Enhancing Energy Efficiency
 

and Green Building Design in
 

Section 202 and Section 811 Programs
 

U.S. Department of Housing and Urban Development | Office of Policy Development and Research 
Visit PD&R’s website 

www.hud.gov/policy or www.huduser.org 

to find this report and others sponsored by HUD’s Office of Policy Development and Research (PD&R). Other services of 

HUD USER, PD&R’s Research and Information Service include listservs, special interest and bimonthly publications (best 

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help with accessing the information you need. 
Enhancing Energy Efficiency 

and Green Building Design in 

Section 202 and Section 811 Programs 

Prepared for: 

U.S. Department of Housing 

and Urban Development 

Washington, D.C. 

Prepared by: 

Kimberly Gugino Wollos 

Kristen Mui 

Janet Pershing 

Eric Oetjen 

ICF International 

Washington, D.C. 

February 2011 
DISCLAIMER 

The statements and conclusions contained in this report are those of the authors and do not necessarily reflect the views or policies 

of the U.S. Department of Housing and Urban Development or the U.S. government. The authors have made every effort to verify the 

accuracy and appropriateness of this report’s content. However, no guarantee of the accuracy or completeness of the information or 

acceptability for compliance with any industry standard or mandatory requirement of any code, law or regulation is either offered or 

implied. The products and systems described in the report are included only as examples of some available choices. No endorsement, 

recommendation, or evaluation of these products or their use is given or implied. 
ACKNOWLEDGMENTS
 

This Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs report benefited from the 

generous contributions of many individuals. The development of this report received funding from the U.S. Department of Housing 

and Urban Development (HUD), Office of Policy Development and Research, Affordable Housing Research and Technology Division 

and from the Environmental Protection Agency (EPA), Office of Air and Radiation. We especially appreciate the thoughtful project 

leadership of Brian Ng from EPA and Mike Blanford from HUD. We thank Ben Metcalf of the HUD Office of Multifamily Housing for his 

leadership, insight, and guidance, as well as Stockton Williams and Michael Freedberg of the HUD Office of Sustainable Housing and 

Communities for their support and advice. We also thank the HUD program staff, especially Aretha Williams, Alicia Anderson, and Harry 

Messner, for their guidance throughout the project. We are grateful for the case study contributors—Dana Frankenburg of the Hudson 

Companies, Steve Bodkin of National Church Residences, Edward Connelly of New Ecology, Inc., Diane Clark of Nuestra Comunidad 

Development Corporation, and Brian Bieler of REACH Community Development—who generously gave their time and willingly shared 

their experiences. Melissa Knott and Amy Rowland of Mercy Housing were also instrumental in informing this report, sharing their 

challenges and experiences with us. We also thank all those who participated in the roundtable meeting in May 2010, including the 

facilitator, Leslie Warner, of ICF International. Without the effort of all those listed, this report would not have been possible. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs I
 

 

 

ForEworD
 

Over the past 50 years, the U.S. Department of Housing and Urban Development’s (HUD) Section 202 and Section 811 programs have 

produced almost 400,000 affordable rental homes for the elderly and 30,000 affordable homes for people with disabilities. These 

distinguished programs, however, have not always reached their potential—project development is slow, limited resources have been 

spread too thin, operating costs have continued to go up, and inadequate emphasis has been paid to ensuring broader benefits of 

program dollars. Generally speaking, programs that were conceived in a very different time have now come due for an update into 

the world of 21st century housing finance. Starting in early 2010, HUD initiated a comprehensive review of the two programs. After 

conducting internal analysis, participating in stakeholder listening sessions, and reading several hundred pages of written comment, 

HUD prepared legislative proposals to Congress and is pursuing a number of administrative changes to make the programs more 

sustainable, streamlined, and efficient. 

One key theme that emerged throughout the review is the need for a greater emphasis on sustainability and energy efficiency. Not 

only did this theme reflect tenants’ and owners’ desires for a healthier environment, but it also reflected the challenge associated with 

a continued growth of operating expenses across the 202 and 811 portfolios, which diverts resources away from the development and 

operation of new affordable homes. Accordingly, HUD’s Office of Multifamily Housing Programs has collaborated with HUD’s Office 

of Policy Development and Research and the Environmental Protection Agency (EPA) to prepare ideas to help owners and sponsors 

increase energy efficiency in Section 202 and Section 811 housing. ICF International created the roadmap, presented in this Enhancing 

Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs report, based on current best practices, with 

input from EPA and HUD staff and outside stakeholders. It sets forth a coordinated series of actions to increase energy efficiency in 

new and existing Section 202 and Section 811 projects. To illustrate these actions, the roadmap follows the experiences of five diverse 

organizations that have successfully incorporated energy efficiency and green concepts in new and existing Section 202 and Section 

811 activities. Case studies included in section III of this report paint a picture of these organizations’ strategies for overcoming the 

challenges involved in “going green.” 

Long-term sustainability requires continued partnership between HUD and the sponsors and owners of federally supported affordable 

housing. We encourage continued efforts to make these projects greener, healthier, and more energy efficient, and we hope owners 

and sponsors find this roadmap helpful. Through efforts like these, we can benefit America’s low-income elderly and people with 

disabilities, improve communities, and have a greater impact with our federal investment. 

Raphael W. Bostic, Ph.D. Carol J. Galante 

Assistant Secretary for Policy Deputy Assistant Secretary 

Development and Research Multifamily Housing Programs 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs II
ExEcutivE Summary 

The U.S. Department of Housing and Urban Development (HUD) FY 2010–2015 Strategic Plan calls for an overall reduction in energy 

costs through improved design and operation of HUD-supported projects. Energy conservation and green building techniques are 

becoming mainstream practice for market-rate projects, and many sponsors and owners of HUD-subsidized housing have already 

started following suit, both in maintaining and upgrading existing units and in constructing new units. To ensure that this momentum 

continues in its Section 202 and Section 811 portfolio, HUD moved in fiscal year 2010 to require energy efficiency and water 

conservation measures and to encourage the use of green building design and features in new Section 202 and Section 811 projects. 

This Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs report was developed as the 

result of an Interagency Agreement between HUD and the U.S. Environmental Protection Agency (EPA), with the help of stakeholders 

who participated in roundtable discussions with HUD and EPA. It was developed to aid sponsors and owners in working with HUD to 

advance these goals and, specifically, to assist in responding to the new requirements and incentives. 

the Section 202 and Section 811 Housing Stock 

The Section 202 and Section 811 housing stock consists of a range of unit types in geographically diverse areas of the country. In 

addition, this stock ranges from units that have been in use for decades to others recently approved for occupancy. The physical needs 

of these units, as well as the specific program requirements that affect them, differ widely. This diversity means that there is no one-sizefits-all approach to implementing energy conservation and green building techniques in Section 202 and Section 811 housing. 

resource conservation and Green Building Design— 

requirements and incentives for new Projects 

In fiscal year 2010, HUD began requiring applicants seeking Section 202 and Section 811 funding to increase energy and water 

conservation, and the Department offered incentives to applicants who incorporate green building features into their projects. 

Although some of the specifics of these new requirements and incentives may evolve over time, conservation and sustainability are 

expected to remain core elements of all future construction requirements. Specific requirements and incentives depend on the type of 

development proposed by applicants and include the following: 

•	 For new construction and substantial (gut) rehabilitation projects, sponsors and owners are required to incorporate energy 


efficiency and water conservation strategies.
 

•	 For acquisition and moderate or modest rehabilitation projects, pre- and post-construction energy audits and incorporation of 

conservation techniques are required. 

•	 For all applicants, incentives in the form of additional scoring points are available to applications that meet key criteria concerning 

green development, sustainable design, solar orientation principles, and operations and maintenance manuals that address key 

features affecting “green” operations. 

•	 Section II provides a more thorough overview of these requirements and incentives, while section IV goes into more detail about 

each element. 

Existing Section 202 and Section 811 Housing 

HUD has not established specific conservation or green design requirements for existing Section 202 and Section 811 projects. At 

the same time, HUD strongly encourages sponsors and owners of existing Section 202 or Section 811 projects to look for ways to 

incorporate green building components and practices as they operate, maintain, and make capital improvements to their projects. 

moving Forward 

The changes involved in incorporating energy efficiency and green features pose practical challenges for all sponsors and owners, 

and tight budget constraints in the Section 202 and Section 811 environment add to these challenges. However, the experiences of 

sponsors and owners who have already incorporated such features in their new and existing projects demonstrate that it is possible to 

meet these challenges. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs III
This report highlights the experiences of five diverse organizations that have successfully incorporated energy efficiency and green 

concepts in new and existing Section 202 and Section 811 activities. Case studies included in section III of this report paint a picture of 

these organizations’ strategies for overcoming the challenges involved in “going green.” They include the following: 

•	 Hudson Companies, a sponsor of Section 202 projects in Pennsylvania and Ohio. 

•	 National Church Residence, a nonprofit owner and sponsor of Section 202 projects across the United States. 

•	 New Ecology, Inc., a nonprofit energy efficiency and green building technical advisory group that assists Section 202 sponsors 

and owners. 

•	 Nuestra Comunidad Development Corporation, a nonprofit sponsor of a Section 202 project in the Boston area. 

•	 REACH Community Development, a nonprofit sponsor of Section 202 and Section 811 projects in the Portland, Oregon area. 

Although these five organizations have demonstrated that energy conservation and “going green” are possible in the Section 202 

and Section 811 environment, for sponsors and owners who have not yet attempted to incorporate energy efficiency and green 

features, the prospect may be daunting. Section IV of this report is devoted to showing how sponsors and owners can approach the 

tasks of implementing energy and water conservation measures and of making the operation and maintenance of their projects more 

sustainable. Although the report is not a full-fledged “how to” manual, it includes a range of useful ideas, tips, and tools, including 

the following: 

•	 An explanation of the program requirements. 

•	 Suggestions about steps to take in meeting those requirements. 

•	 Explanations of how various tools and resources support achievement of each required or voluntary activity. 

•	 Stand-alone listings of resources, including the following: 

–	 Financing sources. 

–	 Technical assistance sources. 

–	 Green building standards. 

This information is expected to serve as a valuable starting point for those sponsors and owners who are working to invest in the 

conservation and green features that will make the Section 202 and Section 811 portfolios more efficient and sustainable over time. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs IV
TABLE OF CONTENTS 

I. INTRODUCTION ........................................................................................................................1
 

The Need for Energy Savings in the Section 202 and Section 811 Programs........................................................................................ 1
 

Process of Developing This Report ........................................................................................................................................................... 1
 

Structure of This Report.............................................................................................................................................................................. 2
 

II. THE OPERATING ENVIRONMENT FOR SECTION 202 AND SECTION 811 PROJECTS ............2
 

Program Overview....................................................................................................................................................................................... 2
 

Historic Overview of Capital Funding and Operating Expenses ............................................................................................................ 3
 

Characteristics of Section 202 and Section 811 Portfolio ........................................................................................................................ 4
 

Age of Projects ���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 4
 

Building Types ����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 4
 

Geography of Units��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 5
 

Financial Components of Section 202 and Section 811 Programs ����������������������������������������������������������������������������������������������������� 6
 

Development Cost Limits ................................................................................................................................................................. 6
 

Operating Costs ................................................................................................................................................................................ 6
 

Replacement Reserves...................................................................................................................................................................... 7
 

Residual Receipts .............................................................................................................................................................................. 7
 

Secondary Financing......................................................................................................................................................................... 7
 

Low-Income Housing Tax Credit...................................................................................................................................................... 7
 

Improving Energy and Water Conservation and Promoting Green Design in Section 202 and Section 811 Projects....................... 7
 

Requirements for Energy and Water Conservation in Section 202 and Section 811 Projects ���������������������������������������������������������� 7
 

Incentive for Incorporating Green Design in Section 202 and Section 811 Projects������������������������������������������������������������������������� 8
 

Federal Initiatives To Support Energy Efficiency and Green Building.................................................................................................... 8
 

HUD’s Multifamily Energy Efficiency Initiative��������������������������������������������������������������������������������������������������������������������������������������� 8
 

HUD’s Green Retrofit Program ��������������������������������������������������������������������������������������������������������������������������������������������������������������� 9
 

ENERGY STAR®���������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 9
 

ENERGY STAR Qualified Homes ����������������������������������������������������������������������������������������������������������������������������������������������������������� 9
 

EPA’s Indoor airPLUS Program ��������������������������������������������������������������������������������������������������������������������������������������������������������������� 9
 

ENERGY STAR Qualified Multifamily High-Rise Program������������������������������������������������������������������������������������������������������������������ 10
 

ENERGY STAR Quantity Quotes���������������������������������������������������������������������������������������������������������������������������������������������������������� 10
 

EPA’s WaterSense® Program����������������������������������������������������������������������������������������������������������������������������������������������������������������� 10
 

National and Regional Green Building Criteria...................................................................................................................................... 10
 

Enterprise Green Communities Criteria���������������������������������������������������������������������������������������������������������������������������������������������� 10
 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs V
NAHB Green Building Standard ���������������������������������������������������������������������������������������������������������������������������������������������������������� 11
 

LEED Green Building Rating System��������������������������������������������������������������������������������������������������������������������������������������������������� 11
 

EarthCraft House����������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 11
 

Built Green��������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������������� 12
 

Strategies From the Field......................................................................................................................................................................... 12
 

Strategy 1� Analyze the Data ���������������������������������������������������������������������������������������������������������������������������������������������������������������� 12
 

A. New Construction or Substantial Rehabilitation: Energy Modeling....................................................................................... 12
 

B. Existing Housing: Energy Audits................................................................................................................................................ 13
 

C. Existing Housing: Energy Benchmarking.................................................................................................................................. 13
 

D. Existing Housing: Utility Bill Management............................................................................................................................... 13
 

Strategy 2� Choose an Implementation Approach����������������������������������������������������������������������������������������������������������������������������� 14
 

A. Component-by-Component Approach .................................................................................................................................... 14
 

B. Project-by-Project Approach...................................................................................................................................................... 14
 

C. One Energy Efficiency or Green Building Standard Across the Portfolio.............................................................................. 14
 

Strategy 3� Select an Energy Efficiency or Green Building Standard������������������������������������������������������������������������������������������������ 14
 

Strategy 4� Leverage Additional Funding ������������������������������������������������������������������������������������������������������������������������������������������� 15
 

Strategy 5� Educate Occupants and Influence Their Behavior���������������������������������������������������������������������������������������������������������� 15
 

III. MAKING ENERGY EFFICIENCY, WATER CONSERVATION, AND SUSTAINABILITY 


WORK IN SECTION 202 AND SECTION 811 PROJECTS: FIVE CASE STUDIES...........................17
 

A. Combining Energy Efficiency and Green Building Features in Section 202 


New Construction Projects: The Hudson Companies .....................................................................................18
 

Strategies for Combining Energy Efficiency and Green Building Features ......................................................................................... 18
 

Strategy 1� Use Energy Modeling for New Buildings������������������������������������������������������������������������������������������������������������������������� 18
 

Strategy 2� Obtain Leadership in Energy and Environmental Design (LEED) Certification ������������������������������������������������������������ 18
 

Looking Ahead ................................................................................................................................................................................ 19
 

Lessons Learned........................................................................................................................................................................................ 20
 

Useful Resources ....................................................................................................................................................................................... 20
 

More Information ...................................................................................................................................................................................... 20
 

B. Working Smart To Save Energy and Lower Costs When Retrofitting Existing 


Section 202 Housing: National Church Residences ........................................................................................21
 

Strategies for Achieving Energy Efficiency and Cost Savings ............................................................................................................... 21
 

Strategy 1� Utility Data Management �������������������������������������������������������������������������������������������������������������������������������������������������� 21
 

Strategy 2� Component-by-Component Approach ��������������������������������������������������������������������������������������������������������������������������� 22
 

Strategy 3� Energy Management Systems ������������������������������������������������������������������������������������������������������������������������������������������ 23
 

Strategy 4� Tenant Training������������������������������������������������������������������������������������������������������������������������������������������������������������������� 23
 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs VI
Looking Ahead.......................................................................................................................................................................................... 23
 

Lessons Learned........................................................................................................................................................................................ 23
 

Useful Resources ....................................................................................................................................................................................... 24
 

More Information ...................................................................................................................................................................................... 24
 

C. Analyzing Energy Usage Before Implementing Energy Savings Strategies in 


New and Existing Section 202 Housing: New Ecology...................................................................................25
 

Strategies for Increasing Energy Efficiency in Existing Projects and New Construction..................................................................... 25
 

Strategy 1� For Existing Projects, Gather Information by Conducting a Front-End Utility Analysis and an Energy Audit ����������� 25
 

Strategy 2� For New Construction or Substantial Rehabilitation, Select From Available Energy Efficiency 


and Green Building Standards������������������������������������������������������������������������������������������������������������������������������������������������������������� 26
 

Looking Ahead.......................................................................................................................................................................................... 26
 

Lessons Learned........................................................................................................................................................................................ 26
 

Useful Resources ....................................................................................................................................................................................... 27
 

More Information ...................................................................................................................................................................................... 27
 

D. Combining Funding Sources and Educating Property Management Staff for 


New Construction Section 202 Housing: Nuestra CDC..................................................................................28
 

Strategies for Selecting, Funding, and Maintaining Green Upgrades ................................................................................................. 28
 

Strategy 1� Enterprise Green Communities Criteria and Energy Modeling������������������������������������������������������������������������������������� 28
 

Strategy 2� Combining Funding Sources �������������������������������������������������������������������������������������������������������������������������������������������� 29
 

Strategy 3� Educating Property Managers and Maintenance Staff��������������������������������������������������������������������������������������������������� 29
 

Looking Ahead.......................................................................................................................................................................................... 29
 

Lessons Learned........................................................................................................................................................................................ 29
 

Useful Resources ....................................................................................................................................................................................... 30
 

More Information ...................................................................................................................................................................................... 30
 

E. Maximizing Energy-Efficient Upgrades in Existing Section 811 Housing: REACH Community Development.... 31
 

Strategies for Funding, Planning, and Building Support for Energy Efficiency ................................................................................... 31
 

Strategy 1� Combining Funding Sources To Make a Minor Investment in Energy Efficiency and 


Major Investment in Renewable Energy���������������������������������������������������������������������������������������������������������������������������������������������� 31
 

Strategy 2� Using In-House and Professional Expertise To Develop a Plan for Energy Efficiency�������������������������������������������������� 32
 

Strategy 3� Engaging Tenants in the Project��������������������������������������������������������������������������������������������������������������������������������������� 32
 

Looking Ahead.......................................................................................................................................................................................... 32
 

Lessons Learned........................................................................................................................................................................................ 33
 

Useful Resources ....................................................................................................................................................................................... 33
 

More Information ...................................................................................................................................................................................... 33
 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs VII
IV. ENERGY EFFICIENCY, WATER CONSERVATION, AND SUSTAINABILITY 


IN NEW AND EXISTING SECTION 202 AND SECTION 811 PROJECTS......................................34
 

Addressing Requirements for Energy Efficiency and Water Conservation in New Section 202 and Section 811 Projects.............. 34
 

New Construction and Substantial Rehabilitation Projects ��������������������������������������������������������������������������������������������������������������� 34
 

Energy Conservation....................................................................................................................................................................... 34
 

Water Conservation......................................................................................................................................................................... 34
 

Acquisition and Moderate or Modest Rehabilitation������������������������������������������������������������������������������������������������������������������������� 34
 

Tools To Help With Energy and Water Conservation Efforts������������������������������������������������������������������������������������������������������������� 35
 

Tools for New Construction and Substantial Rehabilitation Projects.......................................................................................... 35
 

Tools for Acquisition and Moderate or Modest Rehabilitation Projects..................................................................................... 35
 

Addressing Section 202 and Section 811 Incentive Points for Green Design and Development...................................................... 36
 

Selecting the Green Standard To Use ������������������������������������������������������������������������������������������������������������������������������������������������� 36
 

Use an Integrated Design Process to the Greatest Extent Feasible������������������������������������������������������������������������������������������������� 36
 

What Is an Integrated Design Process?......................................................................................................................................... 36
 

Why Is an Integrated Design Process Important?......................................................................................................................... 37
 

How Integrated Design Can Actually Work .................................................................................................................................. 38
 

Incorporating Passive Solar Orientation to the Extent Feasible ������������������������������������������������������������������������������������������������������� 38
 

Basic Principles of Passive Solar Orientation ................................................................................................................................ 38
 

Benefits of Passive Solar Orientation............................................................................................................................................. 39
 

Obstacles and Challenges to Passive Solar Orientation.............................................................................................................. 39
 

Resources ......................................................................................................................................................................................... 39
 

Developing an Operations and Maintenance Manual����������������������������������������������������������������������������������������������������������������������� 40
 

Routine Maintenance Plan.............................................................................................................................................................. 40
 

Operations and Maintenance Guidance....................................................................................................................................... 40
 

Tenant Education............................................................................................................................................................................. 40
 

Operations Staff Training................................................................................................................................................................ 40
 

Addressing Energy Efficiency, Water Conservation, and Sustainability in Existing Section 202 and Section 811 Projects ............. 42
 

Meeting the Challenges ........................................................................................................................................................................... 42
 

Finding Technical Information and Expertise ������������������������������������������������������������������������������������������������������������������������������������� 43
 

Development Cost Limits and Financing Improvements ������������������������������������������������������������������������������������������������������������������ 43
 

Replacement Reserves May Not Cover Cost of Energy Efficiency Improvements in Existing Housing ���������������������������������������� 43
 

Attachment 4-1. Potential Funding Sources .......................................................................................................44
 

Attachment 4-2. Technical Assistance and Resources .........................................................................................47
 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs VIII
 
Appendix ....................................................................................................................................50
 

Building Energy Codes............................................................................................................................................................................. 50
 

Energy Efficiency and Green Building Standards — Additional Resources......................................................................................... 51
 

LIST OF EXHIBITS
 

Exhibit 1. Year of Construction of Section 202 and 811 Projects.......................................................................................................................... 4
 

Exhibit 2. Year of Construction of Section 202 and 811 Projects Funded by Capital Advances or Direct Loans............................................. 4
 

Exhibit 3. Number of Section 202 and 811 Projects and Units by Building Types From 1961 to 2010 ............................................................. 4
 

Exhibit 4. Number of Section 202 and 811 Units by Census Region From 1961 to 2010................................................................................... 5
 

Exhibit 5. Number of Section 202 and 811 Projects Funded Through Capital Advances or
 

Direct Loans by Field Office and HUD Region From 1961 to 2010..................................................................................................... 5
 

Exhibit 6. Development Cost Limits for Fiscal Year 2009 for Section 202 and Section 811 ............................................................................... 6
 

Exhibit 7. Summary of Potential Funding Sources .............................................................................................................................................. 15
 

Exhibit 8. Annual Savings Breakdown .................................................................................................................................................................. 21
 

Exhibit 9. NCR Master Metered Property Benchmark ........................................................................................................................................ 22
 

Exhibit 10. Bright Power Energy Scorecard ......................................................................................................................................................... 22
 

Exhibit 11. Cost and Annual Savings of NCR’s Initiatives ................................................................................................................................... 23
 

Exhibit 12. Sample Detail and Summary View Produced by WegoWise........................................................................................................... 26
 

Exhibit 13. Addressing Integrated Design During the Design Process............................................................................................................. 37
 

Exhibit 14. Two Approaches to the Integrated Design Process ......................................................................................................................... 38
 

Exhibit 15. Sample Operations and Maintenance Manual Outline ................................................................................................................... 41
 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs IX
I. INTRODUCTION 

The Need for Energy Savings in the Section 

202 and Section 811 Programs 

During fiscal year 2011, the U.S. Department of Housing and 

Urban Development (HUD) will be undertaking comprehensive 

reforms of two of its signature programs, the Section 202 

Supportive Housing for the Elderly program and the Section 811 

Supportive Housing for Persons with Disabilities program. At the 

same time, the FY 2010-2015 HUD Strategic Plan calls for an 

overall reduction in energy costs through improved design and 

operation of HUD-supported projects. Currently, HUD spends an 

estimated $5 billion annually to pay for utilities in its public and 

assisted housing and for utility allowances to voucher holders.1

 To 

support HUD’s strategic goal of reducing energy consumption, 

reforms of the Section 202 and Section 811 programs will include 

a focus on energy efficiency. 

Policy Vision Statement 

To build and retrofit all Section 202 and 811 units to a 

practical, attainable standard of energy efficiency that 

generates cost savings over the long term and ultimately 

ensures a sustainable portfolio. 

As it does with its other programs, HUD provides an ongoing 

rental subsidy to Section 202 and Section 811 projects to support 

affordability. As a general rule, tenants pay rent equal to 30 

percent of their adjusted income, and HUD contributes rental 

assistance to make up the difference between rental income and 

operating costs. As a consequence, rising energy costs, which 

increase operating costs, lead to increased rental subsidies. 

Improved energy efficiency can decrease energy usage in the 

Section 202 and Section 811 housing portfolio, lead to the 

reduction in the overall operating costs, and achieve substantial 

housing subsidy savings. These housing subsidy savings 

would accrue year after year and could be used to support 

development of new units for the two vulnerable populations 

served by the Section 202 and Section 811 programs—seniors 

and people with disabilities. 

