SOLARA: Affordable Housing asGreen Sustainable Development

Anne Wilson Vice President Real Estate Development

Community HousingWorks

North Caroline Affordable Housing ConferenceOctober 16, 2007

SOLARAThe first apartment complex in CA fully powered by the sun

Community HousingWorksA San Diego non-profit that helps people and neighborhoods move up in the world by

providing a full range of housing options combined with training and support.

25 years history in San Diego Home Ownership Center; 17 as Multi-Family Developer1550 apartment homes; 29 complexes

What do we do?• Build and own beautiful affordable apartments• Provide unique first-time homebuyer loans• Provide support and training that strengthens communities and helps families build a

wealthier future

Nationally and locally recognized designs: AIA; Fannie Mae Maxwell Foundation; Urban Land Institute; Pacific Coast Builders Conference

NeighborWorks America Charter Member

Community HousingWorks•Award winning affordable housing

•29 affordable rental communities across San Diego County

•Homes for over 1,600 families

SOLARA is Green and Sustainable

Not just photovoltaic electricity/Solar Power Five elements make a project “green”

Energy Efficiency - Reduce energy demand by 60-70%,

Renewable(s) – Energy Supply - use renewable energy to supply balance of demand

Water Efficiency Recycled / Recyclable Materials Indoor Air Quality (IAQ)

SOLARA

Completed March 2007 Poway, CA inland approx 20 miles (hot) Mixed use master plan includes 2,100 SF office Physical:

56 units (1, 2, 3 bedroom), family units 2 story wood (no elevators) 2,100 sf Community Center 90 parking spaces (w 56 carports) 22 DU/Acres 142 Kilowatts from PV (100%)

Affordable Housing- LIHTC restricted (55 yrs) 30%-60% AMI (approx low $15k – mid $40k) Rents - $388 - $1,075/mo (includes all utilities)

Barriers

Technical – how to do it? Who to trust? Finance – where to find additional funds New technology Concerns:

Permits and ApprovalsConstruction –GC, Arch, Subs Utility Companies

More work, new complexities, potential delays?

SOLARA = lots of challenges, little time Time – City needed us to break ground in less than

12 month from submission of design concept! Site - flood plain, adjacent to FEMA floodway

greenbelt; expensive sitework to level site and increase density (425’ long, 8’ high retaining wall)

Team – selected prior, no one experienced with “green”

Costs– 2004/2005 high cost period in SD/USA No model – no “LEED” guidelines for low rise

residential

Technically – You can do it- we did!

Decision to build Green Fall 2004 Started Grading Oct 2005 LIHTC allocation Jan 07 Completed April 2007

under budget, on time

How did we do it? Mary Jane Jagodzinski, Sr Proj. Mgr provided strong

leadership Supportive City staff Green Consultant Luck

SOLARA = Photovoltaic Electricity for residents and common area

SOLARA Green Elements: Photovoltaic

Example: Daytime and PV feeding the SDGE grid

Meters run backwards and forwards!

SOLARA Photovoltaic

Cost (approx) $1,103,000

Sources

CEC Rebates (State) $409,000 Tax Credit Basis Boost (State) 405,000 Investment Tax Credit (30%) (Fed) 208,000 Perm Mortgage (project based UA) 81,000

Total Sources $1,103,000

SOLARA: Project Finance(prevailing wage)

Loan (soft): City of Poway $ 775,000Loan (soft): San Diego County HOME 1,000,000Loan: Union Bank of California 2,370,000Rebate: CEC’s ERP 409,000Misc. Reimb / Interest 152,000Equity: Business Tax Credits: NEF 208,000 LIH Tax Credits (9%): NEF 11,266,000

TOTAL $16,180,000

(excludes $2.2 m for land, 99-yr ground lease w/ Poway Redev.Agency)

CA Green Initiatives

• CA Tax Credit Agency:-5% basis boost for PV-4% basis boost for energy efficiency/Green

-Note: 9% deals pay for PV 100%; 4% doesn’t • California Energy Commission/Public Utility

Commission-Rebates New Construction (decrease as more built)-Grants to Nonprofits to provide TA, training, modeling

CA – High Energy Efficiency Standards

California’s Energy code- “Title 24” since 1974 Perspective: If CA not changed code in

1974, would need 1 nuclear plant every 8 miles between San Diego and San Francisco!

Per Capita Energy use in CA – lowest in US, level

SOLARA exceeded CA Title 24 by >42% (2001) SOLARA exceeded national IBC ASHRAE 2001

standards by 80%!

SOLARA: Green, Sustainable, Smart Growth

Not Just photovoltaic electricity What 5 elements make a project “green”?

Energy Efficiency - Reduce energy demand by 60-70%, use renewable energy to supply balance of demand

Renewable(s) – Energy Supply Water Efficiency Recycled / Recyclable Materials Indoor Air Quality (IAQ)

SOLARA Green Elements: Site

SOLARA: Green, Sustainable, 360’• Smart Growth - location matters• Building Envelope, orientation on site • Maintenance Plans and Training Manuals• Prop Mgmt Staff Training• Resident Training and Buy In• Resident Services Program curriculum,

outreach and education (Enterprise $)• Public Art & Education

Public Art

What Do Developers Need? Successful examples Education and Technical Assistance – to

developers, public jurisdictions and depts

State & Local Agency Coordination and Support Utility Company commitment and attention -state

action helps; utilities heavily regulated

Funding for Capital Costs – Policy changes

Policy Needs - Funding

State and Local Gov must support PV and Green - Rebates work best

Federal ITC – excellent, preserve Local Gov - Expedite permits and review

process Utility Companies – create incentive &

expedite programs Requires state by state policy changes

(federal Section 42 incentives?)

SOLARA

SOLARA Photovoltaic

S O L A R A

S O L A R A