Financing for Multifamily Energy Efficiency Upgrades Learn how to - - PowerPoint PPT Presentation
Financing for Multifamily Energy Efficiency Upgrades Learn how to save money and boost your propertys value with energy efficiency improvements and solar installations. Connecticut Housing Coalition Conference Hartford, CT September 22, 2016
Financing for Multifamily Energy Efficiency Upgrades
Learn how to save money and boost your property’s value with energy efficiency improvements and solar installations.
Connecticut Housing Coalition Conference Hartford, CT
September 22, 2016
Our First LIME Loan - Projections Oil-to-Gas Conversion: 10 High Efficiency Gas Boilers Installed Total Project Costs: $406,000 Project Sources Utility Rebates $44,000 LIME Loan $250,000 Borrower Reserves $112,000 Total $406,000 Savings Projected: $70,000 per year Loan Payments: $36,000 per year (9 year amortizing term, 6.00%)
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Our First LIME Loan - Reality Savings Projected: $70,000 per year Energy Savings Realized: $75,000 per year O/M Savings Realized $7,500 per year Loan Payments: $36,000 per year Net Cash Flow: $46,500 per year Total NOI Increase: $82,500 per year Increase in Property Value: $825,000 @ 10.0% cap rate $1,031,250 @ 8.0% cap rate $1,375,000 @ 6.0% cap rate
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– 240,000 multifamily units – Potential to save $500+ per unit – Public and affordable housing less efficient than market rate -> 8x EUI
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PV and solar thermal
Knob & Tube Wiring Mold/ Water Leaks Asbestos Lead Paint CO Off-Gassing Radon
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State partners Program partners Utility partners
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Operate and monitor improvements Install upgrades Fund viable project Design and engineer Analyze property performance
Pre-Development Financing Utility Incentives & Project Financing
Core Measures Core & Custom Measures Deep Energy Retrofit Passive House
Pre-Development Financing Utility Incentives & Project Financing
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schedule
Design and engineer Analyze property performance
Pre-Development Financing
Provided by:
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Inspection and payment Energy efficient measures installed Utility letter of agreement Energy assessment and/or proposal Utility partners Energy upgrade incentives from your local utility maximize the scope of your project by lowering the amount you need to borrow.
A mission-driven non profit, we seek to bring benefits of sustainable development to the community level, and underserved populations Making the built environment more efficient, healthier, durable and resilient Nationally recognized for our green certification work
renewable energy Boston – Hartford – Providence - Baltimore
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professionals
building
prep for financing
coordination
1. Site Visit by Engineer 2. Report includes energy and water efficiency opportunities and range
3. Summarizes historical water & energy data 4. Health & Safety notes
2 buildings, 22 units, low rise
Savings Summary Estimated Consumption Savings Annual Estimated Cost Savings ($) Estimated Potable Water Savings Toilets, Aerators, Showerheads, Clothes Washers 12-17% $400-600 Estimated Common Area Electricity Savings Exterior Lighting, Interior Common Area Lighting, Clothes Washers 10-15% $300-450 Total Estimated Fuel Savings Aerators, Showerheads, Heating Equipment, Windows, Domestic Hot Water Equipment 20-32% $5,750-9,200
Table 1: Financial Summary Description of Upgrade Upfront Cost
Estimated Incentive Upfront Cost
Annual Savings Simple Payback EUL[1] SIR Incl. Incentive Aerators[2]
$1,500 $1,500 $0 $1,900 8
Showerheads[2]
$1,100 $1,100 $0 $750 8
Apartment Lighting
$6,850 $6,850 $0 $500 10
Air Sealing & Insulation
$25,600 $18,100 $7,500 $3,500
2.2
20
5.8
Interior Common Lighting
$8,000 $3,200 $4,800 $2,750
1.7
10
4.9
Exterior Lighting
