HUD’S OFFICE OF MULTIFAMILY
ENERGY INNOVATION FUND
SEPTEMBER 19, 2011
PURPOSES OF THE ENERGY INNOVATION FUND (EIF) PROGRAM
Stimulate innovative, scalable, replicable approaches for
increasing the energy efficiency of existing multifamily
Consolidated Appropriations Act of 2010 (Pub L. 111-117).
Congress directed $25 million for the Multifamily Energy
Pilot Program to catalyze innovations in the residential
energy efficiency sector that have promise of replication.
This NOFA provides information and instructions for
applying for a grant.
OUTCOMES OF THE EIF
HUD expects that outcomes of the Program will include:
• Reduced energy consumption, and lower greenhouse gas
• Increased private investment to support multifamily
• Green jobs in construction, property management,
• Quality data on retrofit costs, benefits, challenges, and
• Approaches for retrofitting such properties that can be
• Approaches that address the so-called “split incentives”
CRITICAL DETAILS FOR MULTIFAMILY EIF
Application deadline is Thursday October 20, 2011
Full NOFA and Application can be accessed at www.grants.gov
• After you register, go to “Apply For Grants”; then choose “Step 1,
Download a Grant Application package”; then enter CFDA # 14.319.
Applications must meet all:
• Entity eligibility requirements
• Property eligibility requirements
• Activity eligibility requirements
• All applications must be submitted electronically through
• Today’s webcast will be archived, available for viewing on HUD’s
• Today’s webcast is intended to provide clarification to the NOFA. In the
event of conflict between information provided today and information
provided in the NOFA, the published NOFA prevails. 4
ELIGIBLE APPLICANTS INCLUDE:
1. Treasury-certified community development financial institutions
(CDFIs) with affordable housing development and rehabilitation
2. National, regional, or local private or non-profit entities, inclusive of
Public Housing Authorities, currently administering affordable housing
development and rehabilitation programs, including technical assistance
and capacity building programs. Such entities must manage or direct
programs impacting a minimum of 1,000 units of affordable housing.
3. Special purpose financing entities (e.g., housing trust funds) whose
primary purpose is to preserve, retrofit, and/or build affordable housing.
4. Nonprofit or for-profit organizations (and/or consortia thereof) that
own or control a portfolio of Eligible Multifamily Properties. Such
entities must manage or direct programs impacting a minimum of 1,000
units of affordable housing.
Eligible Properties must have all of the following features:
• Multifamily Properties (5 units or more)
• Existing Properties (no new unit construction)
• Affordable Housing (majority of units serve low-income
residents), including public housing properties
• Under control of applicant
ELIGIBLE ACTIVITIES / TYPES OF AWARDS
Two types of awards:
1. Financing Demonstrations
2. Applied Research Demonstrations
Must leverage additional capital
• Minimum 2:1 match at the award level, plus
• Minimum 1:1 match at the property level
Must test new ways of funding energy retrofit improvements.
Examples of eligible Financing Demonstrations include:
1) Energy retrofit financing vehicles providing investor equity;
2) Loan loss reserves; interest rate reductions;
3) Secondary financing; loan guarantees; secured/unsecured loans;
4) Energy-related revolving loan programs;
5) On-bill utility repayment programs or other mechanisms;
6) Power purchase agreements, energy performance contracts, or similar
Award Ceiling for each Financing Demonstration award is $7.5 million
APPLIED RESEARCH DEMONSTRATIONS
Must address a longstanding barrier to multifamily residential retrofits that:
1) is not primarily financial in nature; and
2) is applied to an actual property or group of properties (pure research is not
May address the issue in behavioral, structural, or regulatory terms, or be related to
availability of information or options.
Examples of eligible Applied Research Demonstrations include:
• Solutions that provide more information on and greater owner and/or tenant
control over energy use;
• Solutions that convert properties from master metered/owner paid utilities to
individually metered/tenant paid utilities that result in efficiencies and savings,
or vice versa; and
• Conservation practices and solutions that address the problem of split incentives
by creating incentives for parties that promote investment strategies for energy
Award Ceiling for each Applied Research Demonstration award is $3 million
MATCHING FUNDS REQUIREMENT
Participation requires matching funds from private, non-governmental
sources (funds other than federal, state, local, or tribal) to complement grant
funds. An applicant must demonstrate upon application the commitment of
• Financing Demonstrations: Matching funds of at least $2 of for every $1
requested, and will be required to bring additional matching funds of $1
for every $1 loaned at the project level.
