INCOME-ELIGIBLE SERVICES: AREAS OF OPPORTUNITY August 19, 2020 - PowerPoint PPT Presentation

INCOME-ELIGIBLE SERVICES: AREAS OF OPPORTUNITY ► August 19, 2020

THREE FOCUS AREAS ► Expanding Access Beyond R2 / LIHEAP − From LEAN reporting on intake ► Expanding Access to Small Multifamily Buildings − From nonparticipant study ► Improving Data Systems, starting with Standardizing Computer Audits − From process evaluation www.ma-eeac.org Income-Eligible Services: Areas of Opportunity: | 2

WHY EXPAND ACCESS? Basic principle: ► Universal access to efficiency − All ratepayers should have access to the benefits of efficiency Ask constantly: ► Are we reaching all who are eligible? ► Are we reaching all who are paying into the system? ► Who are we not reaching? ► How can we reach them? www.ma-eeac.org Income-Eligible Services: Areas of Opportunity: | 3

BEYOND R2/R4 & LIHEAP Primary outreach by LEAN  R2 and LIHEAP Excellent source of potential participants ► More than 280,000 households served 2013-2018 ► LEAN consistently meets targets. But, who is being left out? www.ma-eeac.org Income-Eligible Services: Areas of Opportunity: | 4

BEYOND R2/R4 & LIHEAP ► Market characterization estimated 492,625 eligible households − Characterization was for buildings of 1-4 units ► Who is left out? − Those who are not eligible for R2 or LIHEAP (documentation) − Those who do not apply for R2 or LIHEAP (other reasons, including fear / trust) ► LEAN estimates 18-19% not being reached − More than 90,000 households in 1-4 unit buildings − Estimate 20,000 of those are undocumented www.ma-eeac.org Income-Eligible Services: Areas of Opportunity: | 5

LIHEAP REQUIREMENTS LIHEAP ► US citizen or permanent resident ► Proof of address ► Proof of residency ► Proof of income ► Social security numbers for everyone in household R2 / R4 ► If receive LIHEAP ► If receive other designated public benefits www.ma-eeac.org Income-Eligible Services: Areas of Opportunity: | 6

WHICH BARRIERS CAN WE REDUCE? There are other approaches to determination of eligibility for income-based programs: 1. Self-certification of income 2. Use of affordable rent levels 3. Use of geographic zones Barriers reduced: ► Documentation insufficiencies (1, 2, 3) ► Individual household applications (2, 3) www.ma-eeac.org Income-Eligible Services: Areas of Opportunity: | 7

SELF-CERTIFICATION OF INCOME ► Especially helpful for those in the cash economy Example: ► California Alternate Rates for Energy (CARE): − California’s program for reduced energy rates for low- income households − No proof of income required at application − Proof required for those previously denied (w/in 24 mo.) − Random requests for proof require documentation www.ma-eeac.org Income-Eligible Services: Areas of Opportunity: | 8

RENT LEVEL ► Supports naturally occurring affordable housing ► Helpful for qualification of small multifamily Example: Vermont Weatherization Multifamily ► If rent levels are affordable, building qualifies for weatherization services ► Affordable rent < 30% of income standard www.ma-eeac.org Income-Eligible Services: Areas of Opportunity: | 9

GEOGRAPHIC DESIGNATION ► Supports disadvantaged communities Example: Florida Power & Light ► Geotarget neighborhoods with high percent of low- income households ► Partner with CBOs for sign-up event www.ma-eeac.org Income-Eligible Services: Areas of Opportunity: | 10

SMALL MULTIFAMILY BUILDINGS Issue identified in “Nonparticipant Study” www.ma-eeac.org Income-Eligible Services: Areas of Opportunity: | 11

GOAL: INCREASE PARTICIPATION This market does not have a one-size-fits-all solution! ► Develop targets − Define submarkets ► Understand barriers and opportunities ► Address motivations − Owners − Managers − Building operators − Residents www.ma-eeac.org Income-Eligible Services: Areas of Opportunity: | 12

AFFORDABLE RENTAL HOUSING ► Subsidized Housing – approx. 262,000 units in Mass. − Public Housing – approx. 1/3 of subsidized − Assisted Housing – approx. 2/3 of subsidized • Project-based – subsidized mortgage and/or operating subsidy • Certificate-based – Section 8 ► Naturally Occurring Affordable Housing (NOAH) − Not subsidized or assisted by government − Low rent levels, relative to local income levels − No good state-level estimate of unit numbers − Tends to be lower-quality units www.ma-eeac.org Income-Eligible Services: Areas of Opportunity: | 13

GOAL: INCREASE PARTICIPATION Known barriers: ► Split incentive − Potentially not just owner – renter, but also property manager and others ► Lack of time ► Submarkets with different characteristics − Public Housing Authorities (PHAs), assisted, NOAH − Owner-occupied one-building − Small self-managed − Small professionally managed − Part of a larger portfolio of buildings www.ma-eeac.org Income-Eligible Services: Areas of Opportunity: | 14

UNDERSTANDING MOTIVATIONS Different owners and managers have different goals: ► Short-term net operating income ► Long-term asset value ► Resident turnover ► Ease of operation ► Standardization of systems ► Willingness to take on debt ► Willingness to spend time ► Unwillingness to change what works www.ma-eeac.org Income-Eligible Services: Areas of Opportunity: | 15

GOING FORWARD ► Recommend full characterization of multifamily market − Leverage what is already known • Census of multifamily buildings completed in 2019 • Data from recently completed participation study by LEAN − Catalog submarkets • Pay particular attention to small multifamily buildings − Catalog players in complex terrain − Identify barriers − Map barriers to submarkets and roles − Should address both market and income eligible programs www.ma-eeac.org Income-Eligible Services: Areas of Opportunity: | 16

GOING FORWARD ► Intersectional approach to identify and address additional barriers faced by − Residents and owners of color − Properties in communities of color − Low- or moderate-income owners and residents − Limited-English proficiency owners and residents Emerging areas that need study. www.ma-eeac.org Income-Eligible Services: Areas of Opportunity: | 17

STANDARDIZED COMPUTER AUDIT ► Move to standard computerized audit recommended in IES process evaluation ► Standardization helps with data aggregation and comparability, across programs and across states ► Useful for integration of data statewide, especially with cloud- based systems www.ma-eeac.org Income-Eligible Services: Areas of Opportunity: | 18

DATA INTEGRATION Integration problems are real. Integration benefits are real. ► Different systems among ► Real-time feedback on PAs program success ► Internal CAP requirements ► Better transparency ► DOE requirements for WAP ► Cross-state comparison of activity and results ► Timely program midcourse corrections www.ma-eeac.org Income-Eligible Services: Areas of Opportunity | 19

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