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2010 WAP State Managers’ Meeting Multifamily Buildings Weatherization and Intergovernmental Program Office of Energy Efficiency and Renewable Energy September.

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Presentation on theme: "2010 WAP State Managers’ Meeting Multifamily Buildings Weatherization and Intergovernmental Program Office of Energy Efficiency and Renewable Energy September."— Presentation transcript:

1 2010 WAP State Managers’ Meeting Multifamily Buildings Weatherization and Intergovernmental Program Office of Energy Efficiency and Renewable Energy September 23, 2010 Jennifer Somers

2 Context: Renewed Interested in WAP by Multi- Family Building Owners WPN: EFFECTIVE DATE: March 2, 2010 Department of Housing and Urban Development (HUD) and Department of Agriculture (USDA) identified multi-family buildings as eligible for WAP Reduces review and verification needed to weatherize if property is on one of three lists FINAL RULE: Federal Register, January 25, 2010 amending 10 CFR , eligible dwelling units (75 Fed Register 3847). Jennifer Somers Grant Guidance

3 Basics of Low-Income Housing Tax Credit (LIHTC) : Based on Section 42 of the Internal Revenue CodeSection 42 of the Internal Revenue Code Enacted by Congress in 1986 to provide private market with incentive to invest in affordable rental housing Developers receive tax credits for qualified projects, then sell credits to investors Investors receive a dollar-for-dollar credit against their Federal tax liability each year over a period of 10 years Grants to property financed with LIHTC reduce “eligible basis” of project, and therefore amount of tax credit for which LIHTC property is eligible Grants may be considered taxable income to LIHTC investors Low income occupancy threshold requirements c/basics/http://www.hud.gov/offices/cpd/affordablehousing/training/web/liht c/basics/ Jennifer Somers

4 WAP Enabling Legislation 10 CFR Weatherization Assistance Program is a grant program to low-income eligible families WAP benefits must accrue to low-income family, not the property owner Allowable expenses include: labor, weatherization materials, and related matters Allowable subgrantees include: non-profits, community action agencies, state and public agencies WPN 15A- Guidance on Accrual of Benefits to Low- Income Tenants in Multi-Family Buildings Under the Weatherization Assistance Program Jennifer Somers

5 Guidance on Accrual of Benefits to Low-Income Tenants in Multi-Family Buildings Under the WAP Establishes procedures to ensure that benefits of WAP connected with multi- family buildings comprised of rental units accrue primarily to low-income tenants residing in such units. Includes rental units where the tenant pays for the energy through rent (42 U.S>C. 6863(b)(5)(A); 10 CFR (b)(3)(i). WPN: 10-15AEFFECTIVE DATE: April 8, 2010 Jennifer Somers Grant Guidance

6 Guidance on Accrual of Benefits to Low-Income Tenants in Multi-Family Buildings Under the WAP IF TENANTS DIRECTLY PAY FOR ENERGY: Accrual of benefits requirements can be assured by demonstrating a reduction in tenants’ energy bills. IF TENANTS DO NOT DIRECTLY PAY FOR ENERGY: A combination of several categories of benefits could be used: Longer term preservation of property as affordable housing Continuation of protection against rent increases beyond that required under WAP regulations (10 CFR (b)(3)(ii)); Investment of energy savings in facilities or services that offer measurable direct benefits to tenants; Investment of energy savings from weatherization work in specific health and safety improvements with measurable benefits to tenants; Improvements to heat and hot water distribution, and ventilation, to improve the comfort of residents; and Establishment of a shared savings programs. Jennifer Somers Grant Guidance WPN: 10-15AEFFECTIVE DATE: April 8, 2010

7 Existing DOE Multi-Family Capacity DOE grants WAP funds to multi-family properties without any undue management or administrative burden Intergovernmental working group between HUD and DOE to further multi-family agenda Technical Assistance WAP funding available specifically for multifamily Promoting multifamily to ensure as a percentage of total it increases to % Jennifer Somers

8 WAP State Manager Response Please provide us with your insights and feedback! Claire Broido Jennifer Jennifer Somers


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