Hodges and Pealer- Gulf Coast Green 2010

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Retrofitting Multifamily Properties to Enhance Affordability Authors: Lisa Hodges, Washington DC Housing Authority and Casius Pealer, USGBC

Transcript of Hodges and Pealer- Gulf Coast Green 2010

Track 2: Renovating the Future

Test

Retrofitting Multifamily Properties to Enhance

Affordability

Gulf Coast Green

April 15, 2010

Casius PealerDirector, Affordable Housing InitiativeU.S. Green Building Council

Today, one of every two people on the planet live in urban areas

And, one in seven people live in urban slums

776 million

Since 2000, over 227 million slum dwellers have moved out of slum conditions.

But another 282 million people have moved in.

Green Retrofit Audit Protocol

• Investment grade audit to be used by loan underwriters– Data must be transparent in both collection and

calculation– Reports must be consistent in both form and

content– Persons completing the audit must adhere to

requirements and maintain professional certifications

Green Retrofit Audit Protocol

• Auditor must:– comply with BPI Code of Ethics– Interview property manager or appropriate staff

prior to site visit– Visually inspect property, interview staff on site,

collect data– Draft audit report and photo documentation

according to Enterprise format

Green Retrofit Audit Protocol

• Report contains:– Baseline energy and water use– Energy and water conservation measures– Capital improvements relating to ongoing

functionality and longevity– Measures that tend to improve occupant health– Measures that reduce impact on the environment– Incremental payback of each measure,

conventional vs. green alternative

Moderate Retrofits

• Green Resources for Energy Efficient Neighborhoods (GREEN) Act

– Establishes basic HUD green building standards and provides incentives for projects that go above

– Establishes an energy efficiency demonstration program for multifamily properties

– Authorizes HUD to provide loan guarantees for financing of approved sustainable improvements

Moderate Retrofits

• Energy Efficiency Modernization Act

– Allows private owners of HUD-assisted housing to take additional cash flow from projects to pay debt service for approved retrofits

– Allows private owners of HUD-assisted housing to use “residual receipts” to finance approved retrofits

Housing Preservation

• Housing Preservation and Tenant Protection Act

– Easier to use tax credits for preservation efforts– Allow owners choosing to opt out to transfer

Section 8 contracts to new owners– Allow nonprofit owners to use equity for other

mission-based efforts

Housing Trust Fund

• Housing and Economic Recovery Act of 2008

– Funding for $1 billion initial capitalization included in a variety of current bills

– Funds distributed to states based on a calculation of need

– Intended to have a dedicated source of funding outside of annual appropriations

Healthy Housing

• Research, Hazard Intervention and National Outreach for Healthier Homes Act

– $21 million for research efforts by HUD, EPA, CDC, and NIH

– $52 million to reduce health hazards in housing through HUD, EPA, CDC, and USDA

– $15 million for education and outreach from HUD, EPA, and USDA

Community Planning

• Livable Communities Act of 2009

– Creates competitive planning grants for metropolitan regions to integrate transportation, housing, land use, and economic development

– Establishes an Office of Sustainable Housing and Communities at HUD

– Establishes a federal Interagency Council on Sustainable Communities

Climate Protection

• American Clean Energy and Security Act

– Establishes a Low Income Community Energy Efficiency Program to increase the energy efficiency of low income communities

– $50 million per year from 2012 – 2015– Funded by the sale of pollution allowances

required by the cap and trade system

Using Executive Authorities to Achieve Greener Buildings

A Guide for Policymakers to Enhance Sustainability and Efficiency in

Multifamily Housing and Commercial Buildings

April 13, 2010

Using Executive Authorities to Achieve Greener Buildings

• Reforming appraisal and underwriting practices at Fannie Mae and Freddie Mac

• Promoting flexible FHA insurance products, especially Section 241 supplemental loans

• Integrating energy efficiency and sustainability criteria into competitive grants

• Gathering data on building performance through HUD/FHA and sharing this data

Casius PealerDirector, Affordable Housing Initiative cpealer@usgbc.orgU.S. Green Building Council 202-742-3291

Retrofitting Multifamily Retrofitting Multifamily to Enhance Affordability to Enhance Affordability

Gulf Coast Green Symposium and ExpoGulf Coast Green Symposium and ExpoAIA Houston April 15, 2010AIA Houston April 15, 2010

Lisa R. Hodges

April 15, 2010April 15, 2010 AIA Houston: Gulf Coast GreenAIA Houston: Gulf Coast Green

