
January 24, 2006 |
2006-R-0091 | |
ENERGY ASSISTANCE FOR HOUSING AUTHORITIES AND SENIORS | ||
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By: Kevin E. McCarthy, Principal Analyst | ||
You asked whether there are any funds available to help housing authorities to offset higher energy costs at their senior housing projects. You also wanted to know what assistance is available for residents of these projects.
SUMMARY
Housing authorities may be eligible for limited funding from the state to help offset higher energy costs, but a wide variety of other entities are also potentially eligible for this funding. There are currently no federal funds for this purpose.
The Connecticut Energy Assistance Program (CEAP) does not distinguish between residents of senior projects and other residents of the state. But it appears that residents of these projects are generally ineligible for program benefits, because they generally pay their heating costs as part of their rent and do not meet other eligibility standards. Residents of these projects who are ineligible for CEAP may be eligible for assistance from Operation Fuel or other sources such as fuel banks.
ASSISTANCE FOR HOUSING AUTHORITIES
State
There may be limited state funds to help housing authorities to offset higher energy costs. PA 05-2, October 25 Special Session, appropriates $ 2 million to the Office of Policy and Management (OPM) to provide supplemental funding for FY 06 heating costs for nursing homes and other residential facilities that are (1) supported by state funds and (2) distressed as a result of rising energy costs, as determined by the OPM secretary. In the Senate debate on the bill, Sen. Handley asked whether residential facilities included state supported senior housing. Sen. Fonfara, who had introduced the bill, said that they would. However, OPM staff note that the funding is available to a wide range of facilities. The legislation requires that OPM consult with the departments of Social Services, Mental Retardation, Mental Health and Addiction Services, and Children and Families, implying that residential facilities that they support would also be eligible for funding. The House debate on the bill indicates that halfway houses, homeless shelters, and domestic violence shelters could be eligible for funding. As a result, the amount of funding available to any individual recipient is likely to be modest.
In the future, housing authorities may be able to take advantage of PA 05-1, June Special Session, to reduce their energy costs. Among other things, the act provides capital and operating subsidies for distributed generation technologies such as microturbines and fuel cells. It also requires electric companies to meet part of their demand by buying power from distributed generation provided by their large customers or by reducing the demand of these customers. The latter provision could result in additional utility funding of conservation projects.
Federal
There are no federal funds available to help housing authorities to offset higher energy costs, according to Christine Sixa, Director of Legislative and Program Development for the National Association of Housing and Rehabilitation Officials (NAHRO), the public housing trade association. She believes that, on a national basis, increased energy bills will cost authorities $ 360 million this year for public housing projects, not counting the increased costs for Section 8 subsidized rental units. She notes that housing authorities can use their existing capital funds to pay for conservation initiatives in which they contract with energy
services companies. Under these contracts, the company pays the initial costs of the energy efficiency improvement and the housing authority repays the company over time based on savings in its energy costs.
NAHRO is currently lobbying Congress for a supplemental appropriation to help housing authorities with their energy costs.
ASSISTANCE FOR RESIDENTS IN SENIOR PROJECTS
CEAP does not distinguish between residents of senior projects and other people, but it appears that residents of these projects are generally ineligible for program benefits. Most public housing residents do not pay their heating costs directly. CEAP provides a “renter's benefit” for people whose heating costs are included in their rent. But this benefit is only available to people whose rent is more than 30% of their gross income and who meet the program's income and asset eligibility standards. (The income standard varies by household size, for a two-person household with a member who is 60 or older it is $ 25,660. ) Generally public housing residents pay 30% of their income as rent and therefore are ineligible for the benefit. People who pay more than 30% of income on rent and who meet the other eligibility standards are eligible for a renter's benefit of $ 240 to $ 270 for this winter, depending on a household's income and the number of people in the household.
Renters and homeowners who pay for heat directly and meet the program's eligibility standards are eligible for larger benefits. Vulnerable households (one that has a member who is age 60 or older, has a disability, or is under the age of 6) is eligible for a basic benefit of up to $ 675, depending on the household's size and income. Other eligible households receive a basic benefit of up to $ 635. Eligible households that use oil and other deliverable fuels may be eligible for additional crisis and safety net benefits under limited circumstances.
Some people who make too much money to be eligible for CEAP are eligible for a $ 300 benefit under the Contingency Heating Assistance Program (CHAP). CHAP is open to people who pay for heat directly and who have household incomes below 60% of the state median income (a two-person household with an income of up to $ 35,089 is eligible for the program. ) People whose heat is included in their rent, and thus most residents of senior projects, are ineligible for this program. Further information on CEAP and CHAP is available on the Department of Social Service's website,
http: //www. ct. gov/dss/cwp/view. asp?a=2353&q=305192.
Senior housing project residents who are ineligible for these programs may be eligible for assistance from Operation Fuel or other sources such as fuel banks. Information about these programs is available at http: //www. operationfuel. org/getting_help. html.
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