4350.1 REV-1

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CHAPTER 12. ENERGY CONSERVATION

SECTION 1: CHAPTER OVERVIEW

12-1. Introduction

In the development of a National Energy Strategy, the

Department of Energy launched a major endeavor to

increase residential energy efficiency. Through a

joint initiative, DOE and HUD have developed a set of

guidelines, set forth in this chapter, that will seek

to improve the quality of life for residents of

HUD-subsidized housing, while at the same time, reduce the

amount of energy consumption and the high energy costs

owners and HUD must bear.

12-2. Purpose

The purpose of this chapter is to assist owners and

managers in meeting the Energy Efficiency Requirements

set forth in Section 329C of the Housing and Community

Development (HCD) Amendments of 1981. Through the use

of an annual Multifamily Energy Survey (or other method

of the owners choosing), management will identify steps

which can be taken to improve energy efficiency. This

survey will also serve as a method of documenting

compliance with the law. This chapter also presents

some practical ideas for involving tenants in the

conservation efforts. For larger capital improvements,

this chapter outlines the audit requirements for the

Capital Improvement Loan Program (Flexible Subsidy) and

discusses other funding opportunities. Finally, it

will present the necessary steps for the conversion of

Master Metered Utilities to Individually Metered

(Tenant Paid) Utilities.

12-3. Applicability

a\. Section 329C of the Housing and Community

Development Amendments of 1981 covers the programs

set forth below. Projects which are subsidized

under these programs and which have their rents

adjusted through the Budgeted Rent Increase

Method, are required to certify and document that

they meet the requirements of the law.

1\. A project assisted under the Section 236

interest reduction program, including State

Agency non-insured projects, 221(d)(3)

Below-Market Interest Rate (BMIR) program, or the

Rent Supplement program.

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2\. A project that was constructed with a direct

loan more than 15 years ago under the Section

202 Program for Housing for the Elderly or

Handicapped.

3\. A project assisted under the Section 8

Housing Assistance Payments program after

conversion from assistance under the Section

236 Rental Assistance Payments Program or the

Rent Supplement program.

4\. A program that met the criteria in item 1 or

2 above before acquisition by the Secretary

of HUD, that has been sold by the Secretary

subject to a mortgage insured or held by the

Secretary and subject to an agreement which

provides that the low- and moderate-income

character of the project will be maintained.

Projects in this category are only required

to certify and document if their rent

increases are granted through the Budgeted

Rent Increase Method.

b\. Effective with the FY \'93 funding year, when

projects requesting Capital Improvement Loan

(CILP) funds are required to submit the

Comprehensive Technical Energy Audit the

guidelines outlined in Section 3 should be

utilized unless otherwise specified in the NOFA.

This covers properties assisted under the

following programs:

1\. A project assisted under the Section 236

interest reduction program, including State

Agency non-insured projects, 221(d)(3)

Below-Market Interest Rate (BMIR) program, or the

Rent Supplement program.

2\. A project that was constructed more than 15

years before assistance is to be provided

under the Capital Improvement Loan Program,

with a direct loan under the Section 202

Program for Housing for the Elderly or

Handicapped.

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3\. A project assisted under Section 23 of the

United States Housing Act of 1937 as in

effect immediately before January 1, 1975

that is ineligible for assistance under the

modernization program operated under the 1937

Act.

4\. A project assisted under the Section 8

Housing Assistance Payments program after

conversion from assistance under the Section

236 Rental Assistance Payments Program or the

Rent Supplement program.

5\. A program that met the criteria in item 1 or

2 above before acquisition by the Secretary

of HUD and that has been sold by the

Secretary subject to a mortgage insured or

held by the Secretary and subject to an

agreement which provides that the low- and

moderate-income character of the project will

be maintained.

SECTION 2: MULTIFAMILY ENERGY SURVEY FOR HUD-INSURED PROPERTIES

12-4. Conducting the Survey

a\. Purpose and Use

The survey (Appendix 1) is a sample survey,

developed by the Department of Energy. It is

designed to give a project manager or staff member

the ability to assess the basic energy

conservation needs of the complex. This survey is

designed so that its completion will provide the

supporting documentation necessary for the

required certification. The owner may utilize

outside survey forms or other methods if they feel

that another method is adequate to fulfill the

requirements of the law. Also contained in

Appendix 1 is a list of Energy Conservation

Measures (ECM) which indicate steps that can be

taken to improve energy efficiency in a particular

area. The survey will reference the ECM when a

negative response is provided to a survey

question, thus indicating possible corrective

measures.

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b\. Survey Schedule

Initially, a survey or alternative documentation

should be performed at the end of the project\'s

fiscal year. Some of the information will remain

the same from year to year and other information

will change as the project becomes more energy

efficient. The survey should be conducted by the

on-site management staff and/or maintenance

personnel, as they are the ones most familiar with

project conditions. HUD does not expect that the

owner/manager or contracted staff will conduct the

survey for projects that have on site staff. The

project owner is only expected to certify that

they are in compliance with the law. A copy of

the results of the survey or other documentation

should be retained by management and made

available upon request to the Field Office staff

during the Management review or other on-site

visits. It is expected that most of the needed

improvements identified by the survey will be

categorized as low cost, routine maintenance

repair items that can be funded out of project

income.

c\. Other Acceptable Survey Formats

While the format in Appendix 1 is an acceptable

form of documentation for compliance with the law,

it is not mandatory that this form be used. Other

acceptable formats include:

1\. The Multifamily Energy Conservation Workbook,

developed by the New York State Energy

Office. It can be obtained from: New York

State-Energy Office, Agency Building 2,

Rockefeller Plaza, Albany, NY 12223.

2\. The workbook, Energy Conservation for

Housing, which was prepared under a HUD

Policy Development and Research (PD&R)

contract. It is available through HUD USER

(PD&R\'s information service) for a nominal

fee by contacting: HUD USER, P.O. Box 280,

Germantown, MD 20874, 1-800-245-2691 or

\(301\) 251-5154.

3\. Any other method the owner or manager feels

will place them in compliance with the HCD

Amendments of 1981.

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12-5. Submission of the Certification and Supporting

Documentation to the HUD Field Office. A certification

of compliance with Section 329C of the HCD Amendments

of 1981, will be required to be submitted to HUD with

the owner\'s request for a rent increase under the

Budgeted Rent Increase method. Tenants will have the

ability to provide comments concerning the

certification, the documentation which supports the

certification and the time frames in which the owner

plans to take care of deferred maintenance items, as a

part of the tenant review of the rent increase package

(see Chapter 7, Handbook 4350.1, concerning the tenant

review requirements).

