House Committee Approves GREEN Act

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The House Finance Services Committee recently approved a bill (H.R. 2336) that would provide incentives to encourage greater energy efficiency and sustainability in affordable housing, and create jobs.

The GREEN Act (Green Resources for Energy Efficient Neighborhoods) would make sweeping changes. Among other things, it would:

  • Provide incentives for new and existing multifamily housing financed by the U.S. Department of Housing and Urban Development that meets or exceeds minimum energy efficiency standards established in the bill.
  • Direct HUD to establish a four-year, 50,000 unit demonstration program to highlight the cost-effectiveness of funding a portion of the costs of meeting the enhanced HUD energy efficiency standards.
  • Establish a residential energy efficiency block grant program.
  • Require HUD to insure certain loans made by qualified energy lenders to finance the acquisition of renewable energy systems for use at residential properties.

One of the green residential rating systems that projects could meet to qualify for the new incentives would be the Enterprise Community Partners’ Green Communities Criteria, which are designed for affordable housing projects. The Criteria includes standards for energy efficiency, water efficiency, air quality, and sustainability.

“We were delighted with the GREEN Act moving through committee, and are optimistic that it will continue to gain support and move through the House floor,” said Trisha Miller, Director of Green Communities at Enterprise. She described the measure as “one of the most comprehensive bills that addresses the needs of low-income housing renters, building owners, and public agency partners.”

The bill would also authorize $10 million a year in grants for a variety of activities to build capacity for and encourage green investments, including in affordable housing.