2024 Sustainable Housing Outlook with the Partnership

Wednesday, January 17, 2024

California's Experts on Affordable

Housing Finance, Advocacy & Policy

A Look Ahead with the

Partnership's Sustainable Housing Team

The Sustainable Housing Team at the California Housing Partnership extends gratitude to our partners for collaborating on crucial support to affordable housing providers and residents. As we enter the new year, our team remains dedicated to advancing sustainability advocacy. We strive to develop strategic solutions and resources, focusing on fostering equitable building decarbonization for affordable housing.

2024 PRIORITIES

Entering the new year, we are thrilled about the promising opportunities emerging to accelerate the decarbonization of affordable housing. We are most excited by the possibilities presented by the Inflation Reduction Act and the Equitable Building Decarbonization program.

Inflation Reduction Act (IRA)

The Partnership is closely monitoring the implementation of the Inflation Reduction Act in California. With over $500 million in estimated funding, IRA is poised to significantly accelerate progress towards the state’s decarbonization goals. We are currently developing resources on accessing and layering tax credits and will soon publish a guide to what developers can expect when applying for the Green and Resilient Retrofit Program.

We are also happy to announce our IRA Training Series for affordable housing developers. These sessions will provide practical information for developers and property owners to help with accessing IRA funding. Registration is open!

IRA TRAINING SERIES SESSIONS

January 31

Accessing Funding For Affordable Housing

Through The Green and Resilient Retrofit Program (GRRP)

February 7

Maximizing Inflation Reduction Act Tax Credits for

Clean Energy and Affordable Housing

February 14

Understanding The Inflation Reduction Act’s

Decarbonization Rebate Programs: HOMES, HEERA, and EBD

Equitable Building Decarbonization (EBD)

EBD is a major new program from the California Energy Commission for decarbonization retrofits in affordable housing. The Partnership has been actively engaged in monitoring the program's evolution. Through our involvement in the Healthy Homes Working Group, we provided comprehensive feedback on the preliminary program guidelines. Our input was centered on safeguarding residents of affordable housing from increased utility expenses resulting from decarbonization retrofits and ensuring fair fund allocation across various regions and housing types. We eagerly anticipate the program's implementation and remain committed to aiding affordable housing entities in navigating and accessing this transformative initiative.

PROGRAMS

Solar on Multifamily Affordable Housing (SOMAH)

SOMAH has experienced substantial growth and transformation over the past year. The Partnership’s Sustainability team welcomed Jacqueline Rogge as our new Sustainable Housing Program Associate to contribute to SOMAH outreach efforts. Most notably, the Partnership successfully advocated for the passage of Senate Bill (SB) 355, aiming to broaden SOMAH's eligibility criteria and ensure a more extensive range of affordable housing qualifies. Anticipated changes in the SOMAH Program for 2024 encompass expanded eligibility for new construction, higher-income properties (80% AMI), as well as properties under the ownership of Public Housing Authorities (PHAs) and tribal entities. You can read more about the changes here. Furthermore, a significant event on the horizon is a ribbon-cutting ceremony for St. Mary’s Gardens in Oakland, scheduled for January 19th. Recently highlighted in The Guardian, this 100-unit SOMAH solar project is set to provide residents with up to $40 per month in energy savings.

Low Income Weatherization Program (LIWP)

The LIWP program continues to be a popular program with housing providers statewide. According to the Partnership’s 2023 LIWP Impact Report, LIWP participating properties have averaged 44% in energy savings. LIWP offers free technical assistance in addition to its energy efficiency and solar PV incentives. Other exciting news from 2023 is a $50 million budget allocation by the state legislature to continue the program. We are excited to develop new LIWP project case studies and IRA resources in the coming months and publish the 2024 LIWP Impact Report.

Building Initiative for Low-emissions Design (BUILD)

The BUILD program saw robust incentive subscriptions in 2023, and financial incentives are anticipated to be fully subscribed by the end of 2024. Developers considering this program are encouraged to submit a technical assistance application as early as possible. BUILD will continue to support the transition to all-electric new construction. 300 hours of robust, no-cost technical assistance is still available for developers. The Partnership is also developing resources to help developers understand and implement electrification best practices.

Comprehensive Affordable Multifamily Retrofit (CAMR)

The CAMR program, available only in the LADWP service territory, was launched fully in 2023 and it now boasts a robust pipeline of retrofit projects. CAMR provides flexibility for tailored energy efficiency scopes of work while highly incentivizing electrification technologies. In 2024, we will focus on reaching new participants, offering IRA resources to participants in the pipeline, and looking forward to the first CAMR Impact Report and the first completed projects.

POLICY

The Partnership continues to be closely involved with advocacy efforts with the California Public Utilities Commission (CPUC). Our priority is to ensure that Californians living in affordable housing do not see increases in their energy burden and utility bills. We are closely monitoring proceedings concerning Virtual Net Energy Metering (VNEM), Tariff on-bill financing, and income graduated fixed charge rate structures.

We are also working with state housing and energy agencies to improve coordination in program design for affordable housing decarbonization. In February, the Partnership will be facilitating closed sessions on interagency communication and streamlining affordable housing decarbonization programs. One area of work is enhancing the monitoring of non-deed restricted properties that get decarbonization money.

Finally, an emerging issue to keep an eye on in 2024 is the movement on a “right to cooling”, especially for people living in parts of California that are affected by extreme heat. As the effects of climate change become more acute, it is vital to ensure equitable access to cooling for California’s most vulnerable residents.

RESOURCES

In case you missed it, we also want to share some of the reports and recorded sessions the Sustainable Housing Team put together in 2023.

Findings from the Los Angeles Affordable Housing

Decarbonization Summit

LIWP Multifamily

Impact Report

Pathway Forward for

Electrifying Multifamily

Affordable Rental Housing

2023 Affordable Housing

Electrification Series

2023 LA Affordable Housing Decarbonization Summit

Recordings & Slides

About the Partnership's Sustainable Housing Team

The Partnership's Sustainable Housing Team makes affordable housing sustainable, energy efficient and resilient by providing expert technical assistance to nonprofit partners. Additionally, the Sustainable Housing Team administers a variety of clean energy programs such as Building Initiative for Low-Emissions Development (BUILD), Comprehensive Affordable Multifamily Retrofit (CAMR), Solar on Multifamily Affordable Housing (SOMAH), and the Low-Income Weatherization Program (LIWP). | chpc.net/green

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