ARRA and HUD: Promoting Energy Efficiency & Creating Green Jobs ETA ARRA Grantee Institute HUD Presentation December 6, 2010 Presenters: Dan Esterling Virginia Flores

Public Housing Authorities Over 3,000 public housing authorities (PHAs) administer HUD programs to low-income households 2 million households use Housing Choice Vouchers to help pay for housing in the private market 1.2 million households live in public housing units 2 major forms of Federal subsidy appropriated annually to PHAs for public housing Operating Fund – $4.455 billion in 2009 Capital Fund – $ 2.45 billion in 2009

Public Housing Tenants 2009 Families with children – 40% Heads of Household Female – 74% Disabled – 32% Elderly – 30% Extremely Low Income (<30% AMI) – 70% Residents with any income from wages – 95% Average annual gross income – $13,351

HUD Priorities Job Creation Neighborhood Revitalization Activities that sustain economic development in low-income communities and job creation opportunities for low-income residents of HUD-assisted housing Neighborhood Revitalization HOPE VI – $124 million Choice Neighborhoods – $65 million for demonstration Sustainable Communities Regional Planning – $100 million Improving resident quality of life HOPE VI Community & Supportive Services (CSS) – up to 15% of grant can be used for services coordination and case management Family Self-Sufficiency (FSS) and Resident Opportunities & Self-Sufficiency (ROSS) – competitive grants to fund service coordinators

Recovery Act: Promoting Energy Efficiency & Creating Green Jobs Public Housing Capital Fund $4 billion invested in energy-efficient modernization and renovation of public housing inventory Native American Block Grants $510 million invested in energy-efficient modernization and renovation of housing maintained by Native American housing programs, and the development of sustainable communities Assisted Housing Retrofit $250 million invested in energy-efficient modernization and renovation of HUD-sponsored housing for low-income, elderly and disabled persons Lead Hazard Reduction $100 million invested in lead-based paint hazard reduction and abatement activities

Formula Recovery Act Public Housing Capital Fund $3 billion Allocated February 2009 On top of annual formula capital funds HUD provides over $2 billion in capital funding to PHAs annually To develop, finance and/or modernize public housing Funding can be used to make large-scale improvements such the replacement of roofs, plumbing and electrical systems to increase energy efficiency

Competitive Recovery Act Public Housing Capital Fund $1 billion designated to be awarded competitively Awarded September 2009 4 Categories: Category 1, Improvements Addressing the Needs of the Elderly and/or Persons with Disabilities $95 million Category 2, Public Housing Transformation $96 million Category 3, Gap Financing for Projects Stalled due to Financing Issues $200 million Category 4, Creation of Energy Efficient, Green Communities Option 1: Substantial Rehab/New Construction Option 2: Moderate Rehab $600 million

Allocation & Obligation of Funds See HUD Recovery Act web site for all ARRA formula allocations and competitive grant awards by program and recipient http://portal.hud.gov/portal/page/portal/HUD/recovery/programs Timeline: Obligate 100 percent of the funds within one year of the date funds become available (2010) Expend at least 60 percent within two years (2011) Expend 100 percent within three years (2012)

Assisted Housing Retrofit $250 million in grants and loans to private owners of subsidized multifamily housing properties Green and energy retrofits (improvements that conserve energy and water, improve indoor air quality or benefit the environment) Timeline: Obligate 100 percent of funds by 2011 Completion of retrofits by 2012

Section 3 What is Section 3? Who qualifies as a Section 3 resident? Set of legal obligations that requires PHAs and local governments to meet hiring and contracting goals on most projects that receive federal housing funds (Section 3 of the Housing and Urban Development Act of 1968) Who qualifies as a Section 3 resident? Public and assisted housing residents Low- or very low-income person living in metro area/non-metro county in which the Section 3 covered assistance is expended

Section 3 (cont’d) What is Section 3 covered assistance? Public Housing development, capital and operating funds (for construction, development, maintenance, modernization, and operations) Other housing and community development assistance of at least $200,000 expended for housing rehabilitation, housing construction or other public construction projects Examples: CDBG, HOME, Supportive Housing for the Elderly or Persons with Disabilities, Lead-Based Paint Abatement

Lessons Learned from Section 3 Successful Section 3 programs: Staff member dedicated to Section 3 Strong relationship with developer and clear pipeline to upcoming jobs Case management integrated with Section 3 training and job placement Section 3 plan that builds in lead time to identify interested residents and link to training/supports

Energy Performance Contracting (EPC) Energy Performance Contracting (EPC) is an innovative financing technique that uses cost savings from reduced energy consumption to repay the cost of installing energy conservation measures Key Elements: Contract with PHA, ESCO, 3rd party (lender) PHAs can also function as their own ESCO For Energy Conservation Improvements Funded by a 3rd party loan HUD provides financial incentives allowing the PHA to retain a portion of the energy savings for eligible operating expenses PHA repays the loan through energy savings or add-on subsidy

Section 3 and EPCs – Case Study Cuyahoga Metropolitan Housing Authority (CMHA) completed a $33.6 million EPC CMHA set and exceeded their goal of providing residents with 25 percent of the contracting hours Required contractors to conduct “hiring halls” at each site to process applications and conduct interviews Employed 80 resident workers from 24 different CMHA properties For more information, go online to www.hud.gov/offices/pih/programs/ph/phecc/newsletter/nov07.pdf New energy efficient lighting, furnaces and hot water heaters, and water conserving devices such as 1.6gpf pressure assisted toilets, low-flow showerheads, and faucet aerators were installed in nearly 7,000 residential housing units and in building common areas.

Contact HUD Please contact us to discuss: How to connect with your local PHA about: Section 3 employment opportunities through the PHA and/or its contractors Service coordination supports for residents in preparing for, obtaining, and maintaining employment Workforce development programs and partnerships How to identify HUD investments in your city/region Any other questions…

HUD Contacts Dan Esterling (202) 402-6276 Daniel.M.Esterling@hud.gov Virginia Flores (202) 402-6270 Virginia.Flores@hud.gov Jessica Rosenberg (202) 402-5940 Jessica.L.Rosenberg@hud.gov Ron Ashford (202) 402-5940 Ronald.T.Ashford@hud.gov

HUD Resources HUD Recovery Act Programs http://portal.hud.gov/portal/page/portal/HUD/recovery/programs Section 3 (see FAQs link) http://www.hud.gov/offices/fheo/section3/section3.cfm Public Housing Energy Conservation Clearinghouse http://www.hud.gov/offices/pih/programs/ph/phecc/eperformance.cfm HOPE VI Community & Supportive Services http://portal.hud.gov/portal/page/portal/HUD/recovery/partnerships Resident Opportunities and Self-Sufficiency (ROSS) http://www.hud.gov/offices/pih/programs/ph/ross/index.cfm Family Self-Sufficiency (FSS) http://www.hud.gov/offices/pih/programs/hcv/fss.cfm