These populations are in need of many more subsidized units 

than the Section 202 and Section 811 programs currently provide. 

A 2006 American Association of Retired Persons (AARP) study 

estimated that, for every Section 202 unit that becomes available, 

10 elderly households could benefit from that unit.2 

•	 A 2008 study by the Housing Task Force of the Consortium 

for Citizens with Disabilities estimated that at least 1.3 

million very low-income nonelderly disabled households 

without children were paying more than 50 percent of their 

income toward housing.3 

•	 HUD is committed to addressing the rising energy costs 

that are driving increasing operating costs and limiting 

HUD’s ability to meet the growing need for Section 202 and 

Section 811 housing. The following policy vision statement 

articulates this dual commitment. 

Since the implementation of the Energy Policy Act of 2005, 

HUD and the U.S. Environmental Protection Agency (EPA) 

have been collaborating to achieve this vision by encouraging 

the incorporation of energy efficiency measures in the design, 

construction, rehabilitation, and refinancing of Section 202 

and Section 811 projects. HUD and EPA have entered into an 

interagency agreement to “support Section 202 and Section 

811 housing units in improving their energy efficiency, including 

the construction of ENERGY STAR® qualified units” and to 

“investigate other green attributes that may be relevant 

to these programs.” 

Although intergovernmental collaboration has been an important 

step to achieving this policy vision, HUD will require collaboration 

and commitment from those who actually conceive, construct, 

and operate Section 202 and Section 811 projects. This report is 

designed to help sponsors and owners effectively participate in 

activities that promote energy efficiency and reduce operating 

costs across the Section 202 and Section 811 portfolios. 

Process of Developing This Report 

To identify effective ways for sponsors, owners, and development 

team members to support energy efficiency in their Section 202 

and Section 811 projects, HUD and EPA convened a roundtable 

discussion with key stakeholders on May 17, 2010. During 

the meeting, participants shared energy efficiency and green 

construction practices currently being implemented in new 

and existing Section 202 and Section 811 projects, discussed 

1	 Sims, Ron (2009) H.R. 2336, the Green Resources for Energy Efficient Neighborhoods Act of 2009. Written Statement Ron Sims, Deputy Secretary U.S. Department of 

Housing and Urban Development Hearing before the Subcommittee on Housing and Community Opportunity Committee on Financial Services United States House of 

Representatives, Washington, District of Columbia, June 11. Available at http://portal.hud.gov/hudportal/HUD?src=/press/testimonies/2009. 

2	 Kochera, Andrew (2006) Developing appropriate rental housing for low-income older persons: A survey of Section 202 and LIHTC property managers. AARP Public Policy 

Institute. Available at http://www.aarp.org/home-garden/housing/info-2006/dd149_lihtc.html. 

3	 Nelson, Kathryn P. (2008) The Hidden Housing Crisis: Worst Case Housing Needs Among Adults with Disabilities. Housing Task Force of the Consortium for Citizens with 

Disabilities. Available at http://www.tacinc.org/downloads/HiddenHousCrisis.pdf. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 1 
barriers to adopting these practices, and identified strategies for 

overcoming such barriers. 

This report is based in part on feedback obtained during the 

roundtable meeting, including concerns raised by stakeholders 

and potential actions identified to address those concerns. It 

also highlights approaches taken by five organizations that have 

planned or implemented energy efficiency practices in Section 

202 and Section 811 projects. The experiences of these five 

organizations are highlighted in the case studies provided in 

section III. 

Structure of This Report 

This report articulates concrete strategies for achieving 

HUD’s policy vision for the Section 202 and Section 811 

programs by supporting owners’, developers’, and sponsors’ 

efforts to enhance energy efficiency in Section 202 and 

Section 811 projects. 

The remainder of this report is arranged as follows: 

Section II describes the state of the Section 202 and Section 

811 housing portfolio and the current initiatives that HUD is 

undertaking. It also highlights what some housing sponsors are 

already doing to improve the energy efficiency of their Section 

202 and Section 811 projects and describes strategies that other 

housing sponsors can implement. 

•	 Section III provides five case studies representing 

the experiences of a range of organizations that have 

successfully implemented green design features in Section 

202 and Section 811 housing. The selected organizations 

represent a range of experience, portfolio size, and 

geographic coverage. 

•	 Section IV discusses HUD’s requirements for energy 

efficiency and water conservation in Section 202 and Section 

811 housing, the sustainability features that can earn policy 

priority points for Section 202 and Section 811 applicants, 

and tools and resources that sponsors and owners can use 

to implement green design features in their Section 202 and 

Section 811 projects. 

•	 This report is designed to support owners and sponsors 

of Section 202 and Section 811 projects in their efforts to 

take actions that enhance energy efficiency and that lead 

to the policy vision that HUD has set forth. The tools and 

resources it provides will help sponsors and owners as they 

seek to implement energy efficiency measures in both new 

construction and existing Section 202 and Section 

811 projects. 

THE OPERATING ENVIRONMENT 

FOR SECTION 202 AND SECTION 

II. 811 PROJECTS 

In recent years, the federal government has provided more than 

$600 million annually in funding to support the construction 

and operation of housing for the elderly and people with 

disabilities through the Section 202 and Section 811 programs. 

This section of the report describes the key historic changes 

in these programs and how those changes affect today’s 

operating environment. It then provides a picture of some 

key characteristics of the nation’s Section 202 and Section 811 

portfolios. The initiatives that the U.S. Department of Housing 

and Urban Development (HUD) and the U.S. Environmental 

Protection Agency (EPA) are currently undertaking to support 

incorporation of energy efficiency and green measures into 

construction, rehabilitation, and operations of Section 202 and 

Section 811 projects are outlined next. The section concludes 

by identifying promising practices identified by sponsors and 

owners who are actively engaged in energy efficiency and green 

development for Section 202 and Section 811 projects. 

Program Overview 

The Section 202 program was enacted in 1959 to provide 

affordable housing for moderate-income elderly households 

and later began serving people with disabilities. Since then, 

more than a quarter million affordable housing units have been 

produced under the program. The Section 202 program serves 

very low-income people in households where at least one person 

is 62 years of age or older at time of initial occupancy. The 

program provides tenants with affordable rental housing that 

may incorporate supportive services or access to communitybased services, which help elderly tenants remain independent 

and age in place. Because eligibility requirements have changed 

over time, Section 202 projects also house some tenants with 

higher incomes, and some younger tenants with disabilities. 

In 1990, the Section 811 program was established to provide 

supportive housing for people with disabilities, and the 

Section 202 program was modified to focus on serving elderly 

households. The Section 811 program serves very low-income 

people with physical disabilities, developmental disabilities, 

or chronic mental illness who are 18 years of age or older. The 

program provides tenants with affordable rental housing that 

incorporates supportive services. Since its inception, Section 811 

has funded 30,244 affordable units. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 2 
In fiscal year 2009, annual appropriations provided $454.5 million 

for Section 202 capital advances and $95.7 million for Section 

811 capital advances. These amounts funded 169 projects in 46 

states. Over time, it is expected that fewer new units will be funded 

because the increasing cost of subsidizing the existing portfolio of 

assisted housing will consume an ever-larger portion of the annual 

appropriation. 

historic overview of capital funding and 

operating Expenses 

Over the years, there have been significant changes in the Section 

202 and Section 811 programs. This section highlights those 

changes, with a focus on the aspects of the programs that affect 

how energy efficiency and green features can be incorporated into 

new or existing Section 202 or Section 811 projects. 

The key aspects of the programs that are relevant to implementing 

energy efficiency and green features involve how capital is provided 

to the projects and how operating subsidies are handled. Although 

there are other variations, the key combinations of financing 

features for new construction, acquisition, and rehabilitation 

projects have included the following: 

direct loans, no operating subsidy. In the early days of the 

program, the Section 202 program offered direct loans at below 

market interest rates to nonprofit sponsors. Section 202 projects 

that applied for HUD funds prior to 1962 are not subjected to 

income eligibility restrictions and tend to serve moderate-income 

elderly households and people with disabilities. Operating costs 

are paid out of tenant rents. 

•	 direct loans, Section 8. Over time,4

 program requirements 

evolved, limiting tenant incomes, revising loan terms and 

interest rates, and adding the concept of providing services 

to assist frail tenants. Tenant incomes were first required to 

be at or below 80 percent of area median income, and later 

at or below 50 percent of area median income. To make 

the units affordable to tenants with incomes that met these 

requirements, a rental subsidy was provided in the form of 

Section 8 project-based rental assistance. Under Section 8, 

households generally pay 30 percent of adjusted monthly 

income toward rent. The Section 8 subsidy makes up the 

difference between the tenant contribution and the full rent 

amount. The Section 8 program subsidies increase regularly 

over time to keep operating income in line with rising costs, 

based on an operating cost adjustment factor (OCAF), annual 

adjustment factor (AAF), or an approved budget. 

•	 direct loans, Pac, and Prac. For a limited time, from 1989 

to 1992, project assistance contracts (PACs) were introduced to 

provide assistance to nonelderly disabled households residing 

in Section 202 projects funded through direct loans. After 

the program shifted to capital advances with project rental 

assistance contracts (PRACs) in lieu of Section 8 in the 1990s 

(see Capital Advance, PRAC discussion below), a sizeable 

percentage of projects that formerly received operating 

subsidies through Section 8 were converted 

to PRACs. 

•	 capital advance, Prac. In the early 1990s, the approach 

to providing construction capital was shifted from providing 

direct loans to providing capital advances.5 Capital advances 

do not accrue interest and do not need to be repaid as long 

as the housing remains available for occupancy by very lowincome elderly people or people with disabilities for at least 40 

years. At the same time, operating cost subsidies were shifted 

from Section 8 to PRACs. Like Section 8, PRACs make up the 

difference between tenant contributions and approved rents. 

However, under PRACs, rents are determined by the operating 

budget. Beginning in 1991, the Section 811 program was 

established as a separate program, but using the same capital 

advance and PRAC mechanisms to support the development 

of supportive housing for people with disabilities.6 

•	 mixed finance, Prac. In 2000, the capital advance program 

was amended to enable the use of mixed-finance and forprofit participation in the Section 202 and the Section 811 

programs. This amendment allowed for the use of low-income 

housing tax credits (LIHTCs). This additional capital has been 

critical in high-cost areas or with projects with specialized 

designs. In mixed-finance projects, PRAC funds are limited 

to only those units funded by capital advances. The sponsor 

of a mixed-finance development must obtain the necessary 

funds from a source other than PRAC to cover operating costs 

related to non-Section 202 or Section 811 units. 

In addition to these sources of funding for new construction 

activities and for operating costs, the Section 202 and Section 811 

programs provide options for repairs and rehabilitation/retrofits 

that may include energy-efficient components. Sources include the 

following: 

•	 reserves for replacement. Project budgets include regular 

deposits to a reserve for replacement account. With HUD 

approval, these funds can be used for repairs, replacements, 

and capital improvements to the property. 

•	 residual receipts. All surplus cash for a project in a given 

year is to be placed in a residual receipts account. With HUD 

approval, these funds can be used to make repairs to the 

project when reserves for replacements funds are insufficient, 

and can be used to make improvements to the project. 

4 Key legislation included the Housing and Community Development Act of 1974 (P.L. 93-383), and the Omnibus Budget reconciliation Act of 1981 (P.L.97-35). 

5 Cranston-Gonzalez National Affordable Housing Act (P.L. 101-625). Available at http://www.ssa.gov/OP_Home/comp2/F101-625.html. 

6 Cranston-Gonzalez National Affordable Housing Act (P.L. 101-625). Available at http://www.ssa.gov/OP_Home/comp2/F101-625.html. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 3 
•	 Emergency Capital Repair Program. Certain Section 202 

projects owned by private, nonprofit owners are eligible for 

this program, which provides grants to address repairs that 

present an immediate threat to the tenants’ health, safety, 

and quality of life and cannot be funded with the project’s 

replacement reserves. 

Section 202 and Section 811 capital funding for new construction 

or energy efficiency improvements can be supplemented in a 

variety of ways. These include contributions from other federal 

programs, state and local programs, foundations, nonprofit 

organizations, utility companies, and LIHTCs. These options are 

discussed further in section IV. In addition, Section 202 projects 

with direct loans may be able to acquire the resources needed to 

make energy efficiency improvements, along with other needed 

rehabilitation, through refinancing. Refinancing is permitted when 

use controls are continued through the original term of the direct 

loan, and result in lower interest rate and debt service. Direct 

loans may be refinanced using any third party source, including 

financing by state or local housing finance agencies, use of 

tax-exempt bonds, multifamily mortgage insurance under the 

National Housing Act, reinsurance, or other credit enhancements. 

Characteristics of Section 202 and Section 

811 Portfolio 

As of 2009, the Section 202 program provided affordable housing 

to approximately 263,000 units in more than 8,000 developments, 

while the much smaller Section 811 program has supported 

the development of some 25,060 units in approximately 2,222 

developments. The following statistics provide a flavor of the 

diversity of the Section 202 and Section 811 housing portfolio 

in terms of characteristics such as project age, building type, 

and location. For additional detail, see Section 202 Supportive 

Housing for the Elderly: Program Status and Performance 

Measurement.7 

Age of Projects 

The largest portion of Section 202 and Section 811 projects were 

constructed between 1991 and 2000, accounting for 36 percent 

of the total projects. Almost 450 projects are 30 or more years in 

age. Unit size has decreased over the years, which reduces the 

energy demand for more recently built units. 

Two-thirds (67 percent) of the Section 202 and Section 811 

projects are funded through capital advances, and three-fourths 

are 20 years old or less. 

7	 Haley, Barbara A., and Robert W. Gray (2008) Section 202 Supportive Housing for 

the Elderly: Program Status and Performance Measurement. U.S. Department of 

Housing and Urban Development, Office of Policy Development and Research. 

Available at http://www.huduser.org/portal/publications/hsgspec/sec_202.html. 

Exhibit 1. Year of Construction of 

Section 202 and 811 Projects 

Year of Construction 

2000-2010 

29% 

(2,395) 

1961-1970 

1971-1980 

1981-1990 

1961-1970 

1991-2000 2% 

2001-2010 

unknown 

(174) 

3% 

1991-2000 

36% 

(2,943) 

1981-1990 

21% 

(1,736) 

1971-1980 

(274) unknown 

9% 

(732) 

Exhibit 2. Year of Construction of Section 202 and 811 

Projects Funded by Capital Advances or Direct Loans 

Year of Construction 

Capital 

Advance 

Direct 

Loan Total 

1961–1970 0 174 174 

1971–1980 1 273 274 

1981–1990 7 1,729 1,736 

1991–2000 2,441 502 2,943 

2001–2010 2,395 0 2,395 

Unknown 694 38 732 

TOTAL 5,538 2,716 8,254 

Building Types 

Mid-rise and high-rise apartments are the most common type 

of property. 

Exhibit 3. Number of Section 202 and 811 Projects and 

Units by Building Types From 1961 to 2010 

Building Type 

# of 

Properties 

% of 

Properties # of Units 

% of 

Units 

Common 

building 5 .06% 328 .12% 

Duplex 297 3.6% 8,492 3.0% 

Single-family 923 11.2% 10,353 3.7% 

Row/townhouses 927 11.2% 23,380 8.4% 

Low-rise/garden 

apartments 1,844 22.3% 47,002 16.8% 

Unknown 2,099 25.4% 39,449 14.1% 

Mid-/high-rise 

apartments 2,159 26.2% 150,877 53.9% 

TOTAL 8,254 279,881 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 4 
Exhibit 4. Number of Section 202 and 811 Units by Census 

Region from 1961-2010 

Number of Units by Census Region
 

South 
 Northeast 34% 

West 

Midwest 

South 

Northeast 

25% (95,024) (69,669) 

West 

22% 

Midwest (63,109) 

22% 

(63,109) 

Geography of Units 

Units are distributed across all geographic areas of the United 

States. 

Section 202 and Section 811 projects have been developed in 

every HUD region. 

Exhibit 5. Number of Section 202 and 811 Projects Funded Through Capital Advances or 

Direct Loans by Field Office and HUD Region From 1961 to 2010 

Location of Projects Capital Advance Direct Loan TOTAL 

Region Field Office 

Count of 

Property 

Number of 

Units 

Count of 

Property 

Number of 

Units 

Count of 

Property 

Number of 

Units 

1 Boston 464 9,558 197 7,657 661 17,215 

2 Buffalo 158 3,839 101 4,308 259 8,147 

2 New York 214 8,753 124 9,154 338 17,907 

3 Baltimore 320 7,089 132 6,538 452 13,627 

3 Philadelphia 525 12,053 195 14,347 720 26,400 

4 Atlanta 442 9,183 250 11,468 692 20,651 

4 Greensboro 393 6,837 101 3,082 494 9,919 

4 Jacksonville 346 11,700 242 15,450 588 27,150 

5 Chicago 302 8,783 107 5,639 409 14,422 

5 Columbus 311 7,152 149 8,386 460 15,538 

5 Detroit 92 3,203 59 3,541 151 6,744 

5 Minneapolis 225 4,723 104 4,271 329 8,994 

6 Fort Worth 500 12,515 236 11,162 736 23,677 

7 Kansas City 347 8,153 223 9,258 570 17,411 

8 Denver 141 3,353 96 3,555 237 6,908 

9 Los Angeles 231 8,047 124 9,062 355 17,109 

9 San Francisco 306 9,069 171 9,431 477 18,500 

10 Seattle 221 5,253 105 4,309 326 9,562 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 5 
Financial Components of Section 202 and 

Section 811 Programs 

Program regulations have implications for how owners and 

sponsors can pay for energy efficiency and green building 

measures and upgrades. The regulations set standards for 

development cost limits, operating costs, and use of replacement 

reserve and residual receipt accounts. 

Development Cost Limits 

The annual Notice of Funding Availability (NOFA) for the Section 

202 and Section 811 program announces the development 

cost limits for new construction, acquisition, and rehabilitation. 

Development cost limits are expected to cover the reasonable 

and necessary costs of developing a project of modest design 

that complies with HUD’s minimum property standards, 

accessibility requirements, and project design and cost 

standards. HUD can increase the published development cost 

limits by up to 140 percent in any geographic area where the 

cost levels warrant it, and may increase the development cost 

limits by up to 160 percent on a project-by-project basis. The 

cost of energy efficiency upgrades to be paid for with Section 

202 or Section 811 funds must fall within the development cost 

limits. Exhibit 6 presents the 2009 development cost limits, 

showing both the development cost limit, and 140 percent of 

development cost limit. Total development costs may exceed 

these limits if owners and sponsors are able to supplement HUD’s 

Section 202 or Section 811 funds with outside funds. 

Exhibit 6. Development Cost Limits for Fiscal Year 2009 for 

Section 202 and Section 811 

100 Percent and 140 Percent of 

Development Cost Limits (FY 2009) 

Non-Elevator 

Structures Elevator Structures 

No bedrooms $50,232/70,325 $52,862/74,007 

One bedroom $57,917/81,084 $60,597/84,836 

Two bedrooms $69,849/97,789 $73,686/103,160 

Operating Costs 

Operating costs are paid for through tenant contributions (in 

general, 30 percent of adjusted monthly income) supplemented 

by either Section 8 or PRAC rental assistance. 

•	 Under Section 8, OCAF, AAF, or a budget-based method is 

used to determine how much rental assistance subsidy will 

be provided to the project. 

Median Operating Costs 

Median per-unit-month operating costs for Section 202 

and Section 811 units from 2002 to 2004 were $378. 

•	 $274 for non-utility operating costs. 

•	 $63 for utility expenses. 

•	 $23 for deposits to replacement reserves. 

•	 $18 for service expenses. 

•	 Under PRAC, rental assistance is budget based and is 

calculated based on actual operating expenses. These 

expenses include non-utility operating expenses, utility 

expenses, contributions to replacement reserves, and 

services and service coordination in those projects serving 

frail elderly or at-risk residents. 

Incentives to address energy efficiency improvements are 

different, depending on whether rental assistance is determined 

based on the project’s budget or based on an adjustment factor. 

•	 Under budget-based adjustments to PRAC or Section 8, reductions in utility costs will result in a reduction in the 

amount of rental assistance provided at the next renewal. 

The reduction is commensurate with the utility cost savings, 

so the owner will not be harmed by the change. However, 

none of the benefits of the savings go to the owner or the 

property; instead, it is the Section 202 program as a whole 

that benefits. 

•	 Under adjustments to Section 8 based on OCAF or an 

AAF, reductions in utility costs will not result in a reduction 

in the amount of rental assistance. In these projects, 

utility cost savings are available to the project to meet 

other needs. Because rental assistance is not reduced 

commensurate with utility cost savings, the benefits of any 

utility cost savings will go to the project, not to the Section 

202 program as a whole. 

•	 The way utilities are metered also affects operating costs in 

some situations, and can therefore influence the incentive 

to engage in energy efficiency measures. For projects in 

which units are metered individually and tenants pay for 

utilities, tenants themselves have an economic incentive to 

conserve on utilities. Owners of projects with Section 8 rental 

assistance, whose financial responsibility would be limited 

to utilities serving common areas, would have a reduced 

financial incentive to take action. In projects that are not 

metered individually, on the other hand, tenants have little 

financial incentive to conserve on utilities, while owners 

of projects with Section 8 rental assistance do have such 

an incentive. Under PRAC, the owner has no incentive to 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 6 
conserve on utilities, because either tenants pay for utilities 

or PRAC’s budget-based approach pays for the full cost of 

the owner’s utility bill. 

replacement reserves 

Each Section 202 and Section 811 project has a reserve for 

replacement funds. The replacement reserve fund is expected 

to grow over time, through monthly contributions from the 

project budget. Replacement reserve funds may be used, with 

HUD field office approval, for repairs, replacements or capital 

improvements to the project. Replacement reserves can be 

used to cover the cost of energy efficiency upgrades. Projects 

reported an average reserve balance of $153,154 in 2009, with a 

median figure of $72,452. 

Capital needs assessments are used to determine the size of 

the replacement reserve fund needed and to help ensure that 

monthly contributions will be sufficient to meet the major capital 

needs of the property when the need arises. However, capital 

needs assessments do not systematically include an analysis of 

the costs of energy efficiency and green upgrades. For cases 

in which the replacement reserves are scant or the building has 

significant deferred maintenance or capital needs, it may not be 

prudent to use the funds to support energy efficiency upgrades. 

residual receipts 

The residual receipts account is a holding account for the amount 

of any net earnings that exceed the amount needed to fund the 

project’s operations and make reserve account deposits in a 

given fiscal year. Of 65,536 projects that reported some residual 

receipts in 2009, the average balance was $106,917, with a 

median of $18,888. 

Residual receipts may be used to reduce operating deficits when 

cash flow deficiencies exist, make mortgage payments when 

a mortgage default is actual or imminent, make repairs to the 

property not covered by the replacement reserves account, and 

provide project amenities that conform to cost containment 

provisions. The release of funds from a residual receipts account 

for energy efficiency upgrades is determined on a case-by-case 

basis by the appropriate HUD field office. 

Secondary financing 

Secondary financing available from public bodies (for example, 

HOME or Community Development Block Grant (CDBG) funding) 

or private sources may be used to supplement Section 202 or 

Section 811 funding. Secondary financing cannot be used for 

ineligible activities (as identified in the annual NOFA) that would 

change the character of the project. Such financing can, however, 

be used to fund the costs of energy efficiency upgrades or green 

features, whether as part of new construction, acquisition or 

rehabilitation, or as part of planned maintenance or rehabilitation 

for existing units. Secondary financing by nonpublic bodies 

can be used but must be reviewed and approved by HUD 

Headquarters on a case-by-case basis. 

Low-Income housing tax credit 

Program changes to allow use of the LIHTCs with Section 202 

and Section 811 projects has provided another avenue for 

obtaining additional financing. In 2000, the definition of “project 

owner” was adjusted to include limited partnerships. These 

provisions allow for-profit limited partnerships to own Section 

202 projects if the sole general partner is a private nonprofit 

organization, or a corporation wholly owned and controlled by a 

private nonprofit organization. With this ownership structure, tax 

credits can be used to develop new mixed-finance projects or 

recapitalize and rehabilitate aging Section 202 housing portfolio. 

Bringing in additional financing during new construction 

may allow some projects that otherwise might have been 

constrained by development cost limits to include green 

building design features. 

Improving Energy and Water conservation 

and Promoting green design in Section 202 

and Section 811 Projects 

requirements for Energy and Water conservation in Section 

202 and Section 811 Projects 

Starting with projects funded in Fiscal Year 2010, HUD 

established specific requirements for increasing energy and water 

conservation in new construction and substantial rehabilitation, 

as well as acquisition and moderate or modest rehabilitation 

under the Section 202 and Section 811 programs. At a minimum, 

energy efficiency strategies and water conservation appliances 

and fixtures must be incorporated in the design, construction, 

and operation of all projects. HUD has also established an 

incentive to encourage sponsors and owners to develop their 

projects using a green building design. 

