HUD requires Public Housing Authorities (PHAs) to conduct energy audits every five years and undertake specific cost-effective energy conservation measures. Energy audits are a powerful tool for uncovering operational and equipment improvements that will save energy, reduce energy costs, and improve performance for property owners and tenants.
Energy Inefficiency Can Put a Property at Risk
What is an Energy Audit?
Every building contains systems that use some form of energy, and all of these systems could benefit from increased efficiency. An energy audit involves a technical review of the property’s mechanical systems and fenestrations and comparing the energy needs with comparable properties in the market. The audit results can be used to back funding requests, backup for Capital Fund requests, and as part of a capital needs assessment.
Federal Funding Is Tied to Energy Efficiency
Energy efficiency is tied to many aspects of multifamily housing finance. Most states now include a requirement for energy efficiency in their QAPs for LIHTC applications. Additionally, requests for funding for a Capital Fund for a PHA or a RAD application also include requirements and incentives for improvements to energy efficiency.
Capital Needs Assessments with Energy Audits
You can combine your energy audit with a Capital Needs Assessment or a Physical Needs assessment and see how the property’s energy needs intersect with the current funding levels. Combining a PCNA or PNA with an energy audit is required in many cases, and we can seamlessly integrate the two reports and deliver them to you quickly.
