Item 3: Approval of Funding for Affordable Housing Energy Improvement Projects

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Action: Approval of Funding for Affordable Housing Energy Improvement Projects Meeting Date: November 8, 2010 Agenda Item Number: 3 Department: Planning & Development Staff Contact: Stephanie Jennings www.eugene-or.gov Contact Telephone Number: 541-682-5529 ISSUE STATEMENT The City Council is asked to approve the use of Federal Energy Efficiency and Conservation Block Grant funds from the Department of Energy for energy retrofit grants for three affordable housing developments. The proposed projects were identified through an open RFP process. If approved, each project will be jointly funded by the City of Eugene, Housing and Community Services Agency of Lane County (HACSA), and Eugene Water and Electric Board (EWEB). BACKGROUND In 2009, the City of Eugene received a formula allocation of $1,485,800 through the Energy Efficiency and Conservation Block Grant (EECBG) as a part of the American Recovery and Reinvestment Act. The EECBG program is administered by the U.S. Department of Energy. The City of Eugene decided to utilize its allocation to fund six programs including: 1) conversion of four City facilities from steam heating to high efficiency systems; 2) installation of heating and ventilation improvements in other City facilities; 3) funds for energy efficiency improvements for downtown businesses; 4) implementation of a transportation alternatives program called SmartTrips; 5) permit rebates for new energy efficient construction; and 6) grants for energy improvements in existing affordable housing developments. The overarching goal of the Affordable Housing Energy Improvements Program is to extend the life of existing affordable housing developments, reduce energy consumption, decrease utility costs for low- income tenants, and improve living conditions for vulnerable community residents. In order to leverage limited City funds and enable more projects, staff initiated conversations with HACSA and EWEB staff to identify other potential resources. Staff from each agency worked in collaboration to develop a joint Request for Proposals (RFP) for affordable housing energy improvement projects. The purpose of this collaboration was to pool resources from each agency to provide a complete funding package for each project and create selection criteria that met each agency’s funding requirements. The City of Eugene contributed up to $160,000 of EECBG funds and HACSA contributed up to $250,000 of Federal Weatherization funds to be made available through the RFP. EWEB’s contribution is defined through the various incentive and rebate programs in place for energy efficient improvements. The Intergovernmental Housing Policy Board (HPB) played an advisory role in the development of the RFP and selection process. The RFP was released June 24, 2010, and proposals were due August 26, 2010. A review committee composed of staff from each agency plus an HPB member met and reviewed the proposals on September 16, 2010. Criteria for project selection included: 1) property and population served; 2) proposed energy Z:\CMO\2010 Council Agendas\M101108\S1011083.doc