Rental housing represents about 35% of total U.S. housing stock. However, policies encouraging energy conservation and the use of solar energy in the residential sector have virtually ignored the complexities of achieving energy efficiency in rental housing. This report characterizes the ren~al housing market, defines energy-related problems, and offers some tools for building solutions to those problems. The report is directed to two audiences. First, it provides information to_federal, state, and local groups and policy makers concerned with problems of energy in the rental sector. Second, the report provides the U.S. Department of Energy (DOE) with information about the rental housing market, including barriers to conservation efforts and solar energy investments in that sector and descriptions and analyses of state and local policies s for removing those barriers and providing incentives for investment. Although technological problems associated with conservation and solar energy use in rental housing are also barriers to investment, we feel that economic, political, social, and institutional obstacles are more significant now. These, therefore, are addressed in this report. DISCU&.C;ION The report first characterizes the national rental housing market in terms of building structure, region, urban/rural profile, age of rental housing stock, renters' incomes, master versus separate metering of utilities, rent control, and rental housing owners' investment criteria. As part of this market breakdown, we describe the economic•, political, social, and .institutional barriers to investment in conservation techniques, or solar energy technology, or both. Finally, we offer examples of state and local programs designed to address the rental housing/energy issue. Since these are all new programs, our analysis of them is preliminary, often based more on our knowledge of the rental housing market than on actual program operating results. The program examples are divided into five types: (I) programs for renlers; (2) economic incentives for rental property owners; (3) leasing of solar energy systems; (4) mediation; and (5) regulation. While no one example restricts itself to only one program type, distinguishing among program types may prove useful to policy makers as they design new programs that wm besl HcJc.kess local rental market issues. Data on existing programs were collected by means of telephone interviews. Supporting data that describe the rental housing market were obtained from the literature. Future research will enable us to collect primary data from renters and rental housing owners to substantiate our findings further and provide more detailed recommendations for policies or program action. • CONCLUSIONS AND RECOMMENDATIONS The preliminary.nature of this report and the great diversity in local rental housing markets make it impossible to recommend a single policy or program as a solution to energyv RR-901 related rental housing problems. However, three important general findings are noted. First, in design...
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