HUD to start scoring grant applications using LEED ND. So what does that mean?

The Department of Housing and Urban Development (HUD recently announced that they would start scoring grant applications by their “location efficiency” and use LEED for Neighborhood Development as a tool to do so.  Location efficiency means new projects would have greater accessibility to surrounding jobs, commercial areas and transportation options.

HUD distributes over $3 billion in grants, so this policy change could potentially have a big impact on where and how new housing gets built.  HUD provides many affordable housing programs, builds public housing, oversees the FHA, and regulates Fannie Mae and Freddie Mac.

So what does it mean that they will begin scoring applications with LEED ND?  The details aren’t out yet, but the rating system certainly has a lot to say about location efficiency as well as what locations are appropriate for development based on environmental significance.  So, where might future HUD grantees be able to propose projects?  Well, location efficiency will likely make up only one of many scoring categories, and I would be surprised if projects could be rejected solely based on poor location.  However, we could start with the assumption that those locations that meet at least all the prerequisites for LEED ND would score highest.

In the next series of posts, I’ll look at what locations in the Twin Cities metro meet the prerequisites for LEED ND, as best as I can without having real project details.  This exercise isn’t just about HUD, the goals of LEED ND are to promote smarter growth, make more energy efficient communities, provide real transportation options and generally build stronger, more sustainable communities.  Thinking about the locations in the metro that are eligible for LEED ND is another way of thinking about where new growth should be planned that could provide the most sustainable outcome.  If anyone ever wanted to do true regional planning, perhaps this is a place to start.

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