Management Add-On Fee Incentive

Better Buildings Challenge (BBC) Multifamily Sector Partners that own HUD-insured or HUD-assisted properties may be eligible to receive a BBC Management Add-On Fee. The BBC Management Add-On Fee is a financial incentive to BBC Multifamily Sector Partners to encourage portfolio-wide utility benchmarking and implementation of energy efficiency measures.

Partners that are actively benchmarking utility data can use these funds to help pay for benchmarking assistance, such as hiring a benchmarking firm or consultant that provides a full scope of services, or applying the funds toward internal staff development. Benchmarking a portfolio is a key part of the BBC commitment to measure progress toward reducing the portfolio’s energy usage by 20 percent over 10 years.

Eligibility

Only those multifamily properties owned by HUD-insured or HUD-assisted partners are eligible for the Management Add-On Fee. Owners may not receive the add-on fee for properties at risk of default.

For more information see HUD’s:

Memorandum for Management Add-On Fees (4/24/2014)

Memorandum for Management Add-On Fees REVISION (9/19/2014)

Activities

There are four add-on fees for specific activities, for which partners may be eligible:

Activity
 		 Monthly Add-On Fee
(per unit)
1. Developing and implementing a property-specific green operations and maintenance plan $1
2. Resident engagement and education to encourage energy and water efficiency behaviors and best practices $1
3. Utility data collection, entry, and/or technical support $1
4. Installation and use of energy data benchmarking and reporting software $1

Enrollment

To apply for the Management Add-On Fee, an owner or property manager must do the following:

  1. 1

    Complete Certification

    Complete a new Management Certification (form HUD-9839-B) and distinguish the add-on fee from any other special fees that are listed on the form.
  2. 2

    Submit Form and
    Partnership Agreement

    Submit the form to your HUD Field Office, along with a copy of the owner’s signed BBC partnership agreement. Your BBC Account Manager has a copy.
  3. 3

    Approval

    Once approved, the management fee, with the add-on, is paid to the owner through the property's operating account. If the property cannot afford to pay the owner/manager during a given month, the management fee may be accrued (appear as an accounts receivable on the property's balance sheet).

See HUD's Memorandum for more information.

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