Additional information about strategies for addressing these new 

requirements and incentives is in section IV. 

•	 requirements for Section 202 and Section 811 new 


construction and Substantial rehabilitation Projects.
 

–	 Energy conservation. Owners of new construction and 

substantial rehabilitation low-rise (up to three stories) 

multifamily developments must meet EPA’s ENERGY 

STAR qualified homes requirements. In addition, mid-rise 

and high-rise developments (four or more stories) must 

meet the ASHRAE 90.1 Appendix G Plus 15% standard 

for energy efficiency. Any state energy code requirements 

will take precedence over ENERGY STAR or ASHRAE 

specifications when the state code approximates or 

exceeds that standard. More information concerning 

ENERGY STAR qualified homes is available at http://www. 

energystar.gov/homes. Information concerning ASHRAE 

standards is accessible at http://www.ashrae.org/. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 7 
–	 Water Conservation. Installation of water-conserving 

fixtures is required in all new and substantially 

rehabilitated developments (that is, resource-efficient 

plumbing and appliances, such as low-flow showerheads 

and faucet and high efficiency toilets). The materials 

used should be the most current WaterSense-labeled or 

a greater water efficiency product. More information is 

available at http://www.epa.gov/watersense/. 

•	 Requirements for Acquisition and Moderate or Modest 

Rehabilitation Section 202 and Section 811 Projects. 

Sponsors and owners of acquisition and moderate or 

modest rehabilitation projects must perform pre- and postconstruction energy audits and incorporate conservation 

techniques in their projects. 

Incentive for Incorporating Green Design in Section 202 and 

Section 811 Projects 

HUD recognizes the fundamental role that its investments play 

in defining the physical form of communities and quality of life 

for residents. HUD encourages applicants for Section 202 and 

Section 811 funding to take steps to incorporate green building 

design features into their projects. Under the Section 202 and 

Section 811 Notices of Funding Availability, HUD offers incentive 

points to applicants that undertake green development in the 

design, construction, rehabilitation, and operation of their 

proposed Section 202 or Section 811 development. Applicants 

must meet the following requirements to receive policy 

priority points. 

•	 Green Development Standard. To receive the policy 

priority points for green development, applicants must 

certify and demonstrate that their project will implement 

green development strategies in the design, construction, 

rehabilitation and operation of the proposed project. These 

points are available to applicants that commit to the full 

incorporation of a green standard and describe how they 

will fulfill the requirements of the recognized green rating 

programs. 

–	 Integrated Design Process and Green Design 

Expertise. To the maximum extent possible, applicants 

should assemble a development team that has a strong 

understanding of sustainable design principles and 

green building standards. HUD strongly encourages 

the use of an integrated design process that ensures a 

commitment to continued communication throughout 

the development process. The integrated design process 

insures that every aspect of the building works as a whole 

to produce the best possible product, with the best 

possible energy and cost savings. A professional that 

has a strong understanding of the green building design 

principles should be included throughout all phases of the 

development process. 

–	 Passive Solar Orientation. To the greatest extent 

possible, project designs should incorporate passive solar 

orientation principles. 

•	 Operations and Maintenance (O&M) Plan. All applicants 

must develop an O&M manual that will address 

the following: 

–	 A routine maintenance plan. 

–	 Operations and maintenance guidance for all appliances, 

HVAC operation, lighting equipment, paving materials 

and landscaping, pest control, and other systems that are 

part of each occupancy unit. 

–	 An occupancy turnover plan that describes in detail the 

process of educating the tenant about proper use and 

maintenance of all building systems. 

–	 Staff training needed to maintain the energy 

improvements and continue green building practices for 

the future. 

–	 In addition, all operations and maintenance plans must 

commit to future installation of water-conserving fixtures 

and ENERGY STAR appliances. 

Federal Initiatives To Support Energy 

Efficiency and Green Building 

In addition to the incentives provided in the Section 202 and 

Section 811 NOFAs, HUD, EPA, and the U.S. Department of 

Energy (DOE) have other programs and tools to promote energy 

efficiency and green building practices. 

HUD’s Multifamily Energy Efficiency Initiative 

HUD has initiated a pilot program in California for Section 202 

senior housing that provides energy audits for projects seeking 

refinancing. HUD’s Region 9 office (California, Nevada, Arizona, 

and Hawaii) launched a Multifamily Energy Efficiency Initiative, 

in partnership with Pacific Gas and Electric. Property owners 

applying for renewal of federal rental assistance contracts must 

obtain an energy audit conducted by the local utility and then 

incorporate energy efficiency measures in the project refinancing 

and reserve for replacement plans. HUD is also assisting sponsors 

of Section 202 housing in Region 9 by identifying cost-effective 

energy efficiency improvements that can reasonably be included 

in their refinancing plans. HUD has asked project sponsors to 

prioritize energy investments with payback periods of 5 years 

or less, as part of the project’s refinancing transactions, or, 

alternatively, in conjunction with project operating or reserve 

for replacement plans. These transactions have the necessary 

financing capacity and contract administration processes in 

place to accomplish energy retrofits capable of reducing energy 

consumption by 20 percent or more.8 

8	 For more details on the Multifamily Energy Efficiency Initiative, visit http://www.h-m-g.com/multifamily/aheea/default.htm. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 8 
HUD’s Green Retrofit Program 

HUD’s Green Retrofit Program (GRP), funded by the American 

Recovery and Reinvestment Act (ARRA), is a $250 million program 

that provides grants and loans to eligible property owners to 

make energy efficiency and green retrofit investments in the 

property. Funds can be used to ensure the maintenance and 

preservation of the property and the continued operation and 

maintenance of energy efficiency technologies. Eligible projects 

may receive up to $15,000 per residential unit (with an expected 

average of $10,000/unit) to reduce energy costs (for example, 

more efficient heating and cooling systems), reduce water use 

(for example, low-flow faucets and toilets), improve indoor 

environmental quality (for example, low-VOC products), and 

provide other environmental benefits (for example, materials 

with recycled content and reflective roofing to reduce heat-island 

effects). To be eligible to participate in the program, projects 

must receive HUD Section 8 project-based assistance or Section 

202 or Section 811 PRAC. 

HUD received 775 applications for GRP. Those included 343 

Section 202 and 91 Section 811 projects. No new funding is 

available for this program in FY 2010 or has been proposed for 

FY 2011. 

For more information, visit HUD’s GRP website: http://portal.hud. 

gov/portal/page/portal/HUD/recovery/programs/green. 

ENERGY STAR® 

ENERGY STAR is the U.S. government-backed label for 

energy efficiency. The ENERGY STAR label identifies homes, 

buildings, and consumer products that meet specific standards 

for energy efficiency and performance. A joint program of the 

Environmental Protection Agency (EPA) and the Department of 

Energy (DOE), ENERGY STAR is designed to help individuals and 

organizations nationally and internationally adopt cost-effective, 

energy-efficient technologies and practices, and better manage 

their energy costs. 

EPA introduced ENERGY STAR as a voluntary labeling program 

designed to identify and promote energy-efficient products to 

reduce greenhouse gas emissions in 1992. Today, the ENERGY 

STAR label is on more than 60 types of consumer products, new 

homes, and commercial and industrial buildings. Products with 

the ENERGY STAR label deliver the same or better performance 

as comparable models while using less energy and saving 

money. 

ENERGY STAR is a voluntary partnership between the 

government and more than 9,000 organizations, including 

4,500 of the nation’s homebuilders. These public and private 

organizations have joined forces with EPA and DOE through 

ENERGY STAR to promote energy efficiency. The voluntary 

partnership program provides technical information and tools 

for organizations and consumers about energy-efficient solutions 

and best practices for managing energy consumption. 

ENERGY STAR Qualified Homes 

ENERGY STAR qualified homes are the result of a process by 

which the entire home is planned and then built for improved 

energy efficiency. The developer must design and construct the 

project to standards that ensure both energy and cost savings 

will be delivered to the property owner and the tenant. ENERGY 

STAR qualified homes are significantly more energy efficient than 

traditional homes because they use more effective insulation; 

higher performing windows; tighter construction and ducts; and 

more efficient heating and cooling equipment, lighting, and 

appliances. A family that lives in an ENERGY STAR qualified 

home benefits because the home is made of high quality 

materials, and the energy-efficient features result in lower utility 

bills, better air quality, improved comfort, and lower 

maintenance demands. 

The developer is responsible for following the process to ensure 

a home is certified as an ENERGY STAR qualified home. The 

developer must contract with an independent third-party, known 

as the Home Energy Rater, or HERS rater. HERS raters inspect, 

test, and qualify all homes seeking the ENERGY STAR label. 

HERS raters follow the Home Energy Rating System (HERS) Index 

to determine the energy efficiency of a home. 

For more information, visit the ENERGY STAR qualified homes 

website at http://www.energystar.gov/homes or e-mail ENERGY 

STAR at energystarhomes@energystar.gov. 

EPA’s Indoor airPLUS Program 

EPA developed the Indoor airPLUS Program to help builders 

meet the growing consumer preference for homes with improved 

indoor air quality and energy efficiency. By constructing homes 

that meet EPA’s stringent specifications, forward-thinking 

builders can distinguish themselves by being among the first 

to offer homes designed to deliver lower utility costs, 

greater comfort, better durability, and reduced risk of indoor 

air problems. 

A home must first be designed and built to earn the ENERGY 

STAR label to be eligible for the Indoor airPLUS label. A home 

built to Indoor airPLUS specifications includes more than 70 

additional home design and construction features to help protect 

qualified homes from moisture and mold, pests, combustion 

gases, and other airborne pollutants. The home’s Indoor 

airPLUS features are third-party verified. This verification can be 

completed as part of the inspection process for the ENERGY 

STAR qualified homes label. A completed and signed Indoor 

airPLUS Verification Checklist may be substituted in lieu of the 

Water Management System Checklist that is required for the 

ENERGY STAR qualified homes label. 

For more information, visit the EPA’s Indoor airPLUS website at 

http://www.epa.gov/indoorairplus. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 9 
ENERGY STAR Qualified Multifamily High-Rise Program 

Buildings earning the ENERGY STAR qualification meet strict 

energy performance standards set by the EPA. Building owners 

benefit from earning this label in the form of lower operating 

expenses and the opportunity to use the ENERGY STAR brand 

in marketing their building to tenants as well as their status as 

an environmental leader. At the time this report was written, 

ENERGY STAR was finalizing requirements for its Multifamily 

High-Rise (MFHR) program with the intention of releasing final 

requirements sometime in 2011. After the program is finalized, 

ENERGY STAR MFHR will be applicable to new construction 

(or substantially rehabilitated) multifamily building projects 

consisting of four or more stories, which are not currently covered 

under the requirements for ENERGY STAR qualified homes. 

Other eligibility requirements are likely to include the following: 

•	 The intended use of the building must be for residential 

purposes. Commercial facilities such as motels and hotels, 

group homes, assisted-living facilities, and dormitories are 

not eligible for the program. 

•	 If the building is located on top of nonresidential commercial 

space, the residential space must— 

–	 Consist of more than 50 percent of the gross heated 

square footage of the entire building. 

–	 Be separately metered from the commercial space. 

A Performance and Prescriptive Path will be available for 

multifamily high-rise buildings to earn the ENERGY STAR 

qualification. Under the Performance Path, a building will have 

to achieve 15 percent energy cost savings over the ASHRAE 

90.1-2007 baseline using the Appendix G protocols and ENERGY 

STAR’s MFHR Simulation Guidelines and be verified and 

field-tested in accordance with ENERGY STAR’s Testing and 

Verification Protocols. The Simulation Guidelines is a companion 

document to ASHRAE 90.1-2007 and ASHRAE 90.1Appendix G 

and contains program requirements to assist energy consultants 

in developing the Baseline Building Design and Proposed 

Building Design models for each project. The Testing and 

Verification Protocols are mandatory requirements for the 

inspection, testing, and verification of components related to the 

building’s energy performance. 

Under the Prescriptive Path, a building will need to meet specific 

requirements covering elements such as building envelope, 

ventilation and infiltration, lighting, and water heating, and 

be verified and field-tested in accordance with the ENERGY 

STAR Testing and Verification Protocols. Under both the 

Prescriptive and Performance Paths, after achieving ENERGY 

STAR qualification for the project, the developer/manager must 

commit to benchmarking their building’s energy use in ENERGY 

STAR’s Portfolio Manager, a free online energy benchmarking 

tool, for a period of 2 years.9 

For more information about ENERGY STAR qualified multifamily 

high-rises, visit http://www.energystar.gov/homes or e-mail 

ENERGY STAR at energystarhomes@energystar.gov. 

ENERGY STAR Quantity Quotes 

The DOE developed ENERGY STAR Quantity Quotes, a tool 

designed to help owners and sponsors take advantage of 

economies of scale in making bulk purchases of ENERGY STAR 

qualified products. This online tool helps multifamily building 

owners, public housing authorities, state and local governments, 

universities, and others to efficiently contact suppliers and 

negotiate discounted prices. ENERGY STAR products, such 

as light bulbs, light fixtures, clothes washers, dehumidifiers, 

dishwashers, refrigerators, and room air conditioners, are 

available through Quantity Quotes. 

For more information, visit the ENERGY STAR Quantity Quotes 

website at http://www.quantityquotes.net. 

EPA’s WaterSense® Program 

The EPA developed WaterSense to promote water efficiency 

through the use of water-efficient products. WaterSense labeled 

products deliver exceptional performance, help save money, 

and encourage innovation in manufacturing. All WaterSense 

products are third-party verified and tested for conformance to 

specifications, efficiency, and performance and are 20 percent 

more water efficient than average products in that category. A 

database of WaterSense products, such as bathroom sink faucets 

and accessories, toilets, urinals, and showerheads, and rebate 

information are available through WaterSense’s website. 

In 2009 WaterSense released a specification for single-family 

new homes. This specification establishes criteria for new homes 

labeled under the WaterSense program and is applicable to 

newly constructed single-family homes and townhomes of three 

or fewer stories. EPA’s goal is that WaterSense labeled homes 

will use approximately 20 percent less water than a standard new 

home by using a combination of prescriptive and performancebased approaches to reduce indoor and outdoor water usage. 

For more information, visit the WaterSense website at http:// 

www.epa.gov/WaterSense. 

National and Regional Green Building Criteria 

Enterprise Green Communities Criteria 

Enterprise Green Communities homes are built according to 

the Enterprise Green Communities Criteria (Green Criteria) the 

first national framework for healthy, efficient, environmentally 

smart affordable homes. The Green Criteria provide a clear, 

cost-effective framework for all kinds of affordable housing: new 

construction and rehabilitation in multifamily as well as single9	 For details on the ENERGY STAR Portfolio Manager, visit https://www.energystar.gov/istar/pmpam/. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 10 
family buildings. The Green Criteria are aligned with the U.S. 

Green Building Council’s LEED Green Building Rating System. 

In addition, the Green Criteria reflect and are compatible 

with leading state and local green building programs. They 

contain detailed information that addresses aspects of design, 

development and operations, such as: integrated design; site, 

location and neighborhood fabric; site improvements; water 

conservation; energy efficiency; materials beneficial to the 

environment; healthy living environment; and operations 

and maintenance. 

A project must comply with all the mandatory provisions of 

the Green Criteria. In addition, to be eligible for funding 

opportunities available under Enterprise Green Communities, 

new construction projects must earn 35 points from the Optional 

Criteria, while moderate rehabilitation projects must earn 30 

points from the Optional Criteria. 

For more information, visit the Enterprise Green Communities 

website at http://www.greencommunitiesonline.org. 

NAHB Green Building Standard 

The National Green Building Standard (the Standard) is the 

first residential green building rating system to undergo the full 

consensus process and receive American National Standards 

Institute (ANSI) approval. The four threshold levels—Bronze, 

Silver, Gold, and Emerald—allow builders to achieve entry-level 

green building, or the highest level of sustainable “green” 

building incorporating energy savings of 60 percent or more. 

Single-family and multiunit homes, residential remodeling 

projects, and site developments are all covered in the Standard. 

The Standard offers green building practices in six categories: 

lot design, preparation and development; resource efficiency; 

energy efficiency; water efficiency, indoor environmental quality; 

and operation, maintenance, and building owner education. 

For a project to become certified, a minimum score must be 

achieved in each category, with the point total requirements 

increasing for successively higher levels of green certification. 

The Standard requires that a qualified third-party inspect the 

project and verify that all green design or construction practices 

that the builder claims toward green certification have been 

incorporated into the project. 

For more information, visit the NAHB Green Building Standard 

website at http://www.nahbgreen.org/NGBS/default.aspx 

LEED Green Building Rating System 

The U.S. Green Building Council’s LEED green building rating 

systems are designed for rating new and existing commercial, 

institutional, and residential buildings and provides third-party 

verification that a building or community was designed and built 

to the highest green building and performance measures. They 

are based on accepted energy and environmental principles 

and strike a balance between known, established practices and 

emerging concepts. Each rating system is organized into five 

environmental categories: sustainable sites; water efficiency; 

energy and atmosphere; materials and resources; and indoor 

environmental quality. An additional category, innovation in 

design, addresses sustainable building expertise as well as 

design measures not covered under the five environmental 

categories. Regional bonus points are another feature of 

LEED and acknowledge the importance of local conditions 

in determining best environmental design and 

construction practices. 

LEED points are awarded on a 100-point scale, and credits 

are weighted to reflect their potential environmental impacts. 

A project must satisfy all prerequisites and earn a minimum 

number of points to be certified, with different thresholds to 

earn Certified, Silver, Gold, and Platinum level certification. 

LEED rating systems include: New Construction, Existing 

Buildings: Operations and Maintenance; Commercial Interiors; 

Core and Shell; Schools; Retail; Healthcare; Homes; and 

Neighborhood Development. 

•	 LEED for New Construction Rating System is designed 

to guide and distinguish high-performance commercial and 

institutional projects, including office buildings, high-rise 

residential buildings, government buildings, recreational 

facilities, manufacturing plants and laboratories. For more 

information, visit the U.S. Green Building Council’s LEED for 

New Construction website at: http://www.usgbc.org/leed/ 

nc/. 

•	 LEED for Homes Rating System is designed to guide the 

construction of single-family homes in accordance with the 

rigorous guidelines of the LEED for Homes green building 

certification program. For more information, visit the U.S. 

Green Building Council’s LEED for Homes website at http:// 

www.usgbc.org/leed/homes/. 

For more information about LEED systems, visit the U.S. Green 

Building Council’s LEED website at http://www.usgbc.org/LEED/. 

EarthCraft House 

EarthCraft House is a green building program that serves as 

a blueprint for healthy comfortable homes that reduce utility 

bills and protect the environment. The aim of the program is to 

help home builders be leaders in smart growth management 

and environmental stewardship. Building an EarthCraft 

House is about constructing a healthy, more valuable home 

while minimizing environmental impacts. EarthCraft House 

follows a systems approach to home building that stresses an 

understanding of how the different components of a home work 

together. This approach results in a home that performs better, 

is more economical for the homeowner and costs little more 

to build than a comparable home built with standard 

construction practices. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 11 
Any size or style of home at any price point can achieve 

EarthCraft House certification by meeting the guidelines. These 

guidelines are flexible to allow for a variety of approaches 

to environmental construction. EarthCraft House guidelines 

address energy efficiency, durability, indoor air quality, resource 

efficiency, waste management, and water conservation. To 

achieve EarthCraft House certification, homes must meet 

ENERGY STAR guidelines. In addition, each house must achieve 

a minimum of 150 points from a scoring sheet. Select and 

Premium status are awarded to homes that meet additional 

criteria and achieve 200 and 230 points, respectively. All 

EarthCraft certified homes will also be awarded the ENERGY 

STAR qualification. 

For more information, visit EarthCraft House’s website at http:// 

www.EarthCrafthouse.com/. 

Built green 

Built Green is an environmentally friendly, nonprofit, residential 

building program of the Master Builders Association (MBA) 

of King and Snohomish Counties, developed in partnership 

with King County, Snohomish County, and other agencies in 

Washington State. Built Green homes are designed to provide 

homeowners with comfortable, durable, environmentally friendly 

homes that are cost-effective to own and operate. These 

resource-efficient homes are crafted to exceed building codes 

and provide homeowners with years of healthy, quality living, 

while protecting the precious Northwest environment. 

Building and development projects are qualified using one of 

four Built Green checklists, depending on the type of project 

(Single-Family New Construction, Renovations, Multifamily, and 

Community), organized into environmentally friendly action 

categories. Builders, remodelers, architects and sponsors use 

the checklists prior to construction to determine which features 

to include in the home. When construction is complete, builders 

send a signed copy of the checklist to the MBA, certifying that 

the home identified in the application contains the identified 

features. Based on the builder’s submission, and after reviewing 

the application, the MBA will award the appropriate Certificate 

of Merit indicating that the home has received a 1-, 2-, 3-, 4- or 

5-Star rating. 

For more information, visit Built Green’s website at http://www. 

builtgreen.net. 

Strategies from the field 

Owners and sponsors of Section 202 and Section 811 projects 

are at a variety of stages when it comes to implementing energy 

efficiency and green measures into their projects. 

•	 new construction. Beginning with the 2010 NOFA, 

sponsors and owners must ensure that low-rise multifamily 

developments (up to three stories) meet or exceed the 

requirements of EPA’s ENERGY STAR qualified homes. 

Projects funded prior to the 2010 NOFA were required to 

meet the 2006 IECC. For mid-rise and high-rise multifamily 

developments (four or more stories), sponsors must continue 

to ensure projects meet or exceed the ASHRAE 90.1 

Appendix G Plus 15% Standard for Energy Efficiency. All 

multifamily developments are required to install ENERGY 

STAR-labeled appliances and WaterSense-labeled fixtures 

beginning with the 2010 NOFA. Some sponsors have chosen 

to go well beyond these standards, and a few have even 

made the business decision only to build projects that 

achieve a recognized green building standard, such as the 

Enterprise Green Communities Criteria or LEED for Homes/ 

LEED for New Construction. 

•	 Existing housing. Beginning with the 2010 NOFA, sponsors 

and owners must install ENERGY STAR-labeled appliances, 

perform pre- and post-construction energy audits, and 

incorporate conservation techniques in their projects. No 

energy efficiency requirements were previously imposed on 

owners of existing Section 202 or Section 811 projects. Prior 

to the 2010 NOFA, some owners of existing projects had 

not begun to consider implementing energy efficiency and 

green features into the rehabilitation or maintenance of their 

projects. Others are considering adding these components 

but are unsure how to get started and need guidance and 

support. Still others have begun incorporating energy 

efficiency and green features into their rehabilitation and 

maintenance activities. 

The remainder of this section summarizes key strategies 

employed by five sponsors/owners of Section 202 and Section 

811 projects to implement energy efficiency and green building 

techniques in their portfolios. Case studies describing their 

experiences are provided in section III. 

All five organizations agreed that energy efficiency measures 

benefit the property and the program. Although the amount of 

time it took to earn back the cost of the investments vary by the 

type of measures taken, the owners found that energy efficiency 

measures do pay for themselves—in general, within a few years. 

In addition, energy efficiency measures help strengthen the 

financial position of the property by reducing the growth in 

utility costs, and they benefit the program by lowering the 

operating subsidy needed compared to similar projects 

without these features. 

Strategy 1. analyze the data 

a. new construction or Substantial rehabilitation: 

Energy modeling 

Sponsors and owners involved in new construction or 

substantial (gut) rehabilitation can use energy modeling to 

determine what energy efficiency features to incorporate 

in their new construction projects. Energy modeling uses 

computer-based tools to predict energy use over the 

course of a year for a base design, and to compare that 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 12 
figure with predicted usage given different energy-saving 

design features. Modeling inputs usually include factors 

such as building location, envelope, systems, loads, and 

schedules. A skilled energy modeler can work with a 

project team to provide input from the model throughout 

the design process. The project team can use the resulting 

data to identify which energy efficiency measures have 

the most potential to reduce costs associated with energy 

usage, and to determine whether the savings in utility 

costs would justify the required capital expenditures. 

Some certification programs encourage the use of energy 

modeling. For example, LEED requires the use of 

energy modeling to receive points in the Energy and 

Atmosphere category. 

B. Existing Housing: Energy Audits 

In contrast with energy modeling, which is typically used 

for new construction, energy audits are used to evaluate 

the projected effects of rehabilitation activities. Energy 

audits assess how much energy is actually being used in 

an existing building and evaluates what measures can 

be taken to improve efficiency. The property manager, a 

professional energy auditor, or an engineer can conduct 

an energy audit. It is meant to identify areas of the 

building where energy may be lost or used inefficiently 

and to propose specific improvements. Thorough energy 

audits often use equipment such as blower doors, which 

measure the extent of leaks in the building envelope, 

and infrared cameras, which reveal hard-to-detect areas 

of air infiltration and missing insulation. Basing his or 

her analysis on this information, the energy auditor or 

engineer estimates energy usage changes and utility 

cost savings using different rehabilitation scenarios. 

This information helps owners prioritize which energy 

efficiency measures to implement immediately and which 

to implement over time, if it is not feasible to make all 

improvements at once. 

