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California Energy Commission New Solar Homes Partnership (NSHP) Affordable Housing and Projects in Disadvantaged Communities for the NSHP Guidebook, 10th Edition The NSHP Guidebook, 10th Edition updates program rules and incentive rates for affordable housing project types. This handout provides an overview of the new rules and the impact on projects with existing applications. Updates Affecting Affordable Housing Projects – All Applications The NSHP program offers two incentive structures: market-rate and affordable housing. The affordable housing incentive structure offers higher rates for qualifying photovoltaic (PV) systems serving developments with eligible regulatory agreements. Table 1 shows the updated remaining affordable housing incentive levels and megawatt (MW) targets as modified in the NSHP Guidebook, 10th Edition. 1 The updated incentive table and eligibility items below are effective immediately, including for existing reservations, and do not require switching to the NSHP Guidebook, 10th Edition. Table 1: Affordable Housing Incentive Structure Common Area and Code-Compliant Dwelling Unit Incentive* (per watt, reference system) Tier I and Tier II Dwelling Unit Incentive* (per watt, reference system) $1.50 $1.85 $1.40 $1.75 $1.30 $1.65 *See “Common Area Systems” section below for additional requirements. • • 7 10 12 For payment claim documentation, the allowable timeframe within which the solar permit must be applied for after the Certificate of Occupancy is issued has been extended to 120 days. Updates Building Energy Efficiency Standards (Energy Standards) requirements for projects with payment claims received or reviewed after March 8, 2017 as follows: o 1 Reserved Volume Target (MW-AC) Removes 30 percent space cooling requirement to achieve the Tier II energy efficiency level for projects using the 2013 Energy Standards. Affordable housing incentive level availability varies based on the Energy Standards under which the project was permitted, as th well as the portion of the project served by the PV system. See the NSHP Guidebook, 10 Edition for additional information. Qualifying for the Affordable Housing Incentive Levels PV systems serving residential units and/or common areas can qualify for increased incentive rates. Residential Units PV systems serving residential units in an affordable housing project with a qualifying regulatory agreement may be eligible for the affordable housing rates, regardless of the system owner’s tax status. Residential units that are subject to the restrictions of the regulatory agreement (“restricted”) receive the increased rate; units that are not subject to the agreement (“unrestricted”) will receive the market-rate incentive rate. Exception: A manager’s unit is considered “common area” for the purposes of NSHP. Common Areas A PV system serving a common area load in a qualifying affordable housing project may receive a higher incentive rate if at least 80 percent of the residential units are restricted. These common area systems receive the same incentive rate as a code-compliant restricted residential unit. Common area systems serving projects in which less than 80 percent of the residential units are restricted are eligible for the market-rate incentive. Impact on Existing Projects The affordable housing incentive rates are retroactively available for reserved projects on a first-come, firstserve basis. If an applicant’s project was reserved under market-rate but now qualifies for the affordable housing rate, the applicant may request to switch the project to the current affordable housing incentive level. Requests will be processed in the order they are received and additional funds will be encumbered at the level in effect at the time of processing. Since the affordable housing levels will continue to drop, applicants may wish to contact the Energy Commission as soon as possible. Staff will also attempt to identify whether a project qualifies for the affordable housing rate under the NSHP Guidebook, 10th Edition during the payment claim review, however the Energy Commission cannot guarantee that these projects will be identified and receive the affordable housing rate. Applicant’s Role: Notify Energy Commission (email [email protected]) of your request to switch a reserved project to the affordable housing incentive structure. Applicants may also provide this information on the NSHP-2 when submitting a payment claim; however, the request will not be processed until the payment claim is reviewed. The authorized representative may also contact the Energy Commission on the applicant’s behalf. Incentive Bonus for Affordable Housing Projects in Disadvantaged Communities The NSHP Guidebook, 10th Edition introduces an additional incentive for eligible affordable housing residential unit projects located in CalEPA-designated disadvantaged communities (DACs) based on the CalEnviroScreen tool. 2 The bonus is equal to twenty percent of the incentive, up to $500, per system. For projects that are virtual net energy metered, the bonus will be calculated per unit served (up to $500/unit). The bonus is not available for systems that serve common areas. 2 th Disadvantaged communities are defined as scoring in or above the 75 percentile in CalEnviroScreen. The CalEnviroScreen tool can be accessed at https://oehha.ca.gov/calenviroscreen/report/calenviroscreen-30 2 When submitting an affordable housing reservation application, applicants will indicate on the NSHP-1 whether the project is located in a DAC and provide either the project census tract number(s) or a printout from CalEnviroScreen confirming this information, if available. The Energy Commission will verify this information prior to approving the payment claim. Impact on Existing Projects Applicants with existing affordable housing reservations located in a DAC may contact the Energy Commission to request the bonus. You should provide the census tract number(s) in which the project is located or a printout from CalEnviroScreen confirming its location in a DAC. Applicants may also notify the Energy Commission on the NSHP-2 form when submitting for payment. The Energy Commission will not verify whether a project qualifies for the DAC bonus unless notified by the applicant. NSHP Guidebook, 10th Edition Changes Applied to my Project by Request You must request to have your project subject to the NSHP Guidebook, 10th Edition to receive the following streamlining benefits: • Flexible Installation (FI) Incentive Calculation: Use of the FI Calculator to determine project incentive. This tool streamlines the data entry required to calculate incentives. o The FI-1 form along with the associated .huf input file must be submitted in lieu of the PV-1 form and .her input file. Only portions of the PV system installed in the azimuth range from 90-280 degrees will be eligible to receive incentives. Note that this is not a comprehensive list of all changes in NSHP Guidebook, 10th Edition, but only those limited to NSHP Guidebook, 10th Edition projects. It is important that the applicant is aware of all changes prior to requesting their project to be subject to this Guidebook. How to Switch your Project to the NSHP Guidebook, 10th Edition If you wish to have your existing project subject to the NSHP Guidebook, 10th Edition rules, you must submit a written request to the Energy Commission that includes: • • • Project name and ID number FI-1 form & associated .huf input file List of applicable sites (if payments have already been approved) • Acknowledgement that the applicant would like to switch the project to the NSHP Guidebook, 10th Edition and agrees to all stated requirements The written request should be submitted to the Energy Commission prior to the project finishing the NSHP program and/or the reservation expiration, and may cover any sites with the project that have not yet been approved for final payment. The reserved funding for the project will not change upon switching to NSHP Guidebook, 10th Edition, but the FI calculator will be used to determine the final incentive. Who Makes the Request? The request should be made by the applicant; however, the applicant’s designated authorized representative may also make the request on the applicant’s behalf. Requests may be mailed to the Energy Commission or emailed to [email protected]. 3