Joint Statement on the HUD Pay-for-Success Demonstration in the Transit Bill
By Nancy O. Andrews, President and CEO, Low Income Investment Fund; Terri Ludwig, President & CEO, Enterprise Community Partners; and Eileen Fitzgerald, President, Stewards of Affordable Housing for the Future
Enterprise Community Partners, Stewards of Affordable Housing for the Future (SAHF) and the Low Income Investment Fund applaud the imminent passage of the Surface Transportation Reauthorization and Reform Act of 2015. The bipartisan bill includes an amendment from U.S. Representative Jeb Hensarling (R-TX-5) authorizing a “pay-for-success” demonstration within HUD that leverages private funds to upgrade certain assisted housing. The demonstration will save the federal government money in energy and water costs, reduce the environmental impact of homes in government-supported multifamily properties and improve resident health and comfort.
Through our collaboration on pay-for-success projects, LIIF, SAHF and Enterprise seek to help HUD via public-private partnerships overcome barriers to achieving cost savings—including a lack of upfront capital, regulatory impediments and split incentives between building owners and the residents who pay utilities. Under the new pay-for-success demonstration, HUD can enter into contracts with outside entities who will raise private capital from investors to make energy and water upgrades in HUD-assisted properties. Investors are paid back using third-party verified energy savings in the retrofitted properties.
Earlier this year, similar pay-for-success language was included in the Private Investment in Housing Act of 2015 (H.R. 2997), sponsored by U.S. Representatives Dennis Ross (R-FL-15), Emanuel Cleaver (D-MO-5), Jim Himes (D-CT-3), and John Delaney (D-MD-6) and passed by a vote of 395-28, showing strong support for lower utility costs in HUD-assisted housing.
We would like to thank Representatives Hensarling, Ross, Cleaver, Himes, Delaney and their staff for their leadership and support of this important legislation. We also thank U.S. Senators Susan Collins (R-ME), Whitehouse (D-RI) and Barbara Boxer (D-CA), who worked to ensure the provision was included in multiple senate bills including the Fiscal Year 2016 Transportation, Housing & Urban Development spending bill and comprehensive energy bills introduced by Senators Jeanne Shaheen (D-NH) and Rob Portman (R-OH).
About the Low Income Investment Fund
The Low Income Investment Fund (LIIF) invests capital to support healthy families and communities. Since 1984, LIIF has served 1.7 million people by investing $1.7 billion. Over its history, LIIF has provided financing and technical assistance to create and preserve affordable housing, child care centers, schools, healthy food retail, health clinics and transit-oriented development in distressed neighborhoods nationwide. LIIF’s work has generated more than $47 billion in family income and societal benefits. LIIF has offices in San Francisco, Los Angeles, New York City and Washington, D.C. For more information about LIIF, visit www.liifund.org.
Enterprise works with partners nationwide to build opportunity. We create and advocate for affordable homes in thriving communities linked to good schools, jobs, transit and health care. We lend funds, finance development and manage and build affordable housing, while shaping new strategies, solutions and policy. Over more than 30 years, Enterprise has created nearly 340,000 homes, invested $18.6 billion and touched millions of lives. Join us at www.EnterpriseCommunity.com or www.EnterpriseCommunity.org.
About Stewards of Affordable Housing for the Future (SAHF)
SAHF is a nonprofit collaborative of eleven exemplary multi-state nonprofit affordable housing providers who own more than 115,000 affordable rental homes. SAHF’s mission is to lead policy innovation and advance excellence in the delivery of affordable rental homes that expand opportunity and promote dignity for residents. As a collaborative, we deeply believe that every individual has the right to a fulfilling and productive life and to live in a vibrant and sustainable community. To learn more visit www.sahfnet.org.