Local utilities sometimes offer free or discounted energy 

audits to their customers. Alternatively, property owners 

can hire a certified Home Energy Rater to evaluate 

the property’s energy efficiency. The ENERGY STAR 

website has a searchable database of certified Home 

Energy Raters.10 

The sponsors and owners interviewed for this report 

indicated that the costs of conducting an energy audit and 

implementing the energy efficiency upgrades identified 

generally pay for themselves quickly through the energy 

savings realized. 

C. Existing Housing: Energy Benchmarking 

Energy benchmarking uses an online database to facilitate 

energy accounting and compare an existing property’s 

energy use with other projects that have similar 

characteristics. Comparisons may be done either within a 

portfolio or with other projects across the country. 

Benchmarking tools typically enable owners to assess 

opportunities for improvement, as well as to quantify and 

verify energy savings. A variety of benchmarking tools is 

available, including HUD’s PIH Benchmarking Tool and 

EPA’s ENERGY STAR Portfolio Manager. For many of 

these tools, users enter basic information about their 

projects and utility accounts. The tool then tracks monthly 

energy consumption and charts the property’s 

performance to identify areas of poor performance. 

Sample Benchmarking Tools 

•	 HUD’s PIH Energy Benchmarking Tool 

A free Excel-based tool to compare utility usage 

against use in a typical HUD property. Located on 

HUD’s website: http://www.hud.gov/offices/pih/ 

programs/ph/phecc/econserve.cfm. 

•	 ENERGY STAR Portfolio Manager 

A free interactive energy management tool that 

enables property owners to measure and track 

energy and water usage, identify investment 

priorities, and verify improvements over time. 

Located on ENERGY STAR’s website: 

https://www.energystar.gov/istar/pmpam/ 

Benchmarking tools enable property owners and 

managers to make informed decisions about measures 

that will have the greatest effect on energy efficiency and 

costs. If owners continue to track utility performance after 

making the energy efficiency improvements, it will help 

them identify opportunities for savings in their operations, 

and assess the actual savings achieved. 

D. Existing Housing: Utility Bill Management 

Owners can reduce utility costs substantially by reviewing 

and managing utility bills carefully. Although owners 

can conduct such analyses themselves, those with larger 

portfolios often find it cost-effective to use a utility 

management company to centralize billing and run reports 

across an entire portfolio. In this approach, all utility bills 

are sent to a central location for data processing, where 

information on consumption, late fees, tariffs, and rates 

is extracted into a database. This type of centralized 

system allows for streamlined payments, invoice auditing, 

and rate analysis. Savings are generated by identifying 

inappropriate rates, meter inaccuracies, probable water 

leaks, and meter-reading errors, as well as ensuring 

timely payments and reducing late fee expenses. Owners 

have found that the savings realized from utility bill 

10 ENERGY STAR’s database of certified Home Energy Raters is available at http://www.energystar.gov/index.cfm?fuseaction=new_homes_partners.locator. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 13 
management and review can easily pay for the costs of 

data management and analysis. This information also can 

be used to assess the effectiveness of energy conservation 

efforts by providing baseline data and information about 

consumption after energy efficiency measures are put 

into place. 

Strategy 2. choose an Implementation approach 

Property owners and sponsors take a variety of approaches to 

incorporating energy efficiency and green building into their 

housing portfolios. Preferred approaches are selected based on 

factors such as the nature of the portfolio, level of experience, 

and organizational preferences. Those interviewed followed three 

different approaches. 

a. component-by-component approach 

Sponsors and owners can take a component-bycomponent approach to incorporating energy efficiency 

and green features into their existing Section 202 and 

Section 811 housing. This approach involves identifying 

the areas of greatest opportunity for cost savings not only 

for each property, but also for the portfolio as a whole. 

An example would be a lighting retrofit in which energyefficient lighting is installed in all common areas and 

units. That approach can be refined even further by using 

energy consumption data to determine which units are 

most in need of greater efficiency. Decisions about what 

components to address are determined by estimating the 

cost and potential annual savings of implementing various 

possible energy efficiency measures. Taking a componentby-component approach across a portfolio can reduce 

costs by taking advantage of efficiencies in planning, 

purchasing, and installing energy efficiency features. 

B. Project-by-Project approach 

Sponsors and owners may choose to take a project-byproject approach for new construction or rehabilitation 

of Section 202 and Section 811 projects. This approach 

involves examining the specific needs of each property 

through energy auditing, modeling, or benchmarking 

and then addressing that property’s specific needs. 

Owners with multiple projects may choose very different 

upgrades for different projects, depending on individual 

circumstances. For rehabilitation, owners may consider 

identifying possible energy efficiency measures and 

then prioritizing them for each project. Having a shortand long-term plan for implementing energy efficiency 

can be an effective way to start achieving utility savings 

immediately while reducing the amount needed for 

funding today. For new construction, sponsors have the 

option of using energy modeling and selecting those 

upgrades that can be financed, given the development 

cost limits and other funding sources available. 

c. one Energy Efficiency or green Building Standard 

across the Portfolio 

Sponsors and owners may choose to follow one energy 

efficiency or green building standard for their entire 

portfolio. For example, an owner may determine that 

all appliance replacements in existing projects will be 

ENERGY STAR qualified, or a developer may decide that 

future new construction projects will be LEED certified. 

This approach enables the organization to become 

experts on the process, requirements, and timelines 

that are unique to a particular certification program. 

This can save the organization time and money. In this 

scenario, owners do not have to select individual energy 

conservation measures, but may instead implement 

a given suite of measures as required by the chosen 

standard. However, other standards, such as LEED, allow 

the owner to select those measures that make most 

sense in the context of a particular project. For these 

types of programs, pursuit of certification particular set 

of standards would be mixed with a project-by-project 

analysis of the most sensible steps to take for the project 

in question. 

Strategy 3. Select an Energy Efficiency or 

green Building Standard 

Sponsors and owners have a range of certification programs to 

choose from if they decide to use one. When selecting a 

certification program, sponsors and owners often consider how 

it fits with their organization’s philosophy, whether they have the 

financial resources needed, and whether they have the level of 

staff experience required to build the project to the certification 

standards. 

Energy Efficiency and green Building Standards 

recognized in the 2010 nofa 

national 

•	 EPA’s Indoor airPLUS 

•	 ENERGY STAR Qualified Homes 

•	 Enterprise Green Communities Criteria 

•	 LEED New Construction 

•	 National Association of Home Builders (NAHB) Green 

Building Guidelines 

regional/Local 

•	 Built Green 

•	 EarthCraft 

•	 State and local certification programs 

See the appendix for more information about 

each program. 

Organizations will want to examine the costs and benefits for the 

certification program they are considering. When determining 

the costs, organizations may want to consider not only the capital 

investment required, but also the amount of staff time needed 

to plan and oversee implementation of the required steps to 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 14 
achieve certification. These costs should be weighed against 

potential utility savings, as well as less easily quantified benefits 

such as improved indoor air quality, tenant comfort and health, 

improved marketability of the property, and environmental 

benefits. After a cost-benefit analysis is completed, the 

organization can select an appropriate certification program. 

Having someone familiar with the certification program’s 

requirements on the project team makes the implementation 

process easier. The project team will need to understand the 

certification process for the program, including application 

submission and certification timelines and requirements. Some 

certification programs, such as LEED New Construction, have 

requirements for subcontractors and vendors. Getting team 

members with energy efficiency and green expertise involved in 

the project from the very beginning can greatly enhance the ease 

with which these features are integrated into the project. 

Many of the certification programs have a verification process, 

either third-party verification or self-verification, to ensure 

that the property meets the required green building and 

performance measures. Project managers will need to ensure 

that the construction team follows the program requirements so 

certification can be achieved and savings can be realized. 

Some of the certification programs have resources, such as 

guidance, tools, or technical assistance, available to help 

sponsors and owners implement their certification programs. See 

the appendix for more information about available resources. 

Strategy 4. Leverage Additional Funding 

To finance energy efficiency and green building measures, 

sponsors and owners may need to leverage additional funding 

from sources other than Section 202 or Section 811. If a gap 

analysis identifies a discrepancy between the development 

costs and available funding sources, additional funding will be 

needed to close the gap. Potential funding sources available 

for leveraging with Section 202 and Section 811 are discussed 

in detail in section IV. Exhibit 7 summarizes the kinds of sources 

that may provide needed financing for new construction or 

rehabilitation activities. 

Each funding source has different requirements, restrictions, and 

timing for applying and using funds. Sponsors and owners will 

need to become familiar with these rules. Obtaining additional 

funding from other sources can add to the development time 

of the project and the level of effort needed for reporting. If an 

organization has experience combining Section 202 or Section 

811 funds with other funding sources, it may save the project 

time and money. 

Strategy 5. Educate Occupants and Influence Their Behavior 

Utility costs are not only affected by the efficiency of the 

construction, fixtures, and appliances in a home but also by the 

behavior of the occupants and those who maintain the home. It is 

important for tenants, maintenance staff, property managers, and 

owners to understand the role that people play in reducing 

energy consumption. 

Common Tenant Behaviors Affecting 

Energy Consumption 

•	 Blocking heat system due to possessions in front
 

of vents or dust in systems.
 

•	 Using hot water unnecessarily. 

•	 Having thermostats too high or too low. 

•	 Being unfamiliar with how to properly use the
 

thermostat or heating system.
 

•	 Leaving lights on when no one is in the room. 

•	 Having air conditioners or heating on when windows
 

are open or occupants are away.
 

Tenant behavior change is crucial for effective utility 

management. Some tenants may be unaware of ways in which 

their habits can conserve energy or of the benefits associated 

with greater residential energy efficiency, such as greater comfort 

and better indoor air quality. Others may not be familiar with 

how to properly use some of the energy-efficient features of the 

appliances and fixtures in their home. In addition, tenants may 

not report maintenance problems that affect energy use. 

Exhibit 7. Summary of Potential Funding Sources 

New Construction Rehabilitation 

Federal: Low-Income Housing Tax Credit Program (LIHTC), 

Community Development Block Grant (CDBG), HOME 

Investment Partnerships Program, Energy Efficiency and 

Conservation Block Grant (EECBG), State Energy Program (SEP) 

Federal: Community Development Block Grant (CDBG), HOME 

Investment Partnerships Program, Weatherization Assistance 

Program (WAP), Energy Efficiency and Conservation Block Grant 

(EECBG), State Energy Program (SEP) 

Nonprofit and Foundation: Enterprise Community Loan Fund, 

LEED Affordable Housing Grant Program, LEED Affordable 

Green Neighborhoods Grant Program 

Nonprofit and Foundation: Enterprise Community Green Mini 

Loans, LEED Affordable Green Neighborhoods Grant Program 

Private: Utility Incentive Programs Private: Utility Incentive Programs 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 15 
Moreover, because in many cases tenant payments are not 

affected by their energy usage, there may be no financial 

incentive to reduce utility use. For all these reasons, tenant 

education is an important component of changing any of these 

types of behaviors. 

Property managers and maintenance staff also can greatly 

influence energy consumption through system and equipment 

maintenance and in making decisions about when and how to 

make replacements and address defects. Property managers 

have a role in ensuring that tenants are well informed about 

efficient energy usage through education, signs, labels, or 

guides. In addition, property managers can help identify high-use 

areas or units and take appropriate corrective action. 

Owners also have the option of installing energy management 

systems (EMSs) to help automate management of energy use. 

Typical features of EMSs include motion detectors to set the 

thermostat back when no one is present, window sensors to 

shut off heating/cooling when windows are open, and real-time 

price signals that adjust the thermostat based on the price 

of energy. EMSs are easily implemented in projects that use 

packaged terminal air conditioners (PTACs) to control the climate 

in individual units, but their use is more difficult in projects with 

centralized HVAC systems. If projects have EMSs, tenants will 

need guidance on how they work. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 16 
MAKING ENERGY EFFICIENCY, 

WATER CONSERVATION, AND 

SUSTAINABILITY WORK IN 

SECTION 202 AND SECTION 811 

III. PROJECTS: FIVE CASE STUDIES 

This section presents case studies of the following five 

organizations that are actively involved in increasing the use 

of energy efficiency, water conservation, and green building 

features in Section 202 or Section 811 developments. 

Hudson Companies, a developer of Section 202 projects in 

Pennsylvania and Ohio. 

•	 National Church Residences, a nonprofit owner and 

developer of Section 202 projects across the United States. 

•	 New Ecology, Inc., a nonprofit energy efficiency and green 

building technical advisory group that assists Section 202 

sponsors and owners. 

•	 Nuestra Comunidad Development Corporation, a 

nonprofit developer of a Section 202 property in the Boston 

area. 

•	 REACH Community Development, a nonprofit developer 

of Section 202 and Section 811 projects in the Portland, 

Oregon area. 

The experiences of these five organizations offer a window into 

the variety of approaches that sponsors and owners have used 

to incorporate green and energy-efficient features to Section 

202 and Section 811 housing. Some have focused on new 

construction, while others have worked with existing Section 

202 or Section 811 units. Some have large subsidized housing 

portfolios, while others are relative newcomers. Some specialize 

in energy efficiency and green building, while others are just 

finding their way to incorporating such features. But, despite their 

differences, all have succeeded in incorporating energy efficiency 

and green features in the design, construction, and/or operation 

of Section 202 or Section 811 housing units. 

This section highlights key elements of each organization’s efforts 

to implement energy-efficient and green housing strategies. The 

specific situations faced by other sponsors and owners will be 

different in their details; however, the fundamental challenges 

these organizations have confronted—and successfully 

overcome—are the same as the challenges that many other 

organizations across the country face. The highlights presented 

here demonstrate that, with commitment and creativity, sponsors 

and owners can, indeed, build and maintain efficient and green 

Section 202 and Section 811 housing. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 17 
A. Combining Energy Efficiency and Green 

Building Features in Section 202 New 

Construction Projects: The Hudson Companies 

Located in Hermitage, Pennsylvania, the Hudson Companies is 

a multitiered operation consisting of general construction, real 

estate development, and property acquisition and management. 

Their portfolio covers a range of projects including commercial, 

medical, institutional, governmental, and multifamily residential 

projects. Most of their work is focused in Pennsylvania and 

Ohio, with other holdings in Texas. The Hudson Companies 

has decided that incorporating features that increase the 

sustainability of their buildings will help advance their business 

goals and strengthen their position in the marketplace. As part 

of this choice, they are committed to incorporating energy 

efficiency and green building features into all the multifamily 

projects that they develop, including their Section 202 projects. 

Their Section 202 projects are located in western and eastern 

Pennsylvania, with approximately 13 Section 202 projects completed or under development. The projects range in size from 1 

to 3 stories and from 12 to 40 units. Of the 13 Section 202 projects, 3 are being developed with the projected goal of achieving 

Leadership in Energy and Environmental Design (LEED) Silver 

certification from the U.S. Green Building Council. 

Hudson Companies’ 

first LEED Project under 

construction in North 

East, PA. 

The Hudson Companies is currently working on three Section 

202 new construction projects located in North East, Erie County; 

Hopewell Township, Beaver County; and Hempfield Township in 

Mercer County, Pennsylvania. Key partners involved in the development of these projects include the architectural firm of John N. 

Gruitza & Associates, the engineering firm of McIlvried, DiDiano 

& Mox, LLC, and the Community Action Partnership 

of Mercer County who serves as the sponsor agency for 

the projects. 

Strategies for Combining Energy Efficiency and Green 

Building Features 

The Hudson Companies has used two strategies for combining 

energy efficiency and green building features into their Section 

202 projects. For its new construction projects, the Hudson 

Companies works with a consultant to develop an energy model 

that informs decisions regarding building design features related 

to energy efficiency. It also uses LEED standards to implement 

building design and construction that are both energy efficient 

and provide other “green” benefits to the environment and 

future tenants. 

Strategy 1. Use Energy Modeling for New Buildings 

Energy modeling helps identify which energy efficiency features 

will yield the most cost savings for a given property design. 

The Hudson Companies hired a consultant with demonstrated 

experience in energy modeling and green building practices. The 

consultant developed an energy model based on blueprints of its 

“traditional” building envelope, design, and mechanical systems. 

Senior project staff and the architect used the results of this 

energy model to identify which measures had the most potential 

to reduce costs associated with energy usage. Prior to finalizing 

the design, the Hudson Companies used the energy model 

results to identify needed improvements to the HVAC systems, 

windows, building envelope, plumbing, lighting, and other 

water efficiency measures and upgrades, as well as the addition 

of motion sensors, as the measures with the most energy cost 

savings potential. This final energy model for the project served 

as the blueprint to finalize design and proceed with construction 

toward achieving the intended energy efficiency and LEED 

certification. 

The Hudson Companies found that energy modeling cost 

them about $10,000 to $15,000 per project and has submitted 

a request to HUD to reimburse these expenses because this 

investment is expected to pay for itself easily within 12 to 24 

months through reduced utility costs compared to a similar 

building without these energy efficiency features. The Hudson 

Companies and the project sponsor/owner will be tracking actual 

costs going forward. They will use energy modeling combined 

with actual performance data to select the energy efficiency 

features for future projects. 

Strategy 2. Obtain Leadership in Energy and Environmental 

Design (LEED) Certification 

The Hudson Companies made the business decision that they 

will incorporate green building designs, as well as energy 

efficiency features into their future projects. The company’s 

leaders selected the LEED Green Building Rating System from 

among several possible approaches as the best way to address 

the company’s business objectives, including increased energy 

efficiency and resource conservation. They valued LEED’s 

comprehensive approach to energy efficiency, as well as its 

emphasis on “green building” features that provide healthier 

housing for tenants and reduce the property’s impact on the 

surrounding environment. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 18 
Energy Efficiency Features Used by 

The Hudson Companies 

•	 CFL light bulbs 

•	 ENERGY STAR appliances 

•	 Low-flow faucets 

•	 Tankless water heaters 

•	 Reflective shingles 

•	 R30-rated walls 

•	 R50-rated ceilings 

•	 Occupancy sensors 

LEED certification is achieved through points awarded to 

projects on a 100-point scale, with different thresholds required 

to achieve Certified, Silver, Gold, or Platinum certification levels. 

The Hudson Companies used their energy model to identify 

which of the energy efficiency measures that could be used to 

earn points toward LEED certification criteria would be most 

effective for each property. LEED requires ENERGY STAR as part 

of its Existing Building and Homes rating system. In addition to 

promoting energy savings, LEED also focuses on improvements 

to water efficiency, CO2

 emissions reduction, improved indoor 

environmental/air quality, and stewardship of resources and 

sensitivity to their impacts. 

After reviewing the different levels of LEED certification available, 

the Hudson Companies chose LEED Silver as the certification 

that most effectively achieved the company’s business objectives 

and was financially feasible given the anticipated financing for 

their Section 202 projects. 

The LEED application process takes several months and involves 

project registration (which includes a registration fee), application 

preparation, application submission, application review, and 

certification. The Hudson Companies found that it was advisable 

to register the project early in the design phase. Once a project 

was registered, they were able to manage the application and 

documentation process via LEED-Online,11 portal for submitting 

applications, uploading supporting files, and coordinating 

project details with team members. A third-party verification 

process was used to evaluate applications and inspect final built 

projects to ensure that they would meet the required green 

building and performance measures. 

Basing their analysis on their experience to date, the Hudson 

Companies estimates that LEED Silver certification can be 

achieved at a 10 to 12 percent cost premium over projects with 

“traditional design.” The total energy cost savings at this time 

has yet to be recorded. 

In their early projects when they were gaining experience with 

the LEED process, the Hudson Companies encountered some 

challenges in pursuing LEED certification. For example, LEED 

requires specific documentation and regular submissions over 

the course of the project. Until staff members understood 

Construction completed 

in Garden Way 

Apartments. 

documentation and recordkeeping requirements, including 

requirements for subcontractors and vendors, the process took 

considerably more time and effort than a non-LEED project. 

Using LEED-Online and working with contractors and personnel 

who had experience with the LEED process and standards 

helped facilitate compliance. Also, when it was necessary to 

work with subcontractors with no LEED experience, explaining 

the reporting and recordkeeping requirements at the preconstruction conference, and providing examples of the types 

of documentation and records required helped the process go 

more smoothly. In addition, the Hudson Companies found that 

some LEED activities required earning non-energy efficiency 

points, such as using local materials and environmentally sound 

waste management facilities, posed a particular challenge and 

added costs to the project. Finding local suppliers and service 

facilities for these activities was important for establishing more 

efficient operations as well as achieving projected LEED credits in 

the applicable areas. 

Looking Ahead 

The Hudson Companies has been successful in incorporating 

energy efficiency measures by using a formal energy model and 

LEED certification program together and will continue to use this 

approach in future project development. They plan to maintain 

current sponsor relationships, as well as develop relationships 

with new sponsor agencies, in order to continue to collect data 

on utility costs to evaluate the effect of their energy efficiency 

investments and determine which have the greatest effect on 

cost savings. These lessons will also inform the future design and 

construction of LEED projects. 

11 LEED-Online is available at https://leedonline.usgbc.org/Login.aspx. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 19 
Lessons Learned 

•	 Energy efficiency features can pay for themselves 

and benefit the property and the program. Although 

payback periods vary by the type of features installed, the 

Hudson Companies found that energy efficiency features 

that they incorporated were financially feasible, will pay for 

themselves, strengthen the financial position of the property 

by controlling the growth in utility costs, and benefit 

the program by lowering the operating subsidy needed 

compared to a similar property without these features. 

•	 For new construction projects, energy modeling and 

performance data from existing buildings can help with 

the selection of the most cost-effective features for 

a planned building. Energy modeling enables sponsors 

and architects to select the energy efficiency features 

that are most cost-effective. Over time, sponsors also 

can incorporate lessons learned from data on the actual 

performance of their buildings, and others of similar design 

and location. 

•	 Sponsors should plan for extra time and expertise while 

gaining experience with LEED. Until a developer has 

completed several LEED projects, extra time should be 

incorporated into the project construction schedule, and 

someone with LEED experience should be included on the 

project team to help meet the LEED reporting and records 

requirements. 

Useful Resources 

•	 USGBC LEED: http://www.usgbc.org/LEED/ 

•	 LEED-Online: https://leedonline.usgbc.org/Login.aspx 

More Information 

For more information, please contact: 

Dana Frankenburg 

Director of Government Services 

The Hudson Companies 

E-mail: dfrankenburg@hudsoncompanies.net 

Website: http://www.hudsoncompanies.net/ 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 20 
B. Working Smart To Save Energy and Lower 

Costs When Retrofitting Existing Section 202 

Housing: National Church Residences 

Established in 1961, National Church Residences (NCR) is a 501(c) 

(3) nonprofit corporation with 1,500 full time and 850 part time 

employees. Operating nationally, NCR has projects across the 

United States and in Puerto Rico. It generates approximately 

$190 million in revenue annually and holds more than $1 billion 

in assets. NCR currently owns or manages 304 properties with 

21,000 units. 

NCR’s portfolio of Section 202 projects is diverse, with a mix of 

low-, mid-, and high-rise building types. The projects range in 

size from 14 to 202 units per property. In all, its portfolio includes 

210 Section 202 projects totaling more than 12,200 residential 

units. NCR has established an in-house “Energy Team” of three 

staff tasked with identifying ways to save money and strengthen 

operations through energy efficiency improvements in its 

existing projects. 

Strategies for Achieving Energy Efficiency and Cost Savings 

NCR has used several strategies to enhance the energy efficiency 

of its Section 202 projects. Applied across its entire portfolio, 

NCR uses utility data management to create upfront savings 

and also identify which projects to target for energy efficiency 

and green upgrades. In some cases applying a component-bycomponent approach, targeting a specific feature throughout 

the portfolio, was selected as it was a cost-effective strategy to 

achieving energy efficiency. Paired with tenant education, energy 

management systems are currently being piloted in several 

of NCR’s projects as means of reducing consumption. These 

four strategies complement each other to create an effective 

approach to energy efficiency in NCR’s Section 202 portfolio. 

Strategy 1. Utility Data Management 

NCR found significant cost savings, even before implementing 

any energy efficiency measures, by centralizing all utility bills 

for all of its projects. Currently, NCR works with Advantage 

IQ, a data services and management provider, to centralize 

all their utility bills for data processing, where information 

on consumption, late fees, meter-reading dates, and rates is 

extracted into a database. The benefits of centralized utility bill 

processing include streamlined payments, invoice auditing, and 

rate analysis. These activities generate savings by identifying 

inappropriate rates, meter inaccuracies, water leaks, and meterreading errors, as well as ensuring timely payment and reducing 

late fee expenses. Currently NCR processes 1,200 invoices 

(electric, gas, and water) for 258 properties as part of utility data 

management. The total cost of this service is approximately 

$75,000 annually and generates approximately $220,000 in annual 

utility savings or achieving a payback period of about 4 months. 

See Exhibit 8 for a breakdown of savings. 