12-6. Follow-up Study of Energy Conservation Efforts.

The owner/manager should maintain monthly billings

which show the levels of energy consumption and cost.

This will serve as an indication of how effective

energy conservation measures have been and will provide

a useful source of information when calculating total

energy consumption at the end of the year. When

analyzing these records, it is important that changes

in the consumption level rather than changes in cost be

measured to accurately reflect the effectiveness of the

conservation efforts.

12-7. Monitoring Requirements and Compliance.

a\. Monitoring - The HUD Field Office will, in the

majority of cases, review supporting documentation

as part of the on-site Management Review. In

doing so it should review how the owner is

adhering to the established time frames. This

should be reflected in the rating of management\'s

performance in Section A, Item 9 of the Management

Review form (HUD 9834). As appropriate, the Loan

Management Staff should make recommendations

addressing slippage or noncompliance with the time

frames.

b\. Compliance - Cooperation on the part of

owners/managers toward certifying and documenting

compliance will serve as fulfillment of the

requirements set forth in Section 329C of the HCD

Amendments of 1981.

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12-8. Tenant Involvement

Tenant involvement is a vital part of an owner/

manager\'s attempt to implement energy conservation

measures in a project. Many steps can be taken to

involve tenants in conservation efforts. Below is a

brief list of some suggested ideas:

a\. Provide a brief energy conservation orientation to

new tenants.

b\. Provide specific suggestions for energy

conservation to the tenants, seek their

suggestions, and request their help in

implementing the suggestions. Appendix 2 includes

a list of tenant conservation measures that may be

reproduced for tenant distribution.

c\. Explain to the tenants how a reduction in energy

consumption can help offset future rent increases.

d\. Stress the need for tenants to immediately report

to management any factors, either within their

unit or in common areas, that contribute to energy

losses.

e\. Inform the tenants of the project\'s present energy

consumption level and provide periodic updates to

show increases or decreases in energy consumption.

f\. Encourage tenants to contribute energy

conservation ideas as an ongoing effort.

g\. Obtain speakers and/or printed materials that

promote energy conservation.

SECTION 3: COMPREHENSIVE TECHNICAL ENERGY AUDIT

12-9. Introduction

Most HUD-insured and HUD-held multifamily properties

were built using the minimum property standards

developed by the Department to assure sound insurance

underwriting. However, much of the housing stock was

constructed during a period of low energy costs, before

there was as critical a need to design housing for

optimum energy efficiency. While those standards

represented what was considered necessary for energy

efficiency at the time of construction they may not

necessarily reflect the most cost effective, energy

efficient construction standards as the technology is

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4350.1 REV-1

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known today. In consideration of these factors, it

would be prudent to plan for the upgrading of the major

capital components which were originally installed in

projects, with cost effective, energy efficient

replacements as they reach the end of their life

expectancy. With respect to a project\'s major

structural components and systems, a Comprehensive

Technical Energy Audit is necessary to determine the

most cost effective, as well as practical energy

efficient replacements that can be funded based on the

available financing. The type of audit needed for this

purpose requires a higher degree of technical expertise

than that normally found on the immediate staff of the

owner/manager, thus the services of a licensed

professional engineer or certified energy auditor will

be required. In cases where an identity of interest

with the owner exists, three formal bids will be

required prior to obtaining the services of a licensed

professional engineer.

12-10. Purpose

The purpose of this section is to address the audit

process, present methods to evaluate the findings, and

provide a range of what is expected to be cost

effective improvements. This section will provide

guidance on the technical aspects of a Comprehensive

Technical Energy Audit (CTEA) for use in conjunction

with the implementation of capital improvements. While

it is not required that an owner perform an audit

(unless an owner is applying for Capital Improvement

Loan funds) this section establishes minimum audit

guidelines necessary for meeting the requirements of

the Comprehensive Technical Energy Audit to be

submitted as a part of the Capital Improvement Loan

application. The CTEA will also assist the owner in

developing the Energy Conservation Plan (ECP) which

will become part of the MIO Plan or Work Write-Up to

address how the owner will upgrade the property to meet

cost-effective energy efficiency standards.

12-11. Conducting the Comprehensive Technical Energy Audit

a\. Purpose - This will establish the minimum audit

guidelines and background research necessary to

meet the definition of a Comprehensive Technical

Energy Audit (CTEA). A CTEA must be performed by a

licensed professional engineer or certified energy

auditor.

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b\. Funding - Funding of a Comprehensive Technical

Energy Audit will be considered an allowable

project expense. If an Identity of Interest firm

is involved, then the owner must obtain three

formal bids prior to funding the CTEA as a project

expense.

c\. Audit Preparation - It is important that a proper

emphasis be given in preparing the background

material necessary for carrying out the audit

specifications. Below is a recommended step-by-step

process which discusses what materials need to

be gathered, how audit guidelines should be

established in contracting for an auditor, how

retrofit recommendations should be analyzed, and

how to carry out the recommended retrofits. The

steps are as follows:

Step 1: Preparing preliminary material

The first step in preparing the audit specification

is to bring together all the pertinent available

documentation. Making this information available

to the auditor(s) will help them prepare a better

audit, and may reduce the cost by eliminating many

of the time consuming steps of gathering the

information.

1\. Building Documentation.

Building plans and specifications are the

best source of information on building

materials, dimensions and other physical

characteristics. These will provide

information on mechanical systems. In

addition to the original building plans,

specifications and other documentation may be

available from subsequent renovation,

remodeling or rehab work. Equipment

maintenance records and documentation from

previous audits should also be collected.

2\. Energy Consumption Records.

Historical billing records are an important

source of information for the energy auditor,

both for targeting areas for reduction, as

well as providing a baseline from which to

measure energy savings. Utility companies

will release usually the last 12 months of

gas and electricity consumption. Tracking

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fuel oil is more difficult, due to the large

number of suppliers and the less regular

delivery schedules. Energy consumption

should be plotted and weather normalized,

which can be done using a software program or

manually using charts and tables. This will

provide a more accurate picture of

conservation needs.

3\. Occupancy Characteristics.

Similar to the need for weather

normalization, occupancy characteristics (all

elderly, families with small children, etc.)

can be important in specifying certain

retrofits, and concerns for safety and

security. The total number of occupants, the

number of vacant units, and some feel for the

change in vacancy are all important factors

in making a building audit.

4\. Building Maintenance Staff.

Often the best source of information on the

performance of the building will be the

building manager or maintenance person.

Interviewing the building manager prior to

the audit can identify important areas for

inclusion in the audit guidelines.

