Federal Policy

A To-do List to Rev-up Climate Justice at HUD

HUD can quickly take national leadership on prioritizing underserved communities in climate mitigation and adaptation.

President Biden’s HUD should move the housing industry toward zero-carbon homes as quickly as possible, while incorporating climate justice into every program. HUD receives about $50 billion annually, supporting 5 million households through public housing and rental vouchers. Every dollar spent under President Biden’s $640 billion Plan For Investing In Our Communities Through Housing should support climate justice.

As the nation’s de facto community planning agency, HUD should also support the development of a robust, nationwide effort to ensure that newly established systems of accountability for climate justice reflect grassroots input. President Biden’s executive order requiring an environmental scorecard based on EPA’s EJSCREEN is an important first step in ensuring that his goal of directing 40% of investments to underserved communities is met. HUD is uniquely well-positioned to support grassroots planning (through CDBG and other community development programs, for example) as a complement to EPA’s tools.

Because HUD’s programs reach and influence every corner of the housing market nationwide, and because it is the only federal agency charged with community capacity-building, increasing appropriations for HUD should be at the top of the list of asks for climate justice advocates, as it is for housing advocates. The climate provisions in the forthcoming infrastructure bill will be an important opportunity to advocate for these resources.

Here are four initiatives that HUD can begin right away:

1. Require all program participants to report GHG intensity annually
2. Require zero-carbon-ready homes in all federally-funded new construction
3. Prioritize climate justice in capacity-building funding and grant evaluation
4. Revise HUD regulations to spur decarbonization of housing

GHG Annual Reporting

1. REQUIRE CARBON INTENSITY REPORTING FOR ALL HUD PROGRAMS — In the first 100 days, the Secretary should mandate that HUD change the annual reporting requirements of all programs to include GHG production of properties receiving HUD funds or FHA multifamily mortgage insurance. Existing reporting cycles will likely enable almost immediate implementation, since many HUD programs already require reporting utility costs. A carbon intensity figure (GHG emissions divided by the gross square footage, expressed in metric tons of carbon dioxide equivalent per 1000 square feet) has the advantage of simplicity: regardless of building size or quantity, it is a single number that can be compared “apples to apples.”
2. PUBLIC HOUSING ZERO-CARBON HOMES PLAN — In the first year (and every subsequent year), HUD should estimate the aggregate GHG emissions reduction required for all public housing to become zero-carbon-ready by 2030, and the estimated cost of the capital work required to achieve it. With this 10-year cost estimate in hand, Congress can decide whether to fully fund the public housing capital fund to achieve zero carbon over 10 years or some other time period, and housing authorities can choose whether to build new or renovate existing buildings.

Require Zero-Carbon Ready Homes In All Federally-funded New Construction

1. DOE ZERO ENERGY HOMES FOR SINGLE-FAMILY AND SMALL BUILDINGS — All HUD programs should require that all single-family and buildings up to 3 stories certify under the DOE Zero Energy Ready Homes program (ZERH) or its soon-to-be-successor DOE Zero Carbon Ready Homes program. Because ZERH relies on the process and staff of the 26-year old Energy Star Homes program, it already exists throughout the country and can be implemented immediately.
2. PASSIVE HOUSE FOR MULTIFAMILY BUILDINGS — Although ZERH is not designed for larger multifamily buildings, there are two Passive House standards available in the US that have already been achieved in real-world projects throughout the country, often at no additional construction cost. In the large metro markets where technical experience for Passive House is already robust, Passive House performance should be required. In markets where technical ability lags, HUD should incentivize Passive House performance while setting a target year for it to be mandatory.

Prioritize Climate Justice in Capacity Building Funding and Grants

1. EXPAND CAPACITY-BUILDING PROGRAMS AND INTEGRATE CLIMATE JUSTICE— HUD’s Office of Community Planning and Development (CPD) is the only HUD office whose primary mission is long-term development of grassroots capacity-building. HUD should reorient all capacity-building programs to prioritize climate justice and community climate and energy planning. Supporting community-based organizations in developing the policy and technical expertise to be equal voices at the decision-making table for urban development is critical to ensuring that commitments to climate justice result in real change. HUD should, for example, fund CDCs and CBOs to create neighborhood climate and energy plans.
2. REQUIRE COMMUNITY-BASED CLIMATE AND ENERGY PLANNING IN STATE AND LOCAL CONSOLIDATED PLANS — Evaluating whether an individual development project furthers the goal of climate justice is difficult. HUD can push states and localities to create community-based climate and energy plans by extending the 2016 requirements for the HUD consolidated planning process for states and localities to include them. Doing so would make it easier for housing developers by clearly defining the outcomes by which alignment with climate justice goals are measured.

Revise HUD Regulations To Spur Decarbonization Of Housing

1. IDENTIFY REGULATORY CONFLICTS — Within the first 100 days, HUD should comprehensively assess HUD regulations that make it more difficult to make all HUD-funded housing developments zero-carbon-ready by 2030. HUD can use a streamlined version of the process for meeting the existing mandates of Executive Order 13563 of 2011, “Improving Regulation and Regulatory Review,” and Executive Order 13610 of 2012, “Identifying and Reducing Regulatory Burdens,” to review its regulations in light of climate mitigation and adaptation. Many stakeholders may already have lists of their favorite conflicts ready to hand over!
2. MODIFY REGULATIONS TO ENABLE ENERGY FINANCING AND COMBINED USE OF FEDERAL GRANTS — Within the first year, HUD should propose the regulatory changes necessary to enable any HUD-funded housing development to use all federal, state, and local, public and private energy financing programs available to it, singly and in combination (including all federal energy efficiency grant and loan programs, except where expressly prohibited by the legislation establishing such programs), to achieve zero-carbon readiness by 2030.
3. TIMELY APPROVALS — Also within the first year HUD should revise its internal processes so that any HUD reviews, approvals or waivers required to pursue capital projects devoted to achieving zero-carbon-readiness shall be completed no later than 3 months after the receipt of the request for approval. Where a single capital project requires multiple approvals, HUD should complete all such reviews simultaneously, and HUD should not unreasonably withhold approvals.
4. ENABLE ALTERNATIVE PROJECT DELIVERY METHODS — Within year 1, HUD should allow HUD-funded projects to pursue alternative project delivery methods to design-bid-build, including design-build, cost-plus and construction manager at risk, for any capital project. Public housing authorities pursuing alternative project delivery methods should obtain approval from their governing body, and publish for public comment the policies and procedures applicable to such alternative project delivery methods.

This story benefitted from peer review by Marion McFadden and Steve Morgan, in addition to JHJT editors Rory Christian and Tom Sahagian. Thank you!

803 Knickerbocker, a Passive House affordable housing project in New York City. Photo NYC HPD