Exhibit 8. Annual Savings Breakdown 

12-Month Savings 

$80,000 $70,000 

$70,000 $64,000

$60,000 

$50,000 

$37,000 $40,000 

$30,000 

$20,000 

$10,000

 $0 

$51,000 

Inappropriate Meter Meter Reading Late Fees 

Inaccuracy & Rate Errors Water Leaks 

Even more important in the long run, the utility data gathered 

makes it possible to identify those projects that are most in need 

of energy retrofits by pinpointing and quantifying the particular 

improvements that would most likely have a high payoff in future 

utility savings, and verifying actual results. The annual savings 

generated by these improvements can be even greater than 

those gained through identifying and correcting leaks, meter 

malfunctions, suboptimal selection of billing rates, overcharges, 

and other problems routinely arising in the relationship between 

apartment projects and their utility suppliers. 

NCR’s projects have a variety of metering types for electric 

and natural gas, as well as HVAC and domestic water heating 

systems. NCR has created segments for each combination so 

property energy use can be benchmarked and compared. The 

benchmarking is typically accomplished by converting electric 

and natural gas usage to BTUs and dividing it by the total square 

footage. The higher the BTU/sq ft, the less efficient the 

property is. 

To determine which projects are best to target for energy 

initiatives, NCR considers both BTU/sq ft as well as cost of 

energy. Exhibit 9 illustrates benchmarking for NCR’s master 

metered projects in which NCR is responsible for all tenant loads. 

Each dot represents a property’s kBTU/sq ft and $/mmBTU. The 

projects in shaded quadrant are those that are less efficient 

and pay a higher price for their energy. NCR is targeting those 

outliers to determine how best to reduce consumption through 

energy efficiency upgrades, commodity deals, or renewable 

energy systems. 

After Advantage IQ collects the data, NCR makes it available to 

Bright Power, a provider of energy efficiency and green buildings 

solutions for multifamily, commercial, and industrial buildings. 

Specifically, NCR uses Bright Power’s EnergyScoreCards (an 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 21 
Exhibit 9. NCR Master Metered Property Benchmark 

NCR Properties 

$35.00 

$30.00 

$25.00 

$20.00 

$15.00 

$10.00 

$5.00 

$0.00 

0 20 40 60 80 100 120 

More 

Efficient 

Less 

Efficient 

Higher 

Price 

Lower 

Price 

Owner Energy Index 

kBTU/sf/yr 

online energy benchmarking and management tool) to create 

a property scorecard that rates the building’s performance. See 

Exhibit 10 to view a sample property scorecard. Specifically, it 

uses a complex regression analysis on the property’s monthly 

energy consumption and weather data to break down energy 

usage by heating, cooling, and other general use. Bright Power 

uses this information to benchmark and grade the heating, 

cooling, and general use consumption against other projects. 

Bright Power was used at no cost to NCR through participation in 

a pilot program on behalf of Stewards for Affordable Housing for 

the Future (SAHF). 

After NCR benchmarks its projects by segment (refer to Exhibit 

9), it uses the property scorecard to help determine which 

initiatives (for example, heating, cooling, or lighting) are best 

to pursue for the property. The NCR Energy Team can evaluate 

outliers across specific loads to determine if measures can be 

implemented across projects. 

Strategy 2. Component-by-Component Approach 

NCR achieved a construction cost savings by taking a 

“component-by-component” approach to energy efficiency. The 

Exhibit 10. Bright Power Energy Scorecard 

process began by benchmarking energy and water consumption 

to identify the greatest opportunities for cost savings, not only 

for each property, but also for the portfolio as a whole. The 

Energy Team then considered which measures could be applied 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 22 
broadly across NCR’s portfolio to take advantage of efficiencies 

in planning, purchasing, and installation. NCR has implemented 

two initiatives to date: lighting retrofit and water conservation. 

The Lighting Retrofit Initiative involved installation of ENERGY 

STAR qualified lighting in both common areas and units at 100 

properties and was funded by property reserves. The Water 

Conservation Initiative involved installing features such as lowflow fixtures, sink aerators, and improved toilet flushing. This 

initiative was funded by a performance contract in which the 

provider installed the measures at no upfront cost and was paid 

out of savings. To date, the Water Conservation Initiative has 

been implemented in 30 properties, but there are another 

30 identified. 

Exhibit 11: Cost and Annual Savings of NCR’s Initiatives 

Cost 

Annual 

Savings 

Average 

Payback 

Period 

Lighting retrofit 

initiative $1.1M $300,000 3.6 years 

Water 

conservation 

initiative 

$183,000 

per property 

$213,000 

per property 10 months 

Strategy 3. Energy Management Systems 

NCR hopes to reduce “wasted” energy and costs by installing 

energy management systems (EMSs). NCR is currently using 

three pilot projects to test a variety of approaches to energy 

management. Some of the techniques being tested include 

motion detectors that set the thermostat back when no one 

is present, window sensors that shut off heating/cooling when 

open, and real-time price signals that adjust the thermostat 

based on the price of energy. 

Tenant comfort is ensured by setting temperature thresholds 

within reasonable ranges and ensuring that individual unit 

thresholds can be adjusted based on particular tenant needs. 

Since these projects are still in development, NCR plans to 

monitor and manage tenant responses over time. 

At a cost of $500 per unit to install the EMSs, NCR expects this to 

be a very cost-effective measure.12 It projects the cost savings to 

be $80 per unit annually, with a payback period of 6.3 years. The 

EMSs in two of the three pilot projects were funded by the U.S. 

Department of Housing and Urban Development’s (HUD) Green 

Retrofit Program (GRP), an American Recovery and Reinvestment 

Act (ARRA) funded program that provided $250 million in loans 

and grants for energy and green retrofits in the multifamily 

assisted housing stock. The other project is being funded as part 

of a tax credit conversion. 

Strategy 4. Tenant Training 

NCR has developed a brochure to help educate tenants on how 

to reduce their energy consumption. The NCR brochure is part 

of their campaign to Live SMART (Save Money And Resources 

Together), and is given to tenants as part of their formal leasing 

(new or renewal). The brochure contains energy saving and water 

conservation tips. 

Looking Ahead 

NCR plans to continue using utility data management to 

benchmark, track, and compare projects’ energy usage and to 

target energy efficiency initiatives. As of this writing, the first of 

its pilot projects involving an energy management system was 

expected to have been completed in January 2011. 

Lessons Learned 

•	 Utility bill management can generate significant savings. 

Annual or ongoing review of utility bills can be labor 

intensive but is well worth the time it takes because of the 

savings that it can generate. Owners with larger portfolios 

may want to consider using a utility management company 

that can centralize billing and run reports across an entire 

portfolio. 

•	 Applying energy efficiency measures across a portfolio 

can reduce implementation costs. Identifying which 

energy efficiency measures are appropriate for application 

to projects across a portfolio can reduce costs by achieving 

economies of scale. 

•	 Energy efficiency involves human behavior and choices. 

Although upgrading with energy-efficient features and 

improving mechanical systems can make significant 

improvements to energy efficiency, human behavior can 

also have a big effect. To achieve optimal results, property 

managers and tenants must be educated about the 

importance of energy efficiency and the proper way to use 

specific features. 

12 Energy management systems are most appropriate and easily implemented in projects that use Packaged Terminal Air Conditioners (PTACs) to control the climate in 

individual units, as opposed to centralized HVAC systems. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 23 
Useful Resources 

•	 Advantage IQ: http://www.advantageiq.com/ 

•	 Bright Power: http://www.brightpower.biz/ 

•	 EnergyScoreCards: http://www.energyscorecards.com/ 

•	 HUD’s Green Retrofit Program: http://portal.hud.gov/
 

portal/page/portal/HUD/recovery/programs/green
 

More Information 

For more information, please contact: 

Steve Bodkin 

Vice President of Engineering, Energy, and Procurement Services 

National Church Residences 

E-mail: sbodkin@ncr.org 

Website: http://www.ncr.org 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 24 
C. Analyzing Energy Usage Before 

Implementing Energy Savings Strategies 

in New and Existing Section 202 Housing: 

New Ecology 

New Ecology, Inc. (NEI) is a nonprofit corporation that provides 

energy efficiency, green building and other consulting services 

to community-based organizations to promote sustainable 

development that supports economic, environmental, and social 

benefits. With an in-house staff of 11, they provide a variety 

of consulting services related to sustainable development, 

education, and training on new construction and existing 

projects. Most of their work is focused in the Northeast region of 

the United States, where energy costs are relatively high. 

Over the last 6 years, NEI has helped owners and sponsors assess 

the potential for including improved energy efficiency and green 

building features in approximately 70 projects. Of these, 10 were 

low-rise and mid-rise Section 202 projects—4 new construction 

and 6 retrofit. 

Solar array on a 

Section 202 property in 

Somerville, MA. 

Strategies for Increasing Energy Efficiency in Existing Projects 

and New Construction 

NEI has used different strategies to help owners and sponsors 

implement energy efficiency and green building features in 

existing and new construction Section 202 projects. For existing 

projects, a front-end utility analysis and energy audit helps 

NEI understand energy usage, benchmark projects, target 

underperformers, and identify which energy efficiency and 

green measures to undertake. For new construction projects, 

NEI selects appropriate green building and energy efficiency 

certification programs to guide building design and construction. 

Strategy 1. For Existing Projects, Gather Information by 

Conducting a Front-End Utility Analysis and an Energy Audit 

For existing projects, NEI first conducts a front-end utility 

analysis to assess current utility usage and costs. WegoWise is 

NEI’s online benchmarking tool for monitoring and analyzing 

energy use in existing multifamily and single-family housing. It 

enables building owners and managers to compare their existing 

building’s energy use with usage in other similar buildings. 

Users enter basic information about their building and its utility 

accounts into the tool. The tool then automatically downloads 

current energy usage information directly from the building’s 

utility company, enabling the user to analyze these data and 

see trends in the property’s energy usage. It generates a score 

to rate the property’s energy efficiency, which makes it easy to 

compare the performance of projects with similar characteristics, 

both within a portfolio and with projects across the country. Users 

can generate customized reports to identify which projects are 

underperforming and flag specific problem areas, such as heating 

or water. See Exhibit 12 for a graphic depiction of WegoWise’s 

customized report. The base cost is a modest $60 per building 

per year. A single Section 202 building with one or two electric 

meters, one or two gas meters, and a single water meter would 

pay only $60 per year. Buildings with individual unit meters would 

incur an additional cost of $1 per meter per month. 

When the front-end analysis indicates that an existing project 

is underperforming, NEI follows up with an energy audit of the 

project to help the building owners make a decision about costeffective approaches for increasing energy efficiency. Working 

with a qualified engineer, NEI evaluates the building envelope 

and mechanical systems to identify weaknesses and propose 

specific improvements. The engineer provides a preliminary 

estimate of anticipated changes in energy usage and utility 

cost savings to help owners prioritize which energy efficiency 

measures to implement immediately, and which to implement 

over time if it is not feasible to make all improvements at once. 

In NEI’s experience, energy audits cost from $2,500 to $5,000 per 

building and can achieve a 20-30 percent reduction in energy 

usage after implementing energy efficiency measures. NEI 

has found that the cost savings realized from these efforts are 

sufficient to offset the combined costs of the front-end utility 

analysis, the energy audit, and the costs of energy efficiency 

upgrades over the life of the energy conservation measure. 

Further, if owners continue to track consumption using the 

benchmarking tool, information about trends over time can help 

identify subsequent changes in building operations that can 

point to opportunities for further savings. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 25 
Exhibit 12a. Sample Detail and Summary View 

Produced by WegoWise 

Exhibit 12b. Sample Detail and Summary View 

Produced by WegoWise 

Strategy 2, For New Construction or Substantial 

Rehabilitation, Select From Available Energy Efficiency and 

Green Building Standards 

For new construction and substantial rehabilitation13 projects, NEI 

helps sponsors and owners analyze their options for following 

various types of energy efficiency and green building standards. 

These typically include ENERGY STAR, Enterprise Green 

Communities, or LEED certifications. Both Enterprise Green 

Communities and LEED align with ENERGY STAR guidelines 

for the energy efficiency components of their respective green 

certification programs. The choice of which standard to follow (if 

any) typically depends on a range of factors. First, the approach 

must fit with the owner/developer’s philosophy, be financially 

achievable, and be appropriate for the particular property under 

consideration. In addition, owners may consider benefits beyond 

utility savings such as improved indoor air quality, tenant comfort, 

and improved marketability of the property. Finally, if additional 

non-Section 202 or Section 811 resources such as local rebate 

and grant programs are used to finance proposed improvements, 

those other funding sources may impose specific requirements. 

Careful consideration of all these factors will help identify 

the appropriate certification for an owner to pursue for a 

given property. 

Looking Ahead 

NEI has helped owners and sponsors of 10 Section 202 projects 

effectively incorporate energy efficiency and green features into 

their projects. NEI is now using this experience to help others 

apply information gleaned from front-end utility analyses and 

energy audits, and to select and apply appropriate energy 

efficiency and green building standards. NEI intends to continue 

helping affordable housing owners and sponsors design 

and implement realistic energy efficiency and green 

building strategies. 

Lessons Learned 

•	 For existing buildings, utility usage and costs help inform 

decisions about cost-effective improvements for existing 

buildings and identify savings from operations. The 

information from a benchmarking analysis helps owners of 

existing building select the improvements that will yield the 

greatest utility savings for a given investment. Continuing to 

track utility performance over time helps identify additional 

opportunities for savings. 

13 Gut rehabilitation refers to the renovation of a property, down to the shell, with 

the replacement of all HVAC and electrical components. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 26 
•	 For new construction and gut rehabilitation projects, 

the type of energy efficiency or green building standard 

to be followed must be tailored based on property 

conditions, the business objectives for the property, and 

available resources. For some projects, simply focusing 

on opportunities to increase a building’s energy efficiency 

is the prudent strategy. For others, incorporating energy 

efficiency improvements and other green building features 

that achieve a higher standard, such as Enterprise Green 

Communities or LEED certification, can be done costeffectively. The appropriate strategy will be one that enables 

the owner to access additional funding, and achieves other 

business objectives such as improving the marketability of 

the property. 

Useful Resources 

•	 WegoWise: http://wegowise.com 

•	 ENERGY STAR: http://www.energystar.gov/ 

•	 Enterprise Green Communities: http://www.
 

greencommunitiesonline.org
 

•	 LEED: http://www.usgbc.org/LEED/ 

More Information 

For more information, please contact:
 

Edward Connelly
 

President
 

New Ecology, Inc.
 

Phone: 617–557–1700, ext. 22
 

E-mail: connelly@newecology.org
 

Website: http://newecology.org
 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 27 
D. Combining Funding Sources and 

Educating Property Management Staff for 

New Construction Section 202 Housing: 

Nuestra CDC 

In operation since 1981, Nuestra Comunidad Development 

Corporation (CDC) is committed to promoting initiatives that 

support improvement to the physical, social, and economic 

health of underserved communities in greater Boston. Currently, 

they provide services related to real estate development, 

homeownership, community organizing, and tenant support. To 

date, Nuestra CDC has developed or preserved more than 600 

affordable rental units and 132 affordable homeowner units. 

With Section 202 funds, Nuestra CDC is in the pre-development 

and design stages of Quincy Commons, a 40-unit property with 

one-bedroom apartments in the Roxbury neighborhood of 

Boston. Quincy Commons will be a new construction mixed-use 

development that includes 5,807 square feet of retail at the 

ground level. Nuestra CDC has decided to incorporate green 

building features into their Section 202 units as a part of their 

larger strategy to make all their projects more energy efficient 

and reduce their impacts on the surrounding environment. 

Rendering of Quincy Commons showing 

green roof and solar panel elements. 

Strategies for Selecting, Funding, and 

Maintaining Green Upgrades 

Nuestra CDC is using a number of strategies to make Quincy 

Commons “green.” Using the Enterprise Green Communities 

Criteria and energy modeling to guide their decisions, Nuestra 

CDC has been creative in leveraging multiple funding sources 

to pay for pre-development costs. Looking to the future, they 

expect to combine funding sources for implementation of the 

green features and will be educating tenants, property managers, 

and maintenance staff to ensure that all features are being used 

and maintained properly so that cost savings are optimized. 

Strategy 1. Enterprise Green Communities Criteria and 

Energy Modeling 

Nuestra CDC relied on the Enterprise Green Communities 

Criteria (Green Criteria) when it designed Quincy Commons to 

be both green and affordable. Using the Green Criteria helped 

Nuestra CDC to identify and prioritize its green goals for Quincy 

Commons, while still ensuring affordability. 

The Enterprise Green Communities Criteria is the first national 

green building program developed for affordable housing, and is 

purposely aligned with Leadership in Energy and Environmental 

Design (LEED) for Homes. Projects are scored in the following 

areas: integrated design; site, location and neighborhood 

fabric; site improvements; water conservation; energy efficiency; 

materials beneficial to the environment; healthy environment; 

and operations and maintenance. Similar to LEED, certain criteria 

in the Green Criteria are mandatory while others are optional, 

with varying thresholds for the number of points required for 

certification depending on the type of project. 

Nuestra CDC found using the Green Criteria to plan Quincy 

Commons to be a smooth, streamlined process that effectively 

enabled it to achieve a green design. Since the Green Criteria are 

aligned with LEED, Nuestra CDC expects that the development 

will be equivalent to LEED Gold. Nuestra CDC was awarded a 

$50,000 Enterprise Green Communities grant for predevelopment costs related to greening the design, including 

hiring a green design specialist, architects, and other consultants. 

Green Features in Quincy Commons 

•	 ENERGY STAR appliances 

•	 Green roof by LiveRoof (http://www.liveroof.com) 

•	 Water recycling and reuse system 

•	 Solar panels 

Nuestra also used a green design consultant to conduct energy 

modeling and prepare a cost-benefit analysis that was used 

to identify cost-effective opportunities for energy efficiency 

upgrades. By determining anticipated costs, savings, and 

payback periods, the energy modeling helped Nuestra CDC 

select the green features to include in the design, plan future 

operating budgets, and anticipate changes to costs over time. 

In thinking about which energy efficiency measures to 

incorporate now and in the future, Nuestra CDC focused on 

the total life cycle payback of a feature. Since the building 

is expected to be in operation for 60+ years, these energy 

efficiency upgrades are considered a long-term investment. 

How quickly the features will pay for themselves through energy 

savings was not viewed as an essential consideration. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 28 
Quincy Commons will 

have a green roof by 

LiveRoof (www.liveroof. 

com) which eliminates air 

gaps between modules 

to prevent warm or cool 

air from escaping from 

the building below. 

Strategy 2. Combining Funding Sources 

Overall, Nuestra CDC estimates the additional design costs of 

“going green” in this project to be about $100,000 to $150,000 

out of a total design cost of $750,000. Nuestra leveraged a 

number of funding sources to cover these costs, including their 

Enterprise Green Communities grant. Tapping into their network 

of partners, Nuestra CDC also won grants from the Farnsworth 

Trust and NeighborWorks America for pre-development costs, as 

well as a grant from the U.S. Department of Health and Human 

Services Office of Community Services to pay for the cost of 

hiring an architect. Remaining pre-development costs were 

financed through a loan. By leveraging funding sources beyond 

Section 202 funds, Nuestra expects to be able to achieve a 

greater impact in terms of energy efficiency and “greening” the 

property than if it had relied only on Section 202 funds. 

Strategy 3. Educating Property Managers and 

Maintenance Staff 

Nuestra CDC recognizes the important role of the property 

managers and maintenance staff in achieving energy efficiency 

improvements when Quincy Commons is in operation. 

Projected savings could be lost if staff are not familiar with the 

requirements for effectively maintaining and operating energyefficient equipment such as the green roof or the solar panels. 

To maximize the effectiveness of the energy-efficient equipment, 

Nuestra CDC will train staff on proper operation, maintenance, 

and repair protocols. They will also set up an internal check 

system to ensure that scheduled maintenance is carried out as 

needed. 

Property managers and maintenance staff will also play a role 

in educating tenants at planned tenant meetings and on a daily 

basis, answering any questions that they might have. Staff will 

help tenants gain a better understanding of why the features 

were implemented, how they work, and how they affect the 

tenants. Education about the property’s green design is expected 

to raise tenant awareness of the importance of energy efficiency 

and green design, while specific education efforts will help 

ensure that tenants can use new features such as programmable 

thermostats effectively. 

Looking Ahead 

Based on its success in designing Quincy Commons to a green 

standard thus far, Nuestra CDC looks forward to breaking ground 

on the project in the fall of 2011. Funding sources to cover the 

construction of the housing component have been secured and, 

over the next few months, Nuestra CDC will work toward closing 

on those sources. They are also currently looking to secure 

the last piece of funding for the commercial component. 

As their first Section 202 property, Nuestra CDC hopes to learn 

from this experience and apply these lessons to future 

Section 202 projects. 

Lessons Learned 

•	 Use certification programs to inform decisions about 

which energy efficiency and green measures to 

implement. Although projects that are LEED certified or 

ENERGY STAR qualified can improve the marketability of the 

property, certification programs can offer property sponsors 

an established and vetted process and package of options 

for making decisions about energy efficiency and green 

building features. 

•	 Select energy efficiency and green features to maximize 

the benefits achieved. When choosing energy efficiency 

and green measures to implement, sponsors should consider 

the long-term benefits and paybacks over the project’s life 

cycle. Not only features that payback over the lifecycle of the 

project should be considered but also green features that 

have long term benefits to the tenants. 

•	 Identify and pursue other sources of funding for 

energy efficiency measures. When Section 202 funding 

will not cover the total cost of energy efficiency or green 

building features consider securing additional funds. In 

many communities, various resources, including public, 

private, and nonprofit agency funds, can be harnessed and 

packaged together to design and implement an energyefficient and green project. 

•	 Train property management and maintenance staff on 

energy efficiency and green features. Since property 

management and maintenance staff will be responsible for 

operation and repair, it is critical that staff are fully trained on 

how to properly use and maintain these features to maximize 

savings and reduce future costs. Staff plays an important role 

in educating tenants and answering questions they might 

have about the features, so that they also use and maintain 

them correctly. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 29 
Useful Resources 

•	 Enterprise Green Communities: http://www.
 

greencommunitiesonline.org
 

•	 LEED for Homes (LEED-H): http://www.usgbc.org/leed/ 

homes/ 

More Information 

For more information, please contact: 

Diane Clark 

Project Manager, Real Estate Development 

Nuestra Comunidad Development Corporation 

E-mail: dclark@nuestracdc.org 

Website: http://nuestracdc.org 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 30 
E. Maximizing Energy-efficient Upgrades 

in Existing Section 811 Housing: REACH 

Community Development 

Since 1982, REACH Community Development (REACH) has 

provided affordable housing and supportive services in Portland, 

Oregon. REACH has decided to incorporate sustainability 

practices into all their projects to reduce maintenance and utility 

costs and improve the quality of the units and the health of their 

tenants. REACH is a member of the U.S. Green Building Council 

and since 1994 has included green building features into all of 

its projects. 

To date, REACH has developed more than 1,200 affordable 

housing units serving more than 1,500 tenants, including 6 

Section 202 projects. REACH has acquired its first Section 811 

property, Powell Boulevard Apartments, which provides 19 

affordable units to individuals with mental health and substance 

abuse issues. 

Strategies for Funding, Planning, and Building 

Support for Energy Efficiency 

REACH used three primary strategies in approaching energy 

efficiency and green features at the Powell Boulevard 

Apartments. Taking advantage of small and large grants, REACH 

was able to secure funding to cover a variety of energy efficiency 

and green measures. Green upgrades to Powell Boulevard 

Apartments includes upgrades of water heaters, exterior doors, 

packaged terminal air conditioner (PTAC) units, lighting retrofits, 

counter top and floor covering replacements, as well as drip 

irrigation system installment throughout the grounds and a solar 

photovoltaic system (with roof replacement). 

Working with in-house staff and professionals, REACH was able 

to develop a strategic plan for implementation, determining 

which needs were immediate and which could be addressed 

later on. 

Throughout the process, REACH made it a priority to include 

tenants in meetings and conversations about energy efficiency 

and green upgrades, which has fostered a new sense of 

community and investment among tenants and staff. 

Strategy 1. Combining Funding Sources To Make a Minor 

Investment in Energy Efficiency and Major Investment in 

Renewable Energy 

Although REACH has been making efforts to “green” Powell 

Boulevard Apartments since assuming direct management of 

the project in 2007, only recently has it secured funding to make 

a significant capital investment in renewable energy technology. 

Prior to investing in renewable energy and other significant 

upgrades, REACH made Powell Boulevard Apartments more 

energy efficient through the replacement of all lighting with 

compact fluorescent light bulbs (CFLs) using funding from 

Multnomah County’s Weatherization Assistance Program (WAP), 

a U.S. Department of Energy (DOE) administered program that 

provides funds to state and local governments to weatherize 

units for low-income households. 