Sustainable Approach Sustainable Approach to Multifamily Housingto Multifamily Housing

Sustainable developmentSustainable development Integrated designIntegrated design Environmentally safe practices, living Environmentally safe practices, living

and working conditionsand working conditions Energy EfficiencyEnergy Efficiency Water Consumption ReductionWater Consumption Reduction Improved Air QualityImproved Air Quality Recycling: Agency and ResidentsRecycling: Agency and Residents Compliance: Legislative & Compliance: Legislative &

ContractualContractual3838

Evaluating Retrofit Evaluating Retrofit OptionsOptions Significant funding Significant funding

sourcesource Adequate Adequate

implementation timeimplementation time Realistic efficiency Realistic efficiency

goals vs. costgoals vs. cost

April 16, 2010April 16, 2010 AIA Houston: Gulf Coast GreenAIA Houston: Gulf Coast Green 3939

April 16, 2010April 16, 2010 AIA Houston: Gulf Coast GreenAIA Houston: Gulf Coast Green

Energy Capital Energy Capital Improvement Program: Improvement Program:

ECIPECIP ECIP was developed to financially ECIP was developed to financially

leverage the energy and water savings leverage the energy and water savings associated with the replacement of associated with the replacement of aging equipment and infrastructure. aging equipment and infrastructure.

Program was tailored to access HUD Program was tailored to access HUD subsidy incentivessubsidy incentives

Funding for retrofits derived from Funding for retrofits derived from energy and water savingsenergy and water savings

4040

April 15, 2010April 15, 2010 AIA Houston: Gulf Coast GreenAIA Houston: Gulf Coast Green

Program GoalsProgram Goals

Modernize existing Modernize existing housing stock;housing stock;

Reduce energy Reduce energy consumption;consumption;

Reduce costs Reduce costs associated with associated with energy consumption, energy consumption, operations, repairoperations, repair

Improve quality of Improve quality of lifelife

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April 15, 2010April 15, 2010 AIA Houston: Gulf Coast GreenAIA Houston: Gulf Coast Green

PreparationPreparation

Energy and Energy and Environmental Master Environmental Master Plan;Plan;

Utility Billing DatabaseUtility Billing Database Baseline data collectionBaseline data collection Energy AuditsEnergy Audits Integrated Building Integrated Building

DesignDesign BIMBIM Building CommissioningBuilding Commissioning

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April 15, 2010April 15, 2010 AIA Houston: Gulf Coast GreenAIA Houston: Gulf Coast Green

ECIP ProfileECIP Profile

31 Properties31 Properties 5,444 units5,444 units Approximately 28,000 residents servedApproximately 28,000 residents served Annual average utility cost = $16 Annual average utility cost = $16

millionmillion Annual Savings = $3.9 million Annual Savings = $3.9 million Retrofit Cost = $21.1 millionRetrofit Cost = $21.1 million Less than 7 year recoupmentLess than 7 year recoupment

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April 15, 2010April 15, 2010 AIA Houston: Gulf Coast GreenAIA Houston: Gulf Coast Green

Retrofit Scope: Retrofit Scope: ConservationConservation

BoilersBoilers ChillersChillers Hot water systemHot water system Fan CoilsFan Coils Low flow showers, Low flow showers,

faucets, toiletsfaucets, toilets High Efficiency High Efficiency

LightingLighting AppliancesAppliances

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April 15, 2010April 15, 2010 AIA Houston: Gulf Coast GreenAIA Houston: Gulf Coast Green

Retrofit Scope: Central Retrofit Scope: Central Energy ManagementEnergy Management

AutomationAutomation Metering and Metering and

CommunicationCommunication Preventive Preventive

MaintenanceMaintenance CommissioningCommissioning

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April 15, 2010April 15, 2010 LISC: Greening Multifamily PHA, Oakland, LISC: Greening Multifamily PHA, Oakland, CACA

Energy & WaterEnergy & WaterConsumption SavingsConsumption Savings

Electricity: Electricity: 13% 13% reductionreduction

Water: Water: 30% 30% reductionreduction

Gas: Gas: 26% reduction26% reduction4646

April 15, 2010April 15, 2010 AIA Houston: Gulf Coast GreenAIA Houston: Gulf Coast Green

