Recently in Section 8 Category

Green Operation is operation of an Eligible Project that complies with the Green Retrofit Owner Commitments. Green Operation includes, without limitation:

a. The use of Green Components (as defined in the Green Retrofit Owner Commitments) where prudent and appropriate for operations and replacements;
b. Materially lower use of chemicals thought to be harmful to humans for cleaning and maintenance;
c. Adherence to Integrated Pest Management (IPM) principles;
d. Maintenance of a Green property management qualification as required by HUD;
e. Providing access to the project and its records for the preparation of any post-closing analyses required by HUD;

Green Retrofit.

Green Retrofit means a retrofit, acceptable to HUD, that has one or more of the following attributes, when compared with the comparable component that would normally be used by owners of similar properties in the same market area:

a. Materially lower electric / heating fuel / water consumption.
b. Materially lower emissions of chemicals thought to be harmful to humans.
c. Materially longer useful life.
d. Materially more biodegradable.
e. Materially more easily recycled.
f. Materially lower use of raw materials/materially more recycled content.
g. Materially lower transportation costs of products delivered to the project.
h. The determination of materiality shall be made in HUD's sole discretion.

Integrated Pest Management (IPM)

IPM is defined in detail in the Green Retrofit Owner Commitments. It is an approach to pest management focused on preventing the entry of pests and the early detection of infestations, in order to minimize the use of pesticides. IPM also involves selecting the least toxic pesticide that is likely to be effective in combating the identified infestation. IPM does not permit the use of pesticides (including low-toxicity pesticides) unless there is an identified infestation. IPM minimizes the use of fogging and spraying application techniques in favor of baiting techniques. Additional information on IPM is available from the GRP web site.

Products and Appliances.

If not currently installed: low-flow faucet aerators, low-flow shower heads, and low-flush toilets. The GRPCA shall recommend low-flow faucets if faucets need to be replaced.
ii. ENERGY STAR rated refrigerators, for existing refrigerators having 15 percent or less remaining useful life.


ENERGY STAR rated dishwashers, for existing dishwashers having 15 percent or less remaining useful life.
b. Heating and Cooling.
i. Recommended HVAC unit sizes and efficiency ratings determined by the GRPCA provider using methodology acceptable to HUD.
ii. ENERGY STAR rated HVAC systems, for existing systems having 15 percent or less remaining useful life. However:
A. The GRPCA provider may recommend evaporative cooling in lieu of air conditioning for Eligible Projects in appropriate climate zones. B. If the Eligible Project has Packaged Terminal Air Conditioner (PTAC) units, the GRPCA provider may recommend Packaged Terminal Heat Pumps, PTAC units, or conversion to central air conditioning.
c. Water Heaters. High efficiency domestic hot water heaters, for existing hot water heaters having 15 percent or less remaining useful life. If natural gas is used for domestic hot water heating, the GRPCA provider shall recommend ENERGY STAR rated natural gas fired hot water heaters. Otherwise, the GRPCA provider shall recommend the highest efficiency units that are cost-justified for the Eligible Project, using analytical methods approved by HUD.

Building Envelope.

i. ENERGY STAR rated windows, for all existing single-pane windows and for any other existing windows having 15 percent or less remaining useful life.
ii. ENERGY STAR rated sliding glass doors, for all existing sliding glass doors having 15 percent or less remaining useful life.
iii. ENERGY STAR rated storm doors, for all existing storm doors having 15 percent or less remaining useful life, but not when used with ENERGY STAR rated exterior doors.
iv. ENERGY STAR rated exterior doors, for all existing doors opening to unheated/uncooled areas having 15 percent or less remaining useful life, but not when used with ENERGY STAR rated storm doors.
v. Additional insulation in accessible areas, to the current new construction code requirement. If additional insulation beyond the new construction codes requirement can be cost-justified, using analytical methods approved by HUD, the GRPCA provider shall recommend such addition insulation.

Lighting.

i. ENERGY STAR rated interior compact fluorescent light bulbs.
ii. Replacement of lighted exit signs with LED fixtures.