Step 2: Providing audit guidelines

If staffing permits, an in-house review of the

preparatory audit materials can lead to a more

direct audit. If not, this review can be performed

by the auditor. The audit guidelines which will be

presented in the next section state the minimum

standards HUD will accept in auditing capital

improvements. If a certain guideline does not

pertain to a certain building, then it should be

noted in the narrative as opposed to being simply

omitted. The preparatory material provided to the

auditor will assist in determining what guidelines

apply to the project and which do not.

Step 3: Preselecting retrofit recommendations

The auditor may benefit from the list of ECMs in

Appendix 1. By management\'s indication of which

measures they would like to see implemented in the

project the auditor should be able to develop a

range of recommendations, based on possible

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funding levels, as to their possible energy

savings. By providing a \"floor\" level

recommendation as well as an ideal level of energy

efficiency, the owner will be able to work within

the restraints of available funding to implement

energy conservation measures. The owner\'s input

will also provide the auditor with the direction

management feels should be taken in regards to

energy conservation.

Step 4: Writing the audit specifications

It will be useful in soliciting bids from potential

auditors to cover: the collection of information

during the audit, the analysis of energy savings,

computation of ECM costs and the presentation of

findings. The specifications should also address

concerns for safety, security and reliability as

well as energy conservation goals the owner/manager

wishes to achieve.

Step 5: Selecting candidate auditors

There are several strategies for locating energy

auditors. Local phone directories may have

companies under the following listings: Energy

Management and Conservation Consultants, Engineers,

Energy Service Companies, Energy Auditors.

Magazines such as the American Society of Heating,

Refrigeration and Air Conditioning Engineers

(ASHRAE) Journal, Home Energy and the Journal of

Real Estate Management, among others, will often

have advertisements for energy auditors. Once

potential auditors are identified, set a schedule

for the work to be carried out and make

arrangements for the building to be accessible

through the building manager.

Step 6: Evaluating the auditors proposals

After the audit has been completed, the

manager/owner will have to select which ECMs should

be undertaken. In addition to reviewing projected

costs and savings, the following points should be

kept in mind:

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o Is the work necessary for this measure due to

deferred maintenance? If so, time frames for

correction should be submitted with the plan

if capital improvements are to be requested

under the Capital Improvement Loan program.

Deferred maintenance items should be funded

from project income.

o What type of performance guarantees are

included?

o What will the contractor have to do to comply

with any Federal, State or local

environmental requirements.

d\. Audit Guidelines - This section presents guidelines

for performing the audit by identifying which areas

need to be addressed. These guidelines are the

minimum acceptable standards for HUD\'s definition

of a Comprehensive Technical Energy Audit. All

numbered and lettered areas listed below should be

addressed in narrative form including: (1) the

condition of the item, (2) recommended retrofits to

make the item more energy efficient including

adjustments to the current systems or replacement

with new systems, (3) the impact each item has on

the energy efficiency of the project, (4) estimated

energy savings of each recommended change and; (5)

for major capital improvements, payback time

(estimated in years) to determine cost

effectiveness. More specific inspection items are

listed under each lettered area to direct the audit

and provide a thorough assessment.

1\. Building Data

A. General Data

o Number of floors in the building

o Number of each type of unit

o Orientation of the building

B. Walls

o Construction type

o Insulation characteristics

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C. Roof

o Construction type

o Insulation characteristics

D. Basement (if applicable)

o Construction type

o Insulation characteristics

2\. Apartment

Not all units in a complex are required to be

inspected during the CTEA. It is assumed

that several apartments (preferably at least

one from each building) will be

representative of the energy consumption of

all the apartments in the entire complex. If

this assumption is incorrect the inspection

areas listed below should be addressed for

each type of apartment. The typical

apartment selected for the audit should be

the one farthest from the heating plant.

A. Inspect Apartment Doors

o Check weatherstripping if door

opens to outdoors

o Check tightness of door closure

o Does the door close automatically?

B. Inspect Apartment Windows

o Type, number and size of windows

o Check Weatherstripping

o Check tightness

o Check caulking

o Are there window-mounted air

conditioners?

o Are there any removable panels or

through-the-wall sleeves for air

conditioners?

C. Inspect Apartment Heating and Cooling

o Type of heating units

o Condition of valves

o Condition of air vents

o Condition of thermostats

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o Is air conditioner supplied by

tenant?

D. Inspect Apartment Hot Water

o Check for leaky hot water taps

o Measure hot water at the tap in a

sample of apartments.

o Measure flow rates (gallons per

minute) of showers and faucets.

E. Inspect Apartment Exhaust Ventilation

o Is there a kitchen exhaust

ventilation?

o Is air exhausted continuously?

o Is there bathroom exhaust

ventilation?

o Is air exhausted continuously?

F. Inspect Apartment Lighting

o Check type and power of kitchen

lighting

o Check type and power of bathroom

lighting

3\. Lobby and Corridor

NOTE: Concerning common area and exterior

lighting, tenant safety must remain the

primary concern when analyzing whether or not

lighting should be reduced in common areas

for energy efficiency.

A. Inspect Corridor and Stairwell Windows

o Check condition

B. Inspect Interior Doors

o Check condition and insulation

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12-13 9/92

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4350.1 REV-1

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C. Inspect Corridor and Stairwell Lighting

Note type, condition and number of

fixtures. Measure illumination levels

to determine if spaces are over or

under-lit. Note if wall painting or

carpet replacement is needed, and

recommend lighter colors (NOTE: Avoid

carpet colors which are easily soiled).

D. Inspect Lobby Lighting

Note type, condition and number of

fixtures. Measure illumination levels

to determine if spaces are over or

under-lit. Note if wall painting or

carpet replacement is needed and

recommend lighter colors (NOTE: Avoid

carpet colors which are easily soiled).

4\. Central Plants

A. Domestic Hot Water (DHW)

o Inspect the boiler and distribution

system for the domestic hot water

system.

o Assess potential for heat pumps or

solar-assisted systems.

B. Heating System

C. Cooling System

5\. Roof

Check for missing material, curled shingles

or patching, gaps in flashing, ventpipes and

caulking on the roofs in general.

6\. Exterior Building

Lighting

o Survey exterior lighting, noting type,

condition and number of fixtures.

Assess illumination levels (at night),

and note schedule of automatic controls,

if any.

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9/92 12-14

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4350.1 REV-1

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7\. Outdoor Parking Areas

Lighting

o Survey exterior lighting, noting type,

condition and number of fixtures.

Assess illumination levels (at night),

and note schedule of automatic controls,

if any.

8\. Laundry Room

Note type, condition and number of fixtures.

Measure illumination levels to determine if

spaces are over or under-lit. Note condition

of windows and doors. Section 504

requirements should be referenced prior to

developing retrofit recommendations to assure

the requirements are taken under

consideration.

