Collaboration among federal agencies has removed a huge bureaucratic roadblock
to effective use of $5 billion for weatherization of residential structures, as
the Department of Energy (DOE) will now rely on existing income
eligibility verifications for federally assisted housing rather than imposing
its own standards.
In new regulations for the weatherization of federally subsidized affordable
housing units, DOE will waive its own income verification requirements for weatherization
grants and use the system already established by the Department of Housing and
Urban Development (HUD) for verifying tenant income levels in subsidized
affordable housing.
The final rule, which was published on January 25, takes
effect on February 24, final
rule could affect hundreds of thousands of public housing and affordable
housing units subsidized by HUD, Low Income Housing Tax Credits (LIHTC), and
the Department of Agriculture’s Rural Development Program.
Under WAP eligibility rules, two-thirds of the households in
a multifamily building must have incomes at or below 200% of the federal
poverty level, or about $44,000 per year for a family of four. If that
requirement already has been met under HUD or LIHTC guidelines, then the
building automatically meets income eligibility requirements for weatherization
funding. HUD will compile a list of the qualifying properties to DOE.
DOE and HUD began planning for the regulation changes last
year after announcing an interagency partnership with a memorandum of
understanding.
“HUD is committed to making public housing more green while
keeping it as affordable as possible for working families, particularly in
these challenging economic times,” HUD Secretary Shaun Donovan said. “This
partnership will ensure that HUD and DOE together can play a significant role
in the administration's goal to weatherize 1 million homes while at this same
time serving a population in need.”
DOE awards
weatherization grants to state agencies which then contract with local agencies
to provide weatherization services. Under the new DOE regulations, grantees
must ensure that tenants aren’t subject to rent increases for a reasonable time
after weatherization upgrades are completed. Grantees also must show that
weatherization funding is focused solely on renovations which benefits tenants,
such as through utility cost savings, preservation of affordable housing, or
improved living conditions.
DOE has not amended regulations regarding financial participation
from multifamily building owners, but states may require some contributions
when it is feasible. Many states, including Kansas, Virginia, and New York, are
reducing or waiving this requirement or are negotiating about financial
contributions with building owners.
DOE Secretary Steven Chu called the weatherization funding
“a critical investment in home energy efficiency.”
“By making it as easy as possible for families to weatherize
their homes, we can create new jobs that can’t be shipped overseas, save
families money on their energy bills, and take another step toward energy
independence,” Chu said.