New Opportunities in Affordable Housing Energy Efficiency and - - PowerPoint PPT Presentation

New Opportunities in Affordable Housing Energy Efficiency and Renewables

Presentation by Mercy Housing and Affordable Community Energy

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DISCUSSION TOPICS

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Why Whole Building Retrofits Discussion

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2 3 4

Why Not Whole Portfolio Retrofits Setting the Stage

SETTING THE STAGE

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MERCY HOUSING

• Affordable housing nonprofit
• ~280 owned properties
• ~18,000 units
• ~16.5M sf (owned)
• Mostly LIHTC, Section 202,

Section 8, USDA RD

• Green Hope External

Environmental Commitments

• BBC
• Enterprise Call to Action
• Renew300

SETTING THE STAGE

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• Mission-Driven Energy Services

Company

• Whole Building Retrofits
• Energy Efficiency
• Water Conservation
• Renewable, Co-generation and

Storage

• Multifamily Affordable Housing
• National
• Turn-key
• Feasibility/design
• Installation
• Management
• 100% of the capital

AFFORDABLE COMMUNITY ENERGY (ACE)

SETTING THE STAGE

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• Objectives
• Reduce operating expenses
• 20% energy and water reduction portfolio

wide

• Financial Barriers
• Split incentives
• Owner vs HUD
• Owner vs Tenant
• Developer vs Manager
• Payback periods
• LOC and loan adversity or inability
• Non-fungible savings/pencil at each

property

• Other Constraints
• Gaining internal buy-in
• Diverse portfolio

MERCY HOUSING’S OBJECTIVES, CHALLENGES

WHY WHOLE BUILDING RETROFITS?

WHY WHOLE BUILDING RETROFITS

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USE IT OR LOSE IT

• Limited benefits from low-

hanging fruit

• Immediate satisfaction
• But ultimate satisfaction is

permanently delayed

• Savings from low-hanging

fruit will be lost

• Management will use it
• Or HUD will sweep it

WHY WHOLE BUILDING RETROFITS

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USE IT OR LOSE IT

• Properties are “systems,” work needs to

be integrated1

1 From “How ‘Low-Hanging Fruit’ Has Poisoned Energy Efficiency” by Nate Adams, published

• nline in Greentech Media, Feb. 2, 2015

2 4 6 8 10 12 14 16 18 20 Lighting and Lighting and Contr Controls

• ls

Water ater DHW/Other DHW/Other Smaller Systems Smaller Systems HV HVAC Systems AC Systems Solar Ther Solar Thermal mal Solar PV Solar PV Simple Payback in Y Simple Payback in Years ears

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USE LOWER HANGING FRUIT TO REACH THE TOP

Need Blended Need Blended Payback Period Payback Period to be less than to be less than PP PPA/ESA T A/ESA Ter erm(s) m(s)

NOT WHY WHOLE BUILDING RETROFITS—BUT HOW!

BUT HOW!

WHY NOT WHOLE PORTFOLIO RETROFITS

WHOLE PORTFOLIO RETROFITS

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Instinct is to focus on the worst

• ffenders in the portfolio

Or

Quickly grab the best incentives

Then couldn’t afford to make improvements in many of the other properties

Because the savings will be swept

ANOTHER FORM OF “LOW-HANGING FRUIT”

DON’T LEAVE ANYTHING IN THE BARREL

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WHOLE PORTFOLIO RETROFITS

BUT THIS APPROACH IS MUCH HARDER Incentives Availability & Reqt’s Incentives Timing Renewable Opportunities Energy Efficiency Opportunities Project Management Coordination/ Efficiency Interaction of EE and RE Improvements Lender/ Partner Approvals Development And Asset Management Plans FINAL PLAN

• Challenge
• 120 Properties +/-
• Savings goal of

>20%

• Need every

possible incentives

• Goal to do every

property, every measure

• Execute efficiently

and effectively

• Advantages
• Institutional
• penness
• Good data
• California

CONCLUSION

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