In 2013, the Department of Energy (DOE) partnered with HUD to expand the Better Buildings Challenge to the multifamily housing sector. Prior to the expansion to the multifamily housing sector, the Better Buildings Challenge had only supported commercial and industrial building owners by providing technical assistance and proven solutions to energy efficiency since President Obama announced the program in 2011. This expansion is part of President Obama’s Climate Action Plan, announced in June 2013, and recognizes the role that increased energy efficiency can play in reducing carbon pollution, fostering healthy communities, and improving the financial stability of housing assets. Multifamily residential buildings and operations can be made much more efficient using a variety of cost-effective energy improvements, while simultaneously creating jobs and building a stronger economy.
The Better Buildings Challenge is a voluntary leadership initiative that asks building owners and managers to make a public commitment to energy efficiency. Participating multifamily building owners and managers have committed to reducing energy consumption by at least 20 percent over 10 years. Better Buildings Challenge Multifamily Partners are leaders in market rate (unsubsidized) multifamily housing, Public Housing Authorities, Low-Income Housing Tax Credit (LIHTC) properties, and HUD-assisted multifamily properties.
HUD continues to work with DOE on the Multifamily Better Buildings Challenge, providing technical assistance to Multifamily Partners and ensuring they progress towards their ambitious energy efficiency goals. The Challenge is well on its way to its goal of 100 partners representing more than 400,000 households nationwide. Click here for further information.
- Better Buildings Solution Center
- Overview [PowerPoint Presentation]
- Expanding Better Buildings Challenge to Multifamily Housing
- Partnership Agreement
- List of Multifamily Partners
The Office of Multifamily Housing Programs is developing policy incentives to help address market and policy barriers for Multifamily Partners with HUD-assisted properties.
- Management Fee Incentive: Access to Add-on Fees for eligible energy and water efficiency activities.
- PRAC Pay for Success Incentive: Allow 202/811 PRAC properties to include energy savings associated with energy improvements as an eligible expense to the property budget.
- Reserve for Replacement Incentive: Expedited approval for energy and water efficiency capital improvements.
- On-Bill Financing and Repayment Incentive: Invite BBC Partners to take part in HUD-approved utility and third party programs. (COMING SOON!)
- Mark to Market Incentive: Incentive Performance Fee increase for meeting specific energy and water efficiency requirements.
- Increased Distributions: Up to 100 percent for non-profit Section 8 owners, based upon properties meeting annual energy reduction targets. (COMING SOON!)
The Office of Public and Indian Housing has committed to a 45-day review period for Energy Performance Contract applications submitted by Public Housing Authorities that also participate in the Better Buildings Challenge.
If your organization is interested in joining or would like more information, please email betterbuildingschallenge@ee.doe.gov.