Bill Overview
Title: Energy Efficiency for Affordable Housing Act
Description: This bill increases the amount of the low-income housing tax credit for rehabilitation expenditures for buildings that achieve enhanced energy performance. The bill also exempts such credit from the basis adjustment applicable to the new energy efficient home tax credit and extends that credit through 2031.
Sponsors: Sen. Klobuchar, Amy [D-MN]
Target Audience
Population: People living in low-income housing globally
Estimated Size: 11000000
- The bill affects low-income housing, which primarily targets low-income individuals and families.
- There's a focus on rehabilitation expenditures, impacting building owners and developers who deal with affordable housing.
- The bill may indirectly impact utilities and service providers implementing energy efficiency improvements.
- Low-income families and individuals are a global demographic, though the legislation itself is US-centric.
- Building operators needing to meet the energy standards will also be affected.
Reasoning
- The policy targets individuals living in affordable housing, particularly those in low-income brackets who would benefit from enhanced energy efficiency measures.
- Building owners and developers who handle low-income housing projects will also see changes, primarily their capacity to secure credits for rehabilitating buildings to meet energy efficiency standards.
- Some target demographics, like utility providers and service implementers, may indirectly see economic impacts.
- Not all low-income housing will immediately be rehabilitated, limiting immediate widespread impact.
- Long-term benefits include improved living conditions and reduced energy bills, which may gradually increase well-being scores over time.
Simulated Interviews
Single mother, works part-time as a retail cashier (Chicago, IL)
Age: 35 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 15/20
Statement of Opinion:
- I'm hopeful this policy might help reduce my utility costs, which are quite high.
- My landlord mentioned wanting to make some upgrades if possible.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 8 | 6 |
Retired construction worker (Miami, FL)
Age: 57 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 12/20
Statement of Opinion:
- It sounds like a good plan to me, especially if it lowers my bills.
- I hope they start with the older buildings in our complex that really need work.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Environmental consultant (Houston, TX)
Age: 29 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- These credits will be crucial for us to make the necessary upgrades.
- I see it as a win-win for both tenants and property owners.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 8 |
Assistant manager at local grocery store (Denver, CO)
Age: 42 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 10/20
Statement of Opinion:
- I worry about the upfront disruption during construction, but I understand the long-term benefits.
- I hope our co-op can apply for these credits.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
College student (Buffalo, NY)
Age: 23 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- Efficiency improvements sound good, but I'm not sure they'll get to our student housing anytime soon.
- It could mean lower costs, which would be helpful.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Retired (New Orleans, LA)
Age: 66 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 14/20
Statement of Opinion:
- I hope the policy means my home will stay cooler in the summer, and it would be great to pay less for electricity.
- I'm not so sure we'll be among the first addressed.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Building maintenance technician (Detroit, MI)
Age: 48 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- I think the improvements will be good for my job as well.
- It may mean more hours or training, which I'm open to.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 8 |
Teacher's aide (Atlanta, GA)
Age: 39 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 13/20
Statement of Opinion:
- There are a lot of places in my neighborhood that could benefit from this policy.
- It's important that we see these energy savings passed on to tenants.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Non-profit worker focused on housing advocacy (San Francisco, CA)
Age: 52 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 11/20
Statement of Opinion:
- Expanding these credits could be a game changer for many people I work with.
- Affordable housing must become more livable without increasing costs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 10 | 8 |
Substitute teacher (Omaha, NE)
Age: 60 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 8/20
Statement of Opinion:
- I can't wait to see if my building will get upgraded. It needs it badly.
- My health could really benefit from a more comfortable living space.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Cost Estimates
Year 1: $2500000000 (Low: $2000000000, High: $3000000000)
Year 2: $2700000000 (Low: $2200000000, High: $3200000000)
Year 3: $2800000000 (Low: $2300000000, High: $3300000000)
Year 5: $2900000000 (Low: $2400000000, High: $3400000000)
Year 10: $3000000000 (Low: $2500000000, High: $3500000000)
Year 100: $3200000000 (Low: $2700000000, High: $3700000000)
Key Considerations
- The uptake of tax credits will heavily depend on market dynamics and the willingness of building operators to invest in energy efficiency.
- Coordination with state and local housing authorities will be crucial in effectively implementing and maximizing the benefits of this policy.
- Long-term energy savings from improved efficiency can provide societal benefits beyond the scope of immediate fiscal analysis.