PANEL DISCUSSION:

RESOURCES AND CHALLENGES FOR

GREEN PRESERVATIONPresented By: Mike PachecoDate: September 28, 2010Audience: Partners In Innovation Policy Forum

MODEST BEGINNINGS

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2005 Global Green’s Green Rating for States Qualified Allocation Plans

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CHFA’S GREEN INITIATIVES: A TIMELINE

78-04 2008 2009 2010

Governor’s New Energy Economy

Initiative

Denver Green Jobs Program

Denver Tree Program

Denver Convention Center

Receives LEED Certification

Mayor’s Greenprint

Denver Initiative

DOH Green Initiative

78-Energy Effic. Code Req. 04-Amend 3707-HB 1146

GEO NEED Grants

2005-Global Green QAP Rating-Colorado

“C”Green

Communities Criteria

2010 QAP

Green Communities

2009 QAPEnergy Star & Other Green

Requirements Added

2008 QAPOEMC Funding

Grants

2007 QAPOEMC Funding

Grants

HERA Act

SiteSelection

IndoorEnvironmental

Quality

Wate

r

Effi

ciency

Materials

&Resources Energ

y &

Atmosp

here

Site

Water

Energy

Materials

IndoorEnvironmentalQuality

HOW DOES Green Communities® ADDRESS THE ENVIRONMENTAL CHALLENGES OF THE BUILT ENVIRONMENT?

The Green CommunitiesDesign and construction practices meet specified standards, resolving much of the negative impact of buildings on their occupants and on the environment.

EN

VIR

ON

MEN

TECONOMICS

PEOPLE

Environmental Standards

LIHTC Application

Projects that areeconomically viable

QAPA Process that is beneficial

to theAffordable Housing

Community

At CHFA, how are we achieving sustainable affordable development?

LIHTC Application’s

Green Communities Checklist & Certification’s

Role: Requires new construction projects to score a minimum of 35 points and acquisition/rehab projects to score a minimum of 30 points

Requires that adequate financial resources are available to fund the green building to meet the Green Communities Standards

Requires that a project meet all financial underwriting standards

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LIHTC ApplicationInsures that

Projects will be economically

viable

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2010 Qualified Allocation Plan’s

Role:

Allows one document to be used by a developer to certify compliance when applying for resources from each entity.

Requires that each project comply with all mandatory provisions of the Green Communities Green Building Criteria, holds a charrette & submits a green development Plan

Establishes a self certifying program that requires that either a licensed architect or engineer & the project owner certify compliance.

QAPA Process that

adds value to theAffordable Housing

Community

BUILDINGSCERTIFIED

IT’S THE PROOF!

WHY CERTIFY?

TANGIBLE PROGRESS!

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1

1

1

1

1

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SUSTAINABLE SITESAdjacent to Transit

WATER EFFICIENTWater-efficient appliances & plumbing fixtures

ENERGY EFFICIENTEnergy consumption Savings to reduce utility bills

ENVIRONMENTALLY BENEFICIAL MATERIALS Recycled Content in Core and Shell MaterialsLocally Obtained Materials

INDOOR ENVIRONMENTAL QUALITYIndividual Control

INNOVATIVE GREEN PROCESSO&M practices and Low Maintenance Design

Designed & constructed to meet

the Green Communities

Criteria!

11 Affordable Colorado Projects

From yesterday’s hopeful expectations - to today’s

REALITY

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Project Information- 2010 (Approved Projects)

Average

Project NameRenaissance

West End Flats

Josephine Commons

Lewis CourtVillage at Waverly Creek

North Park II 1099 Osage Bluff LakeDahliaSquare

Glenwood Family

Pikes Peak Senior

Point of the Pines

Gardens

Project’s Location Denver Lafayette Golden Aurora Canon City Denver Denver DenverGlenwood

SpringsColorado Springs

Colorado Springs

Developer NonprofitNonprofit Housing Authority

Nonprofit Housing Authority

Nonprofit Housing Authority

For ProfitNonprofit Housing Authority

Nonprofit For Profit For Profit For Profit For Profit

Tax Credits Approved $1,250,000 $1,250,000 $997,152 $813,251 $640,539 $1,250,000 $1,250,000 $1,250,000 $1,151,831 $975,885 $958,617 $1,071,570

Federal Equity Factor $0.70 $0.71 $0.77 $0.79 $0.73 $0.71 $0.72 $0.71 $0.70 $0.65 $0.63 $0.711

