Green Affordable Housing

There are 7.6 million families living under the poverty level in the United States and home energy costs impact these individuals more than any other sector of society. Families with incomes of 50% to 100% of the Poverty Level also experience an incredible burden, spending 16% of their income, over two and one-half times the affordability threshold of 6%, on home utility bills.

A contributing factor to this Energy Affordability Gap is the high inverse correlation of income to age of residence. In most cities, homes in poorer neighborhoods are among the oldest and least maintained of the housing stock. A 2002 survey found that households with incomes below $20,000 consumed 39% more BTUs per square foot than households with incomes over $75,000. The existing energy cost per square foot of these older homes, combined with a lack of awareness of energy conservation measures, work together to produce exceptionally high energy cost to income ratios.

Utility Bill Assistance: Not the Solution

The US Census Bureau reports that nearly one-third of these low income homeowners are likely to be unable to pay their utility bills in full. Utility companies, non-profits and a variety of local, state and federal agencies offer utility bill assistance programs, including the $2 Billion Federal LIHEAP program, but the need still exists. The gap in funding for affordability programs is estimated at $23 Billion per year.

Evidence supports that even in the face of hardship, low income households fail to recognize the role that energy conservation could play in alleviating this pressure. Studies have shown that even when offered energy conservation and weatherization services at low or no cost, low income homeowners often believe they don’t need the help. In fact, over one third of individuals receiving energy assistance use it to pay disconnection/restoration fees to their utility provider(s). This approach does nothing to solve the problem or change behavior, but merely perpetuates the damage.

Using Energy Efficiency to Fight Poverty and Foreclosures

Utility Bill Assistance Programs do offer an opportunity for outreach to low income homeowners that is unparalleled- a way to impact the housing of the poorest and most vulnerable in a manner that literally changes lives for a generation. A Rapport designed program, Sensible Green Home Energy Intervention, meets the homeowner at the time of energy cost induced need. We believe the point at which the homeowner is seeking help is the time at which they are the most likely to be open to any solution that will positively impact their predicament. Sensible Green Home Energy Intervention utilizes a LEED for Homes influenced framework to bring about a lasting energy cost solution, then monitors the results and creates a feedback/learning loop to refine the next round Sensible Green Home Energy Interventions.

Sensible Green Home Energy Intervention Process (SGHEIP)

The SGHEIP focuses effort in three LEED for Homes impact areas; Energy and Atmosphere, Indoor Environmental Quality and Awareness/Education. Under the program, utility bill assistance participation at participating agencies would require homeowner agreement to a HERS Home Energy Rating, at no cost to the homeowner. This rating not only provides the recommendations and modeling for improving energy usage in the resident’s home, but also provides a coded profile of the home for a central database that feeds an indexed scoring system.

The home is assigned an index score according to its current energy usage, home features that can be impacted by a retrofit program and vulnerability/financial need. Homes scoring below the cutoff threshold are considered to be less vulnerable and receive energy conservation education and weatherization services, with a target of achieving a 15-20% reduction in energy costs. Homes exceeding the threshold, the most vulnerable populations, provide the most potential for extreme energy cost impact and move on to the Sensible Deep Green Program.

Sensible Deep Green Program

It is the homes of the most vulnerable populations that can be retrofit candidates which offer the opportunity to truly create seismic change. By focusing on a limited number of retrofit items, Sensible Deep Green plans to impact a low income homeowner in the following manner with a narrow group of consumption altering retrofits:

• Reduce Utility Costs by 90%
• Reduce GHG by 70%
• Increase Disposable Income by up to 40%

Sensible Deep Green performs weatherization, applies spray foam insulation and installs solar (PV) electric with net metering; which allows the program to target a 90% reduction in energy usage, forever removing the Energy Affordability Gap from the family’s concern.

Contact Rapport to find out more about the Sensible Green Energy Intervention Program and how it might be implemented in your community.