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KEEA/PBI Energy Efficiency 2013 Multifamily Programs Tom Corbett, Governor Brian A. Hudson, Sr., Executive Director/CEO www.phfa.org PHFA The Pennsylvania Housing Finance Agency: Created by the Pennsylvania legislature in 1972 Provides the capital for decent, safe, and affordable homes and apartments for older adults, persons of modest means, and those with special housing needs Has provided almost $11 billion in funding for over 120,000 single family homes and 83,000 multifamily apartments Created the Preservation through Smart Rehab Program in 2008 2 Multifamily Defined Five or more rental units under common ownership Ownership structures Limited Project Partnerships (for profit or nonprofit general partners Nonprofits Cooperatives Typically one property per owner entity 3 Existing Affordable Housing Very large inventory that could benefit from energy improvements Affordable multifamily housing typically falls under one or more of these programs: Housing and Urban Development (“HUD”) U.S. Department of Agriculture (“USDA”) Low Income Housing Tax Credits (“LIHTC”) Public Housing Authorities (“PHA”) Other – Community Development Block Grant Program, Federal HOME Program, State programs, etc. 4 Preservation through Smart Rehab Background Over 140,000 units of existing affordable housing in Pennsylvania, plus housing authority units Over 60 percent were built over 20 years ago Rising cost of operations – utility costs Need to reduce consumption and expenses associated with existing affordable housing stock. 5 Preservation through Smart Rehab Goals Reduce the operating costs of our multifamily properties Preserve the affordable housing units Diminish the level of natural resources used by this inventory 6 Preservation through Smart Rehab Committed Funding Sources PHFA West Penn Power Sustainable Energy Fund MacArthur Foundation Rural Development ARRA – Weatherization Funds Project Reserves Utility Companies 7 Preservation through Smart Rehab Results Number of developments retrofitted – 109 Number of units – 8308 Average cost per dwelling unit - $3,000 8 Barriers Faced by Program Owner lack of understanding regarding the benefit of energy retrofits Owner lack of knowledge of the retrofit process Owner time constraints when juggling various priorities Lack of capacity and/or capability of staff and property management Hesitancy of the limited partners 9 Multifamily Energy Retrofit Process Benchmarking Analysis of utility bills Energy audits and recommendations Sources of low cost financing Construction oversight Maintenance staff training Tenant outreach and education Post retrofit analysis 10 Benchmarking and Data Collection Benchmarking – cataloging inventory of properties and documenting current utility usage Tracking changes made to the property Documenting impact of investment (energy savings) in terms of energy usage, cost, and carbon footprint PHFA utilizes EnergyScoreCards from Bright Power (www.brightpower.biz) Another good benchmarking program is from WeGoWise (www.wegowise.com) 11 Energy Audits Should be comprehensive and detailed Analyzes past energy usage and provides List of energy savings measures Estimated installation costs Energy savings Utility cost savings Payback period Life cycle cost savings Savings to investment ratio Energy Auditor should have the Building Performance Institute (BPI) Multifamily Analyst certification (or similar designation) PHFA sponsored energy auditor training 12 Barriers to Production Availability of low cost financing Cannot be securitized by the property or guaranteed by the owner Must have low interest rates Some possibilities include on-bill financing/ repayment, carbon credits and capital reserve funding Volatility of energy prices Limited partner approvals 13 Contact Information David L. Evans Assistant Executive Director of Multifamily Housing Pennsylvania Housing Finance Agency 211 North Front Street Harrisburg, PA 17101 717.780.3928 [email protected] 14