HUD released a notice today soliciting comments on its plans to require energy benchmarking and reporting for HUD-assisted and HUD-insured multifamily properties.
Covered properties for this reporting requirement include:
- Multifamily housing properties insured under Sections 223(a)(7), 223(f), 221(d)(3) 221(d)(4), 220, 231, 236, and 241(a)
- Section 8 Housing Assistance Payment contracts
- Section 202 & Section 811 Project Rental Assistance Contracts and Project Assistance Contracts
- Section 202 Senior Preservation Rental Assistance
Owners of covered properties are encouraged to voluntarily submit water and energy benchmarking data to HUD on an annual basis. HUD will require that owners submit benchmarking information on the following schedule, subject to revision:
- For HUD-assisted properties with a utility allowance, at the time of the every-three-year utility allowance baseline calculation;
- For HUD-assisted properties where there is no utility allowance, every third year at the time of financial statement submission;
- Prior to issuance of new FHA mortgage insurance under Sections 223(a)(7), 223(f), and 241(a);
- With a Capital Needs Assessment submission required by the Office of Asset Management and Portfolio Oversight in HUD’s Office of Multifamily Housing Programs on a 10-year cycle;
- With a Capital Needs Assessment submission, it’s required as part of any enforcement action.
In early 2016, HUD’s Multifamily Accelerated Processing Guide mandated utility benchmarking via EPA’s Portfolio Manager tool for FHA multifamily mortgage insurance applications, but did not place the requirement into effect.
According to HUD’s announcement today, the utility benchmarking requirement will not apply before April 15, 2017. The first scheduled submission date for a majority of assisted-housing respondents is estimated to occur in 2019.
HUD’s notice is available here.
NAHB will submit comments. For additional information, contact Michelle Kitchen at 800-368-5242 x8352.