9\. Special Facilities

Note type, condition and number of fixtures.

Measure illumination levels to determine if

spaces are over or under-lit. It is

important that tenant safety out weigh the

need for energy conservation when

recommending lighting reduction. If wall

painting or carpet replacement is needed,

recommend lighter colors (NOTE: Avoid carpet

colors which are easily soiled). Note

condition of windows and doors.

12-12. Requirements for the Capital Improvement Loan Program.

When requesting funds under the Capital Improvement

Loan Program, a CTEA must be submitted addressing the

cost effectiveness of each proposed capital

improvement. In determining cost effectiveness the

owner should at least utilize the payback formula in

Section F(1). This will satisfy the need for proof of

whether a measure is cost effective. A more accurate

means of determining cost effectiveness is through the

software programs addressed later in this chapter. If

necessary capital improvements are related to deferred

maintenance, then an application must be made

simultaneously for Operating Assistance. This should

be addressed in the audit findings.

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12-15 9/92

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4350.1 REV-1

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12-13. The Energy Conservation Plan (ECP). When a CTEA is

required by the Capital Improvement Loan Program, the

implementation of the findings should be addressed in

the Work Write-Up or MIO Plan. The ECP will focus on

planning major capital improvements relating to energy

efficiency (including those which are be identified in

the Comprehensive Technical Energy Audit) and should

include:

a\. Long range energy conservation goals;

b\. Description of work for each proposed improvement;

c\. Funding sources/mechanisms to be utilized; and

d\. The estimated payback time (in years) of each long

range capital improvement.

12-14. Evaluating Audit Results

a\. Technical Aspects of the Audit

The following are several areas that should be

taken into consideration when evaluating audit

results. HUD does not require that each of these

items be addressed when submitting the results of

an audit; they are simply tools provided to assist

the owner/manager in choosing which energy

conservation measures to implement. Utilization

of these tools will provide a more accurate

assessment of the cost effectiveness of each ECM.

1\. Cost and Savings Analysis.

When deciding on which measures to implement

it is important to evaluate the payback

period to the project. Improvements having a

payback period of 5 years or less may be

recommended for inclusion in the project. To

compute a simple payback of the project in

years, the following formula should be used:

Cost of ECM

Payback =
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Annual Energy Savings (\$ per year)

Another way of analyzing the long term cost

and savings of a particular ECM is through

computer programs. Two programs are

particularly helpful in this area. They are:

o \"The Right-J,\" a computer program and

\"Manual J,\" a technical manual, which

are distributed by the Air Conditioning

Contractors of America. This program

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9/92 12-16

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4350.1 REV-1

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and the technical manual follows the

American Society of Heating,

Refrigeration and Air Conditioning

Engineers (ASHRAE) methods and

principles and are especially useful in

calculating residential heating and

cooling loads. Both resources may be

obtained from the Air Conditioning

Contractors of America (ACCA), 1513 16th

St., N.W., Washington, D.C. 20036 or

(202)483-9370.

o The second program is the DOE-2 program

designed by the University of Wisconsin

for DOE and represents the state of the

art in building simulation software.

This program is complex and provides a

detailed report of annual energy

consumption. There are currently only

two software vendors who provide the

microcomputer version of DOE-2.

o ADM Associates Inc., 3299 Ramos

Circle, Sacramento, CA 95827 or

(916)363-8383; and

o Acrosoft International, 9747 East

Hampden Ave., Denver, CO 80231 or

(303)368-9225.

2\. Geographic Location.

Determination of the cost effectiveness of

various ECMs requires adjustments pertaining

to the climate at the building location. The

National Oceanic and Atmospheric

Administration (NOAA) maintains highly

specific weather data for every major city

and region in the U.S. This information can

be used to model the local climate for use in

calculation and in sophisticated computer

programs.

3\. The Building Envelope, Infiltration and Air

Exchange Rates.

A. The building envelope. This term refers

to the building shell including all

exterior walls, floors, roofs, doors and

windows. Energy Conservation Measures

involving the building envelope focus on

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12-17 9/92

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4350.1 REV-1

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reducing both the heat conducted to the

outdoors through these building elements

and the heat load due to infiltration of

outside air.

B. Air infiltration can account for as much

as 50% of the total heat consumption in

older buildings. Air leaks in

apartments most commonly result from

broken and poorly constructed windows,

degraded caulking, open exhaust stacks,

and inadequate walls and ceilings.

Drywall holes located at plumbing and

electrical service entrances, such as

drain pipes and electrical receptacles

are sources of air infiltration and

detectable drafts frequently come from

these areas.

Air infiltration tests have been

designed to locate and measure air leaks

in the building envelope. They should

be conducted before and after the

retrofit to assist in energy savings

calculations. Outside air infiltration

can be measured using methods such as

the blower door testing and tracer gas

detectors. These tests utilize air

changes per hour (ACH) as their unit of

measurement. Another beneficial test

for measuring air infiltration is the

Air Infiltration Measurement Service.

This test distributes an inert gas into

the building at a constant rate, which

is measured as its concentration drops

due to infiltration.

Some deferred maintenance energy

conservation measures in the area of

reducing air infiltration include:

i\. Caulking all openings of the

building envelope, including all

window frames, electrical and

plumbing penetrations.

ii\. Replacing broken and cracked window

panes.

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9/92 12-18

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4350.1 REV-1

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iii\. Repairing or replacing

weatherstripping around the

perimeter of all doors and

providing door sweeps at the

bottoms of all exterior doors or

doors that adjoin unheated spaces.

iv\. Sealing all floor or ceiling

penetrations.

v\. Installing interior polyethylene

vapor barriers behind new sheetrock

on major structural rehabilitations

(except in warmer climates).

The above measures should be funded out

of project income.

C. Additional measures are recommended for

the control of conductive heat losses.

These are more extensive and likely to

be funded under a mechanism such as the

Capital Improvement Loan Program.

i\. Additional insulation in major

structural rehabilitation.

(Recommended R-values: a minimum

of R-13 in walls and up to R-38 in

ceilings depending on local

climatological conditions. Local

or state code, if more stringent,

shall apply.)

ii\. Storm windows for colder areas.

iii\. Double-pane windows with thermal

breaks.

iv\. Double-pane storm windows with

thermal breaks in northern

projects.

V. For air conditioned southern

projects:

o radiant barriers in projects

with attics or roof

replacements; and

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12-19 9/92

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4350.1 REV-1

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o solar screens on windows with

western and southern exposure.