After making Powell Boulevard Apartments more energy efficient 

with WAP funds, REACH applied to HUD’s Green Retrofit 

Program (GRP) for funding to make additional improvements, 

receiving a total of $258,566 for this project. The GRP is an 

American Recovery and Reinvestment Act (ARRA) funded 

program that provided $250 million in loans and grants for 

energy and green retrofits in the multifamily assisted housing 

stock. These funds were used to purchase and install new water 

heaters and exterior doors, countertops and floor coverings 

made of “greener” materials, a drip irrigation throughout the 

grounds, and a solar photovoltaic (PV) system, including roof 

replacement. A PV system generates electric power by using 

solar cells to convert solar energy into electricity. The cost of the 

PV system was $82,566 and the expected payback period is 

between 25 and 40 years, depending on rate increases. REACH 

recognized the importance of coordinating the installation of a 

renewable energy system with specific energy efficiency 

upgrades, to maximize benefits. 

Green Retrofits underway at 

Powell Boulevard Apartments. 

In addition to GRP, REACH has secured $10,000 from the Oregon 

Housing Acquisition Project to replace end-of-life PTAC units 

throughout the property with ENERGY STAR qualified units. At a 

total cost of $15,000, reserve funds were used to cover remaining 

costs. REACH is also in the process of applying for funds from 

the Portland Water Bureau to replace toilets with energy-efficient 

models. Going forward, REACH plans to secure additional 

funding to continue upgrading other features such as windows 

and appliances to maximize energy efficiency throughout 

the property. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 31 
In addition to the grant, the GRP also offered several owner 

incentives. 

•	 The Efficiency Incentive, equal to 3 percent of costs, up to 

$30,000, paid upon completion of the rehabilitation work. 

Green Improvements Under the Green Retrofit Program 

•	 Efficient products and appliances, heating and cooling 


systems, water heaters, and lighting.
 

•	 Building envelope improvements, such as windows, 


doors, and insulation.
 

•	 Ventilation and indoor air quality improvements, 


including exhaust fans and low- or no-VOC paints, 


sealants, and cabinets.
 

•	 Green features, such as landscaping, changes to allow for 

integrated pest management, recycling, and hazardous 

waste disposal. 

•	 The Incentive Performance Fee, equal to 3 percent of 


revenue, paid on an ongoing basis from surplus cash.
 

•	 Completion of all GRP activities is expected to be complete 

in February of 2011. REACH expects to use these incentives 

to cover some costs related to legal expenses and meeting 

HUD program requirements, and also to enhance property 

reserves. In addition, REACH’s existing reserve funds 

have been used to cover costs such as legal fees and 

overhead costs. 

Strategy 2. Using In-House and Professional Expertise To 

Develop a Plan for Energy Efficiency 

REACH found it helpful to include an in-house staff member 

who was intimately familiar with the property’s construction 

and maintenance history in all discussions related to green and 

energy-efficient upgrades to the property. Specifically, this 

individual worked closely with the energy auditor to develop a 

plan for green retrofits. His familiarity with the property enabled 

him to provide additional information to the energy auditor that 

otherwise may not have been readily available or obvious. For 

example, he provided records of when appliances and other 

features had been installed, as well as maintenance schedules. 

In conjunction with a sense of which appliances and systems 

were near end-of-useful-life, this information helped the energy 

auditor develop final recommendations. By accompanying the 

energy auditor during the audit, the staff member was readily 

available to answer specific questions about when systems were 

installed, how they have been maintained, and if there have been 

any performance issues. 

The energy auditor produced a capital needs assessment (CNA) 

report that included several different options for improving 

energy efficiency, with associated costs and payback schedules. 

From this report, REACH was able to prioritize replacing systems 

and appliances that were closest to the end of their useful life 

and those that were most cost-effective. Also as part of the GRP, 

the energy auditor developed a related 20-year CNA, which 

detailed the steps needed for progressively increasing energy 

efficiency in the property in the long term. This report took 

into account projected income and reserve levels and made 

recommendations for adjustments to ensure that the future plan 

for energy efficiency was feasible. REACH and HUD will use this 

plan in discussions on the maintenance and improvement of this 

Section 811 property and necessary reserve funding. 

Strategy 3. Engaging Tenants in the Project 

The GRP required REACH to hold a meeting to gather feedback 

from tenants on their concerns, desires, and suggestions for 

improving the property. This information, along with input from 

the owner and energy auditor, was used to develop a Green 

Retrofit Plan for the property. In addition to the initial meeting, 

REACH held regular meetings with tenants throughout the 

process. These ongoing meetings provided a new opportunity 

for tenants to engage with each other and the building staff. 

REACH has found that these meetings have had significant 

effect on the tenants’ sense of community at Powell Boulevard 

Apartments and fostered a positive perception of the green 

retrofit improvements. More specifically, the meetings have 

shown the tenants that the property managers are committed 

to making the tenants’ homes healthy, clean, and safe. REACH 

believes that as a result, tenant excitement about the new green 

features has increased and tenants are taking better care of 

their units. 

Although these benefits cannot easily be measured, REACH 

believes strongly that tenant involvement was an important 

component for the success of the retrofit. REACH leaders believe 

that financial paybacks will be realized more quickly now that 

the tenants are equally committed to energy conservation and 

“living green” and are more likely to use and maintain new 

features properly. 

Looking Ahead 

REACH began collecting utility bill data before the green retrofits 

were implemented and will continue to do so after they are 

installed so that actual cost savings and usage changes can 

be verified. Although the GRP requires that energy auditors 

have access only to utility records, REACH plans to use Bright 

Power’s EnergyScoreCards, an online energy benchmarking and 

management tool, to benchmark and track each of its projects’ 

energy usage.14 Going forward, REACH also plans to continue 

to hold tenant meetings to inform ongoing plans to “green” 

the property. As the GRP and other grant dollars are expended, 

REACH will look to new ways to finance “greening” activities. 

REACH also has a large network of partners and plans to 

leverage new funding opportunities. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 32 
Lessons Learned 

•	 Identify a range of funding sources for making energy 

efficiency and renewable energy investments. Some 

grants and loans have specific allowable costs, so be sure to 

understand and take advantage of the differences among 

funding opportunities. For example, energy efficiency 

improvements may be covered by WAP funds available in 

most communities, while renewable energy technologies 

like photovoltaic solar systems will likely require a significant 

capital investment from another funding source. 

•	 Strategically select energy efficiency upgrades that work 

together to maximize benefits. Consider which energy 

efficiency improvements complement each other when 

deciding what to implement. Before installing renewable 

energy technology, consider low-cost energy efficiency 

upgrades with lower capital investments and shorter 

payback periods. 

•	 Drawing on a variety of existing resources can improve 

decisionmaking. Especially for retrofit projects, take 

advantage of knowledge and expertise that you already 

have—consult with the building’s general contractor, 

maintenance staff, and tenants. Consider what you already 

know about the property, its issues, and tenant needs to 

inform the decisionmaking process. The result can be 

better informed decisions and improvements that the 

community supports. 

Useful Resources 

•	 Weatherization Assistance Program: http://www1.eere. 

energy.gov/wip/wap.html 

•	 HUD’s Green Retrofit Program: http://portal.hud.gov/
 

portal/page/portal/HUD/recovery/programs/green
 

•	 EnergyScoreCards: http://www.energyscorecards.com/ 

More Information 

For more information, please contact: 

Brian Bieler 

Director of Asset Management 

REACH Community Development Corporation 

E-mail: bbieler@REACHCDC.org 

Website: www.REACHCDC.org 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 33 
EnErgY EffIcIEncY, WatEr 

conSErVatIon, and 

SuStaInaBILItY In nEW and 

ExIStIng SEctIon 202 

IV. and SEctIon 811 ProjEctS 

To help ensure that Section 202 and Section 811 housing is 

as efficient and green as possible, developments that receive 

funding from fiscal year 2010 onward will be required to meet 

certain energy and water conservation standards. In addition, 

sponsors and owners will be encouraged, through the use of 

policy priority points, to make their developments as sustainable 

as possible. Sponsors and owners of existing projects are also 

encouraged to implement efficient and sustainable features, as 

feasible, throughout the life of the project. This section discusses 

the features that are required for new Section 202 or Section 811 

funding, the activities that can earn incentive points, 

and the activities that existing project owners and sponsors 

can undertake to enhance energy efficiency and green 

building design. 

addressing requirements for Energy 

Efficiency and Water conservation in new 

Section 202 and Section 811 Projects 

To receive Section 202 or Section 811 funding, sponsors and 

owners must ensure that their proposed projects meet certain 

energy and water conservation standards. The requirements 

are different, depending on whether the application is for new 

construction/substantial rehabilitation or for acquisition and 

moderate or modest rehabilitation. 

new construction and Substantial rehabilitation Projects 

To be considered for funding, new construction and substantial 

rehabilitation projects are required to address both energy 

conservation and water conservation. 

Energy conservation 

Energy conservation standards to be followed depend on the 

type of property to be developed. 

•	 Low-rise (up to three stories) multifamily developments must 

meet the requirements of EPA’s ENERGY STAR qualified 

homes. 

•	 Mid-rise and high-rise developments (four or more stories) 

must meet the ASHRAE 90.1 Appendix G Plus 15% standard 

for Energy Efficiency. 

Any state energy code requirements, however, take precedence 

over ENERGY STAR or ASHRAE specifications when the state 

code approximates or exceeds that standard. 

Energy conservation Information resources 

•	 ENERGY STAR Qualified Homes: 


http://www.energystar.gov/homes
 

•	 ASHRAE 90.1 Appendix G: http://www.ashrae.org 

•	 ENERGY STAR Qualified Appliances: http://www.
 

quantityquotes.net/
 

In addition, all projects must purchase and install ENERGY 

STAR qualified appliances. ENERGY STAR Quantity Quotes was 

developed by the U.S. Department of Energy (DOE) to make 

it easy to comparison shop for energy-efficient products. With 

this fast and simple tool, applicants can easily locate available 

ENERGY STAR qualified products, make contact with suppliers, 

and negotiate discounted prices. 

Water conservation 

For all 202 and 811 new and substantially rehabilitated developments, owner/sponsors must install water-conserving fixtures. 

This would include resource-efficient plumbing and appliances 

such as low-flow showerheads and faucets, and high-efficiency 

toilets. The materials used should be the most current WaterSense labeled or a greater water efficiency product. These 

requirements apply regardless of whether the developments 

have low-, mid-, or high-rise buildings. 

Water conservation Information resources 

WaterSense: http://www.epa.gov/owm/water-efficiency 

acquisition and moderate or modest rehabilitation 

Section 202 and Section 811 projects that do not require new 

construction or substantial rehabilitation are required to take 

three steps toward energy efficiency: 

1. Pre-construction energy audit. 

2. Incorporation of conservation techniques in the project. 

3. Post-construction energy audit. 

The requirements for these types of projects recognize that the 

extent of physical improvements is less intensive than for new 

construction or substantial rehabilitation, and that many of the 

fundamental features of the building will not change. The audit 

process provides the sponsor/owner with information about the 

types of energy conservation improvements that can have the 

greatest impact. Sponsors and owners then can decide which 

improvements provide sufficient benefit given their cost and are 

feasible within the planned scope of work. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 34 
Tools To Help With Energy and Water Conservation Efforts 

Sponsors and owners can take a number of steps to prepare 

and make sound choices to meet the Section 202 and Section 

811 ENERGY STAR standards and water-efficient building 

requirements. The tools presented below are drawn from the 

experience of successful sponsors and owners. In addition to 

considering these tools, owners/sponsors—including those who 

are experienced with ENERGY STAR and water conservation 

activities in market-rate projects — can benefit from looking at 

successful ENERGY STAR projects locally to learn which design 

and building features work well in affordable projects in their 

geographic areas. 

Tools for New Construction and Substantial 

Rehabilitation Projects 

•	 Learn about the requirements. Begin by learning the 

energy conservation requirements that will apply to 

your project—either the ENERGY STAR qualified homes 

requirements or the ASHRAE 90.1 Appendix G standards. 

–	 A summary of ASHRAE and ENERGY STAR resources and 

requirements is provided in the appendix. 

–	 More detail about ENERGY STAR qualified homes is 

available at http://www.energystar.gov/homes. 

–	 More detail about ASHRAE 90.1 Appendix G is available 

at http://www.ashrae.org/. 

•	 Hire a knowledgeable technical advisor. Talk to an 

experienced ENERGY STAR technical advisor who has 

helped other owners and sponsors successfully develop 

projects that meet the applicable standard. To find 

experienced advisors, talk to other owners, sponsors or 

builders in the area, ask the state housing finance agency 

or state energy office for names, reach out to EPA regional 

staff, or talk to local home energy raters to find out who 

has experience and a solid track record. The New Ecology 

case study in section III discusses the role that a specialized 

consulting firm can play in helping Section 202 sponsor/ 

owners make decisions about their energy efficiency 

activities. 

•	 Identify builders and trades people who have experience 

with energy-efficient buildings. Even if you stay with 

your current building contractor, talking to builders and 

trades people in your area who have experience with 

ENERGY STAR or the ASHRAE 90.1 Appendix G standard 

can yield valuable lessons about designs and building 

features that work well in your area. Local architects or 

builders’ associations can be good resources for identifying 

experienced builders and trades people. Some of the 

technical assistance resources listed in Attachment 4-2 also 

may help you identify experienced local experts. 

•	 Look at the design and features of other ENERGY STAR 

buildings in your area. The ENERGY STAR and ASHRAE 

90.1 Appendix G standards are performance standards. To 

decide how to meet those standards most efficiently and 

effectively, learn what works in your geographic area from 

other successful projects. 

•	 Conduct energy modeling. Modeling the likely outcomes 

of various energy efficiency scenarios can help sponsors and 

owners make wise choices about what features to include. 

The Hudson Companies and the Nuestra CDC case studies 

in section III discuss the value that these organizations found 

in conducting energy modeling and related benefit-cost 

analyses. 

•	 Identify additional financing sources that can be 

leveraged. Attachment 4-1 provides ideas about possible 

sources of financing. However, talking to other sponsors, 

state or local housing finance agencies, and local utilities can 

provide additional insights. 

•	 Talk to your HUD field office. If you have questions about 

program requirements or how to meet those requirements 

most effectively, check with your HUD field office. If your 

field office staff has experience with other ENERGY STAR 

projects, they can also help you identify knowledgeable 

people in your area. 

Tools for Acquisition and Moderate or Modest 

Rehabilitation Projects 

Many of the tools listed for new construction and substantial 

rehabilitation are also relevant for acquisition and moderate or 

modest rehabilitation projects. In addition, the following tools 

may be helpful. 

–	 Select an energy auditor with affordable-housing 

experience. An auditor who brings experience with other 

affordable projects can help owners/sponsors choose the 

improvements that will have the greatest impact. 

–	 Consider using a tool that analyzes utility and other 

historical performance data to inform the choice of 

energy improvements. This type of analysis uses data on 

actual building performance to help owners identify the 

components of the building where there is the greatest 

potential for reducing energy consumption. Section III 

provides information about two such tools: the New 

Ecology case study presents the WegoWise tool, while the 

National Church Residences case study illustrates use of 

the Bright Power tool. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 35 
Addressing Section 202 and Section 811 

Incentive Points for Green Design and 

Development 

To support sustainable project designs that take maximum 

advantage of energy efficiency, water conservation, and 

sustainability features, HUD is encouraging Section 202 and 

Section 811 applicants to undertake programs and projects that 

incorporate green design features. Policy Priority points are 

available to applicants that undertake green development in the 

design, construction, rehabilitation and operation of their 

proposed Section 202/811 developments. This section provides 

background information to help sponsors and owners who 

choose to undertake the sustainability activities required to earn 

these incentive points. 

Selecting the Green Standard To Use 

To receive policy priority incentive points, Section 202 and 

Section 811 applicants must certify and demonstrate that 

green development strategies will be followed in the design, 

construction, rehabilitation and operation of the proposed 

project. These points are available to applicants that commit 

to the full incorporation of a green standard and describe how 

they will fulfill the requirements of the recognized green rating 

programs. 

Acceptable Green Standards 

•	 Enterprise Green Communities Criteria 

•	 National Association of Home Builders (NAHB) Green 

Building Guidelines 

•	 Leadership in Energy and Environmental Design (LEED) 

for Homes 

(for single-family homes) 

•	 LEED New Construction 

(for multifamily homes) 

•	 EPA’s Indoor airPLUS 

•	 A regionally or locally recognized green standard such 

as, but not limited to, EarthCraft or Build It Green: 

Green Point Rated 

See the appendix for links to the requirements for each 

standard. 

The choice of which certification to pursue typically depends on a 

range of factors, including the following: 

•	 Fit with the sponsor’s philosophy. 

•	 Financial feasibility. 

•	 Appropriateness for the proposed property. 

•	 Benefits beyond utility savings, such as improved indoor air 

quality and resident comfort. 

Careful consideration of all these factors can help identify the 

appropriate certification for an owner to pursue for a given 

property. It is not always easy, however, to balance the four 

factors. Particularly for sponsors and owners who do not have 

past experience with green standards, it can be extremely 

valuable to enlist the support of a technical advisor who has 

experience with several of the standards. This expertise can be 

invaluable when attempting to evaluate the financial feasibility 

and appropriateness of specific measures for a proposed project. 

Case studies in section III illustrate how several different 

organizations came to different conclusions about the 

appropriate measures to adopt after balancing the four 

considerations in their unique situations. 

•	 The Hudson Companies followed LEED Silver. 

•	 Nuestra CDC chose Enterprise Green Communities Criteria. 

•	 REACH developed ENERGY STAR qualified units. 

Use an Integrated Design Process to the Greatest 

Extent Feasible15 

Section 202 and Section 811 sponsors and owners are 

encouraged to assemble a development team that has a 

strong understanding of sustainable design principles and 

green building standards. Using an integrated design process 

is expected to ensure effective communication throughout 

the development process, and to encourage all members 

of the development team to look at the project’s objectives, 

building materials, systems, and assemblies from many different 

perspectives at the earliest stage of project planning. The 

integrated design process is meant to ensure that every aspect 

of the building will work as a whole to produce the best possible 

product, with the best possible energy and cost savings. 

What Is an Integrated Design Process? 

An integrated design process is a whole-building approach 

to building design in which the full design team and key 

stakeholders work together from the outset to achieve high 

building performance that achieves environmental and social 

goals while staying within budgetary and scheduling constraints. 

The process relies on a collaborative and multidisciplinary team— 

architects, landscape architects, engineers, energy modelers, 

cost consultants, construction managers, and owners—who 

make decisions together based on a shared vision and holistic 

understanding on the project. The process lasts the entire project 

15 For more information on the integrated design process, see Engage the Integrated Design Process, available at http://www.wbdg.org/design/engage_process.php and the 

Green Building Advisor website at http://www.greenbuildingadvisor.com/green-basics/integrated-design. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 36 
life, beginning at pre-design and lasting through occupancy and 

into operations. 

According to Roadmap for the Integrated Design Process,16 an 

integrated design process differs from a conventional design 

process in the following ways: 

•	 An integrated design process involves many or all team 

members from the outset, and the broad team influences 

decisions, whereas a conventional design process involves 

team members only when essential, and fewer team 

members make more decisions. 

•	 An integrated design process involves whole system 


thinking, whereas a conventional design process often 


considers systems in isolation.
 

•	 An integrated design process is iterative and continues 

through post-occupancy, whereas a conventional design 

process is linear and is typically finished when construction is 

complete. 

•	 An integrated design process emphasizes life-cycle costing, 

whereas a conventional design process emphasizes 

upfront costs. 

When an integrated design process is considered from the 

outset, the entire project team is able to contribute to the 

sustainability of the project. An effective integrated design 

process also helps sponsors and owners make decisions about 

the elements of green design that best support improved energy 

efficiency and water conservation. Exhibit 13 highlights key ways 

in which the integrated design process contributes to effective 

design, construction, and operation of a project 

Why Is an Integrated Design Process Important? 

An integrated design process is important because factoring 

green design issues into the overall design for the building 

maximizes the benefits, ensures sound building performance, 

and reduces costs. It also helps ensure that improvements to 

one building system do not create unanticipated problems for 

other systems. For example, greater energy efficiency through 

increased building insulation and air sealing reduces heating 

and cooling loss, which can reduce the size of the HVAC system 

needed to achieve the desired performance. However, it also 

may require special attention to building ventilation to ensure 

adequate indoor air quality. An integrated design process 

enables the design team to collectively identify opportunities 

to enhance green features and reduce the cost of the design 

without creating negative effects in other systems. 

Exhibit 13. Addressing Integrated Design During the Design Process 

Enterprise Green Communities 

•	 Pre-Design. The surrounding environment is assessed to identify optimum choices for the site, the users, and the owner. 

Members of the design team work together at the outset to develop a vision statement, goals for the project, and a 

preliminary budget, which includes the cost of energy modeling and other activities. If a green standard is to be used, it is 

identified. 

•	 Conceptual and Schematic Design. Innovative technologies, new ideas, and fresh application methods are sought to meet 

the project’s goals. Experts from multiple disciplines analyze opportunities and constraints of the building site and explore 

synergies between disciplines and with neighboring sites. A preliminary energy analysis and preliminary financial estimate 

are completed during this phase. 

•	 Design Development. All architectural, mechanical, and electrical systems are assessed for their expected performance 

and effect on all other systems. The design development report includes energy simulation results, a detailed financial 

report (using life-cycle costing, if possible), an outline of specifications with performance criteria, a preliminary 

commissioning report, a roles and responsibilities matrix, and a matrix comparing the design with the project’s goals. 

•	 Construction Documents. The design development documents and final calculations and specifications are translated 

into formats suitable for pricing, permitting, and construction. To ensure that the green features agreed upon by the 

design team are implemented effectively, the project specifications should include embedded performance criteria, 

material substitution policy, and contractor responsibilities for green building documentation, training, and supervision of 

subcontractors. 

•	 Construction. The full integrated design team must remain fully involved during the construction phase to ensure that 

the goals of the project are carried through to completion. Decisions may require clarification, compliance with contract 

documents must be monitored, and the effect of any substitutions must be evaluated. 

•	 Operations. Responsibility for and knowledge of the building is transferred to the building’s new stewards: the owner, 

occupants, and operations staff. The project team finalizes drawings of the project, operation and maintenance manuals, 

training and education materials, measurement and verification methods, and commissioning documentation. 

•	 Performance Evaluation. After the building is fully operational, ongoing building performance evaluation and continuous 

monitoring may identify opportunities for small-scale improvements in operations that can bring significant benefits. An 

environmental management program further contributes to ongoing green operations. 

16 For more detail, see Roadmap to the Integrated Design Process, available at http://cascadiapublic.s3.amazonaws.com/Large%20Cascadia%20Files/RoadmaptotheIDP.pdf 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 37 
How Integrated Design Can Actually Work 

Like any other design process, an integrated design process can 

take many forms, depending on the needs of the project and the 

preferences of the sponsor or owner and other team members 

involved. Certain key elements, however, can help ensure that 

the design team collaborates effectively. Both Enterprise Green 

Communities and Leadership in Energy and Environmental 

Design (LEED) for Homes require an integrated design process 

as part of their certification processes. Key elements of these two 

approaches are summarized in Exhibit 14. 

The Nuestra CDC case study provided in section III describes 

that organization’s efforts to use an integrated design approach 

to ensure that all aspects of its Section 202 project will be both 

energy efficient and green to the maximum extent feasible. 

Incorporating Passive Solar Orientation to the Extent Feasible 

Applicants must incorporate passive solar orientation principles 

to the greatest extent possible. The physical characteristics of 

some sites will limit the feasibility of incorporating passive solar 

design features. If the use of passive solar orientation is not 

feasible, the constraints (including the orientation of an existing 

structure) can be explained in the application. 

Basic Principles of Passive Solar Orientation 

Passive solar orientation of a building takes advantage of the 

sun’s natural heat to capture solar heat in the winter and block 

solar gain in the summer, reducing heating and cooling costs 

throughout the year. 

Because the sun rises in the east and sets in the west, and 

hangs lower in the sky during winter months, a rectangular 

building should be oriented with its long sides facing the north 

and south, and the shorter sides facing east and west (in the 

northern hemisphere). In winter months, windows on the south 

facing side of the building absorb the (lower hanging) sun’s heat 

energy and distribute it through the building’s thermal mass, so 

increasing the area of the south facing windows enhances solar 

performance/heat gain. In summer months, windows on the 

Exhibit 14. Two Approaches to the Integrated Design Process 

Enterprise Green Communities17 LEED for Homes18 

Sponsors/owners assemble a green development plan that 

outlines the integrated design approach and demonstrates 

involvement of the entire development team. It must include: 

•	 The name and role of each member of the professional 

design and development team. 

•	 A statement of the overall green development goals of 

the project and the expected/intended outcomes from 

addressing those goals. 

Projects receive points for integrated project planning to 

maximize opportunities for integrated, cost-effective adoption 

of green design and construction strategies. Possible activities 

include: 

•	 Involve an integrated project team in at least three phases, 

including conceptual or schematic design; LEED planning; 

preliminary design; energy and envelope systems analysis 

or design; design development; final design, working 

drawings, or specifications; and construction. 

•	 A description of the process that was used to select the 

green building strategies, systems, and materials that will 

be incorporated into the project. 

•	 Conduct meetings with the project team at least monthly 

to review project status, introduce new team members to 

project goals, discuss problems encountered, formulate 

•	 A description of how each mandatory and optional item will 

be included in the project. 

