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Stimulus may help rental properties save energy

March 18, 2009

Students could keep some money in their pockets and off their utility bills next winter if East Lansing receives money from the $787 billion stimulus package to improve energy conservation in rental properties.

The stimulus package allocates $3.2 billion for an Energy Efficiency and Conservation Block Grant, and the city is awaiting word on how much it will receive, said Tim Dempsey, community and economic development administrator for East Lansing.

“One of the things we’ve talked about is supporting a program that does energy conservation for rental properties — helping landlords go in and replace insulation and water heaters,” Dempsey said.

Fred Bauries, an East Lansing resident and owner of three rental properties, said the potential grant money could give property owners who upgrade the energy standards of their properties an advantage in attracting renters.

“I try to stay ahead of the curve, but I think students are much more sensitive to what the utility costs are than what they used to be,” he said.

Bauries said although he replaced the windows in one of his rental homes last year with energy-efficient windows, there are always improvements to be made.

“If the government wants to pitch in, that would be fine with me,” he said.

International relations senior Alex Walker, who lives on Durand Street, said although energy conservation wouldn’t necessarily sway his decision in renting a house, insulation would be a factor to consider.

“In our house, insulation is a big deal,” he said. “My room is way cooler than the rest of the house.”

Walker said students already pay a lot of “outrageous” charges, so paying less for heat would be helpful.

In addition to the energy efficiency and conservation grant, East Lansing expects to receive about $160,000 in stimulus money for its Community Development Block Grant program, which is used for projects that create a suitable living environment. This money also could be used for rental rehabilitation, said state Rep. Mark Meadows, D-East Lansing.

“Not every rental is owned by a millionaire, and they are sometimes owned by folks that just have one rental and are just scraping by,” he said.

However, Dempsey said the city has been focusing on using the community development money for owner-occupied housing.

“While it’s not insignificant, it’s not necessarily large enough to do an entirely new project,” he said. “It lends itself more to finishing an existing project.”

Dempsey said the city has had preliminary discussions about using the money to complete the final infrastructure of the Virginia Avenue project, which is the construction of 16 single-family homes and 14 townhouses on the 600 block of Virginia Avenue.

East Lansing is expecting the money to be available within the next 30 to 60 days, he said.

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