4\. Heating, Ventilating and Air Conditioning

(HVAC) and Domestic Hot Water Equipment (DHW)

A. Several criteria are important to

consider in the selection of HVAC and

DHW for multifamily complexes. These

include:

i\. Initial and Life Cycle Costs - The

life cycle cost of mechanical

equipment is dependent on its

initial installed cost as well as

costs to operate and maintain the

equipment throughout its usable

life. Thus, the design of the

appropriate systems and selection

of equipment and proper maintenance

to retain efficiency play important

roles in reducing life cycle costs.

ii\. Fuel Availability; and

iii\. Occupant Comfort.

B. In the rehabilitation of the project,

system design is limited by existing

site conditions. Another limitation in

planning for HVAC and DHW equipment is

the trade off between system efficiency

and net installed costs.

C. Some Energy Conservation Measures that

can be utilized in this area include:

i\. The use of high efficiency

equipment in the normal replacement

cycle of appliances, with

consideration of the Section 504

requirements;

ii\. For units with internal individual

gas furnaces and electric air

conditioning, install automatic

vent dampers in flue stack;

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9/92 12-20

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4350.1 REV-1

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iii\. Careful consideration should be

given to the type of fuel used for

heating and cooling. The most

efficient from a life-cycle cost

standpoint will depend on the

relative cost of gas, electricity

and oil, as well as the first cost

of equipment.

iv\. Insulation of hot water pipes and

heaters is recommended.

v\. Central system operating efficiency

can be improved by system timing

and control improvements.

vi\. Night set-back, timed thermostats

and low-flow showerheads.

5\. Lighting and Appliances

Lighting and appliance upgrades sometimes

offer the best opportunities for short term

paybacks. Replacement of incandescent

lighting with fluorescent lamps in kitchens

and common areas can be particularly cost

effective, as can installation of new high

efficiency appliances for existing, less

efficient ones (both because of age and

original construction). When replacing

appliances in the normal course of

replacement, owners should consider replacing

deteriorated appliances with cost effective

energy efficient ones.

b\. Renewable Energy and Energy Management Systems

Two areas to consider before deciding on final

energy conservation measures to implement, are the

areas of Renewable Energy and Energy Management

Systems.

o Solar energy hot water heaters and ground

source thermal heat pumps are some of the

recent developments in heating and cooling

systems.

o Energy management systems (frequently

computerized) are another consideration

especially in larger multifamily structures.

If used only for monitoring energy

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12-21 9/92

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4350.1 REV-1

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consumption, then HUD imposes no standards on

their usage. If these systems are used as a

check metering system to determine tenant

paid utilities, then the system must meet the

standards of Check Metering Systems as

defined in paragraph 12-19.)

A licensed professional engineer should be

consulted as to whether or not these types of

energy conservation methods would be feasible for a

particular project and to what extent they should

be developed. A valuable source of information

for these types of energy conservation measures is

the National Appropriate Technology Assistance

Service (NATAS). This service, funded by the

Department of Energy, provides technical

information and assistance on energy conservation

and renewable technologies. NATAS can be reached

at 1-800-428-2525 (in Montana 1-800-428-1718) or by

writing to: NATAS, U.S. Department of Energy, P.O.

Box 2525, Butte, MT 59702-2525.

c\. Financial, Technical and Informational Assistance

In addition to NATAS, many sources are available

which may provide assistance in deciding how to

implement Audit recommendations. These include:

o States maintain energy efficiency programs

which can provide technical information,

audit resources, financial assistance and

related program assistance to the owners of

multifamily housing.

o Local government and non-profit programs.

o Gas and electric utilities provide audit

assistance, finance conservation improvements

and are an important resource for multifamily

owners/managers in some service areas.

o In some states, the Weatherization Assistance

Program (WAP) is available for low-income

multifamily housing. This program provides

assistance in controlling heating and cooling

problems and for HVAC maintenance

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9/92 12-22

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4350.1 REV-1

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improvements. For more information on this

project contact: U. S. Department of Energy,

Weatherization Assistance Program, CE-232,

1000 Independence Ave. SW, Washington, DC

20585, (202)586-2207.

SECTION 4: FUNDING MECHANISMS AVAILABLE TO IMPLEMENT ENERGY

CONSERVATION MEASURES

12-15. Use of Project Funds

When possible, the project owner should utilize project

funds to cover energy conservation measures. Deferred

maintenance repairs should be funded out of project

income and whenever possible the replacement of

appliances, heating equipment, etc. should be funded

out of the Reserve for Replacement fund or Residual

Receipts.

12-16. Alternative Funding Sources

If project funds are not sufficient to implement the

necessary Energy Conservation Measures and the

owner/manager is unable to identify other funding

resources to implement the actions, the owner/manager

should contact the HUD Field Office concerning the

feasibility of applying for a Capital Improvement Loan

under the Flexible Subsidy Program. NOTE: The

owner/manager must obtain permission from the first

mortgagee before accepting any financing which will

require a second mortgage to secure such financing.

a\. Energy grants - These may be obtained from sources

such as the State, county or city agencies. For

example, Community Development Block Grants may be

available for this purpose.

b\. DOE loans and grants - WAP and NATAS are valuable

sources of information as well as possible sources

of funding. Additional funding options that may be

more suitable to an owner\'s needs may be available

from DOE. For information contact: The U. S.

Department of Energy at (202)586-5000.

c\. Utility loans and related programs - Special energy

loans and service programs are often provided

through local utility companies or reputable energy

management firms.

d\. Rent increases - Consider the feasibility of

implementing increases to cover such costs in

stages. It should be noted that rent increases

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12-23 9/92

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4350.1 REV-1

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must be approved by HUD under the required

guidelines (Handbook 4350.1, Chapter 7). If ECMs

are financed through a rent increase, then tenant

comments must be taken into consideration prior to

HUD approving the rent increase to implement the

measures (for additional guidance see Chapter 7,

Handbook 4350.1).

e\. Conventional Financing for capital improvements,

etc. - The terms of such a loan must be approved by

the Field Office if repayment of the loan is to be

made out of project income as an allowable line

item in the rent formula, rather than from surplus

cash.

f\. Section 241 HUD-insured supplementary loan - Proceeds

of this loan are available for purchasing

and installing energy-conserving improvements,

solar energy systems and individual utility meters.

This loan is obtained through the project\'s

mortgagee and prior HUD approval is required.

g\. Owner\'s loan to the project - The terms of this

loan must be approved by the Field Office if

repayment is to be made out of project income as an

allowable line item in the rent formula prior to

the owner lending the money.

h\. Advances by the owner - The terms for repayment of

advances must be approved by the Field Office if

repayment comes from sources other than surplus

cash.

i\. Flexible Subsidy - The Capital Improvement Loan

program was designed to fund measures such as

energy efficient improvements. An owner

contribution is required and the measure is subject

to the competitive funding process. This program

and the requirements are set forth in Handbook

4355.1.

j\. Change in ownership - The new owner\'s equity

investment can be designated for this purpose.

k\. Release from residual receipts account, if

applicable.

