2010 WAP State Managers’ Meeting
Multifamily Buildings
September 23, 2010
Jennifer Somers
Weatherization and Intergovernmental Program
Office of Energy Efficiency and Renewable Energy
Grant Guidance
Jennifer Somers
Context: Renewed Interested in WAP by MultiFamily Building Owners
•WPN: 10-15 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
440.22, eligible dwelling units (75 Fed Register 3847).
Jennifer Somers
Basics of Low-Income Housing Tax Credit
(LIHTC) :
• Based on Section 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
• http://www.hud.gov/offices/cpd/affordablehousing/training/web/liht
c/basics/
Jennifer Somers
WAP Enabling Legislation
• 10 CFR 440 - 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 LowIncome Tenants in Multi-Family Buildings Under the
Weatherization Assistance Program
Grant Guidance
Jennifer Somers
Guidance on Accrual of Benefits to Low-Income
Tenants in Multi-Family Buildings Under the WAP
WPN: 10-15A
EFFECTIVE DATE: April 8, 2010
Establishes procedures to ensure that benefits of WAP connected with multifamily 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 440.22(b)(3)(i).
Grant Guidance
Jennifer Somers
Guidance on Accrual of Benefits to Low-Income
Tenants in Multi-Family Buildings Under the WAP
WPN: 10-15A
EFFECTIVE DATE: April 8, 2010
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:
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Longer term preservation of property as affordable housing
Continuation of protection against rent increases beyond that required under
WAP regulations (10 CFR 440.22(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
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 20 - 25%
Jennifer Somers
WAP State Manager Response
Please provide us with your insights and feedback!
Claire Broido Johnson [email protected]
Jennifer Somers
[email protected]