Number of Units 101 74 50 55 25 100 92 88 56 70 89 73

Unit Mix 1, 2 BD 1 & 2 BD 1 & 2 BD 1, 2 BD 2, 3, 4, BD 1, 2 BD 1 ,2,3 BD 1,2 BD 1,2,3 BD 1,2 BD Studio & 1 BD  

AMI30%,40%,50%,6

0%30%,40%,50%,

60%30%,40%,50%,

60% 30%,50%,60% 40% & 60% 40%,50%,60% 30%,40%, 50%40%,40%,50%,

MR 50%, 60% 40% & 50%30%,40%,50%,

60%  

TypeNew

ConstructionNew

ConstructionNew

ConstructionNew

ConstructionNew

ConstructionNew

ConstructionNew

ConstructionNew

ConstructionNew

ConstructionNew

ConstructionNew

Construction  

Project TypeFamily/

HomelessSenior

IndependentSenior

IndependentSenior

Independent FamilySenior

Independent PH

Family/Homeless

Senior Independent

Family/S8 Vouchers

Senior Independent Assisted Senior  

Total Cost Per unit $171,669 $179,440 $224,328 $217,688 $223,663 $199,615 $183,087 $141,183 $234,473 $133,217 $107,183 $183,231

Total Cost Per SF $168 $165 $214 $243 $182 $209 $158 $142 $243 $151 $213 $190Replacement Reserve per unit $300 $250 $250 $250 $300 $300 $300 $250 $300 $250 $450 $291

Debt Coverage Ratio No Hard Debt 1.19 1.43 1.20 1.33 No Hard Debt 1.20 1.23 1.32 1.25 1.84 1.33

Tax Credit per Unit $12,376 $16,892 $19,943 $14,786 $25,622 $12,500 $13,587 $14,205 $20,568 $13,941 $10,771 $15,926

TC Leverage 1.98:1 1.50:1 1.46:1 1.86:1 1.20:1 2.25:1 1.87:1 1.40:1 1.63:1 1.48:1 1.58:1 1.65:1

TC % of Total Costs 50.47% 66.84% 68.45% 53.66% 83.62% 44.46% 53.43% 71.43% 61.41% 68.02% 63.31% 56.96%Max Supportable Vacancy Rate 24.93% 16.68% 17.27% 13.01% 19.88% 18.72% 15.97% 18.79% 19.08% 18.69% 20.34% 18.49%

Max Supportable Rent Reduction $98.02 $72.86 $64.38 $63.01 $78.08 $50.71 $78.02 $78.58 $91.13 $71.12 $272.54 $92.59

Basis Bump % (QCT, DDA, CHFA) 30.00% 13.62% 30.00% 0.00% 30.00% 30.00% 0.00% 0.00% 30.00% 30.00% 29.91% 20.32%

Green Communities Score 74 79 61 63 141 122 73 38 35 38 113 76

Green % of Total Costs 3.9% 3% 6.6% 3.84% 1.51% 6.28% 3% 2.83% 1.87% 2.19% 1.86% 3.35%

Green $ Costs $673,544 $398,355 $741,230 $460,000 $84,282 $1,253,400 $505,320 $351,900 $245,000 $205,154 $177,000 $463,199

Green $ Costs per SF $6.53 SF $4.95 SF $14.57 SF $6.99 SF $2.74 SF $13.12 SF $4.74 SF $4.02 SF $4.53 SF $3.32 SF $3.95 SF $6.58 SF

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Low

Average

High

35

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141

Green Communities Score Hi-Lo Chart - 11 Properties

(Minimum Score 30 for Acq/Rehab or 35 for New Const)

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Low

Average

High

1.51%

3.35%

6.60%

Green Premium percent added to total project cost

Hi-Lo Chart - 11 Properties(Conventional building costs = 100%)

50 units

73 units

25 units

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Low

Average

High

$84,282

$463,199

$1,253,400

Green Premium per project $Hi-Lo Chart - 11 Properties

100 units/ $12,534 per unit

73 units/ $6,345 per unit

25 units/$3,371 per unit

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Low

Average

High

$2.74

$6.32

$14.57

Green Premium per SF $Hi-Lo Chart - 11 Properties

(Conventional Construction Costs-100%)

100 units/ $12,534 per unit

73 units/ $6,345 per unit

25 units/$3,371 per unit

Green Benefitso Lower

Operating Expenses

o Increased Asset Value

o Reduced Waste

o Energy & Water Conservation

o Healthier & Safer for Residents

o Third Party Verification/ Accountability and Recognition

Thank You…

Resources:

• Colorado Housing Finance Authority

www.chfainfo.com/multifam/multifamily_developers

• Enterprise Green Communities

http://www.greencommunitiesonline.org/

1981 Blake St. Denver, CO 80202