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9/92 12-24

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4350.1 REV-1

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1\. Advances from the reserve for replacement account.

Be sure to consider immediate as well as future

replacement needs and whether the use of reserve

funds for energy purposes would outweigh those

replacement needs. A HUD-approved plan for

repayment of the advance shall be required unless

there is adequate justification for a waiver.

12-17. HUD Approval

The Field Office should give serious consideration to

reasonable requests for approval of financing

mechanisms (if funds are available and appropriate

eligibility requirements have been met) to accomplish

the objective of reducing energy consumption and costs

as a part of the overall Capital Improvement request.

When recommending or approving financial arrangements

for implementing the project\'s energy conservation

measures, the Field Office should consider the

financial and physical viability of the project and how

the measures fit into the overall needs of the project.

Particular attention should be given to the approval of

project-funded mechanisms with respect to their

resulting effect on project rents. HUD\'s approval

should be based on its analysis that what is requested

will result in a reduction in energy usage and/or a

corresponding reduction in energy cost that will not be

detrimental to the project.

SECTION 5: CONVERSION FROM MASTER METERED UTILITIES TO

INDIVIDUALLY METERED (TENANT PAID) UTILITIES

12-18. Background and Purpose

In complying with the requirements set forth in the

National Energy Strategy, HUD continues to support and

encourage efforts of all parties to bring about the

reduction of energy consumption. Since the early

1970s, HUD has encouraged owners/developers to produce

housing which would provide increased energy

efficiency, both structurally and operationally. A

major thrust of this endeavor is the design of

efficient project utility systems which feature

individual meters rather than master-metered systems.

This provides an incentive for tenants to play a role

in the energy conservation efforts of the project. The

purpose of this section is to provide guidance to the

Loan Management staff in carrying out the approval

process.

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12-25 9/92

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4350.1 REV-1

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12-19. Tenant Paid Utilities

Subject to HUD approval, utilities can be structured so

that the tenant is responsible for making payment

directly to the utility company. Most tenants have a

greater incentive to conserve consumption of utilities

when they are billed directly for their actual use.

Tenant paid utilities can be structured in one of two

ways:

o Master-metered utilities may be converted to

individually-metered utilities;

o Submetering and apportioning of the project\'s

energy usage costs utilizing a specially-designed

computer billing system which monitors/measures a

tenant\'s actual energy consumption. (This type of

system must print out the tenant\'s actual energy

consumption and will not be considered a submetered

property by HUD unless the print out of the energy

usage is directly from the metering instrument and

may not be influence by an outside entity. The

owner will be required to keep records on

individual tenant energy consumption for at least 3

years for audit purposes.)

Additional information on these alternatives may be

obtained from energy management firms that provide

these utility services and/or by obtaining the IREM

publication entitled, Alternatives to Master Metering

in Multifamily Housing. HUD approval is required prior

to implementing alternative utility programs. In

addition, State and/or local law prevails with respect

to the establishment of such utility programs.

12-20. Practicality of conversion to tenant paid utilities.

As the owner/manager begins to evaluate the

practicality of conversion to tenant paid utilities,

they should take into consideration the Survey and the

project\'s energy consumption/cost levels when

determining whether the conversion to a tenant-paid

utility arrangement will be the most effective means of

addressing the project\'s energy consumption problems.

Other items that should also be considered include:

a\. Possible structural difficulties in converting the

utility system.

b\. The cost of the conversion.

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9/92 12-26

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4350.1 REV-1

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c\. How the conversion will be funded and the effect,

if any, that such financing will have on project

rents, especially where tenant rents are not based

on a percentage of income formula.

d\. The estimated savings to the project.

e\. Other factors such as marketing, occupancy

implications, effect on utility rates, etc.

12-21. Submitting the Conversion Request

If after evaluation of the above items the

owner/manager feels that conversion to individually

metered utilities is in the best interest of the energy

conservation needs of the project, then a written

request should be submitted to the local HUD Field

Office for approval of the conversion and the utility

allowance. The owner\'s request should include the

following documentation:

a\. A copy of the Notice to tenants (described in

paragraph 12-22)

b\. The type of utility(s) to be converted (gas,

electric) and the utility combination involved

(space heating, cooling, domestic hot water,

cooking, lighting).

c\. A breakdown of the number of units by unit type and

size.

d\. Monthly cost for the past year of paying for the

utility or utilities involved on a project basis

(actual cost) and by unit type and size (estimated

cost).

e\. A statement from the utility company(s) addressing

the average monthly level of energy consumption and

cost for each size and type unit, taking into

consideration the type of building(s) involved.

This statement should include any foreseeable rate

increases for the next 12 months.

f\. A recommended utility allowance for each size unit,

taking into consideration: the utility company\'s

estimate; other data obtained; the impact of energy

improvements; and increases in utility rates

expected in the next 12 months.

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12-27 9/92

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4350.1 REV-1

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g\. The total conversion costs involved, as obtained

from the utility company or from contractor bids

and to the extent known, the source and terms of

financing the conversion.

h\. The estimated effect of the conversion on the total

housing cost of the tenants by unit type and size,

taking into account:

1\. The estimated monthly cost of utilities to be

paid by the tenants by unit type and size;

2\. The estimated cost of conversion (including

the cost of financing)

3\. The proposed utility allowances; and

4\. The estimated change in rents paid to the

mortgagor as a result of the conversion.

i\. Provide a copy of the project\'s latest form of

compliance documentation and time frames, annotated

to indicate progress made toward the implementation

of conservation measures in areas identified as

needing improvement (if any).

j\. Comments received during the tenant review process.

12-22. Tenant Input. The request should be accompanied by the

tenant input as received by the owner when complying

with the tenant review procedures outlined in 24 CFR

245, Subpart E. These procedures require that tenants

be notified 30 days prior to the owners submission of

the conversion request to HUD, by a notice which states

the following:

a\. The mortgagor intends to submit a request to HUD

for approval of conversion from Project-paid

utilities to tenant-paid utilities, or of a

reduction of tenant utility allowances;

b\. That tenants (including any legal or other

representatives acting for the tenants individually

or as a group) have a right to participate through:

1\. A 30 day review period. This period will

commence from the date of the Notice during

which time tenants may review the conversion

package to be submitted to HUD (including any

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9/92 12-28

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4350.1 REV-1

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rent increase request). This process

includes the right to inspect and copy the

materials that the mortgagor is required to

submit to HUD. The mortgagor must provide a

place (which will be specified in the notice)

which is reasonably convenient to tenants and

their representatives to inspect the package

during normal business hours.

