creating affordable, sustainable homes. This site helps developers learn more to capture the significant environmental and social benefits of sustainable design without compromising their ability to meet project budgets. Contact: Jim Maunder or call 866–367–6228.
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Homeless
In order to help localities to address in a coordinated fashion the many dimensions of the problem of homelessness, HUD has proposed to reorganize the McKinney programs into a vehicle for providing a "continuum of care."

Renewal Communities/ Enterprise Zones/ Entitlement Communities (RC/EZ/EC)
In 1993 an emphasis on sustainability was introduced in the Empowerment Zone-Enterprise Community (EZ-EC) program. SCD is one of the program's four key principles and key selection criteria. The Consolidated Partnership Strategy manual "Strategies for Community Change" of HUD-CPD for guiding the Consolidated CDBG program identifies sustainability as an objective. The EZ-EC key selection criteria specifies "open spaces, recreational areas, cultural institutions, transportation, energy, land and water uses, waste management, environmental protection, and the quality of life in the community." This term SCD therefore stands as an overarching theme, framework or premise to serve in the local, state and federal integration, coordination and consolidations provided for in the 1994 HUD Act. Activities of this SCD nature call for energy efficiency concerns to be introduced into broadly framed local development agendas and therefore should include:

Office of Healthy Homes and Lead Hazard Control

HHI (Healthy Homes Initiative) activities focus on researching and demonstrating effective assessment and intervention methods, and on public education. Eligible activities include developing methods for assessment and interventions, evaluating the effectiveness of interventions, building local capacity, and developing and delivering public education programs.
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