• Applied Research Demonstrations: Matching funds of at least $1 for
every $1 requested.
NOTE: A secondary purpose of this program is to engage private industry in
the initiative; additional matching funds above these minimum thresholds
are desirable, and the application review process gives credit for funds above
the match minimums.
Guidance for preparing a
ANTICIPATED IDEAL APPLICANTS (FAVORED IN SCORING)
• Competitive entities must be eligible (as defined in the
NOFA) and are expected to be very experienced, control a
lot of housing, already be addressing affordability, be able
to get parties in private sectors interested.
• Applicants must bring something new to the table - seeking
• Credit Factors (in review of applications):
• 1. Experience/Capability
• 2. Soundness of Approach
• 3. Maintenance of Funds and leveraging above match
• 4. Low Income Needs
• 5. Sustainable Solutions
Are you an eligible applicant?
Do you have significant experience in affordable housing?
Have you secured necessary outside funding?
Can you document your private funding sources?
Are you proposing a “new” area of investigation, i.e. is your idea competitively
Is your proposal “replicable” and “scalable”?
Are you prepared to negotiate the final terms of work to be performed with HUD
prior to an award?
Are you proposing a team of key personnel who are experienced in both housing
and energy innovation?
Are you willing to negotiate changes to the work activity based on periodic
examination of progress and outcomes?
Have you identified properties for this program that can meet environmental and
other HUD requirements?
Do you have or are you willing to accept/extend Use Agreements on all program
Have you determined how to perform the proposed work and created a draft
Work Plan (complete with milestones and timetables) to submit with your
USE AGREEMENT REQUIREMENTS
• HUD will require that the ownership of a property benefiting
from these grant funds:
• Have an existing Use Agreement with a remaining term of at
least ten years from date of delivery of the grant benefit or
commencement of grant-related activity; or
• Extend the term of any existing Use Agreement for a period of
at least ten years; or
• Execute a new Use Agreement for a period of no less than ten
years from this date, in a form and substance prescribed by
OPERATIONS & MAINTENANCE PLAN
• Applicants must make a commitment in the Draft Work Plan to
Implement an Operations and Maintenance Plan for each property.
• Applications must include a template for an Operations and
• Templates should:
Identify best practices from the green housing industry;
Describe how residents will be engaged.
• Examples include the HUD Mark-to-Market Green Initiative Operations
and Maintenance Plan, and the Enterprise Green Communities
Operations and Maintenance requirements.
• For Financing Demonstrations, sub-grantees/borrowers may develop
their own plan so long as the Grantee reviews and accepts the plan
prior to commencement of the grant activity.
DEMONSTRATING THE ABILITY TO BRING IN MATCHING FUNDS
AT THE APPLICATION STAGE
Matching Dollars Required:
• Financing Demonstrations: matching dollars 2:1
• Applied Research Demonstrations: matching dollars 1:1
As a part of the application, demonstrate the ability to match funds via either:
1) their own capacity to provide required funds or
2) letters of intent from one or more third parties
Letters of Intent from third parties must :
1) demonstrate agreement to perform a specified activity
2) describe the proposed total level of commitment (in dollar value)
3) demonstrate financial capacity to deliver the pledged resources; and
4) evidence intent to commit the resources if the application is funded.
5) be written on the letterhead of the third party organization
6) be executed by a legally authorized official of the organization
7) be dated no earlier than the date of publication of this NOFA; and
8) remain valid for the full period of proposed grant activities.
Letter of Intent must convert to Third Party Commitment Letters prior to award.
PROCESS FLOW CHART – APPLICATION, NEGOTIATION & AWARD
received by HUD
HUD checks for completeness; grant /cooperative
examines receipt date and agreement and
inventories documents. work plan - POINT
of OBLIGATION of
Incomplete Complete applications delivered
app rejected to Selection Committee (SC)
Applicant SC makes preliminary selection
fails to and contacts potential grantees
negotiate/ to open negotiations
SC and potential grantees agree EI project begins
not reached on Work Plan
Negotiations SC is satisfied with terms of
fail Work Plan and 718 Issued -
DRAFT WORK PLAN
• Draft Work Plan is a required submission with the
• The Draft Work Plan must describe the objectives of the
proposed activity, how those activities will be implemented
and achieved, milestones, and timetable.
• If an applicant is preliminarily selected by HUD, the draft
Work Plan will be used as the basis for negotiations, and a
final Work Plan will be developed in that process.
• Grants will be awarded through Cooperative Agreements
rather than traditional grant agreements, giving HUD the
ability to work closely with each Grantee.
