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Energy Efficiency for Affordable Housing Act

Source: Congress.gov  ·  1,084 words in original text
What This Bill Does
This bill, called the Energy Efficiency for Affordable Housing Act, changes how the government rewards people who fix up old apartment buildings. It increases the low-income housing credit, which is money the government gives back to developers who build or fix affordable housing, if those buildings save energy through upgrades and improvements.
Who It Affects
Developers and owners who rehabilitate (fix up) existing apartment buildings for low-income residents. The Secretary of Energy and the Secretary of the Treasury (who handles tax rules). Property owners in high-cost areas who rehabilitate buildings.
Key Provisions
• Buildings that achieve "enhanced energy performance" get a bigger credit worth 130 percent of their rehabilitation expenditures, meaning the government rewards 30 percent more than the actual costs spent on fixing up the building (Sec. 2(a)). • Buildings in high-cost areas that achieve enhanced energy performance get an even larger credit worth 160 percent of their rehabilitation expenditures (Sec. 2(b)). • A building achieves enhanced energy performance either by meeting advanced building construction standards the Secretary of Energy must create within 180 days, or by following a "qualified retrofit plan" (Sec. 2(a)). • A qualified retrofit plan is a written document prepared by a licensed architect or engineer that shows how building modifications will reduce the building's energy usage by at least 50 percent compared to how much energy it used before (Sec. 2(a)).
What Changes
If this bill becomes law, developers fixing up apartment buildings for low-income residents will receive larger tax credits if their projects meet energy efficiency standards. The government will give back 130 percent of renovation costs for energy-efficient buildings, and 160 percent for energy-efficient buildings in expensive housing markets.
Important Definitions
• Baseline energy usage intensity: How much energy a building used during the 24 months before renovations began, measured in British thermal units per square foot per year (Sec. 2(a)). • Site energy usage intensity: The total energy a building uses, measured in British thermal units per square foot per year, calculated according to rules the Secretary provides (Sec. 2(a)). • Qualified retrofit plan: A written plan stamped by a licensed architect or engineer showing how building changes will cut energy usage by 50 percent or more (Sec. 2(a)). • Qualified professional: A licensed architect, licensed engineer, or someone meeting other requirements the Secretary of Energy sets (Sec. 2(a)).
Effective Date
The changes apply to buildings receiving housing credit allocations after December 31, 2023. For buildings financed by certain bonds, the changes apply to bonds issued after December 31, 2023. (Sec. 2(c))
Important: This plain English summary was generated by AI and is provided for informational purposes only. It is not legal advice. Always consult the official bill text on Congress.gov or a qualified attorney for legal matters.