2\. The submission of written comments. During

the review period, tenants have the right to

submit written comments on the proposed

conversion/rent increase. The notice will

provide the addresses (both at HUD and the

mortgagor) where tenants may submit comments

concerning the proposed conversion/rent

increase.

3\. Tenant review of changes. If the mortgagor,

whether at HUD\'s request or otherwise, makes

any material change during a tenant comment

period in the package to be submitted to HUD,

the tenants must be notified of the changes

and allowed an additional 15 days or the

remainder of the initial review period,

whichever is longer, to inspect, copy and

comment on the changes.

c\. That HUD will base its decision on the information

contained in the conversion package and with

consideration given to the tenant comments; and

d\. That the mortgagor will notify the tenants of HUD\'s

decision and that it will not begin to effect any

approved conversion or reduction (in accordance

with the terms of existing leases) until at least

30 days from the date of service of the

notification.

12-23. HUD Approval of the Plan

a\. Approval of the Plan.

A member of the Loan Management Branch will review

the information submitted by the owner/manager

which will include the proposed conversion, the

recommended utility allowance and tenant comments

on the conversion. Approval of the plan will be

based on:

1\. The required data submitted by the owner;

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12-29 9/92

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4350.1 REV-1

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2\. Data available on comparable projects;

3\. The staff member\'s knowledge of the project\'s

needs;

4\. The owner satisfactorily addressing the

implementation of the energy conservation

measures identified by the survey or other

means of documentation, especially with

respect to items that are serious heat loss

factors.

b\. Disapproval of the Plan. The Loan Management

Branch Chief will notify the owner/manager of

reasons why the plan cannot be approved and, if

applicable, advise the owner/manager of any actions

that may be needed to modify the request.

c\. Post-approval stage

When the utility conversion is approved by HUD the

following actions should be taken:

1\. Preparation of a new rental schedule (HUD

92458\) reflecting (1) the deletion of

utilities in rent charges and (2) the amount

of the utility allowance for each size unit

(in accordance with Chapter 7 of this

handbook).

2\. If the utility conversion request is

accompanied by a request for a rent increase

(in excess of the maximum permissible rents)

then owners of subsidized projects must

follow all outstanding instructions for

Budgeted Rent Increases in Handbook 4350.1,

Chapter 7. This should include a notice to

tenants which allows them to comment on both

the conversion request as well as the rent

increase. (This will occur if the

redetermined rental charge, with the cost of

tenant paid utilities deducted, plus the new

HUD approved utility allowances result in a

rental rate greater than the current rental

charges.) Once the conversion request is

approved and the utility allowance is

established, the rental increase request

should be processed in the usual manner.

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9/92 12-30

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4350.1 REV-1

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3\. Advise tenants of the utility company(s)

deposit requirements for establishing direct

utility services.

4\. After the utility conversion is approved, it

is the project owner/manager\'s responsibility

to request HUD\'s approval of any needed

increase in the utility allowance. This

should be done whenever any utility rate

increase results in a 10% or more cumulative

increase in utility costs. A reevaluation of

utility allowances for possible increase

should be performed simultaneously by the

owner/manager with the submission of each

rent increase request.

d\. Required changes to Regulatory Agreements

When a utility conversion is approved, the

Regulatory Agreements controlling HUD-Insured and

HUD-Held projects must be amended to reflect the

use of tenant-paid utilities. This paragraph

provides general guidance for amending these forms.

The sample amendatory language provided below is

applicable to the various Regulatory Agreements

used under the Section 236 program (paragraph 7 of

HUD 93134 and Paragraph 4 of HUD 93135 and HUD

93136). This sample language will also provide

general guidance for use in amending Regulatory

Agreements for other programs in a consistent

manner. The applicable paragraphs of the existing

forms shall be amended by the substitution of

clauses which conform to the specific program

requirements involved and are otherwise generally

consistent with the following:

\"(1) with the prior approval of the Commissioner,

they will establish for each dwelling unit (1) a

basic rental charge determined on the basis of

operating the project with payments of principal

and interest under a mortgage bearing interest at

one percent and (2) a fair market rental charge

determined on the basis of operating the project

with payments of principal, interest and mortgage

insurance premiums due under the insured mortgage

on the project, provided however, that with respect

to those projects which the Commissioner has

determined have separate utility meters and in

which tenants are billed directly and pay some or

all of the utility charges attributable to the

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12-31 9/92

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4350.1 REV-1

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units they occupy, the basic rental charge and the

fair market rental charge shall be determined on

the basis of operating the project without

including the cost of such utility services for

each unit;\"

\"(2) the rental charged for each unit will be

equal to 30% of the tenant\'s adjusted income or the

basic rental, whichever is greater, provided,

however, that in projects with separate utility

meters in the units where the tenants will be

billed directly and pay for some or all of the

utility charges to the utility company, the monthly

rental charged for each unit will be the greater of

the basic rental or 30% of the tenant\'s adjusted

income less a deduction for the utility allowance

approved by the Commissioner, but in no event shall

the tenant\'s rent be less then 25% of their

adjusted monthly income; the rental charged shall

never exceed the fair market rental;\"

(Fair market is the rent referred to in Section 236

which is rent charged for a unit receiving no

interest reduction assistance.)

NOTE: Keep in mind that the full amount of this

change will not be accomplished until tenant\'s

income reaches the full 30% ratio under the phase-in

procedures applicable for Section 236 projects.

\"(3) no change will be made in the basic rental or

fair market rental unless approved by the

Commissioner; and in the event that some or all of

the utilities are individually metered, in which

case the Commissioner will have approved a utility

allowance for each unit, they agree to request from

the Commissioner an adjustment in the approved

utility allowance within 90 days if there are

utility rate increases which result in a cumulative

increase of 10 percent or more in the cost of

utilities included in the latest approved utility

allowance, and further agree to reevaluate the need

to request an adjustment in the approved utility

allowance at the time of each rent increase

request.\"

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9/92 12-32

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4350.1 REV-1

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e\. Required Changes to Lease Forms

The dwelling leases must also be amended by the

owner to indicate the utility service(s) the tenant

will pay directly to the utility company and to

delete the utility service(s) no longer included in

the rental charge. Item 7, Charges for Utilities

and Services, of the Model Lease for Subsidized

Programs (Appendix 19a of Handbook 4350.3) should

be amended to address this change to tenant-paid

utilities for subsidized projects.

f\. Effect on Conversion of Management Fees

Management fees are usually figured as a percentage

of the total rent roll. When a tenant-paid utility

conversion takes place, the total rent roll is

reduced because the utility cost(s) is no longer

included in the computation. There is no intention

of reducing management fees simply because the

total rent roll is reduced. To address this

imbalance, the percentage factor should be adjusted

to yield the dollar amount of the previously-approved

fee.

