HUD moved in fiscal year 2010 to require energy efficiency and water conservation measures and to encourage the use of green building design and features in new Section 202 and Section 811 projects. This report was developed to aid sponsors and owners in working with HUD to advance these goals and, specifically, to assist in responding to the new requirements and incentives.

Executive Summary

The U.S. Department of Housing and Urban Development (HUD) FY 2010–2015 Strategic Plan calls for an overall reduction in energy costs through improved design and operation of HUD-supported projects. Energy conservation and green building techniques are becoming mainstream practice for market-rate projects, and many sponsors and owners of HUD-subsidized housing have already started following suit, both in maintaining and upgrading existing units and in constructing new units. To ensure that this momentum continues in its Section 202 and Section 811 portfolio, HUD moved in fiscal year 2010 to require energy efficiency and water conservation measures and to encourage the use of green building design and features in new Section 202 and Section 811 projects. This Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs report was developed as the result of an Interagency Agreement between HUD and the U.S. Environmental Protection Agency (EPA), with the help of stakeholders who participated in roundtable discussions with HUD and EPA. It was developed to aid sponsors and owners in working with HUD to advance these goals and, specifically, to assist in responding to the new requirements and incentives.

The Section 202 and Section 811 Housing Stock

The Section 202 and Section 811 housing stock consists of a range of unit types in geographically diverse areas of the country. In addition, this stock ranges from units that have been in use for decades to others recently approved for occupancy. The physical needs of these units, as well as the specific program requirements that affect them, differ widely. This diversity means that there is no one-size-fits-all approach to implementing energy conservation and green building techniques in Section 202 and Section 811 housing.

Resource Conservation and Green Building Design—Requirements and Incentives for New Projects

In fiscal year 2010, HUD began requiring applicants seeking Section 202 and Section 811 funding to increase energy and water conservation, and the Department offered incentives to applicants who incorporate green building features into their projects. Although some of the specifics of these new requirements and incentives may evolve over time, conservation and sustainability are
expected to remain core elements of all future construction requirements. Specific requirements and incentives depend on the type of development proposed by applicants and include the following:

• For new construction and substantial (gut) rehabilitation projects, sponsors and owners are required to incorporate energy efficiency and water conservation strategies.
• For acquisition and moderate or modest rehabilitation projects, pre- and post-construction energy audits and incorporation of conservation techniques are required.
• For all applicants, incentives in the form of additional scoring points are available to applications that meet key criteria concerning green development, sustainable design, solar orientation principles, and operations and maintenance manuals that address key features affecting “green” operations.
• Section II provides a more thorough overview of these requirements and incentives, while section IV goes into more detail about each element.

Existing Section 202 and Section 811 Housing

HUD has not established specific conservation or green design requirements for existing Section 202 and Section 811 projects. At the same time, HUD strongly encourages sponsors and owners of existing Section 202 or Section 811 projects to look for ways to incorporate green building components and practices as they operate, maintain, and make capital improvements to their projects.

Moving Forward

The changes involved in incorporating energy efficiency and green features pose practical challenges for all sponsors and owners, and tight budget constraints in the Section 202 and Section 811 environment add to these challenges. However, the experiences of sponsors and owners who have already incorporated such features in their new and existing projects demonstrate that it is possible to meet these challenges.

This report highlights the experiences of five diverse organizations that have successfully incorporated energy efficiency and green concepts in new and existing Section 202 and Section 811 activities. Case studies included in section III of this report paint a picture of these organizations’ strategies for overcoming the challenges involved in “going green.” They include the following:

• Hudson Companies, a sponsor of Section 202 projects in Pennsylvania and Ohio.
• National Church Residence, a nonprofit owner and sponsor of Section 202 projects across the United States.
• New Ecology, Inc., a nonprofit energy efficiency and green building technical advisory group that assists Section 202 sponsors and owners.
• Nuestra Comunidad Development Corporation, a nonprofit sponsor of a Section 202 project in the Boston area.
• REACH Community Development, a nonprofit sponsor of Section 202 and Section 811 projects in the Portland, Oregon area.

Although these five organizations have demonstrated that energy conservation and “going green” are possible in the Section 202 and Section 811 environment, for sponsors and owners who have not yet attempted to incorporate energy efficiency and green features, the prospect may be daunting. Section IV of this report is devoted to showing how sponsors and owners can approach the tasks of implementing energy and water conservation measures and of making the operation and maintenance of their projects more sustainable. Although the report is not a full-fledged “how to” manual, it includes a range of useful ideas, tips, and tools, including the following:

• An explanation of the program requirements.
• Suggestions about steps to take in meeting those requirements.
• Explanations of how various tools and resources support achievement of each required or voluntary activity.
• Stand-alone listings of resources, including the following:
  • Financing sources.
  • Technical assistance sources.
  • Green building standards.

This information is expected to serve as a valuable starting point for those sponsors and owners who are working to invest in the conservation and green features that will make the Section 202 and Section 811 portfolios more efficient and sustainable over time.