Facilitating Building Decarbonization through Utility Allowances

One of the most pressing challenges in electrifying multifamily housing is the issue of split incentives for housing providers. Although housing providers want to prioritize the health, comfort and safety of residents by transitioning to all electric buildings, they encounter many difficulties trying to finance electrification. This report describes how utility allowance methods affect a property’s operating income and residents’ energy burdens, and it examines the impact of utility allowances on affordable housing electrification.