The Department of Housing and Urban Development (HUD) has announced revised compliance reporting requirements for participants in its green mortgage insurance premium program. This program was established in 2016 to provide reduced mortgage insurance premiums on properties which agreed to meet more stringent energy usage requirements.
Background
Participants in the green mortgage insurance program (MIP) agreed that their properties would achieve and maintain an Energy Star rating of 75 or more. This rating is assessed by gathering up a year’s worth of energy and water usage data and submitting it through Energy Star Portfolio Manager, a free on-line tool developed by the Environmental Protection Agency (EPA). Once the data is submitted to Portfolio Manager, it creates a Statement of Energy Performance (SEP) summarizing the property’s energy and water usage relative to its peers.
Generally, program participants are required to submit their property’s SEP results by March 31 of each year following the first full calendar year for which performance data is available. Prior to this change, the SEP results were exported from Portfolio Manager as PDF documents. The PDF’s were then sent to HUD for compliance evaluation.
Under the new system, program participants will use Portfolio Manager to assess their property’s performance as before. However, instead of generating and submitting a PDF of the results, participants will establish a connection between Portfolio Manager and the appropriate HUD account and export their SEP data directly to HUD.
The new requirements will begin with the March 31, 2024 report.
The full announcement of the reporting change is available here.
