Low Income Housing Tax Credits & Energy Efficiency in Arizona, 2016

Arizona's 2016 Qualified Allocation Plan includes requirements and points for energy and water efficiency.

Green/Integrated Capital Needs Assessment

The Arizona Department of Housing requires a Capital Needs Assessment for each project that includes rehabilitation or adaptive re-use of a building. Among other requirements, the professional preparing the CNA must conduct a cost/benefit analysis of each significant work item that represents an improvement or upgrade that will result in reduced operating expenses (e.g. individual utility metering, extra insulation, thermo-pane windows, setback thermostats etc.)

Energy Audits/Energy Modeling

Rehabilitation projects must perform an energy analysis of existing building condition, estimate costs of improvements, and implement measures that will improve building energy performance by a minimum of 15% from pre-renovation figures. The audit must be performed by a RESNET certified Home Energy Rater.

Energy Performance-based requirements/incentives

For rehabilitation projects, ADOH awards one point for each HERS point reduction below the baseline up to 10 points. The baseline is a 15% reduction from pre-renovation figures (as mentioned above). ADOH provides an example as follows, if an existing building has a HERS index of 120, a 15% reduction would equal a baseline HERS Index of 102 (120 x 0.85) that the Project must minimally achieve. If this same Project actually achieved a HERS Index of 95, it would be awarded 7 points (102 – 95).

Contributed By: 
National Housing Trust

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