Ventilation and Indoor Air Quality.

i. ENERGY STAR rated ceiling fans, for all existing ceiling fans having 15 percent or less remaining useful life.
ii. Bath and kitchen exhaust ducted to the outside, if practicable.
iii. ENERGY STAR rated bath and kitchen exhaust fans to replace existing ducted fans having 15 percent or less remaining useful life.

Building Envelope.

i. ENERGY STAR rated windows, for all existing single-pane windows and for any other existing windows having 15 percent or less remaining useful life.
ii. ENERGY STAR rated sliding glass doors, for all existing sliding glass doors having 15 percent or less remaining useful life.
iii. ENERGY STAR rated storm doors, for all existing storm doors having 15 percent or less remaining useful life, but not when used with ENERGY STAR rated exterior doors.
iv. ENERGY STAR rated exterior doors, for all existing doors opening to unheated/uncooled areas having 15 percent or less remaining useful life, but not when used with ENERGY STAR rated storm doors.
v. Additional insulation in accessible areas, to the current new construction code requirement. If additional insulation beyond the new construction codes requirement can be cost-justified, using analytical methods approved by HUD, the GRPCA provider shall recommend such addition insulation.

Lighting.

i. ENERGY STAR rated interior compact fluorescent light bulbs.
ii. Replacement of lighted exit signs with LED fixtures.

Ventilation and Indoor Air Quality.

i. ENERGY STAR rated ceiling fans, for all existing ceiling fans having 15 percent or less remaining useful life.
ii. Bath and kitchen exhaust ducted to the outside, if practicable.
iii. ENERGY STAR rated bath and kitchen exhaust fans to replace existing ducted fans having 15 percent or less remaining useful life.
iv. No or Low-volatile organic compound (no/low-VOC) cabinets, or sealing open surfaces and cut edges, when replacing kitchen cabinets and bath vanities.
v. Use of no/low-VOC paint and sealants for interior applications.
vi. Carbon monoxide alarm on each occupied floor of the unit, near the bedroom, if there is a nearby combustion source.

Other Green Features.

i. Any recommended landscaping improvements are required to evaluate practical water conservation measures including xeriscaping.
ii. Any physical changes needed to facilitate integrated pest management approaches.
iii. Up-front changes to facilitate recycling of household wastes, if practicable considering the property configuration and the local recycling options.
iv. Maintenance of a collection point within the Eligible Project for hazardous wastes (e.g., electronic equipment, computer printer ink, compact fluorescent bulbs, lithium batteries) of tenants and of the Eligible Project, and environmentally sound disposal of such wastes, if the Owner determines that to do so is operationally practicable and financially reasonable.

Green management of rehabilitation/construction debris.

Optional Green Alternatives.

In the interest of simplifying implementation of the GRP, HUD provides participating Owners with the option for the GRPCA not to evaluate certain advanced and/or high-cost Green alternatives that the Owner is not seriously interested in pursuing. When the Owner applies to participate in the GRP, the Owner may indicate its willingness to consider each of the optional Green alternatives listed below. More information on each of these optional Green alternatives is available from the GRP web site, and HUD encourages Owners to carry out their own due diligence as well. The GRPCA will evaluate each optional Green alternative only if the Owner states a serious willingness to consider it:

a. Combined heat and power ("CHP", sometimes also referred to as co-generation). CHP utilizes a generator to produce electric power for use in the building, and captures the resulting heat for use to heat the building. Ideal candidates for CHP are large buildings, with central hot water generation, that can or could utilize centrally generated hot water for heating, in areas with electricity costs above 10 cents per kilowatt hour.

b. Green energy. Solar, wind or geothermal system installations that would provide an alternate energy source for the Eligible Project. Solar installations are photovoltaic panels that convert sunlight into electricity. Wind installations are windmills or wind turbines which, in areas with frequent wind activity, convert wind into electricity. Geothermal installations take advantage of the near constant temperature below ground and use that as a source of heat in the winter and cooling in the summer.

c. Fuel Cells. Fuel cells owned by a property to produce electricity from natural gas or hydrogen are becoming less expensive and can be an efficient source of electric power.

More information from HUD

Green Building is an approach to sustainable development that is designed to result in a property that reduces energy demand, costs less to operate, improves the residents' quality of life, and reduces its impact on the environment. This Notice uses the terms "Green Retrofit Program" and "GRP" to refer to the various authorities discussed above. Issuance of this Notice implements the Green Retrofit Program.