Energy OperationsEnergy Operations& Maintenance Savings& Maintenance Savings

Total Savings Total Savings $2,364,645$2,364,645

Areas of savings Areas of savings included included repairs/service, repairs/service, emergency capital emergency capital costs, labor costs, labor

DCHA not eligible DCHA not eligible to recoup from to recoup from HUDHUD

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ARRA Competitive ARRA Competitive FundingFunding $35 million $35 million

award;award; Sustainable Sustainable

features features included in all included in all projectsprojects

Gap financing Gap financing approachapproach

April 15, 2010April 15, 2010 AIA Houston: Gulf Coast GreenAIA Houston: Gulf Coast Green 4848

April 15, 2010April 15, 2010 AIA Houston: Gulf Coast GreenAIA Houston: Gulf Coast Green

ARRA Competitive ARRA Competitive FundingFunding

Solar/Solar/photovoltaic;photovoltaic;

Geothermal/Co-Geothermal/Co-gengen

Efficient Efficient appliances, water appliances, water fixturesfixtures

Green Roof Green Roof InstallationsInstallations

WeatherizationWeatherization4949

WeatherizationWeatherization

State stimulus fundsState stimulus funds Weather-strippingWeather-stripping Window/door Window/door

replacementreplacement InsulationInsulation Policy ConcernsPolicy Concerns

April 15, 2010April 15, 2010 AIA Houston: Gulf Coast GreenAIA Houston: Gulf Coast Green 5050

Renewable Energy Renewable Energy Incentive ProgramIncentive Program State Stimulus State Stimulus

AwardAward Rebate for Rebate for

installation of installation of photovoltaic or photovoltaic or wind turbine wind turbine systemssystems

April 15, 2010April 15, 2010 AIA Houston: Gulf Coast GreenAIA Houston: Gulf Coast Green 5151

Energy Efficiency and Energy Efficiency and Conservation Block Conservation Block GrantGrant Residential and commercial building energy Residential and commercial building energy

auditsaudits Financial incentive programs and mechanisms Financial incentive programs and mechanisms

for energy efficiency improvementsfor energy efficiency improvements Grants to governmental agencies and nonprofit Grants to governmental agencies and nonprofit

organizations for energy efficiency retrofitsorganizations for energy efficiency retrofits Energy distribution and renewable energy Energy distribution and renewable energy

technologiestechnologies Programs designed to conserve energy used in Programs designed to conserve energy used in

transportationtransportation Competitive round closed to states 12/14/09Competitive round closed to states 12/14/09

April 15, 2010April 15, 2010 AIA Houston: Gulf Coast GreenAIA Houston: Gulf Coast Green 5252

April 15, 2010April 15, 2010 AIA Houston: Gulf Coast GreenAIA Houston: Gulf Coast Green

Project Management Project Management

Integrated Integrated DesignDesign

Building Building CommissioningCommissioning

Finance teamFinance team Internal CapacityInternal Capacity Energy Energy

ConsultantConsultant

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April 15, 2010April 15, 2010 AIA Houston: Gulf Coast GreenAIA Houston: Gulf Coast Green

Contractual Contractual ComplianceCompliance ManagementManagement Development PartnersDevelopment Partners HAP HAP HQ InspectionsHQ Inspections Regulatory and Operating Regulatory and Operating

AgreementsAgreements House RulesHouse Rules

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April 15, 2010April 15, 2010 AIA Houston: Gulf Coast GreenAIA Houston: Gulf Coast Green

Legislative ComplianceLegislative Compliance

Green Building ActGreen Building Act Publicly Owned Sites FirstPublicly Owned Sites First Incentives vs. MandatesIncentives vs. Mandates Benchmarking Energy UseBenchmarking Energy Use Regular ReportingRegular Reporting

5555

April 15, 2010April 15, 2010 AIA Houston: Gulf Coast GreenAIA Houston: Gulf Coast Green

Resident OutreachResident Outreach

Education: cleaning products, Education: cleaning products, changing light fixtures, recyclingchanging light fixtures, recycling

Breathe Easy ProgramBreathe Easy Program Green CharrettesGreen Charrettes

5656

April 15, 2010April 15, 2010 AIA Houston: Gulf Coast GreenAIA Houston: Gulf Coast Green

Contact:Contact:

Lisa R. HodgesLisa R. Hodges

Development Advisor to DirectorDevelopment Advisor to Director

Office of Planning and DevelopmentOffice of Planning and Development

DCHADCHA

lhodges@dchousing.orglhodges@dchousing.org5757