•	 Identification of which members of the design and 

development team are responsible for implementing the 

green features. 

•	 A description of followup measures to be taken through 

the completion of design, permitting, construction, and 

operation to ensure that the green features are included 

and correctly installed, and that the owners or tenants 

receive information about the function and operation of the 

features. 

solutions, review responsibilities, and identify new steps. 

•	 Include at least one principal member of the project team 

who is credentialed with respect to LEED for Homes. 

•	 No later than the design development phase (and 

preferably during schematic design), conduct at least one 

full-day integrated design workshop or charrette with 

the project team. Use the workshop to integrate green 

strategies across all aspects of the building design, drawing 

on the expertise of all participants. 

•	 Consider building orientation for solar design. 

17 For more detail on the Enterprise Green Communities Criteria, visit http://www.greencommunitiesonline.org/tools/criteria/ 

18 For more detail on LEED, visit http://www.usgbc.org/ShowFile.aspx?DocumentID=3638 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 38 
south facing side of the building absorb less of the sun’s heat 

energy as the sun travels higher in the sky. This can be further 

enhanced through inclusion of design features such as overhangs 

that block out additional sunlight, or planting trees whose foliage 

will shade the building. 

East and west facing windows can be responsible for overheating 

in spring and fall months as the low angle sun rises and sets. So 

reducing window area on the east and west facing sides of the 

building further maximize the solar orientation of a building. 

Proper solar orientation of a building should be enhanced 

by installing energy-efficient windows with better insulation 

than standard windows, as well as careful selection of building 

materials that affect thermal storage and distribution. 

Consideration should also be given to the ratio of south facing 

glazing to floor area. A building is considered “sun-tempered” 

when the glazing area is 8 to 10 percent of the floor area, and 

fully “passive solar” when the glazing area is 15 to 20 percent of 

the floor area.19 

It is optimal for a building to face due south to maximize solar 

orientation. However it may be oriented up to 5 degrees away 

from due south before solar performance is affected.20 A building 

may be oriented up to 30 degrees away from due south with only 

a 5 percent loss in potential savings.21 

Benefits of Passive Solar Orientation 

A building that takes advantage of passive solar orientation 

reduces energy costs. Savings achieved will vary based on a 

variety of factors, including the extent to which the home is 

both solar oriented and additional design features that enhance 

energy efficiency. Two studies, that included homes that were 

only reoriented to the sun and did not include additional design 

features, showed 10- to 20-percent heating savings and 10- to 

40-percent cooling savings.22 Buildings that also include other 

“solar home” features are estimated to cut energy use by 30 to 

40 percent.23 

In addition to lower energy costs during the building’s lifecycle, 

immediate cost savings can be achieved through the need for 

smaller heating and cooling systems. 

In addition, the south facing windows allow natural sunlight to 

illuminate the interior of the building during the day, reducing 

the need for artificial lighting and consequently energy costs. The 

natural day-lighting is also considered an appealing feature of a 

home that may be attractive to renters and contribute to tenant 

comfort in the home. 

Obstacles and Challenges to Passive Solar Orientation 

When determining the feasibility of passive solar orientation for 

a building, a builder may face a number of challenges. When 

considered early in the design process, the cost of orienting 

a building to the south, in general, is minimal; however, site 

features such as steep slopes, preservation of views or other 

natural features, or an existing street grid may be issues. 

Although, in most cases, lots are adaptable to include passive 

solar orientation and other passive solar features, a builder 

should carefully consider the costs and benefits of solar 

orientation for a particular project. 

Passive solar orientation alone is usually low-cost for new 

construction (site constraints could make changes of orientation 

high-cost), because it simply involves reorienting a building to 

the south. Even when more glazing is added, these windows can 

be “taken” from the other sides of the building, such as the east 

and west sides, to avoid additional construction costs. Careful 

consideration should be given, however, to other design features 

that enhance the solar performance and energy efficiency of 

a building, such as building material selections, overhangs, 

interior floor plans, and shading devices, which have additional 

associated costs but may maximize benefits in energy savings. 

For cases in which passive solar orientation is not feasible 

due to factors such as the ones described above, applicants 

should explain how feasibility was determined and describe the 

constraints present. 

Resources 

•	 U.S. Department of Energy, Energy Efficiency and Renewable 

Energy: http://www.energysavers.gov/your_home/ 

designing_remodeling/index.cfm/mytopic=10250 

•	 National Institute of Building Sciences, Whole Building Design 

Guide: http://www.wbdg.org/resources/psheating.php 

•	 California Energy Commission, Consumer Energy Center: 

http://www.consumerenergycenter.org/home/construction/ 

solardesign/ 

19 http://oikos.com/esb/42/solar.html 

20 http://greenpassivesolar.com/passive-solar/building-characteristics/orientation-south-facing-windows/ 

21 http://oikos.com/esb/42/solar.html; http://www.nmsea.org/Passive_Solar/Passive_Solar_Design.htm 

22 http://oikos.com/esb/42/solar.html 

23 http://www.smartenergyliving.org/cm/Solar/Passive%20Solar%20Design.html 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 39 
Developing an Operations and Maintenance Manual 

Successful implementation of green design does not end when 

construction is completed; it continues through initial occupancy 

and ongoing operation of the building. Therefore, HUD requires 

property managers to develop an O&M manual that includes the 

following elements: 

•	 A routine maintenance plan. 

•	 Operations and maintenance guidance. 

•	 Tenant education. 

•	 Operations staff training. 

•	 To ensure that the O&M manual guides project staff as 

effectively as possible, the contents of the manual should 

be pilot tested for a limited time period and evaluated. The 

manual should then be revised based on the results. After 

an O&M manual with a green focus has been developed, it 

can be readily adapted for use in other green developments 

by tailoring the content to reflect differences in particular 

features, systems, and appliances. 

•	 An O&M manual should be a living document. As 

maintenance staff work with the project, new research 

provides improved green approaches, and ongoing 

recordkeeping reveals how effective the energy efficiency 

and green features have been, the manual should be 

adjusted to maximize efficiency and effectiveness. Reviewing 

the contents of the manual every 2 years, updating and 

needed, and educating staff about the changes is an 

important element of maximizing the property’s green and 

energy efficiency qualities over time. 

Operations and Maintenance (O&M) manual templates are 

available for use and customization on the Enterprise Green 

Communities’ website at http://www.enterprisecommunity.org/ 24. 

Exhibit 15 below provides a sample outline of an O&M manual. 

Routine Maintenance Plan 

The O&M manual should provide evidence that a plan is in place 

to ensure that routine maintenance activities will be conducted 

frequently enough to ensure that green equipment and features 

will operate at peak efficiency and remain viable through their 

anticipated useful lives. The plan also should demonstrate that 

routine maintenance activities will follow green principles. The 

routine maintenance plan should, at a minimum, address the 

following types of activities: 

•	 Indoor air quality management. 

•	 Indoor pest prevention and control. 

•	 Waste reduction and recycling. 

•	 Energy and water conservation. 

•	 Green groundskeeping. 

Operations and Maintenance Guidance 

Operations and maintenance guidance should covers a range of 

issues, including but not limited to information about the proper 

use and maintenance of all appliances, HVAC operation, lighting 

equipment, paving materials and landscaping, pest control, 

and other systems that are part of each occupancy unit. To 

ensure that the project continues to conserve energy and water 

over time, the O&M manual should specify that future capital 

replacements will use water-conserving fixtures and ENERGY 

STAR appliances. 

Tenant Education 

Tenant education is key to ensuring that green design features 

are used in ways that maximize their effectiveness. One key 

element of a high-quality occupancy turnover plan is a detailed 

description of the process of educating the tenants about proper 

use and maintenance of all building systems. Educating tenants 

about how to use and care for the components affecting energy 

consumption inside and outside their unit is crucial for reducing 

energy and maintenance costs. Some key components to explain 

to tenants are appliances, plumbing, lighting, mechanical 

systems, windows, doors, insulation, paint, flooring, landscaping, 

recycling, and cleaning. Tenants may not be aware of what is 

normal and what is not for each component of their unit and 

therefore tenants may not report maintenance problems that 

affect energy use. Some tenants may be unaware of how their 

actions can make the home healthier, more comfortable, or more 

energy efficient. 

Tenant education is particularly important for maintaining 

projects and conserving energy. Sponsors and owners should 

strive to educate tenants via training and a tenant’s manual for 

easy reference. A number of samples are available, including 

Community Housing Partner’s Resident Guide to Green 

for Wellesley Commons.

25 See the Consumer Green Living 

Guidelines chart in the Technical Assistance and Resources 

section below for additional resources on tenant education. 

Operations Staff Training 

Operations staff training is needed to maintain green design 

features and to ensure green operations and maintenance 

practices for the future. Property managers and maintenance staff 

have a significant impact on energy and maintenance costs due •	 Green and healthy housekeeping. 

24 Navigate to the information resources section; search for Template for Green Operations and Maintenance Manual. 

25	 Community Housing Partner’s Resident Guide to Green for Wellesley Commons is available at http://www.communityhousingpartners.org/development/architectural_ 

design/documents/WellesleyResidentGuidetoGreen.pdf 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 40 
to the decisions they make about when and how replacements 

are made and defects are addressed. Property managers have 

a role in educating maintenance staff about standards and 

priorities for product replacement and repair. Maintenance staff 

will replace some building products on a frequent basis, such as 

paint, clean supplies, light bulbs and fixtures, flooring, carpeting, 

and paper products, and will need to know the green or energyefficient requirements for these products. The property manager 

should determine if and how available technologies can be used 

to enhance energy efficiency and when those technologies can 

be implemented. This should be documented in an Operations 

and Maintenance Plan and distributed to the maintenance staff. 

Property managers can help identify energy saving measures 

for common areas such as using thermostat settings. Property 

managers also have a role in educating tenants about efficient 

energy usage and proper maintenance of their units through 

education, signs, labels, or guides. Sample operations and 

maintenance guides are available, including LISC’s Green 

Operations and Maintenance Toolkit and Buyer’s Guide.

26 

Exhibit 15. Sample Operations and Maintenance Manual Outline 

I. Green Operations and Maintenance Guidelines •	 Water-Saving Strategies 

A. Indoor Air Quality Management – Reading Water Meters Monthly 

B. Green and Healthy Housekeeping – Checking for Leaks 

•	 Cleaning Procedures – Installing Faucet Aerators 

•	 Low-Toxic Cleaning Products – Operating Cooling Towers and Boilers According 

•	 Storing and Disposing of Cleaning Products to Manufacturers’ Specifications 

•	 Disposable Janitorial Supplies – Discontinuing or Minimizing Water Use To Clean 

Paved Areas 

•	 Housekeeping Equipment – Reviewing Landscaping Practices 

C. Indoor Pest Prevention and Control F. Green Groundskeeping 

•	 Integrated Pest Management •	 Irrigation 

•	 Pest Prevention Tips •	 Plantings 

•	 Pest Management Protocols •	 Integrated Pest Management 

•	 Bed Bug Prevention and Control •	 Stormwater Filtration 

D. Waste Reduction and Recycling •	 Exterior Lighting 

•	 Waste Prevention •	 Garage/Parking Lot 

•	 Weekly Recycling Program II. Green Materials and Systems 

•	 Building Rehabilitation/Renovation Waste Management A. List of Green Components 

•	 Hazardous Waste Disposal •	 Systems and Equipment 

E. Energy and Water Conservation •	 Exterior Materials 

•	 Energy Efficiency Strategies •	 Interior Materials, Finishes, and Furnishings 

– Mechanical Equipment Operations and Maintenance B. Green Product Summaries With Maintenance Guidelines 

– Duct and Filter Maintenance III. Other Activities 

– Cooling Tower Operation A. Onsite Trainings 

– Heating System Maintenance B. Signage 

– Electrical Equipment Operations and Maintenance C. Green Procurement and Purchasing 

– Photovoltaics D. Ongoing Monitoring and Commissioning of all 

– Lighting: Purchasing New Lamps Building Systems 

– Lighting Maintenance E. Adjustment of Settings and Controls To 

Optimize Efficiency – Lighting Disposal/Recycling 

26 LISC’s Green Operations and Maintenance Toolkit and Buyer’s Guide is available at www.lisc.org/content/publications/detail/8209. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 41 
Addressing Energy Efficiency, Water 

Conservation, and Sustainability in Existing 

Section 202 and Section 811 Projects 

Most existing Section 202 and Section 811 projects were 

developed prior to the availability of information about current 

practices for energy and water conservation in residential 

buildings. HUD encourages owners of existing Section 202 and 

Section 811 projects to take steps to incorporate energy and 

water conservation improvements into their projects in the course 

of regular maintenance and capital improvements. For example, 

when replacing appliances, sponsors and owners can replace 

standard appliances with ENERGY STAR qualified appliances, 

and can replace standard water fixtures with water-conserving 

fixtures. The case studies in section III describe several different 

strategies that owners of Section 202 and Section 811 projects 

have used to increase energy efficiency and water conservation in 

their projects. 

Sponsors and owners of existing projects can take many of 

the same types of actions and can access many of the same 

resources described above for owners who are building or 

rehabilitating projects. For example, owners of existing 

projects can— 

•	 Implement utility data management processes. Careful 

tracking of utility data can help conserve both energy and 

water, and in the process can lead to significant financial 

savings. The National Church Residences case study in 

section III provides details about how one organization has 

used intensive data analysis to help save water and energy. 

•	 Conduct energy audits. The New Ecology case study in 

section III describes the benefits of making good use of 

energy audit information. That case also illustrates that 

when resources are tight, an owner of multiple projects may 

find that it makes sense to begin with a front-end analysis 

of utility usage to spot poorly performing buildings. This 

can help identify the projects for which an investment in a 

full-fledged energy audit is most likely to yield substantial 

savings. 

•	 Consider strategies for involving residents in the 

planning for making green improvements. Several of 

the organizations highlighted in the section III case studies 

found it extremely valuable to work with residents when 

designing and implementing green measures. These 

included National Church Residences, Nuestra CDC, and 

REACH. 

•	 Use technology. Although tenant education is vital 

to effective conservation programs, technology can 

also support conservation efforts. The National Church 

Residences case study in section III highlights some of the 

technological solutions available to help conserve energy. 

•	 Develop an enhanced operations and maintenance plan. 

Even without physical improvements, sponsors and owners 

can improve conservation efforts through better operations 

and maintenance. These activities could include anything 

from educating residents to improving regular maintenance 

efforts such as rapidly addressing leaky faucets or regularly 

changing air filters. 

•	 Take advantage of flexibility in scale and timing. Sponsors 

and owners with existing projects can make strategic choices 

about when and how to implement various conservationrelated measures to make gradual progress, despite tight 

budgets. The National Church Residences case study in 

section III illustrates how that organization went about 

targeting certain elements, reducing the scale of the 

improvements undertaken at any given time. 

•	 Take advantage of available funding sources. Explore 

outside funding sources, such as weatherization funds, 

that can support incorporating energy conservation and 

green building features in existing projects. The REACH 

CDC case study illustrates how sponsors and owners of 

existing projects can gradually make improvements to 

correspond with funding availability, implementing a series 

of different rehabilitation activities as funding for particular 

activities becomes available. The funding resources listed 

in Attachment 4-1 can be a starting point to help with this 

approach. 

•	 Seek technical expertise from conservation and green 

design experts. Green design expertise is not valuable 

only during major construction. Sponsors and owners of 

existing projects can benefit from green design expertise as 

well. Attachment 4-2 provides ideas about places to begin 

seeking such expertise. 

Meeting the Challenges 

As described in section II, sponsors and owners who have worked 

to incorporate energy efficiency, water conservation and green 

building design have encountered important challenges when 

seeking to incorporate these elements into their buildings. Many 

of these challenges stem from the fact that many of the building 

practices and components involved changes in areas in which 

there was limited experience within the industry. Although the 

challenges remain, innovative sponsors and owners and funders 

of affordable housing have now “broken the ground” and made 

strides in overcoming these challenges. Their experiences 

can help other affordable housing sponsors. Below are three 

common challenges that Section 202 and Section 811 

sponsors and owners identified and some approaches for 

addressing them. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 42 
Finding Technical Information and Expertise 

Sponsors and owners need information and tools to help them 

understand what green and energy efficiency measures are 

available, what they involve, what resources are available to 

support such activities, and how best to integrate them into their 

projects. Currently, some resources identifying and supporting 

energy efficiency and green building techniques exist, but are 

decentralized. This makes it challenging for property owners and 

sponsors to locate the resources they need. 

Incorporating energy efficiency and green measures into new 

and existing projects effectively often requires professional 

experience. For example, energy modeling to assess a building’s 

anticipated energy use and to quantify the savings that would be 

attributable to a proposed design improvement requires a skilled 

energy modeler. Energy audits usually require a professional 

energy auditor or an engineer who can use specialized 

equipment such as blower doors and infrared cameras to 

identify areas of energy loss and propose specific improvements. 

Certification programs such as ENERGY STAR, Enterprise 

Green Communities, or LEED require expertise in areas such 

as application submission, certification timelines, program 

requirements, and recordkeeping. Hiring an experienced green 

consultant may be more cost-effective than having staff attempt 

to master and manager these processes. 

Finding the right professional to support these efforts, and 

finding the funds to pay for that support, can be challenging. 

Attachment 4-2 lists several resources for sponsors and owners 

to begin finding additional information and expertise. Beyond 

these sources, HUD encourages sponsors and owners to contact 

affordable housing organizations and sponsors in their area who 

have experience with energy efficiency, water conservation, and 

green design to learn from their experience and identify other 

sources of information in their area. 

Development Cost Limits and Financing Improvements 

Financial investments are always required to achieve energy 

efficiency or green standards such as ENERGY STAR, Enterprise 

Green Communities, or Leadership in Energy and Environmental 

Design (LEED) certification. Although such investments may 

pay for themselves in the long run through reduced utility costs, 

sponsors and owners must find sources of capital to make the 

initial investment. 

Development cost limits put a ceiling on the amount of Section 

202 or Section 811 funding that can be made available. These 

development cost limits vary by geographic location. In locations 

where they are more generous, it may be possible for sponsors 

and owners to pay for energy efficiency and green investments 

with Section 202 or Section 811 funds. When development cost 

limits are not generous enough to cover the cost of energy 

efficiency and green investments, however, project sponsors and 

owners must either seek other funding sources to cover the costs 

or choose not to pursue energy efficiency and green options. 

HUD understands the challenges that sponsors and owners 

face on this front and will continue to work with stakeholders 

to address these. In the interim, one action that sponsors and 

owners can take is to identify additional sources of financing and 

grants that can be leveraged with Section 202 and Section 811 

funding to help cover these costs. A range of potential sources, 

including housing tax credits, energy tax credits, weatherization 

funding, and utility-supported financial assistance for energyrelated improvements, are available. The case studies presented 

in section III show several approaches and sources that have 

been used by Section 202 and Section 811 sponsors and owners. 

See Attachment 4-1 for a list of resources sponsors and owners 

should consider for helping to meet the need for additional 

capital. 

Replacement Reserves May Not Cover Cost of Energy 

Efficiency Improvements in Existing Housing 

As existing Section 202 and Section 811 projects age, 

replacement reserve funds are used to cover the costs 

of nonroutine repairs, replacements, and major capital 

improvements. Sponsors and owners of existing projects 

have the option of selecting energy-efficient components for 

these replacements. However, energy-efficient replacements 

can be more expensive than traditional building component 

replacements. Owners and sponsors interviewed for this report 

indicated that the additional cost of substituting energy-efficient 

components averages about 10 percent. 

If a project has ample replacement reserves, it may be possible 

to fund not only energy-efficient appliance replacements but 

also some major capital improvements that incorporate energy 

efficiency and green technologies. If, however, the project has 

limited replacement reserves, the extent of energy and green 

building improvements that can be covered out of replacement 

reserves will be very limited. 

HUD understands the challenge facing sponsors and owners on 

this front and will continue to work with stakeholders to address 

this challenge. Similar to the development cost limit challenge 

discussed previously, one action that sponsors and owners can 

take is to identify additional sources of financing and grants that 

can be leveraged with Section 202 and Section 811 funding to 

help cover these costs. Potential sources of financial support 

include energy tax credits, weatherization funding, and utilitysupport financial assistance for energy-related improvements. 

The case studies presented in section III show several approaches 

and sources that have been used by Section 202 and Section 811 

sponsors. See Attachment 4-1 for a list of resources a sponsor 

or owner should consider to help finance improvements in 

existing buildings. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 43 
	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	

	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	

	 	 	 	 	 	

ATTACHMENT 4-1. POTENTIAL 

FUNDING SOURCES 

Obtaining sufficient funding for incorporating energy efficiency

and green building into new and existing Section 202 and

Section 811 projects often poses an important challenge

for sponsors and owners. When researching and identifying

supplemental funding, sponsors and owners should consider the

following:

•	 Each funding source has different requirements, restrictions,

and timing for applying and using funds.

•	 Other funding sources can add to the development time of

the project and the level of effort needed for reporting.

•	 If an organization has experience combining Section 202 or

Section 811 funds with other funding sources, it may save the

project time and money.

The following chart provides basic information about several

types of available funding sources. The list offers a starting point

for sponsors and owners. Additional sources may be available

locally. The key features of each funding source are noted in the

chart, specifically the purpose and use of the type of funding and

how to access the funding source.

Source/Description 

Allowable Activities Development Type 

How To Access 

Design/ Planning

Data Analytics

Green/EE Features

Occupant Training

New Construction

Minor to Moderate

Rehab 

Federal Funding Sources 

Low-Income Housing Tax Credit Program 

(LIHTC) 

http://www.huduser.org/portal/datasets/lihtc. 

html 

State and local LIHTC-allocating agencies have 

annual budget authority to issue tax credits for 

the acquisition, rehabilitation, or new construction of rental housing targeted to serve lower 

income households. 

X X X 

Check HUD’s website for a list of state 

and local LIHTC-allocating agencies: 

http://www.huduser.org/portal/datasets/ 

lihtc.html. 

Community Development Block Grant (CDBG) 

http://www.hud.gov/cdbg 

HUD allocates annual funding awards to larger 

cities and urban counties to provide decent 

affordable housing and community services and 

to create jobs. 

X X X X X X 

Check HUD’s website to see if your local 

city or urban county is a recipient of 

CDBG funds: 

http://www.comcon.org/programs/contact_cdbg.html. 

Weatherization Assistance Program (WAP) 

http://www.eere.energy.gov/weatherization/ 

DOE provides funding to states to fund a 

network of local community action agencies, 

nonprofit organizations, and local governments 

that provide weatherization services to lowincome households. 

X X 

Check DOE’s website to find contact 

information for agencies providing 

weatherization services: 

http://www1.eere.energy.gov/wip/project_map/. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 44 
Source/Description 

Allowable Activities Development Type 

How To Access 

Design/ Planning

Data Analytics

Green/EE Features

Occupant Training

New Construction

Minor to Moderate

Rehab 

Federal Funding Sources 

HOME Investment Partnerships Program 

http://www.hud.gov/offices/cpd/affordablehousing/programs/home/ 

HUD allocates annual funding awards to state 

and local governments to create affordable 

housing for low-income households. 

X X X X X 

Check HUD’s website to see if your 

state or local government is a recipient 

of HOME funds: http://www.hud.gov/ 

offices/cpd/affordablehousing/programs/home/contacts/. 

Energy Efficiency and Conservation Block 

Grant (EECBG) 

http://www1.eere.energy.gov/wip/eecbg.html 

DOE offers formula and competitive grants to 

states, local governments, and tribal governments to conduct energy efficiency activities, including energy audits, strategies, and 

weatherization. 

X X X X X X 

Check HUD’s website to see if your 

state or local government is a recipient 

of EECBG funds: http://www1.eere. 

energy.gov/wip/eecbg_state_allocations.html. 

http://www1.eere.energy.gov/wip/ 

eecbg_tribal_allocations.html. 

State Energy Program 

http://www1.eere.energy.gov/wip/sep.html 

DOE provides formula and competitive grants 

to develop state strategies and goals to 

address their energy priorities and to adopt 

energy efficiency/renewable energy products 

and technologies. 

X X X X X X 

Check DOE’s website to find contact 

information for your state: 

http://www1.eere.energy.gov/wip/ 

project_map/. 

Nonprofit and Foundation Funding Sources 

Enterprise Community Loan Fund 

http://www.greencommunitiesonline.org/ 

tools/funding/loans/ 

Enterprise Community Loan Fund offers lending products to support the development of 

affordable rental and homeownership housing 

that adheres to Green Communities Criteria. 

X X X X X 

Apply for the Green Community Loans 

on line at http://www.greencommunitiesonline.org/tools/funding/loans/. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 45 
Source/Description 

Allowable Activities Development Type 

How To Access 

Design/ Planning

Data Analytics

Green/EE Features

Occupant Training

New Construction

Minor to Moderate

Rehab 

Federal Funding Sources 

Green Mini Loans 

http://www.enterprisecommunity.org/programs/documents/green_mini_loans_410.pdf 

Enterprise and the National Housing Trust 

Community Development Fund provide nonprofit owners and developers with capital to 

jumpstart green retrofits of older affordable 

rental communities. 