Grants and loans will be made available through HUD's Office of Affordable Housing Preservation (OAHP) for eligible property owners to make energy and green retrofit investments in the property, to ensure the maintenance and preservation of the property, the continued operation and maintenance of energy efficiency technologies, and the timely expenditure of funds.

Physical and financial analyses of the properties will be conducted to determine the size of each grant and loan. Incentives will be made available to participating owners. The terms of the grants or loans will include continued affordability agreements. Grant and loan funds must be spent by the receiving property owner within two years. Full detail of how to apply, and grant and loan terms, will be published in a Housing Notice on May 13, 2009.

Green Retrofit Program (GRP) for Section 202, Section 811, and Project Based Section 8

Information from HUD

All materials noted as being available from the GRP web site may be found at http://portal.hud.gov/pls/portal/url/page/recovery/programs/green or www.hud.gov/recovery .

The Section 8 housing program is designed to increase the housing choices available to very low-income households by making privately-owned rental housing affordable to them. It provides rent subsidies, either rental certificates or vouchers, on behalf of eligible tenants.

These subsidies usually equal the difference between 30% of the household's adjusted income and the HUD-approved fair market rent (for certificates) or the PHA-approved payment standard (for vouchers). 

Elderly, Disabled, and Section 8 Assisted Housing Energy Retrofits

ARRA provides $2.5 billion to the Green Retrofit Program (GRP) for Section 202, Section 811, and Project Based Section 8.  These funds are to be used for projects that include measures to promote energy efficiency and sustainability such as Energy Star appliances and products, insulation, windows, etc.  These projects are to be administered by HUD OAHP.  Funds can be distributed as either grants or loans of up to $15,000 on an individual project, with an expected average of $10,000.  Funds may be applied for any time after June 15^th, 2009 until funds are distributed.  Properties that apply for the GRP do not have to refinance, and properties that have already participated in the HUD OAHP Green Initiative or that are described in Section 516(a)(4) of MAHRA are not eligible.  More details are available in the GRP NOFA.

Weatherization of Section 8 Housing includes improving the thermal integrity of buildings by the installation of energy saving measures or equipment.

HUD Incentives to Reduce Utility Costs

Energy Conservation Measures (ECMs) can increase property values and improve the condition of the public housing stock. HUD incentives allow capital funds and any extra energy savings from ECMs to be allocated by the housing authority toward needed repairs and other eligible expenses. The incentives also reduce HUD's payments to public housing authorities for utility bills.

These incentives do not override the standard Performance Funding System treatment of savings from conservation measures but offer additional options for allocating savings.

If you are considering using these incentives read 24 CFR 990 and 24 CFR 905. Contact the HUD office in your region for approval and implementation.

Cost/Benefit Analysis of Energy Conservation Measures

U.S. Department of Energy  helps select appropriate cost/benefit analyses and helps select the actions that have the best savings potential. The DOE provides instruction on simple payback analysis, standardized payback equations, life-cycle cost analysis, and selecting the "best" alternatives. The site also includes a life-cyle cost calculator.

Simple Payback Analysis

A highly simplified form of cost/benefit analysis is called simple payback. In this method, the total first cost of the improvement is divided by the first-year energy cost savings produced by the improvement. This method yields the number of years required for the improvement to pay for itself. For new construction, it can be used to evaluate conventional construction to energy-efficient design alternatives.

In simple payback analysis, the assumption is that the service life of the energy efficiency measure will equal or exceed the simple payback time. Simple payback analysis provides a relatively easy way to examine the overall costs and savings potentials for a variety of project alternatives. However, it does not consider a number of factors that are difficult to predict, yet can have a significant impact on cost savings. These factors may be considered by using a more sophisticated life-cycle cost analysis.

Standardized Payback Equations

One option is to take advantage of a building energy measurement and verification guideline that standardizes procedures for quantifying energy savings from energy-efficiency projects. Called the International Performance Measure Measurement and Verification Protocol (PDF 2.5 MB) guideline reduces risk and standardizes paperwork. It also enables loans to be bundled together and sold on a secondary market, like mortgages.