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12-33 9/92

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4350.1 REV-1

Appendix 1

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HUD Multifamily Energy Survey

Energy conservation in HUD insured and assisted multifamily

buildings has the potential to reduce energy costs to HUD,

building owners, and tenants, as well as to increase tenant

comfort and general well-being. This energy survey is an attempt

to identify sensible conservation measures, in the form of both

technical retrofits and improved maintenance practices. This

survey is not meant to be comprehensive; rather, the proposed

measures represent only the essential beginning efforts to

improve the energy efficiency of multifamily housing.

How to use this survey

This survey consists of two sections: 1) the Walk-Through Energy

Survey and 2) the Energy Conservation Measures (ECM). First,

walk through each area of the building and answer as accurately

as possible the question posed in the Walk-Through Energy Survey.

Answering some of the questions may require persistence. Many of

the questions appear in the following form:

\- Is the thermostat installed? yes NO If No, Ref. No. H.6

If the appropriate response is in uppercase bold script, in this

case NO, then a problem exists and action may be called for. The

letter and number (also in uppercase bold script) to the right of

the response indicate the measure or group of measures that

should be considered to remedy the problem. In this case, the

appropriate group of measures is H.6, that dealing with HVAC

Distribution system retrofits.

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9/92 12-34

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4350.1 REV-1

APPENDIX 1

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HUD Multifamily

Walk-Through

Energy Survey

(NOTE: Form HUD-9614 has been cancelled)

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form HUD-9614 (4/92)

ref. Handbook 4350.1

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12-35 9/92

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4350.1 REV-1

APPENDIX 1

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form HUD-9614

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9/92 12-36

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4350.1 REV-1

APPENDIX 1

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form HUD-9614

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12-37 9/92

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4350.1 REV-1

APPENDIX 1

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form HUD-9614

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9/92 12-38

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4350.1 REV-1

APPENDIX 1

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form HUD-9614

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12-39 9/92

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4350.1 REV-1

APPENDIX 1

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form HUD-9614

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9/92 12-40

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4350.1 REV-1

APPENDIX 1

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form HUD-9614

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12-41 9/92

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4350.1 REV-1

Appendix 2

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WAYS THE TENANTS CAN ASSIST IN CONSERVING ENERGY

1\. When high wattage light bulbs burn out, replace them with

lower wattage bulbs.

2\. Turn off lights when not in use \-- both in own unit and in

community rooms.

3\. Do not use electric appliances longer than necessary, and be

sure to turn off appliances when not in use.

4\. Do not run hot water longer than absolutely necessary.

5\. Do not leave stove burners on longer than absolutely

necessary.

6\. Call the management office immediately to report leaky

faucets, plumbing leaks and drafty rooms.

7\. In the winter, close the shades or drapes in the evening and

leave the thermostat at 70 degrees or less. Lower thermostat to

65 degree when retiring for the night. Open drapes or shades in

the morning to admit winter sunlight and warmth through the

windows.

8\. In the summer, open shades or drapes in the evening and

leave the thermostat at 78 degrees. Close drapes or shades in the

morning to reduce heat from the sunlight.

9\. If you leave your apartment for a day or more, set

thermostat at 85 deg. in the summer and 60 deg. in the winter.

10\. Never have heat or air conditioning on while doors and

windows are kept open.

11\. In nice weather, turn off heat and air conditioning and open

windows.

12\. Keep fan coil units, radiators and baseboard heater surfaces

clean.

13\. Schedule use of laundry (and dishwashing) machines to allow

for full loads.

14\. Report broken or cracked windows to the manager immediately.

15\. Use cold water detergents in washing machine, and wash and

rinse in cold water.

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9/92 12-42

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4350.1 REV-1

Appendix 2

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16\. Do not block air outlets or returns and radiators with

furniture or curtains.

17\. Close doors and shut off heating supply to rooms that are

seldom used.

18\. Increase amount of carpeting in unit.

19\. Call the management office if you have any questions or if

you have some ideas on further energy conservation. They

will be appreciated.

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12-43 9/92

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4350.1 REV-1

Appendix 3

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ENERGY REDUCTION TIPS FOR PROJECT MANAGEMENT

1\. Lower thermostat setting in winter/raise in summer to point

that the unit furthest from the heat source will be at the

minimum (maximum in summer) setting allowed by local law for

day and night settings.

2\. Reduce or turn off heat/air conditioning in unoccupied

areas.

3\. Turn off lights in community rooms and other common areas

when not in use.

4\. Reduce lighting and bulb wattage in public hallways,

lobbies, garage and parking areas, consistent with safety

requirements.

5\. Replace exterior and interior incandescent lighting with

fluorescent or other energy efficient lighting in common

areas, and as appropriate, in individual units.

6\. Thermostat settings in vacant units, where individually

controlled, should be set to operate at a minimum level

necessary to prevent damage to water systems.

7\. If furnace has natural gas standing pilot, turn it off

during the summer months.

8\. If two boilers are used for space heating, leave one off

several cold wintery days to test whether heating efficiency

of single boiler is adequate.

9\. Purchase heating fuel (oil) when rates are favorable.

10\. When replacing kitchen appliances, install energy efficient

appliances.

11\. When painting common areas, use light or reflective paint or

consider use of washable wallpaper.

12\. Install carpeting in common areas.

13\. Install window shades, external shading elements, tinted

glass or interior blinds to direct sunlight, thereby

reducing air conditioning needs.

14\. When making replacements consider the installation of storm

or other energy efficient doors and windows.

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9/92 12-44

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4350.1 REV-1

Appendix 3

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15\. Where there are individual window units, install inside air

conditioner covers during the winter months, and provide

tenants with specifics as to proper size of a unit that they

may install.

16\. Install photoelectric sensors to turn on all exterior lights

at dusk and off at daybreak.

17\. If some halls and stairwells receive natural light, rewire

so that lights can be turned off when not needed.

18\. Reduce domestic hot water temperature to units to a

suggested maximum level of 110 degree to units furthest from the

boiler.

19\. Reduce the burning rate of burners for heating equipment.

20\. Turn off hot water to areas that do not require it.

21\. Reduce hot water use through installation of water flow

restricters.

22\. Hang signs in the laundry room requesting that tenants use

lower water temperatures and full loads when doing laundry.

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12-45 9/92