X X X X X 

Contact the National Housing Trust 

Community Development Fund at 

http://www.nhtinc.org. 

Affordable Housing Grant Program 

http://www.usgbc.org/affordable/ 

USGBC offers grants to cover registration, 

verification, and certification fees associated 

with LEED certification for LEED projects that 

have at least 75 percent of units affordable 

to households at or below 80 percent of Area 

Median Income. 

X X 

Apply for the USGBC Affordable Housing Grant Program on line at http:// 

www.usgbc.org/affordable/. 

Affordable Green Neighborhoods Grant 

Program 

http://www.usgbc.org/DisplayPage. 

aspx?CMSPageID=2184 

USGBC offers grants to developers and 

related public agencies that choose to pursue LEED for Neighborhood Development 

certification and demonstrate a commitment 

toward strengthening existing communities 

by providing affordable green housing to 

citizens with a range of income levels. 

X X X 

Apply for the USGBC Affordable Green 

Neighborhoods Grant Program on line 

at http://www.usgbc.org/DisplayPage. 

aspx?CMSPageID=2184. 

Private Funding Sources 

Utility Incentive Programs 

Offer financial incentives for installation of 

energy-efficient systems and equipment. 

These rebates, which are provided by utility 

companies, are available for a variety of 

energy-efficient products, including lighting, 

HVAC equipment, appliances, and energy 

management controls. 

X X X X 

Contact your local utility to find out 

what programs are available/what measures they cover. The website, http:// 

www.dsireusa.org, lists available energy 

efficiency and renewable energy incentive programs by state. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 46 
	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

ATTACHMENT 4-2. TECHNICAL 

ASSISTANCE AND RESOURCES 

Resources and technical assistance are available to the sponsors

and owners of Section 202 and Section 811 projects. For those

new to the process, these resources will help sponsors and

owners make effective decisions about implementing energy

efficiency and green building design into their projects. In

addition to the value available in online resources, technical

assistance from organizations, such as Enterprise Community

Partners, or a consultant may be valuable in getting started.

Technical Assistance 

A range of technical assistance options is available to sponsors

and owners.

•	 Enterprise Green Communities provides a database of

technical assistance (TA) providers by geography and area

of experience, including integrated design, design review,

energy services, healthy living environment, construction

review, and green operations and maintenance. Learn more

about the available TA providers by visiting http://tasearch.

greencommunitiesonline.org/TASearch.aspx.

•	 The National Association of Home Builders (NAHB) Research

Center has partnered with local Home Builder Associations

to help their members develop green communities, build

green residences, and remodel existing homes. Find

participating builders, certified homes, accredited verifiers,

and Certified Green Professionals by visiting http://www.

nahbgreen.org/Certification/findlocalgreenprogram.aspx.

Resources 

A variety of resources are available to assist sponsors and owners

of Section 202 and Section 811 projects. The charts below

describe a sample of resources related to energy efficiency and

green standards, energy efficiency and green implementation

guidance, and consumer green living guidelines.

Energy Efficiency and Green Standards27 

Resource Description 

EarthCraft House Guidelines and Support Documents 

http://www.EarthCrafthouse.com/resources/builder-guidelines.htm 

Provides EarthCraft guidelines and worksheets for single-family residential house renovation, multifamily new construction and renovation, and communities. 

Enterprise Green Communities Criteria and Criteria Checklist 

http://www.greencommunitiesonline.org/tools/criteria/index.asp 

Contains the 2008 full criteria and requirements for Green Communities Criteria and a checklist for assisting in achieving the full criteria. 

Enterprise Green Communities Single-Family 

Rehabilitation Specifications 

http://www.greencommunitiesonline.org/tools/resources/green_rehab_specs_gci_2008_criteria_final.pdf 

Compiles model specifications used to integrate green building 

strategies in single-family rehabilitation projects. The specifications are 

designed to meet the 2008 Green Communities Criteria. 

ENERGY STAR Qualified Homes 

http://www.energystar.gov/homes 

Contains guidelines for ENERGY STAR qualified homes, the ENERGY 

STAR Partner Locator, and features and benefits of ENERGY STAR 

qualified homes. 

EPA’s Indoor airPLUS Program 

http://www.epa.gov/indoorairplus/ 

Provides technical guidance, web tools, verifier information, checklists, 

agreement forms, builder information, and construction specifications 

on EPA’s Indoor airPLUS Program. 

EPA’s WaterSense Program 

http://www.epa.gov/WaterSense/ 

Includes product search, certification providers and builders, FAQs, 

savings calculator, and technical resources. 

National Association of Homebuilders: 

Green Home Building Guidelines 

http://www.nahbgreen.org/NGBS/default.aspx 

Includes the building guidelines, a Green Scoring Tool, Find a Verifier, 

Find a Participating Builder, and resources for building professionals, 

homeowners, verifiers, manufacturers, and for education and training. 

U.S. Green Building Council: LEED for Homes 

http://www.usgbc.org/DisplayPage.aspx?CMSPageID=147 

Contains the LEED for Homes rating system, project checklist, scope 

and eligibility guidelines, registration fees, certified project lists, multifamily mid-rise guidance, affordable housing, builder resources, green 

rater program, and green home guide. 

27	See Appendix A: Recognized Energy Efficiency and Green Building Standards for more detailed information on each standard.

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 47 
Energy Efficiency and Green Implementation Guidance 

Resource Description 

AIA Affordable Green Guidelines 

http://www.designadvisor.org/green_critera.html Provides guidelines for including green building design into housing. 

Build It Green: Guidelines and Checklists 

http://www.builditgreen.org/guidelines--checklists/ 

Includes guidelines, checklists, and manuals for green building in singlefamily and multifamily renovations and new construction. Also contains 

a green product directory, certified professional directory, and industry 

research and factsheets. 

Green Capital Needs Assessments 

http://on-site-insight.com/files/Brochure-GCNA.pdf 

Includes a protocol for a Green Capital Needs Assessment (GCNA), 

which combines a conventional 20-year Capital Needs Assessment with 

a comprehensive energy audit and detailed financial analysis of retrofit 

options. 

Whole Building Design Guide: Federal Green Construction 

Guide for Specifiers 

http://www.wbdg.org/design/greenspec.php 

Contains an index on the Construction Criteria Base and a guide with 

sample specification language. 

Global Green: 2010 Green Building Criteria in Low-Income 

Housing Tax Credit Programs 

http://www.globalgreen.org/docs/publication-164-1.pdf 

Includes a ranking and summary of green building trends in state 

Qualified Allocation Plans across four categories—smart growth, energy 

efficiency, resource conservation, and health protection. 

LISC: Green Rehabilitation of Multifamily Properties 

http://www.lisc.org/content/publications/detail/7383 

Contains advice on incorporating the green building principles of energy 

efficiency, water conservation, resource conservation, and healthy indoor 

environments into multifamily properties upgrades. 

Southface Energy Institute 

http://www.southface.org 

Contains a library of resources on building energy codes, commissioning, 

cost of green building, financial incentives, green building certifications, 

green building guides and manuals, green home resources, podcasts, 

white papers, and presentations. 

American Society of Heating, Refrigerating, & Air Conditioning 

Engineers (ASHRAE) 

http://www.ashrae.org 

A membership organization for heating and cooling contractors 

and engineers offering publications, continuing education, technical 

standards, and research. 

Residential Energy Services Network (RESNET) 

http://www.natresnet.org 

Contains a Certified Rater Directory of certified home energy raters 

by state. 

NAHB Research Center 

http://www.nahbrc.com Provides expertise in housing technology and residential construction. 

Smart Communities Network 

http://www.smartcommunities.ncat.org 

Includes information on building principles, building programs, rating 

systems, greening affordable housing, success stories, educational 

materials, publications, and resources. 

Energy Efficiency and Renewable Energy 

http://www.eere.energy.gov 

Contains information on home energy, building energy consumption data, 

high-performance building case studies, publications, and resources. 

Building Green: Greenspec Directory 

http://www.buildinggreen.com 

Provides information on more than 2,000 screened green building 

materials listed by CSI number within 250 categories. 

The PATH Guide to Green Building 

http://www.pathnet.org/sp.asp?id=24934 

Includes resources for low-impact green development, indoor air quality, 

resource-efficient plumbing, resource and waste management, and 

energy-efficient system integration. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 48 
Consumer Green Living Guidelines 

Resource Description 

Community Housing Partners: A Homeowner’s Guide to Green 

http://www.communityhousingpartners.org/development/ 

architectural_design/documents/604CedarHillDriveManual.pdf 

A sample homeowner’s manual providing information about the 

indoor and outdoor features of their home. 

Community Housing Partners: Multifamily Resident 

Guide to Green 

http://www.communityhousingpartners.org/development/ 

architectural_design/documents/WellesleyResidentGuidetoGreen.pdf 

A sample resident’s manual providing information about the indoor 

and outdoor features of their residence. 

Consumer’s Guide to Energy Efficiency and Renewable Energy 

http://www.energysavers.org 

Provides homeowners information, resources, and tips for saving 

energy in their home, vehicle, and workplace. 

ACEEE: Consumer’s Guide to Home Energy Savings 

http://www.aceee.org/consumer 

Contains a home energy checklist; FAQs; and resources on 

HVAC, lighting, refrigeration, electronics, laundry, cooking, and 

dishwashing. 

USGBC: Green Home Guide http://greenhomeguide.com/ Includes Ask a Pro, Know How, Find a Pro Near You, directory 

listing, newsletter, blogs, and local activity. 

National Center for Healthy Housing: Healthy Homes Maintenance 

Checklist 

http://www.hud.gov/offices/lead/library/hhi/Healthy_Housing_ 

CheckList.pdf 

Provides a checklist for when and how to maintain a healthy home. 

National Geographic: Green Guide for Everyday Living 

http://www.thegreenguide.com/ 

Contains buying guides, calculators, resources, and tips for 

consumers. 

LISC: Green Operations and Maintenance: Toolkit and 

Buyer’s Guide 

http://www.lisc.org/content/publications/detail/8209 

Provides an overview of why operations and maintenance staff 

should care about greening their facilities, as well as a green toolkit 

of products that could be incorporated into operations. 

Living Efficiently 

http://livingefficiently.org 

Contains resources and tips for consumers on how to save energy 

and money at home, work, school, and on the go. 

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 49 
	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	 	

	 	

	 	

	 	 	

	 	 	 	

	 	

	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

APPENDIX 

Building Energy Codes 

IECC and ASHRAE 90.1 

Building Energy Code Development 

Building energy codes are minimum requirements for energyefficient design and construction for new and renovated

residential and commercial buildings. A component of a

complete set of building regulations that govern all aspects

of the design and construction of buildings, building energy

codes set an energy-efficiency baseline for the building

envelope, systems, and equipment. Improving these minimum

requirements or broadening the scope of energy codes softens

the environmental impact of buildings as well as generates

additional energy and cost savings over the decades-long, or

even centuries-long, life cycle of a building.

Baseline Codes: IECC and ASHRAE 90.1 

Two primary baseline building energy codes may be adopted

by states and local jurisdictions to regulate the design and

construction of new buildings: the International Energy

Conservation Code® (IECC), and the ANSI/ASHRAE/IESNA

Standard 90.1 Energy Standard for Buildings except LowRise Residential Buildings. The IECC addresses all residential

and commercial buildings. ASHRAE 90.1 covers commercial

buildings, defined as buildings other than single-family dwellings

and multifamily buildings three or fewer stories above grade. The

IECC adopted, by reference, ASHRAE 90.1; that is, compliance

with ASHRAE 90.1 qualifies as compliance with IECC for

commercial buildings.

•	 The IECC is developed under the auspices of the ICC. The

IECC is 1 of 14 model codes developed under the auspices

of the ICC that combined provide the foundation for a

complete set of building construction regulations. The

ICC codes are updated every 3 years, providing a model

the jurisdiction can adopt as is, or modify. Because the

IECC is written in mandatory, enforceable language, state

and local jurisdictions can easily adopt, implement, and

enforce the IECC as their energy code. Before adopting the

IECC, state and local governments often make changes to

reflect regional building practices, or state-specific energyefficiency goals.

•	 ASHRAE 90.1 is developed under the auspices of

the American Society of Heating, Refrigerating & Air

Conditioning Engineers. Revisions in the development and

maintenance of the standard occur on an ongoing basis and

are not approved without achieving balanced consensus,

or substantial agreement reached by directly and materially

affected interest categories. Before adopting ASHRAE

90.1, state and local governments often make changes to

reflect regional building practices, or state-specific energyefficiency goals.

Code Collaboration 

Both the IECC and ASHRAE 90.1 are developed, revised, and

adopted in open public forums. The openness and transparency

of these processes are critical to widespread acceptance of the

end result. Stakeholders representing a cross-section of interests

are involved in maintaining these documents; they include the

following:

•	 The design community, including architects, lighting
 

designers, and mechanical and electrical engineers.
 

•	 The code enforcement community, including building code

officials, representatives of code organizations, and state and

local regulatory agencies.

•	 Builders and contractors.

•	 Building owners and operators.

•	 Manufacturers for the building industry.

•	 Utility companies.

•	 Energy advocacy groups.

•	 The academic community.

•	 Federal agency staff, including the Building Energy Codes

Program.

Code maintenance relies on collaboration for a successful

outcome. Collaboration keeps these documents current with

technological, economic, and policy concerns, giving each

stakeholder an opportunity to participate in updating and

maintaining the codes. This focus of building industry resources

at the national voluntary level is critical to a balanced and fair

process, addressing such issues as market viability, industry

fairness, and construction costs, to name just a few. Without the

ICC, ASHRAE, or other organizations, each federal agency, state

agency, or local government agency would need to conduct

the development of similar provisions themselves. Aside from

the countless resources required, the uniformity of codes across

jurisdictions—so critical for the building industry—would be

sacrificed. Building science and building energy efficiency are

just two considerations in designing code changes. Energy codes

and standards are compromise documents forged from a wide

range of issues and concerns.

Beyond-Code Programs 

Progressive states and local jurisdictions with a focus on energy

efficiency and/or sustainability are increasingly building on the

baseline building energy codes and adopting beyond-code

programs, either as their minimum codes or as a component

of a program that provides incentives to those that comply.

The programs are referred to in various terms–beyond-code

programs, green building programs or codes, stretch codes,

and above-code programs. What they have in common as a key

component is building energy efficiency; they may have more

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 50 
	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	

	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	

	 	 	 	 	 	 	 	

	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	

rigorous requirements than minimum energy codes and/or

address additional issues not covered in the energy codes.

Designers, builders, plan reviewers, inspection staff, and all

interested parties still need to thoroughly understand the

underlying baseline energy code when working with a beyondcode program. Most beyond-code programs use the IECC and/

or ASHRAE 90.1 as a baseline, with additional requirements

beyond that. Some of these beyond-code programs are

discussed below.

Energy Efficiency and Green 

Building Standards — Additional Resources 

ENERGY STAR® 

Single-family homes and units in multifamily buildings with

three or fewer stories are eligible to earn the ENERGY STAR

label. In 2010 ENERGY STAR released a revised set of program

requirements called Version 3. Version 3 includes additional

requirements for high-efficiency equipment and products to

ensure these elements are more consistently included in all

ENERGY STAR qualified homes. It includes the use of a size

adjustment factor to reduce the carbon emissions of larger

homes. Version 3 also requires the completion of new inspection

checklists for thermal enclosure systems, HVAC system quality

installation, and water management systems. These new

checklists enhance the quality control of the verification process

and ensure a comprehensive building science approach to cost

effective energy efficiency.

ENERGY STAR Qualified Homes 

•	 Resources for ENERGY STAR Partners—New Homes 

http://www.energystar.gov/index.cfm?c=bldrs_lenders_ 

raters.nh_partner_resources 

Find marketing, technical, and educational resources

•	 New Homes Partner Locator: 

http://www.energystar.gov/index.cfm?fuseaction=new_ 

homes_partners.locator 

Search for ENERGY STAR builders, available incentives,

raters, and lenders in your state.

•	 ENERGY STAR Partner List: 

http://www.energystar.gov/index.cfm?fuseaction=estar_ 

partner_list.showPartnerSearch 

Search for ENERGY STAR partners by name, location, and/or

partner type.

•	 ENERGY STAR Training Center: 

http://www.energystar.gov/index.cfm?c=pt_univ.pt_univ 

Find tools and information to help you convey to your staff,

customers, or business partners how ENERGY STAR can

help them protect the environment while saving energy and

money.

•	 ENERGY STAR Partner Resource: 

http://www.energystar.gov/index.cfm?c=partners.pt_index 

Find resources on all aspects of the ENERGY STAR program.

•	 Products and Program Requirements: 

http://www.energystar.gov/index.cfm?c=partners.pt_ 

products_and_program_reqs 

Review ENERGY STAR product and program requirements

reference guides, which also direct you to related trainings

and resources.

EPA’s WaterSense® Program 

•	 WaterSense Product Search: 

http://www.epa.gov/WaterSense/product_search.html 

Search by category, brand, model name, and/or model

number for WaterSense products

•	 WaterSense Rebate Finder: 

http://www.epa.gov/WaterSense/rebate_finder_saving_ 

money_water.html 

Search for money saving rebates for WaterSense labeled

products and services from WaterSense partners in

your area.

Enterprise Green Communities Initiative 

Enterprise Green Communities provides funds and expertise

to enable developers to build and rehabilitate homes that are

healthier, more energy efficient and better for the environment

-- without compromising affordability. Enterprise Green

Communities also assists state and local governments to ensure

their housing and economic development policies are smart and

sustainable.

•	 Funding and Financing: 

http://www.greencommunitiesonline.org/tools/funding/ 

Learn more about Enterprise’s comprehensive array of

funding options for interested developers, including grants,

loans, low-income housing tax credit equity, and green

“mini” loans.

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 51 
	 	 	 	 	 	 	 	

	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	

	 	 	 	 	 	 	 	 	 	 	

	 	 	

	 	 	 	 	 	

	 	 	 	 		

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	 	

	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	

	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	

	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	

•	 Technical Assistance Providers Database: 

http://tasearch.greencommunitiesonline.org/ 

Search for technical assistance providers by area of

experience and geography.

•	 Training and Events: 

http://www.greencommunitiesonline.org/tools/training/ 

Register for events, conferences, and trainings (both on line

and in person) to learn more about “greening” affordable

housing and related issues.

•	 Online Discussion Forum: 

http://forum.greencommunitiesonline.org/. 

Share with and learn from others who are working on green

affordable housing projects.

National Association of Home Builders 

(NAHB) Green Building Standard 

and Certification 

Find resources for building professionals, homeowners, verifiers,

manufacturers, and education and training.

http://www.nahbgreen.org/Overview/default.aspx 

•	 NAHB Green Scoring Tool: 

http://www.nahbgreen.org/ScoringTool.aspx 

Use this free online tool for a step-by-step interactive guide

through the NAHB Model Green Home Building Guidelines

and the ICC 700-2008 National Green Building Standard.

Score your project with an easy to use “wizard” and

generate summaries and reports to assess your progress.

•	 Green Approved Products: 

http://www.greenapprovedproducts.com/ 

Find products that the NAHB Research Center has approved

as being eligible to contribute points toward certification of

a building under the National Green Building Standard.

•	 Local Green Building Program Locator: 

http://www.nahbgreen.org/Certification/ 

findlocalgreenprogram.aspx 

Search for a local Home Builder Association that has

partnered with the NAHB Research Center to help their

members develop green communities, build green

residences, and remodel existing homes. Find participating

builders, certified homes, accredited verifiers, and Certified

Green Professionals at http://www.nahbgreen.org/ 

Certification/findparticipatingbuilder.aspx 

Leadership in Energy and Environmental 

Design (LEED) 

Find green building research, LEED project profiles, LEED project

case studies, and presentations from webcasts, conferences,

and other events. Also find resources related to K-12 and

higher education, commercial real estate, and neighborhood

development. http://www.usgbc.org/Resources/ 

•	 LEED-Online: 

http://www.gbci.org/main-nav/building-certification/leedonline/about-leed-online.aspx 

Use this online tool to manage project details, complete

documentation requirements for LEED credits and

prerequisites, upload supporting files, submit applications

for review, receive reviewer feedback, and ultimately earn

LEED certification.

•	 Affordable Housing Grant Program: 

http://www.usgbc.org/affordable/ 

Apply for a grant to cover registration, verification, and

certification fees associated with LEED certification for LEED

projects that have at least 75 percent of units affordable to

households at or below 80 percent of area median income

(AMI). The Home Depot Foundation funds this grant.

•	 Affordable Green Neighborhoods Grant Program: 

http://www.usgbc.org/DisplayPage.aspx?CMSPageID=2184 

Apply for financial and educational resources to help remove

barriers toward the pursuit of LEED for Neighborhood

Development projects, which include affordable green

housing components in their neighborhood plans. The

grant program is open to developers and related public

agencies that choose to pursue LEED for Neighborhood

Development certification and demonstrate a commitment

toward strengthening existing communities by providing

affordable green housing to citizens with a range of income

levels. Bank of America funds this grant.

•	 LEEDuser: 

http://www.leeduser.com/ 

Get advice and tips written by professionals in the field on

applying LEED credits and the LEED certification process.

LEEDuser is a third-party resource not affiliated with USGBC

or the Green Building Certification Institute (GBCI).

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 52 
	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	

	 	 	 	 	 	

	 	 	 	

	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 	

	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	 	 	 	 	

	 	 	 	 	 	 	 	

	 	

	 	 	 	 	 	 	

	 	 	 	 	 	 	

	 	

	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	

	 	

	 	 	 	 	 	 	 	

	 	

EarthCraft House 

•	 Builder’s Corner Resources: 

http://www.EarthCrafthouse.com/builderscorner/
 

builderscorner.htm
 

Find training events and materials, builder listings, guides,

forms, and other resources for EarthCraft House builders and

renovators.

•	 Trainings: 

http://www.earthcrafthouse.com/About/communities. 

htm#Services 

Each development participating in the EarthCraft

Communities program is to host the following trainings

provided to them within the EarthCraft Communities

program as part of the certification process. Trainings for

three different audiences help integrate sustainability

more holistically into the development and surrounding

community:

– EarthCraft Communities and EarthCraft House Realtors.

– EarthCraft Builders.

– EarthCraft Post-Occupancy Home Owners

•	 Fact Sheets and Technical Bulletins: 

http://www.EarthCrafthouse.com/resources/factsheets.htm 

Access fact sheets on energy and building science topics

and technical bulletins co-authored by the U.S. Department

of Energy (DOE).

Build It Green: GreenPoint Rated 

GreenPoint Rated is a program of Build It Green, a membership

supported nonprofit organization whose mission is to promote

healthy, energy- and resource-efficient homes in California. Build

It Green offers a comprehensive package of local government

support, professional training, collaboration forums, consumer

education, and green product marketing to a range of

stakeholders.

GreenPoint Rated offers two rating systems, one for new homes

and one for existing homes. A developer works with a Certified

GreenPoint Rater—a third party verifier—to evaluate a home’s

green features, allowing a home to be compared with similar

homes. Bringing in a Certified GreenPoint Rater into the design

process early, for new or existing homes, can help to determine

which green measures to incorporate. A home is rated in the

following five categories: Resource Conservation, Indoor Air

Quality, Water Conservation, Community, and Energy Efficiency.

For new homes, to receive the GreenPoint Rated label, the

minimum score in each category must be met, in addition to

scoring at least 50 points on the Single-family or Multifamily

GreenPoint Rated Checklist. The existing homes program is

based on the new homes program point-based system, with

differences for single-family and multifamily buildings. An existing

building may receive the GreenPoint Rated Elements or Whole

Building label, depending on specific factors of the project and

the extent of the renovation.

For more information, visit Build It Green’s GreenPoint Rated 

website at http://www.builditgreen.org/greenpoint-rated/. 

•	 Certified GreenPoint Rated Advisor or Rater Directory: 

http://www.builditgreen.org/greenpoint-rated/find-rater/ 

Contact a local Certified GreenPoint Rated Advisor or Rater

to learn more about rating a project.

•	 Green Building Guidelines, Manuals, and Checklists: 

http://www.builditgreen.org/guidelines--checklists/ 

Access resources related to green building and the
 

GreenPoint Rated program.
 

•	 Local Government Resources: 

http://www.builditgreen.org/local-government/ 

Find information for local governments seeking to develop,

promote, and implement green building policies and

programs, including GreenPoint Rated.

Built Green 

•	 Case Studies and Virtual Tours: 

http://www.builtgreen.net/studies.html 

Learn about other builders and communities that have

implemented features chose from hundreds of items on the

Built Green checklists.

•	 Built Green Links: 

http://www.builtgreen.net/links.html 

View Built Green’s list of websites that provide information

on building “green.”

Enhancing Energy Efficiency and Green Building Design in Section 202 and Section 811 Programs 53 
U.S. Department of Housing and Urban Development
 

Office of Policy Development and Research
 

Washington, DC 20410-6000
 

April 2011