APPLICATION SORTING CRITERIA
• MAXIMUM POINTS that may be awarded to any
application: 100 plus 2 possible bonus points
• NEGOTIATIONS: Applicants with the highest scoring
applications will be contacted in order of ranking to
participate in negotiations leading to a possible award of
grant funds. HUD will enter into negotiations with those
applicants using the draft Work Plan (required in the
application package). The applicant and HUD must agree
on a Final Work Plan which will include all milestones for
the activity and for disbursement of the Grant funds by
HUD to the Grantee.
HOW TO MAXIMIZE THE EFFECTIVENESS OF YOUR APPLICATION
The rating categories are:
Factor 1: Experience and Capacity – up to 25 points
• Management Team and Key Staff : 0 to 10 Points
• Organizational Experience : 0 to 5 Points
• Capacity : 0 to 10 Points
• Deduction for Poor Prior Experience: Up to 15 Points
Factor 2: Soundness of Approach – up to 35 points
• Implementation Strategy: 0 to 15 Points
• Innovation: 0 to 10 Points
• “Replicability”: 0 to 10 Points
HOW TO MAXIMIZE THE EFFECTIVENESS OF YOUR APPLICATION
Factor 3: Matching Funds/Leveraging – up to 15 points
• More points for leveraging (bringing additional funds above required
matching ratio): 0 to 10 Points
• Continuation beyond grant period: 0 to 5 Points
Factor 4: Low Income Housing Needs – up to 10 points
• More points for a higher percentage of housing units for Low-income
• More points for a longer term of Use Agreements (See table in NOFA
for point calculation).
Factor 5: Sustainable Solutions – up to 15 points
• Energy savings and Greenhouse gas emission reductions: 0 to 13
• Capacity Building and Knowledge Sharing: 0 to 2 Points
Bonus Points - 0 to 2 Points
AFTER AWARD – WORKING TOGETHER
MANAGING THE GRANT ACTIVITY
GRANTEES will coordinate progress directly with HUD
Kickoff Meeting –within 30 days of award
• Coordinated by OAHP
• Discuss/Understand milestones for measuring progress
• Discuss/Understand process and procedures for making e-LOCCS
Periodic Progress Meetings
• Grantees and HUD meet pursuant to Work Plan
• Discussion of progress, barriers encountered, proposed solutions
Funding Withdrawals from e-Loccs System
• Timing and withdrawal triggers
HUD review and approval of withdrawals requests
Quarterly report requirements are as follows:
a.Comparison of scheduled milestone completion and expenditures
to actual activity.
b. Dollars expended to date, sub-awards made, and funds
remaining, all by funding source.
c. Program Income as per applicable program income rules.
d. For Financing Demonstrations awards that create a revolving
loan fund, report on matching dollars for grant activities at
the project loan level (1:1 match requirement).
Annual report requirements are as follows:
a. Number of units and the number of properties receiving energy
b. Energy consumption and costs prior to retrofit in properties receiving
c. Specific retrofit measures being applied.
d. Estimated and actual costs of the retrofit measures.
e. Energy consumption reductions anticipated, and as achieved (when
f. Financial savings from improved efficiency for the property and for
g. Financial structures utilized, and the associated transaction costs.
Final report to HUD upon Grant closeout
Contains a final summary of program activities and
• Review of actual outcomes compared to anticipated and
• Discussion of lessons learned, anticipated and
unanticipated problems and solutions;
• Discussion of the benefits that resulted from the
EIF NOFA SUMMARY
• PURPOSE: Stimulate innovative, scalable, replicable approaches for
increasing the energy efficiency of existing multifamily properties
• Carefully review entity, property, and activity eligibility requirements
• Financing Demonstrations:
2:1 matching requirement (plus 1:1 at the property level for loan funds)
Award cap of $7.5 million per award
• Applied Research Demonstrations:
1:1 matching requirement
Award cap of $3 million per award
• Applications deadline Thursday, October 20, 2011 at 11:59:59 Eastern
time; NOFA General Section includes instructions for timely receipt
Applications will be reviewed, rated and ranked by HUD.
Grantees preliminarily selected will be invited to negotiate final Work Plan
• Final Grantees will execute grants/Cooperative Agreements with HUD
• Email questions to EIFApplication@hud.gov
• Further Information:
• Visit www.grants.gov for complete program description and NOFA and
program application and application instructions
• The Multifamily Energy Innovation Fund is CFDA # 14.319, published
as Federal Register FR-5415-N-01
• Thank you for your interest, attention and participation!