New York State Division of Housing and Community Renewal June 18 , 2009

1. The American Recovery and Reinvestment Act: Realizing the Potential of the Weatherization Assistance Program New York State Division of Housing and Community Renewal June 18, 2009

2. NYS Program Overview • Administered through network of 64 nonprofits & counties; DHCR provides T&TA and other support • Coordination with local DSS, aging, other community programs: significant demand for program services • Income limit same as HEAP (60% of State median income: about $45,300 annually for family of four) • Urban area subgrantees experienced in multifamily; most assist small homes, mobile homes in rural areas • Summer 2008 survey: 45,000 waiting for assistance • Supports Governor’s climate change & Green Jobs goals

3. Weatherization Assistance Program Funding • Program funding sources: • Formula allocation from US Dept of Energy • Suballocation of HEAP funds through OTDA • SFY 2008: $67.3 million, will assist >13,600 units • SFY 2009: $98.7 million available ( without ARRA) • Projected to assist 14,000 units at $6,500/unit • 65% of assisted households will be in rental housing • Projected savings in excess of $226.6 million by 2025

4. Recovery Act Funding • Stimulus bill: $5 billion for Weatherization nationally - $394 million to NYS • (total 2008 funding: $227 million nationally) • Average Cost-per-unit limit raised to $6500 • Income limit remains at 60% of state median • Recovery Act imposed new labor rules • Significant increase in training resources • Increased reporting and accountability rules

5. DHCR’s Recovery Act Plan • Largest share of funding allocated by formula, based on climate and share of state poverty • 10% reserved for administration • Up to $69 million set aside for training/TA • $50 million for multifamily building portfolio RFP • Performance-based incentive pool: $65 million+ • At $6500 cost per unit will assist at least 45,000 units • Two year implementation period

6. Implementing Recovery Funding • ARRA funding is allocated as follows: • Reserve funding available for administration, T&TA • Increase existing allocations by about 3X • Incentive pool funds for high performers • Solicit non-profit entities as temporary subgrantees to administer set-aside of funds for special projects • Significant funding directed to 515, State/federal assisted housing, HUD, HFA, Section 8 projects • Coordinate training, green jobs development with DOL/OTDA to support subgrantee ramp-up • Extensive public outreach to owners & tenants

7. Targeting Multifamily Building Portfolios RFP • One million households in NYS live below the poverty level. 80% live in rental housing • Will provide funding for larger rental projects • Targeted to State-assisted, HUD-assisted, RD-515 and other multifamily buildings • Also used for special needs housing and projects coordinated with other State agencies • RFQ/RFP will be issued in June

8. Accessing Targeted Multifamily Set-Aside • June: RFQ/RFP to identify temporary subgrantees, distribute multifamily funds • Temporary subgrantees – • Must show capacity in all areas (can partner) • Open to both existing or new subgrantees • Applicants can specialize in building type, population served or program • Opportunity for new outreach partners, others

9. Multifamily Set-Aside • Existing subgrantees will only apply for funds, not have to show eligibility • Can define own portfolio • Must show overall production capacity • Preference for providing leverage • Existing pipeline will be protected • All funds considered in evaluating for access to incentive funds

10. Building a Green Work Force • Work force development a NYS priority • Goal of ARRA: jobs, economic recovery • Weatherization uniquely positioned • Close coordination with DOL, OTDA and NYSERDA • Exploring coordination with CEEBS sites • Issues: timing, subcontractor hires

11. Training Plans • Extensive T&TA to support ARRA ramp-up • Will rely on AEA and NYSWDA • Weatherization “boot camp” & other topics • May also provide training through other contractors and at conferences • Mentoring/peer to peer training • Additional training centers/venues • Additional audit support (multifamily) • Statewide evaluation/increased monitoring

12. Benefits of Recovery Funding • With regular and Recovery Act funds, program may reach 70,000 units over next two years • Over life of installed work, total energy savings will exceed $775 million • Hundreds of good jobs created • Increased assistance to low-income households living in private & assisted rental housing • Additional capacity for subgrantees, contractors

13. Ramp Up • DHCR is waiting for DOE approval of ARRA Plan • Training plans in place - will soon begin offering “boot camp” and other training for new hires • Subgrantees are encouraged to use One-Stop Centers to meet hiring needs & must post all ARRA funded jobs on State web site • Marketing & outreach to owners of local state-assisted housing in all areas, programs • Use existing referral system with DSS and SOFA • RFQ for temporary subgrantees coming soon

14. www.nysdhcr.gov