$2,400 $975 $1,450 $500
2.9
10
3.0
Toilets[2]
$11,000 $0 $11,000 $950
11.7
25
1.5
Solar PV[3]
$11,400 $1,550 $9,850[3] $900
11.1
25
1.5
DHW Equipment
$4,350 $400 $3,950 $675
5.9
10
1.5
Washing Machines
$4,000 $0 $4,000 $900
4.5
7
1.4
Irrigation[2]
$3,000 $0 $3,000 $600
4.9
7
1.3
Space Heating & Cooling Equipment - Apartments
$120,000 $36,000 $84,000 $7,350
11.4
15
1.0
Apartment Ventilation
$6,000 $0 $6,000 [penalty]
0.0
[1] Estimated Useful Life in years. [2] Water savings estimates account for both water and sewer charges. [3] Solar PV upfront cost includes an installed cost rebate of $0.513/Watt.22
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C-PACE
Market-rate Commercial Property Assessed Clean Energy
SOLAR
Solar projects only Commercial solar lease
LIME
Affordable Low Income Multifamily Energy
Operate and monitor improvements Install upgrades Fund viable project Project Financing
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Affordable multifamily 5-6% 10-20 years 1.3x or greater project energy service coverage ratio Market-rate project 5-6% 5-25 years 1.0x or greater savings to investment ratio Solar-only project Fixed or escalating power purchase agreement 20 years Type Rate Loan term Criteria Type Rate Loan term Criteria Type Rate Loan term
Affordable multifamily 2-3% range up to 12-15 years Flexible low-cost financing, layered with other sources, for energy & health/safety, to bring projects across finish line. Type Rate Loan term Criteria
Description of Measures: Heat pumps, lighting, weatherization, water & roof* Total Loan Amount (costs - incentives): $296,000 Estimated Annual Savings: $44,500 Financing Terms: 20 years, 6.00% Annual Debt Service: $25,386
Submit proposal* to utility Utility reviews proposal Utility Letter of Participation Issued CHFA/DOH funding awarded Utility Letter of Agreement issued Energy efficient measures installed Inspection Payment *Proposal includes: 1) Scope of work 2) Multifamily Initiative Application 3) Project Fill Out Form
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Debra Hall Director of Special Projects | New Ecology, Inc. hall@newecology.org | 617-557-1700 x7029 www.newecology.org John R. D’Agostino Senior Manager, Multifamily Housing Program, Connecticut Green Bank T 860-257-2333 F 860-398-5510 845 Brook Street, Rocky Hill, CT 06067 john.dagostino@ctgreenbank.com ctgreenbank.com Brian Sullivan Manager, Commercial Lending Administration, Capital For Change, Inc. (C4C) 121 Tremont Street, Hartford, CT 06105 860-233-5165 x2020 860-214-6927 (cell) bsullivan@capitalforchange.org www.chif.org
Eversource The United Illuminating Company / SCG / CNG Multifamily Initiative Multifamily Initiative 107 Selden Street, Berlin, CT 06037 180 Marsh Hill Road, Orange, CT 06477 Email: multifamily@eversource.com Email: elizabeth.murphy@uinet.com Phone: (877) WISE-USE Phone: (877) WISE-USE
Eversource The United Illuminating Company / SCG / CNG Residential New Construction Program Residential New Construction Program 107 Selden Street, Berlin, CT 06037 180 Marsh Hill Road, Orange, CT 06477 Nicholas Jones Jennifer Parsons Email: Nicholas.jones@eversource.com Email: Jennifer.parsons@uinet.com Phone: 860-665-5825 Phone: 203-499-5935
Operate Gain a strong grasp
energy is working for you with monitoring, verification and tenant education. Implement Take hold of your green energy potential by constructing your financed project. Fund Secure green energy financing, utility incentives and tax credits to make your project a reality. Design Engineer your green energy project with steps including modeling, systems design and schematics. Explore Discover your green energy potential through benchmarking, assessments, audits and more.
Start your energy upgrade process at any stage and we’ll work with you to achieve your goals.
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Benchmark Assess site/ Analyze Audit/ Assess needs Model Design Health & Safety Bid Utility rebate Tax credit Public funding Private funding Low/No cost Construct Train staff Educate tenants Maintain Measure/Verify