Greening Affordable Housing Training U.S. Green Building Council

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1 Greening Affordable Housing Training U.S. Green Building Council Case Study on Integrating Green Technology and Techniques in the Renovation of Affordable Housing Presentation by Tracy Kaufman November 13, 2006

2 National Housing Trust Committed to bettering the quality of life for the families and elderly who live in affordable apartments Preserving and revitalizing existing affordable apartments is the essential first step in solving our nation s housing dilemma. Safeguard affordable homes through: real estate development lending and public policy initiatives

3 States Where NHT and Its Affiliates are Active

Affordable Rental Housing is Shrinking Every Year Losing affordable housing to condo conversion, abandonment and demolition Effectively, we are not able to build

4 Affordable Rental Housing is Shrinking Every Year Losing affordable housing to condo conversion, abandonment and demolition Effectively, we are not able to build enough to meet the growing demand for affordable, rental housing. As the affordable housing stock shrinks, more and more households compete for the same affordable housing.

5 Preservation is Cost Effective $70,000 $60,000 $50,000 $40,000 Estimated Tax Credit Equity for Rehabilitation vs. New Construction (2004) $39,596 $64,473 Rehabilitation properties received less than $40,000 in tax credit equity for each rehabilitated apartment $30,000 $20,000 $10,000 $0 Equity for Rehabilitation Equity for New Construction In contrast, each newly constructed apartment received almost $65,000 in tax credit equity

6 Preservation of affordable housing is inherently energy and resource efficient. Eric A. Goldstein, Urban Program Co-Director Natural Resources Defense Council Preservation is energy efficient. It produces less waste and uses less new materials and energy than new construction. There are many ways to integrate green technology and methods into the rehabilitation process to improve energy efficiency and conserve water through the use of green design and materials. These improvements produce utility savings for owners and residents, lower maintenance costs, and provide a better living environment.

7 NHT/Enterprise Preservation Corporation NHT and the Enterprise Foundation launched venture Organization to buy and hold where no local nonprofit interest lies in preserving. Has preserved more than 3,000 units in Mid-Atlantic, Midwest, South, and Southeast Staffed by six underwriters and asset managers employed by NHT Often partners with other for profit

8 Friendship Court Charlottesville, VA

exterior light fixtures New roofs with lighter colored shingles Higher efficiency

toilets Longer-lasting fiber cement siding Energy efficient, water-saving front loading

9 Friendship Court (cont.) Better-insulated windows & exterior doors Improved roof insulation Fluorescent exterior light fixtures New roofs with lighter colored shingles Higher efficiency heating & cooling equipment Water-conserving kitchen and bathroom fixtures and low-flow toilets Longer-lasting fiber cement siding Energy efficient, water-saving front loading washers and dryers No VOC interior paint and low VOC exterior paint Mature trees kept and additional trees and shrubs added Improved erosion control and drainage

10 Friendship Court

11 Friendship Court: Sources & Uses Sources Bonds $2,754,000 Tax Credit Equity $4,436,000 Loans & Grants $2,377,500 Project Reserves $600,000 Deferred Developer Fee $100,000 Total Sources: $10,267,500 Uses Acquisition Costs $4,800,000 Construction/Rehabilitation - Hard Costs $3,154,000 Real Estate Soft Costs, Overhead and Syndication Costs $1,390,500 Escrows & Reserves $923,000 Total Uses: $10,267,500

12 Galen Terrace: From Mean Streets to Green Street

Galen Terrace Location: Washington, DC Residents: Family Number of apartments: 3 buildings, 84 apartments, 1-4 bedrooms, 100% Section 8 Type of construction:

13 Galen Terrace Location: Washington, DC Residents: Family Number of apartments: 3 buildings, 84 apartments, 1-4 bedrooms, 100% Section 8 Type of construction: Rehabilitation Cost of rehab: $60,000/unit Developer: NHT/Enterprise, Somerset & Resident Assoc. Architect: EDG Architects GC: Hamel Builders: Property Managers: Edgewood

14 Resident s s Right of 1 st Refusal May 2004: Offer by forprofit to buy property Tenants looked for development partners & selected NHT/Enterprise & Somerset June 2004: NHT/Enterprise began working with the tenants

15 The Green Renovation of Galen

16 The Green Renovation of Galen

The Greening of Galen Terrace Renovation

systems, windows, doors (keeping walls &

door test and infrared scans of building

feed into rain barrels Low-flow fixtures

17 The Greening of Galen Terrace Renovation includes full unit renovations, all new systems, windows, doors (keeping walls & ceilings) Energy auditor completed a blower door test and infrared scans of building Creating a walkable community Downspouts will feed into rain barrels Low-flow fixtures Native Plants Energy Star refrigerators Individual meters in all units

reflective roof material Low VOC paints, primers, sealants, adhesives,

sealant or laminate Green label certified carpets Insulate cold water pipes

18 The Greening of Galen Terrace (cont.) Common area laundry rooms (6) with new ductwork & venting Solar reflective roof material Low VOC paints, primers, sealants, adhesives, caulk Composite wood free of added urea formaldehyde or sealed with low VOC sealant or laminate Green label certified carpets Insulate cold water pipes Green Home Guide is being developed and will be distributed to residents Management provides an orientation to each new renter

19 Galen Terrace: Sources & Uses Sources Tax-exempt Private Activity Bonds $4,533,000 City Loan $3,252,000 LIHTC Tax Credit Equity $4,646,000 Green Communities Grant $50,000 Investment Earnings $55,195 TOTAL SOURCES: $12,536,195 Uses Acquisition $2,777,000 Rehabilitation $5,442,573 Financing Costs $487,630 Reserves and Escrows $1,337,017 Professional fees, relocation expenses & other soft costs $2,491,975 TOTAL USES: $12,536,195

20 Why Galen Went Green & Funding Leadership of NHT President and staff commitment Applied and met Enterprise s Green Communities criteria Now in DC: bonus points for green for any city funding Green building legislation working way thru process Enterprise Green Communities criteria in building code

21 Recommendations Start from the beginning Take time to learn how to do green well -- takes time for developers and builders to learn how to do green well Takes experience to know what different specifications to use, to find different subcontractors with more knowledge using green products Know what to spec that is affordable Get contractor who has done green building before if not, get them on early and work with the architect from the beginning

22 Quick Payback Strategies Renovation strategies that involve modest investments and quick paybacks from savings on water: Low Flow Faucet Aerators Low Flow Showerheads Low Flush Toilets High efficiency, front loaded washers

Incentives for Green Preservation State and local energy efficiency and water conservation programs take a variety of forms, including: Renewable energy tax credits Incentive programs for replacement

23 Incentives for Green Preservation State and local energy efficiency and water conservation programs take a variety of forms, including: Renewable energy tax credits Incentive programs for replacement of older fixtures with low-water use fixtures Rebate programs for alternative energy sources, high efficiency washers and dryers, and low-flow toilets Sales and property tax exemptions for photovoltaic and other alternative energy sources In order to receive Low Income Housing Tax Credits, many states provide incentives and even include threshold requirements for integrating green methods into rehabilitation of existing apartments.

24 For More Information Tracy Kaufman National Housing Trust Address: th St, NW, Suite 400 Washington, DC Phone: (202)

4/18/2016. Preservation of Existing Affordable Housing Housing Summit Oklahoma City

4/18/2016. Preservation of Existing Affordable Housing Housing Summit Oklahoma City Preservation of Existing Affordable Housing 2016 Housing Summit Oklahoma City Laura Abernathy National Housing Trust National Housing Trust The National Housing Trust protects and improves existing affordable