martha paschal managing director, capital markets malachite llc 703.623-0574...
TRANSCRIPT
Financing Energy Retrofits for Affordable Housing
Presentation toCoalition for Nonprofit Housing & Economic
Development October 13, 2011
Martha Paschal
Managing Director, Capital Markets
Malachite LLC
www.malachitellc.com
703.623-0574
© 2011
What We Do Expert, multi-disciplinary support for
green building projects and portfolios DC PACE: Coordinating PACE for Multi-family Program design, lender, owner,
resident outreach/education Our Skills: Finance and investment Retrofit and development project management Portfolio and asset management Leasing and operations support Green certification Policy and program development and
research
High Performance Residential Buildings: Superior Financial Performance
$1 in home energy savings typically adds…
$20 home sale price premium
Lawrence Berkeley National Laboratory, April 2011
Property Life CycleWhen to Retrofit?
Physical Plant considerations◦ Watch system developments, lifecycle paybacks, items missed during
rehabs Financing Partner Considerations
◦ Lien priorities, partner capital accounts, property operating metrics, funding opportunities as they present themselves
• Timing Considerations◦ How close is the property to Year 15? Will system upgrades work better
within LIHTC refinancing or as a standalone? Owner Considerations
◦ Complications of retrofit programs, owner overhead, utility system configuration, ability to achieve lower utility allowance -> net rent increases from housing agencies
Resident Considerations◦ Resident training on new systems, energy efficiencies which can benefit
resident bottom-line
Affordable Housing Energy Retrofit Financing
Available Now Fannie Mae/ FHA Risk-
Sharing – “Green Refinance Plus”
Fannie Mae FHA Pilot under discussion Freddie MacDC PACE
DC PACE Bond Program being Planned Energy Efficiency Financing Act of 2010
(authorizing legislation) Commercial/multi-family program in
planning stage DC will issue up to $250 million in revenue
bonds to raise energy retrofit financing funds Properties will opt in voluntarily to apply for
retrofit loans Uses for loan proceeds will include:
Insulation; HVAC; weather stripping; caulking; EE lighting; daylighting; meters; control systems; renewables
Loan repayment reduced by realized energy savings
Codes ASHRAE 189.1 (2010): first green building code IECC 2012: newest energy conservation code (30%
more efficient than 2006)Standards ASTM BEPA, 2011: new foundation energy audit
standard ASHRAE 100, revisions in completion, 2011: energy
benchmarking and audit ISO 5000, 2011: international commercial/industrial
energy production and management
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Codes and Standards
Green, energy-efficient buildings produce superior financial performance:
Energy savings, higher rents and occupancy rates, stronger sales prices.
Energy-efficient retrofits often produce strong payback results.
New codes, standards should lead to new financing opportunities
Market standardization Easier/cheaper implementation Most energy retrofit progress to date has been in the
office sector, but multi-family financing options increasing.
Fannie Mae, FHA DC PACE program will have a multi-family retrofit
component
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Takeaways
Martha Paschal
Managing Director, Capital Markets
Malachite LLC
703.623-0574
www.malachitellc.com
Energy Retrofits for Affordable Housing