The Department of Energy (DOE) has issued new policy guidance informing states that they are not to exclude multifamily housing in their plans for spending Weatherization Assistance Program (WAP) funds. According to DOE, states that expressly exclude multifamily buildings from their WAP plans are acting contrary to the intent of the program which is to provide energy saving services to low-income persons who live in all types of housing.
“Multi-family buildings, including rental housing, offer opportunities for energy efficiency upgrades that are a cost effective approach to lowering operating expenses, maintaining affordability for low income households, and creating healthier, more comfortable living environments for low income families.”
NH&RA’s Council for Energy Friendly Affordable Housing has also learned that the IRS has informed DOE that said that for a post-2008 LIHTC-financed property (i.e., after the July 31, 2008 effective date of the Housing and Economic Recovery Act provision that re-defined “federally-subsidized building”) that has been placed in service for at least 1 year, a weatherization grant has no impact on the property’s basis.
We understand that IRS is developing Guidance on this issue as well as the WAP “taxable income” issue, but they had no details including timeline. On a separate track DOE is reportedly working with the IRS process with a Regulation authorizing WAP grantees to establish weatherization revolving loan funds.
The Council for Energy Friendly Affordable Housing (CEFAH) is a working group of some of the most active owners, managers and consultants of affordable housing. Our goal is to identify areas where significant savings could be found and work with policymakers to obtain regulatory and legislative changes that make such improvements feasible and permissible. To learn about how to join CEFAH visit: http://www.housingonline.com/JoinCEFAH.aspx or contact Thom Amdur at 202-939-1753 or tamdur@housingonline.com.
Read More…
