Low-Income Renters Need Energy Efficient Housing

By Dana Gray

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Dana Gray serves as the Community Outreach Coordinator for Tower Grove Neighborhoods Community Development Corp. She began her work in community development in 2005 with the Southwest Garden Neighborhood Association. Dana is an art consultant, location scout, beekeeper, and advocate for sustainability issues.  She routinely commutes by bicycle and has a keen interest in our built environment supporting active, healthy lifestyles.

Housing is expensive, not just the cost of the physical structure but also operating expenses.  Community Development Corporations often work to provide affordable housing to low-income families, but we need to give more consideration to energy costs and energy efficiency.  There is a collaborative effort underway to make utility energy efficiency programs more effective for affordable multi-family housing.  It is called Energy Efficiency for All – Missouri.

Missouri’s Energy Efficiency Investment Act (MEEIA) was enacted in 2009 with the passage of SB376.  The role of MEEIA is to require Missouri’s investor-owned electric utilities to capture all cost-effective energy efficiency opportunities.  Ameren MO launched a suite of customer programs beginning in 2013 as part of a 3-year program in response to MEEIA.  The Missouri Public Service Commission has proceedings underway to review and recommend improvements to Ameren Missouri’s energy efficiency programs.

Low-income households spend nearly 14 percent of their total annual income on energy costs. Other households spend only 3 percent of their annual income, on average, on energy costs.  According to Professor Gary Pivo, in rented multifamily units, energy expenditures run 37% higher per square foot than in owner-occupied multifamily units (i.e. condos), 41% higher than in renter-occupied single family detached units, and 76% higher than in owner-occupied single family detached units. (https://www.fanniemae.com/content/fact_sheet/energy-efficiency-rental-housing.pdf)  Current energy efficiency programs offered by Ameren Missouri are not addressing the needs of affordable multi-family housing.  In 2014, five stakeholder meetings took place to identify the needs of the affordable multi-family sector and how the utility could better meet those needs.

Energy Efficiency for All – Missouri is a collaboration among the National Housing Trust, the Natural Resource Defense Council, Renew Missouri, Tower Grove Neighborhoods CDC, and Kansas City-based Blue Hills Community Services.  Petitions were filed with the Missouri Public Service Commission (PSC) so collaborative members can speak at the MEEIA review proceedings.  The Community Outreach Coordinator of the Tower Grove Neighborhoods Community Development Corporation  (TGNCDC) is representing the affordable, multifamily housing sector.  TGNCDC filed a petition with the PSC to participate in the review of MEEIA, which will impact Ameren UE’s energy efficiency programs for 2016 – 2018.

To support this effort, urge Governor Nixon to work with the State Energy Office and other agencies to incorporate strategies into the forthcoming State Energy Plan that will lead to more energy efficient affordable housing. These actions should include:

  • Encouraging the Public Service Commission to pro-actively collaborate with the state’s utilities to ensure the successful delivery of energy efficiency services to the affordable multifamily sector;

  • Directing the Department of Natural Resources to include all cost-effective energy efficiency in complying with the federal clean power plan; and

  • Leveraging limited public resources by encouraging collaboration and coordination among utilities and state agencies, especially the Missouri Housing Development Commission (MHDC).

According to a staff member at the Office of Public Counsel, this is the first time a petitioner has filed with the PSC advocating for the low-income population.  We need to expand our concepts of community development to include energy efficiency measures.  TGNCDC will report to the CBN membership on the PSC – MEEIA proceedings, seek feedback, and support for improved utility energy efficiency programs.

Articles in “From the Field” represent the opinions of the author only and do not represent the view of the Community Builders Network of Metro St. Louis or the University of Missouri-St. Louis.