Low Income Housing Tax Credits & Energy Efficiency in Arizona, 2017

Arizona's 2017 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 

For existing properties that are being remodeled/rehabilitated, a Certified RESNET Home Energy Rater shall perform an energy analysis for the property following the RESNET Home Energy Rating System Standards. The analysis shall establish an estimated utility allowance for each unit type based on the implementation of all ADOH approved improvements. After all improvements have been made and all necessary verification testing and inspections have been completed, a RESNET “confirmed rating” or “sample rating” shall be issued for the Project.

Energy performance-based requirements and incentives 

In Rehabilitation Projects, perform an energy analysis utilizing a Certified RESNET Home Energy Rater following the RESNET Home Energy Rating System Standards. The HERS Rater must evaluate the building to establish a HERS Index for the existing building condition, then preparing an energy improvement report which identifies cost-effective energy improvements that achieve a minimum of fifteen percent (15%) reduction in energy usage over the existing building condition. The HERS Index that equates to a fifteen percent (15%) reduction, excluding the use of renewable energy, is the baseline required by ADOH. One (1) point will be awarded for each HERS Index point reduction below the baseline, excluding the use of renewable energy, with a maximum score of up to ten (10) points. For example, if an existing building has a HERS Index of 120, a fifteen percent (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 seven (7) points (102 - 95).

Contributed By: 
National Housing Trust

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