Should HUD Partner With the Private Sector to Boost Its Buildings' Efficiency? (H.R. 2997)

What is H.R. 2997?

(Updated August 1, 2017)

This bill would direct the Secretary of Housing and Urban Development (HUD) to enter into budget-neutral, performance-based agreements with private entities in order to reduce energy or water costs at multifamily residential units.

The program would continue in its demonstration phase from fiscal year 2016 through the end of 2019, and would carry out improvements at no more than 20,000 residential units. Types of residences that would be targeted for improvements include section 8 housing, elderly housing, and housing for people with disabilities.

Payments to private entities under this program would be contingent on utility savings achieved and documented by third parties, and wouldn’t exceed the total savings achieved by the payment date.

The performance-based agreements could not exceed 12 years, must have an audit protocol, and would only apply to properties that are subject to affordability restrictions for at least 15 years after the completion of conservation improvements.

Argument in favor

This proposal is a cost effective way for low-income housing facilities to get energy efficiency upgrades, and private entities would be eager to assist in the project.

Argument opposed

The federal government should be investing money in these energy efficiency projects rather than outsourcing the work to private entities.

Impact

Residents whose HUD buildings could benefit from energy efficiency projects, owners of HUD buildings, businesses that would assist with projects, and HUD.

Cost of H.R. 2997

A CBO cost estimate is unavailable.

Additional Info

In-Depth: This bill’s sponsor, Rep. Dennis Ross (R-FL), had this to say about the problem his legislation solves:

“The issue here is the unnecessarily high energy and water costs that are on HUD’s shoulders every year. These costs can be attributed to the inefficient energy systems in certain HUD-assisted properties, such as senior housing and housing for persons with disabilities. Owners of these properties often lack the incentives and capital to perform energy upgrades.”

The Enterprise Housing Community expressed support for this legislation, as it “seeks to improve the energy efficiency of multifamily housing, reduce the cost of managing HUD-assisting housing and improve outcomes for residents.”

Media:

• Sponsoring Rep. Dennis Ross (R-FL) Press Release
• Enterprise Housing Horizon (In Favor)

Summary by Eric Revell
(Photo Credit: Flickr user MTAPhotos)