A pioneering coalition, Power Forward Communities is on a transformative mission. United under the leadership of Enterprise Community Partners, Rewiring America, Habitat for Humanity International, the Local Initiatives Support Corporation, and United Way Worldwide, this group aspires to reshape the American housing landscape. Their ambition is as practical as it is profound: save household spending for Americans, strengthen communities, and contribute to the nation’s climate objectives. Recognized for their potential to make significant change, the Environmental Protection Agency has endowed them with a $2 billion National Clean Investment Fund grant for an impactful seven-year journey beginning on April 4, 2024. The program will not only boost housing decarbonization but also shine a light on the needs of the underprivileged and marginalized neighborhoods.
Energizing Change by Sealing Energy Wastage
In countless American households, valuable energy escapes into the ether, slipping through the cracks of inefficient infrastructure like drafty windows and uninsulated roofs. Tax incentives for home improvements, while beneficial, often bypass those most in need—the renters and those dependent on fixed incomes such as social security or disability benefits. Yet, it’s these very residences that stand to gain most from energy-reducing strategies. Addressing this gap, Power Forward Communities emerges as a beacon of hope for homeowners within these demographics.
The founding organizations bring their accumulated wisdom to the table, ready to inject a powerful mix of finance, market innovation, and community involvement to transform homes from bustling metropolises to the smallest towns. Their concerted efforts promise to achieve a trifecta of benefits: cost savings for families, reduced emissions, and the creation of healthier, safer, and more affordable dwellings. Echoing their commitment, a growing alliance of 321 organizations across 46 states and every EPA region champions the cause to nationwide home decarbonization.
The Power of Unprecedented Investments
EPA Administrator Michael S. Regan recently voiced the priorities of President Biden and Vice President Harris, highlighting the centering of communities in their ‘Investing in America’ agenda. The colossal $20 billion investment, as Regan notes, galvanizes American communities, driving clean technology projects ranging from solar installation to electrifying housing and rolling out EV loan programs for young families. This initiative stands as a testament to job creation, energy cost reductions, and environmental benefits, thereby encapsulating President Biden’s historic commitment to climate action.
Steering this ambitious venture is CEO Tim Mayopoulos, a veteran in the housing finance sector. Mayopoulos acknowledges the Inflation Reduction Act’s seminal role in addressing climate issues and champions the necessity of initial funding to catalyze private capital in making the housing sector instrumental in meeting climate objectives and driving affordable housing solutions.
Strategizing Decarbonization on Four Fronts
Power Forward Communities’ action plan pivots around four strategic pillars:
- Reducing Friction: Simplifying the decarbonization process through online tools, hands-on community help, and market collaborations.
- Aggregating Consumer Demand: Bundling local opportunities for stronger market impact and cutting consumer costs by up to 50%.
- Financing Affordably: Utilizing NCIF grants for below-market-rate loans to bridge the gap between decarbonization costs and existing incentives.
- Charting an Equitable Future: Dedicating resources to workforce development for high-paying jobs and attracting funding to upgrade more American homes.
Access to Power Forward Communities’ financing for homeowners and building owners aims to revolutionize residences with efficient appliances and weatherization. By partnering with governments and leveraging investments, the coalition targets the achievement of affordable housing and clean energy goals. Investors too will discover new venues for sustainable capital investments that positively impact homes, communities, and the wider climate.
Voices from Within: Board Members Weigh In
Council members such as Shaun Donovan, CEO of Enterprise Community Partners and chair of the Power Forward Communities board, envisage homes that are not only safer and healthier but also more affordable. Championing the need for equitable resilience amidst growing housing costs and climate change, leaders of the coalition pledge to drive transformative change leaving no individual behind.
Vice chair Ari Matusiak, CEO of Rewiring America, points out the opportunity to diminish residential energy emissions, which constitute nearly half of the US’s total, and also reduce household costs through employing technology such as heat pumps, solar panels, and EV chargers. The funding in conjunction with the Inflation Reduction Act aims to rejuvenate American homes, drawing in further private investment.
Others, like Michael T. Pugh, CEO of LISC, emphasize the economic imperative of climate resilience for all communities. Through federal funding, the prospects are heartening: healthier homes, resilience in the face of extreme weather, and enhancement of both environmental quality and job prospects.
Angela F. Williams, the CEO of United Way Worldwide, underscores the organization’s commitment to community strength and wellbeing in partnership with Power Forward Communities. Echoing her sentiments, Habitat for Humanity International CEO Jonathan Reckford emphasizes the critical need for durable, climate-friendly housing solutions, aligned with affordability, to address the ongoing housing crisis and climate change effectively.
As Power Forward Communities sets out on its mission, it promises to refine its financial products and fortify community partnerships, prioritizing benefits for low-income groups and historically neglected areas. The anticipation for the program rollout this fall is high, with a call to community organizations, governments, partners, and technical advisers to engage further through their website.
The Greater Picture: A Step Toward Climate Responsibility
In the contemporary climate crisis dialogue, smart and efficient use of fossil fuels while pursuing their ultimate elimination is vital. In taking aim at America’s built environment—a significant contributor to greenhouse gas emissions—Power Forward Communities is acting at a critical juncture. Celebrated for leveraging the Inflation Reduction Act to serve all Americans, the coalition is poised to repair some detrimental impacts, such as those following the International Code Council’s decisions influenced by the American Gas Association, which countered the integration of climate-friendly infrastructure in new construction. Now, with Power Forward Communities charting the course, there’s newfound hope for the advancement of energy-efficient homes across the nation.
