Why Subsidized and Public Housing Should Always be Green
You have probably heard the term “affordable housing” bandied about, but might not be completely sure exactly what it is. Some often mistake affordable housing for government-subsidized housing. But in fact, affordable housing is simply that – residences that are affordable – whether rented or purchased – by individuals who earn in or around the Area Median Income, or AMI. Meaning that you pay a monthly mortgage and receive no subsidies from the government, but as long as your housing payment does not exceed 30% of your income, then you live in affordable housing.
However, for those who cannot afford housing on their own, the US government provides affordable housing through supplemental assistance to qualified applicants in the form of subsidies or public housing. The US Department of Housing and Urban Development (HUD) administers most affordable housing programs, including Section 8. But the housing in which a Section 8 tenant lives might be privately owned and operated, having been developed without government investment.
HUD is cognizant of the impact that their housing programs have on residential energy consumption. In fact, the department received $50 million in funding for FY 2010 for their Energy Innovation Fund, instituted to “help catalyze a home energy retrofit market in the United States, by accelerating private investment in cost-saving energy efficiency retrofits in the residential sector” (Energy Innovation Fund, n.d.)But in addition, we propose that:
a) It is in the best interest of Section 8 tenants and the US government to encourage tenants to find housing that has been built or retrofitted to meet the highest energy efficiency standards, as well as to require all projects and public housing developments to be built or retrofitted accordingly. Not only does this help the tenant, who already earns significantly lower than the AMI, by saving them money on energy bills; it also helps to grow awareness of and demand for sustainable building at every level of housing.
b) Even for those who live in affordable housing, meaning housing that is not necessarily subsidized, shifting to more energy efficient practices or renovations within their residence is a high priority. Many people living in affordable housing are usually living close to their financial limits. Reducing utility costs (which are easily subject to significant fluctuation, and likely to escalate in the coming years) will increase the likelihood of these owners making their housing payments in the near and far future and help to avoid another housing market collapse.
c) Investors in affordable housing should focus their funds on residences that demonstrate energy efficient design and practices. Low Income Housing Tax Credits help these investors save on annual income tax – why not help to conserve energy, in the process?