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Pilot methods for HUD and property owners to share savings for energy efficiency improvements
Currently, there is little incentive for owners of HUD-assisted properties to invest in energy efficiency because the savings accrue to HUD (through a lower utility bill). In order to test a way to share savings, a study could be done similar to the Pay for Success bill. Pay for Success allows intermediaries to raise private capital and then work with energy service companies and others to make water and energy improvements at HUD-assisted properties. An independent third party would then verify energy and water usage reductions, and, if cost savings are realized, HUD would remit a portion of the savings to repay investors.
Thank you for sharing your research ideas with HUD. Both of your comments will be included in the discussion of future research priorities in the Department. Please continue to provide your insights as this process continues.
Blair Russell, HUD PD&R

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