EPA-Sponsored Report - continued

The report's authors concur, writing "direct metering and billing of water for apartment residents encourages water efficiency and promotes a water billing system as transparent as other utilities like gas and electricity, phone and cable, whereby residents pay for what they use."

In addition to recommending the installation of water submeters on apartment properties, the report also recognizes the value of water-efficient plumbing fixtures and suggests that properties built prior to 1995 retrofit with water-efficient fixtures prior to undertaking a water billing program. It also calls on policymakers to establish incentive programs to facilitate the acquisition of these fixtures. The report further recommends that EPA cease to apply certain federal Safe Drinking Water Act requirements to apartment properties that bill their residents separately for water, since billing has no impact on drinking water quality.

The practice of using an allocation formula (based on the unit's square footage, number of taps, etc.) instead of a submeter to estimate water consumption for each apartment unit was not found in this study to have a statistically significant impact on water consumption. Although study authors acknowledge that their research focused primarily on properties in the Southwest and that they might have documented more water savings from allocation billing if they had been able to study more buildings on the East Coast, where it is often impractical to retrofit older properties with individual water meters.

"This finding directly contradicts the finding of an earlier study conducted by Industrial Economics which showed that alternative (non-metered) water billing properties use between six and 27 percent less water than properties where water is simply included in the rent," said Lee. "It is important to remember that it is not feasible to install submeters in all properties, particularly in older mid- and high-rise apartments. In addition, some areas of the country prohibit Point of Sale meters, so water allocation may be the only bridge to resident billing."

"We support the report's call for additional research into water allocation as an alternative to submetering to determine whether different areas of the country, responding to varying water price signals, weather conditions and public awareness of drought conditions respond similarly."

Note: The full report can be found at: http://www.nmhc.org/Content/ServeContent.cfm?ContentItemID=3242.

NMHC and NAA operate a Joint Legislative Program and represent the nation's leading firms participating in the multifamily rental housing industry. NMHC/NAA's combined memberships are engaged in all aspects of the development and operation of apartment communities, including ownership, construction, finance and management. Together, the organizations jointly operate a federal legislative program and provide a unified voice for the private apartment industry. Almost one-third of Americans rent their housing, and nearly 15 percent of all U.S. households live in an apartment home. For more information, contact NMHC at 202/974-2300, e-mail the Council at [email protected], or visit NMHC's web site at http://www.nmhc.org/.