LeadingAge hosted a call with the Department of Housing and Urban Development (HUD) staff on January 8 to discuss the agency’s new energy benchmarking initiative for Multifamily Housing properties as part of our weekly members-only Housing Network calls for affordable senior housing providers.

In December, HUD announced the free benchmarking initiative for Multifamily Housing properties, funded through the Inflation Reduction Act (IRA). This new free service provides participating multifamily property owners with data on energy and water consumption at their properties.

Eligible properties opting into the program receive personalized support in assessing the efficiency of their buildings for up to four years. Properties can also utilize the resulting benchmarking score to demonstrate need during a funding application for the Green and Resilient Retrofit Program (GRRP).

HUD staff shared that over the next four years, the agency intends to enroll 40% of its eligible portfolio into the energy benchmarking service—approximately 9,500 properties total, or over 2,300 per year. HUD reported that the agency is currently ahead of its enrollment goal for early 2024.

After hearing feedback from LeadingAge housing provider members, HUD acknowledged that utility companies have not always immediately cooperated to release utility information and promised HUD action soon to help ease the path.

Energy Benchmarking Call Highlights

During the call, HUD staff reviewed the benchmarking initiative and answered the following questions from LeadingAge members.

Q: What does the initiative cost?

A: Funded with $42.5 million through the Inflation Reduction Act, the benchmarking service is free for owners of properties participating in HUD’s Multifamily Assisted Housing programs, including Section 8 project-based rental assistance, Section 202 Housing for Low-Income Elderly, Section 811 Housing for Low-Income Persons with Disabilities, and Section 236 Preservation programs.

Q: How can properties sign up?

A: HUD’s contractor Leidos will conduct outreach to properties to receive personalized support in accessing utility data. Housing providers can also email mfbenchmarking@hud.gov with their property ID/contract number at any time to sign up.

Q: Why should housing providers sign up?

A: Properties may want to know what their energy and water efficiency is so that they can target building improvements to save on utilities. Properties may also be subject to state or local requirements for energy benchmarking, or they may want to apply for funding (like the GRRP grants and loans).

Q: How long is the commitment and when do properties need to make a decision?

A: Owners can opt in at any time during the four-year initiative, but sooner is better because it generates more data for the property. Properties participating in the initiative longer can also measure efficiency over time. If properties are applying for GRRP grants or loans, properties should enroll in the benchmarking initiative as soon as possible to meet application deadlines.

Q: How much work will it entail?

A: HUD’s contractor is conducting most of the work to conduct energy assessments. Leidos will need to work with properties to gain access to certain utility accounts, but in most cases, this will take minimal work from housing providers.

Q: How can properties share the benefits of energy and water savings with residents without impacting their rent calculations?

A: HUD is encouraging providers to find ways to pass energy savings benefits on to residents. This can be financial (through a credit on utility bills, which does not count as resident income for rent determination purposes), or through indirect ways as outlined in this HUD memo.

Q: Do properties need to be involved with the Green and Resilient Retrofit Program’s (GRRP) funding applications to participate in the free energy benchmarking initiative?

A: No, the benchmarking service is open to all eligible properties. Properties applying for GRRP funds will need to submit energy benchmarking documentation and can utilize the agency’s free service to fulfill application requirements.

Additional Q&As from HUD are available here, and HUD’s slides from the LeadingAge call are available to members here.

To join LeadingAge’s weekly Housing Network calls, reach out to Linda Couch (lcouch@leadingage.org) or Juliana Bilowich (jbilowich@leadingage.org).

Not a LeadingAge member? Join here.