Affordable housing sponsors and developers seeking to utilize tax credits or private activity bonds through California Tax Credit Allocation Committee (CTCAC) and the California Debt Limit Allocation Committee (CDLAC), respectively, for rehabilitation projects must reduce the projects’ energy consumption.

The energy reduction must be documented by submitting the California Energy Commission HERS II energy consumption and analysis report, developed using the Home Energy Retrofit Coordinating Committee’s multifamily protocol, which shows the pre- and post- rehabilitation HERS II estimated annual energy use demonstrating the required improvement and is signed by a qualified HERS Rater.

All rehabilitation projects must demonstrate a 10% minimum reduction in HERS II annual energy use.  For competitive situations, additional “points” may be obtained by further reduction in the HERS II rating or if the projects do the following:

• Utilize renewable energy
• Utilize sustainable building practices including maintenance manual development, building management staff training, and building system commissioning
• Project sub meters or individually meters the gas, electricity, or central hot water system