1. ARRA and HUD: Promoting Energy Efficiency & Creating Green Jobs
ETA ARRA Grantee Institute HUD Presentation December 6, 2010 Presenters: Dan Esterling Virginia Flores

2. Public Housing Authorities
Over 3,000 public housing authorities (PHAs) administer HUD programs to low-income households
2 million households use Housing Choice Vouchers to help pay for housing in the private market
1.2 million households live in public housing units
2 major forms of Federal subsidy appropriated annually to PHAs for public housing
Operating Fund – $4.455 billion in 2009
Capital Fund – $ 2.45 billion in 2009

3. Public Housing Tenants 2009
Families with children – 40%
Heads of Household
Female – 74%
Disabled – 32%
Elderly – 30%
Extremely Low Income (<30% AMI) – 70%
Residents with any income from wages – 95%
Average annual gross income – $13,351

4. HUD Priorities Job Creation Neighborhood Revitalization
Activities that sustain economic development in low-income communities and job creation opportunities for low-income residents of HUD-assisted housing
Neighborhood Revitalization
HOPE VI – $124 million
Choice Neighborhoods – $65 million for demonstration
Sustainable Communities Regional Planning – $100 million
Improving resident quality of life
HOPE VI Community & Supportive Services (CSS) – up to 15% of grant can be used for services coordination and case management
Family Self-Sufficiency (FSS) and Resident Opportunities & Self-Sufficiency (ROSS) – competitive grants to fund service coordinators

5. Recovery Act: Promoting Energy Efficiency & Creating Green Jobs
Public Housing Capital Fund
$4 billion invested in energy-efficient modernization and renovation of public housing inventory
Native American Block Grants
$510 million invested in energy-efficient modernization and renovation of housing maintained by Native American housing programs, and the development of sustainable communities
Assisted Housing Retrofit
$250 million invested in energy-efficient modernization and renovation of HUD-sponsored housing for low-income, elderly and disabled persons
Lead Hazard Reduction
$100 million invested in lead-based paint hazard reduction and abatement activities

6. Formula Recovery Act Public Housing Capital Fund
$3 billion
Allocated February 2009
On top of annual formula capital funds
HUD provides over $2 billion in capital funding to PHAs annually
To develop, finance and/or modernize public housing
Funding can be used to make large-scale improvements such the replacement of roofs, plumbing and electrical systems to increase energy efficiency

7. Competitive Recovery Act Public Housing Capital Fund
$1 billion designated to be awarded competitively
Awarded September 2009
4 Categories:
Category 1, Improvements Addressing the Needs of the Elderly and/or Persons with Disabilities
$95 million
Category 2, Public Housing Transformation
$96 million
Category 3, Gap Financing for Projects Stalled due to Financing Issues
$200 million
Category 4, Creation of Energy Efficient, Green Communities
Option 1: Substantial Rehab/New Construction
Option 2: Moderate Rehab
$600 million

8. Allocation & Obligation of Funds
See HUD Recovery Act web site for all ARRA formula allocations and competitive grant awards by program and recipient
Timeline:
Obligate 100 percent of the funds within one year of the date funds become available (2010)
Expend at least 60 percent within two years (2011)
Expend 100 percent within three years (2012)

9. Assisted Housing Retrofit
$250 million in grants and loans to private owners of subsidized multifamily housing properties
Green and energy retrofits (improvements that conserve energy and water, improve indoor air quality or benefit the environment)
Timeline:
Obligate 100 percent of funds by 2011
Completion of retrofits by 2012

10. Section 3 What is Section 3? Who qualifies as a Section 3 resident?
Set of legal obligations that requires PHAs and local governments to meet hiring and contracting goals on most projects that receive federal housing funds (Section 3 of the Housing and Urban Development Act of 1968)
Who qualifies as a Section 3 resident?
Public and assisted housing residents
Low- or very low-income person living in metro area/non-metro county in which the Section 3 covered assistance is expended

11. Section 3 (cont’d) What is Section 3 covered assistance?
Public Housing development, capital and operating funds (for construction, development, maintenance, modernization, and operations)
Other housing and community development assistance of at least $200,000 expended for housing rehabilitation, housing construction or other public construction projects
Examples: CDBG, HOME, Supportive Housing for the Elderly or Persons with Disabilities, Lead-Based Paint Abatement

12. Lessons Learned from Section 3
Successful Section 3 programs:
Staff member dedicated to Section 3
Strong relationship with developer and clear pipeline to upcoming jobs
Case management integrated with Section 3 training and job placement
Section 3 plan that builds in lead time to identify interested residents and link to training/supports

13. Energy Performance Contracting (EPC)
Energy Performance Contracting (EPC) is an innovative financing technique that uses cost savings from reduced energy consumption to repay the cost of installing energy conservation measures
Key Elements:
Contract with PHA, ESCO, 3rd party (lender)
PHAs can also function as their own ESCO
For Energy Conservation Improvements
Funded by a 3rd party loan
HUD provides financial incentives allowing the PHA to retain a portion of the energy savings for eligible operating expenses
PHA repays the loan through energy savings or add-on subsidy

14. Section 3 and EPCs – Case Study
Cuyahoga Metropolitan Housing Authority (CMHA) completed a $33.6 million EPC
CMHA set and exceeded their goal of providing residents with 25 percent of the contracting hours
Required contractors to conduct “hiring halls” at each site to process applications and conduct interviews
Employed 80 resident workers from 24 different CMHA properties
For more information, go online to
New energy efficient lighting, furnaces and hot water heaters, and water conserving devices such as 1.6gpf pressure assisted toilets, low-flow showerheads, and faucet aerators were installed in nearly 7,000 residential housing units and in building common areas.

15. Contact HUD Please contact us to discuss:
How to connect with your local PHA about:
Section 3 employment opportunities through the PHA and/or its contractors
Service coordination supports for residents in preparing for, obtaining, and maintaining employment
Workforce development programs and partnerships
How to identify HUD investments in your city/region
Any other questions…

16. HUD Contacts Dan Esterling (202) 402-6276
Virginia Flores (202)
Jessica Rosenberg (202)
Ron Ashford (202)

17. HUD Resources
HUD Recovery Act Programs
Section 3 (see FAQs link)
Public Housing Energy Conservation Clearinghouse
HOPE VI Community & Supportive Services
Resident Opportunities and Self-Sufficiency (ROSS)
Family Self-Sufficiency (FSS)