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Understanding New York’s Low- to Moderate Income Market Segment

Explore the characteristics of Low- to Moderate-Income households in New York. Gain insights from a market study on income, demographics, housing, financial capacity, and energy efficiency programs. Access reports, data tools, and recommendations to enhance engagement and accessibility.

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Understanding New York’s Low- to Moderate Income Market Segment

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  1. Understanding New York’s Low- to Moderate Income Market Segment LIFE 2018 Statewide Conference May 2018

  2. Low- to Moderate-Income (LMI) Market Characterization Study Objectives • Characterize Population of LMI Households at the State, Regional, and Local Level • Estimate Penetration Rates of Existing LMI Energy Efficiency Programs • Identify Opportunities for Engagement with REV Initiatives • Increase Accessibility with Public Database and Special Topic Reports The study furnished quantitative data needed by partners to plan and implement effective programs. 2

  3. Low- to Moderate-Income (LMI) Market Characterization Study Outputs • Executive Summary – Gives you the most important findings from the study. • Characterization Report – Furnishes the details needed to see how we developed the key findings. • Special Topic Reports – Dig more deeply into important topics: Energy Burden, Financial Capacity, Income Guidelines, and Market Segmentation. • Methodology Reports – Document sources and allow for replication. • LMI Census Population Analysis Tool – Goes beyond American FactFinder / special variables. 3

  4. LMI Income and Demographics • LMI vs. Non-LMI – Who is counted as LMI with the NYSERDA definition? • LMI Sub-Groups – Within the LMI populations, what are important subgroups and why? • Income – What is the annual income distribution for these households? • Demographic “Life Stage” Analysis – Indicator that might characterize household’s current “investment status.” 4

  5. NYSERDA Definition of NYS Low- to Moderate-Income HouseholdsLMI limit = Greater of 80% of SMI and 80% of AMI 5

  6. Low- to Moderate Income Sub-GroupsVery Low = <=130% FPL, Low = 130% to 60% SMI, Moderate = GT 60% of SMI 6

  7. Low- to Moderate-Income by Income 7

  8. Low- to Moderate Income – Life StageElderly = 60+ / Older = 40-60 / Younger = 18-40 8

  9. LMI Housing Characteristics • Owner vs. Renter – What share of LMI households are owners within population subgroups? • Housing Unit Types – If you are targeting a certain income group, what kind of housing units do you need to be prepared to serve? • Other Information – Housing unit size, main heating fuel, direct payment vs. heat in rent. 9

  10. Low- to Moderate-Income – Owner/Renter 10

  11. Low- to Moderate-Income – Type of HousingSingle Family, Small Multifamily, Large Multifamily, Mobile Home 11

  12. LMI Financial Capacity • Energy Burden – How does gross energy burden compare to targets? [Gross burden is energy burden prior to receipt of energy assistance.] • Shelter Burden – What share of their income are LMI households already paying for shelter? • Banking Status – Are LMI households able to use traditional financial tools? • Home Equity – What percent of LMI households have equity in their homes? 12

  13. Low- to Moderate Income – Energy Burden 13

  14. Low- to Moderate Income – Shelter Burden 14

  15. LMI Financial Capacity Indicators • Shelter Burden – One third of LMI households have shelter burden of less than 30% of Income. • Banking Status – One half of LMI households are “fully banked” … have a bank account and do not use non-traditional lending sources. • Home Equity – More than 40% of LMI households are homeowners who have equity in their homes? 15

  16. LMI Energy Savings Potential • Heating Fuels – What is the energy savings potential for LMI households from weatherization measures? • Electricity – What is the energy savings potential for LMI households from electric energy efficiency measures? 16

  17. LMI Energy Savings Potential – Heating Fuels and Weatherization • Energy Used for Heating – LMI single family homes are 20% smaller than those of non-LMI households, but use the same amount of energy for space heating. • Energy Savings Potential – Research has shown that homes with higher energy usage have higher savings, higher percentage savings, and more cost-effective savings. 17

  18. LMI Energy Savings Potential – Electric Energy Efficiency Programs • Use of Electricity – LMI single family homes use about 15% less electricity than non-LMI households. But they have older appliances and lower installation rates for energy efficient lighting. • Energy Savings Potential – With higher savings values per measure, lower free-ridership rates, and lower market acquisition costs, LMI households represent a good target for electric energy efficiency programs. 18

  19. LMI Market Segmentation – Type of Housing and Ownership Status 19

  20. LMI Market Segmentation – Percent Served by Energy Efficiency Programs 20

  21. LMI Market Segmentation – Type of Housing and Ownership Status 21

  22. Findings and Recommendations • Existing Programs – Ensure that homes are getting ALL available services when they are served. • Program Gaps – Research is needed to determine the best ways to engage two important market segments … Low-Income Single Family Rental and Moderate-Income Single Family Owner. • Information Resources – Figure out an effective way to share information on income-eligible and participating households. 22

  23. Strategies for Existing Programs • WAP/Empower – Analysis found co-delivery, sequential delivery, and no overlap. Detailed analysis of geographic and demographic patterns? Follow-up research? • WAP/EmPower/LIHEAP – Discussion in LIHEAP session of linkage from Equipment Repair and Replacement and Cooling Equipment with WAP and EmPower. • WAP/Empower/HUD/USDA – What are the opportunities for co-delivery with HOME, CDBG, and USDA programs? 23

  24. Strategies for Low-Income Rental • WAP/Empower – Are there marketing opportunities for collaboration with Section 8 housing vouchers? • WAP/EmPower/LIHEAP – Is there a way to use LIHEAP Assurance 16 resources to engage building owners in discussions about rental housing sustainability? • WAP/Empower/HUD/USDA – What are the opportunities for co-delivery with HOME, CDBG, and USDA programs in terms of rental housing? 24

  25. Strategies for Moderate-Income Owners • Assisted Home Performance – What if AHP was combined with Pay as You Save initiatives? • Data – Are utilities and financial institutions aware that many moderate-income households have low shelter burdens, good financial status, and equity? • Research and Marketing – How do moderate income households think about energy efficiency opportunities? 25

  26. Discussion • What are your questions? • What are your recommendations? • What are your plans?

  27. APPRISE Information 27

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