An unprecedented amount of federal stimulus funding – more than $10 billion – to retrofit homes, businesses and government buildings to be more energy efficient is starting to hit the streets in communities around the country. This is good news from an economic as well as an environmental perspective, because building energy retrofits reduce pollution at the same time they save families money and put people to work.

Energy use – and waste –in buildings accounts for nearly 40 percent of greenhouse gas emissions in the U.S. Low-cost, off the shelf technologies – and common sense construction practices – can cut energy use in most buildings by as much as 30 percent, translating into billions of dollars in cost savings and hundreds of thousands of jobs if applied to a substantial share of the properties in need of improvement.

Cities that receive retrofit funds from Washington are understandably focused on spending the money quickly to create jobs. It is critical that local governments invest these resources in ways that will also generate maximum long term benefits as well, as the big boost in funding from the recovery bill was almost certainly a one-time event.

This means three things: using stimulus money to attract other capital, establishing a comprehensive strategy for retrofits, and making the most of every retrofit opportunity.

The city of Chicago is showing how a relatively small amount of federal retrofit funding can leverage larger amounts of financing in an innovative program that aims to retrofit up to 5,000 low-income apartments in its first phase. By committing $1 million in recovery funds, the city has generated $7.5 million from banks and foundations to scale up the program.

A good example of a comprehensive strategy is the partnership between Minneapolis and St. Paul that has set an audacious goal of retrofitting all the buildings in the two cities in 10 years. The Twin Cities have engaged a partnership of state and local agencies, utilities, industry groups, organized labor and community-based nonprofits to create a comprehensive system, with critical seed funding from several streams of federal retrofit dollars.

Making the most of every opportunity means making sure retrofit jobs don’t simply pick the low-hanging fruit of easy energy efficiency, but also incorporate features to make properties healthier, safer and more accessible, which is especially important in homes of low-income older Americans. The city of Philadelphia is among the leaders in pushing the envelope on such “whole house” retrofits that drive toward maximum energy, health and accessibility benefits.

The Obama administration can help cities take a more strategic approach on building energy retrofits. For example, remaining recovery funds that are set to be awarded through a competitive process (as opposed to a formula allocation) should prioritize applications from communities that show the strongest financial sustainability and scale.

The administration should also work to encourage leading edge innovations in financing building retrofits, such as emerging models for amortizing the cost of improvements through small payments on property tax and utility bills.

Finally, the administration should redouble the solid efforts it has begun to ensure that the job and career opportunities that will come from investment in building energy retrofits, as well as other sectors of the emerging clean energy economy, are fully available to low-income people and minority small businesses that have long been disadvantaged in our (still) dirty energy system.

Some may say that such a commitment is untenable when overall unemployment and economic challenges are widespread at almost all income levels. In fact, the opposite is true. As the country recovers, reinvests and rebuilds to a stronger economic future, our ultimate success will depend on the full participation of everyone in our society.

Cities that utilize federal support for building retrofits as both a down payment on a long term economic development and environmental protection strategy, as well as an immediate boost to the jobs and tax base, will be in position to realize returns on the federal investment long after the funds are spent.

Stockton Williams is the Senior Advisor and Director of Green Economy Initiatives for Living Cities - an innovative philanthropic collaborative of 21 of the world's largest foundations and financial institutions. Among other key initiatives, Living Cities is focused on improving the lives of low-income people and the urban areas in which they live.