DOE Weatherization Assistance Program: Expanded Access for Multifamily Firms

On January 25, 2010, the U.S. Department of Energy (DOE) issued final rules streamlining the Weatherization Assistance Program (WAP) application process. 

Under the new NMHC/NAA-supported rule, if a public housing, assisted multifamily or Low Income Housing Tax Credit (LIHTC) building is identified by the U.S. Department of Housing and Urban Development (HUD) and included on a list published by DOE, that building meets certain income eligibility and may meet other WAP requirements without the need for further evaluation or verification.

DOE List of Eligible Multifamily Buildings 

Prior to these new rules, which are effective as of February 24, apartment properties had to verify the income of every resident to apply for weatherization funds, even though HUD and the IRS were already collecting resident income verification data for subsidized properties.

The rule further provides that these properties automatically satisfy one or both of the other program eligibility requirements regarding prohibitions against rent increases and excessive enhancements to the property.

Since 2006, NMHC/NAA have urged the DOE and HUD to make these changes to application process.  The new rules should allow our industry greater access to the $5 billion allocated to the program by last February's economic stimulus bill (P.L.111-5).

NMHC/NAA and the National Leased Housing Association submitted comments on the DOE's May 21, 2009 proposed rule.  While we were supportive, we express concern that the proposed language allows state and local programs to treat multifamily projects as a secondary priority to single-family applicants. 

This action follows new guidance issued by the DOE making it easier for apartment properties to access Weatherization funds.

In addition to providing additional funding for the program, the economic stimulus bill (P.L. 111-5) also made significant changes to the program that could benefit the apartment sector.  Among other things, it expanded income eligibility requirements from "150 percent” to “200 percent” of poverty and raised funding limits from $2,500 per dwelling unit to $6,500 per unit. 

Most importantly, however, the DOE has changed its policy on multifamily eligibility.  The guidance directs state and local weatherization offices to review all policies that establish greater qualification or application requirements for multifamily buildings than those required by DOE. 

The DOE and HUD have also formed a joint task force that will: manage the retrofitting efforts under the stimulus funding; provide guidance to public and assisted housing; coordinate expenditure of economic recovery funds; develop a common baseline for measuring energy-efficiency measures; and develop new home energy financing products. 

NMHC/NAA joined with the National Leased Housing Association to reach out to the newly formed DOE/HUD task force created to collaborate and offer assistance in working through issues relevant to the multifamily industry.