Representatives Jim Himes (D-CT-3), Dennis Ross (R-FL-15), Sean Duffy (R-WI-7), Emanuel Cleaver (D-MO-5) John Delaney (D-MD-6) and Ann Wagner (R-MO-2) have introduced groundbreaking “Pay-for-Success” legislation to increase energy efficiency in multifamily rental housing and reduce the $7 billion spent annually by the U.S. Department of Housing and Urban Development (HUD) on energy and water. The bipartisan supported bill H.R. 5104 would enable HUD to partner with intermediaries such as Enterprise Community Partners, Inc. (Enterprise), the Low Income Investment Fund (LIIF), and Stewards of Affordable Housing for the Future (SAHF) to finance energy and water upgrades at HUD-assisted properties that do not have the resources to replace inefficient systems.
Under the new law, intermediaries would raise private capital from philanthropic organizations and social impact investors, and then work with energy service companies and others to make water and energy improvements at HUD-assisted properties. Improvements could include adding insulation, replacing inefficient light and water fixtures, and adding new systems controls. An independent third party would then verify to HUD that reductions in energy and water usage are actually happening, and, if cost savings are realized, HUD would remit a portion of the savings to repay investors.
“This law will enable affordable rental developments to get the upgrades they need quickly and efficiently, with no additional costs to government,” says Terri Ludwig, president and CEO of Enterprise Community Partners. “We thank Representatives Himes and Ross for their leadership in introducing this legislation, and we look forward to helping modernize developments across the country to benefit the residents who call them home.”
“Using a pay-for-success strategy to support energy and water efficiency in HUD-assisted properties is an innovative, forward thinking approach to addressing our nation’s most important social and environmental challenges,” says Nancy O. Andrews, President and CEO of the Low Income Investment Fund. “We applaud Representatives Himes and Ross for introducing legislation that will help low income families and neighborhoods benefit from greener, more efficient homes.”
“All three organizations believe this legislation will provide the critical resources needed to have energy retrofits performed, lowering HUD’s energy and water costs and providing better quality housing for residents living in these properties,” says SAHF Energy President Rick Samson.
For more information, visit www.hud.gov.