©2014 Elevate Energy

Affordable Multifamily Efficiency Program Trends

November 2015

Estimated Housing Units in Virginia

All Housing Units

80% 24%Market-Rate Multifamily

Affordable Multifamily

Multifamily (5+ units)

Single Family(1-4 units)

Multifamily Division

20% of housing units are in multifamily buildings...

Affordable multifamily buildings are often underserved by efficiency programs, leaving a large number of low-income families without access to the benefits of energy efficiency.

*Low-income is defined as households earning up to 80% of area median income.

388,000 units58%

…and more than half of those units are affordable to low-income families.

20% 282,000 units42%

Affordable Multifamily Units by MSA

Arlington – Alexandria:

130,000

Charlottesville:10,000

Richmond:69,000

Virginia Beach:100,000

Harrisonburg:5,000

Staunton- Waynesboro:4,000

These numbers include subsidized, naturally-occurring

affordable, and public housing in the MSA. Numbers are based on

the National Housing Preservation Database and the American Community Survey.

(Numbers may not sum to previous total due to rounding).

Types of Affordable Multifamily Housing

• Naturally-occurring affordable: Units that receive no subsidy but are located in low and moderate income areas and typically serve households up to 80% area median income

• 241,000 units in Virginia

• Subsidized: Units that receive federal or state housing subsidies such as HUD, LIHTC, USDA Rural, HOME, FHA. These can be owned by for-profits (about 66%), non profits (about 30%), government, or a combination

• 128,000 units in Virginia

• Publicly owned: Units owned or managed by a public housing authority • 19,000 units in Virginia

Affordable Multifamily Savings Opportunity

Total Energy Use (Btu per Square Foot)

Public Housing

Non-Public Affordable

Market Rate

Green Certified

Data shows that affordable multifamily buildings utilize more energy than market rate buildings

Highest energy users

Efficiency Benefits

Lower energy costs help low-income families avoid:

Health Problems

Unstable Housing

Food Insecurity

When the burden of utility bills is reduced, infants and toddlers

are 23% less likely to be at nutritional risk for growth

problems3 and adults experience an 18% decrease in

hypertension rates.4

For a very low-income family, the average savings due to

energy upgrades is 3% of their income – helping to reduce

housing costs and the impact of rising energy costs.1

When families spend less of their income on housing and utility costs, they can spend

more on food, healthcare, child enrichment,2 and other

household needs.

1. U.S. Bureau of Labor Statistics, Consumer Expenditure Report2. Newman, S. and Holupka, C.S. Housing Affordability and Child Well-Being. Housing Policy Debate, 2014. 3. Frank, et al. “Heat or Eat,” Pediatrics 2006. Meyers, et al. “Subsidized Housing and LIHEAP: Improved Outcomes in Children of Color” Presentation at Annual Conference of the American Public Health Association 2007.4. Wilson, et al. Watts-to-Wellbeing: does residential energy conservation improve health? Energy Efficiency, February 2014, Volume 7, Issue 1, pp 151-160.

Trends in efficiency programs that are addressing these challenges

• Comprehensive/one-stop-shop program designs• Virginia, Chicago, Austin, Washington DC

• Greater emphasis on water efficiency• Most multifamily building are master metered for water• Shared savings models are beginning to dominate the market

• Incorporation of energy and water efficiency assessments as part of the Physical Needs Assessment• Most state QAPs include some requirements for energy efficiency• Fannie Mae Green PNA

• Financing models that incorporate multifamily buildings• On-bill financing• Property Assessed Clean Energy (PACE) programs

• Energy and water benchmarking• Municipal ordinances increasingly include multifamily buildings• Energy Star Score for multifamily buildings

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Thank You

Louise SharrowElevate EnergyLouise.sharrow@elevateenergy.org