What HUD incentives are available for EPCs and ECMs?
PHAs can take advantage of the add-on subsidy or the frozen rolling base subsidy. PHAs can now administer their own EPC if they meet certain qualifications as described in the new HUD Field Office EPC Procedures. This can be the more profitable route, however, using an ESCO will often be easier for the PHA. Add-On Subsidy: A PHA can request an additional subsidy as an “add-on” to its total operating subsidy eligibility. This additional subsidy would be applied to amortizing payments for a loan contracted to finance energy-conservation improvements with a repayment period not to exceed 12 years. With HUD’s approval of a waiver request the repayment period can be extended to 20 years. The add-on subsidy is often used to do straightforward retrofits such as lighting, refrigerators and other bulk purchases. Frozen Rolling Base: This incentive freezes the 3-year rolling base utility allowance at the level of consumption before installation of the energy improvements. This incentive applies
