California Multi-Family New Homes A Third-Party Program of the Pacific
Gas and Electric Company (PG&E)
Shannon Todd 2014 Housing California
Portfolio Manager and Beyond:
Benchmarking Multifamily Properties
Introductions TRC Energy Services Consulting on energy efficiency for buildings Program Implementation Codes and Standards Emerging Technologies Evaluation
Expertise in multifamily energy efficiency program implementation throughout the United States
Benchmarking conducted for over 500 buildings, with over 8 million ft2
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Program Description
Public service program: Cash incentives Energy design assistance Project roundtable Educational opportunities Program coordination
Facilitate energy efficient design and
construction in new multi-family housing through cash incentives and
design assistance
What is Benchmarking? Comparison of a building’s energy use against the
use of other similar buildings. A comparison pool can range from portfolio-wide to
nationwide.
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Benefits Inform capital improvement planning Identify malfunctioning systems and leaks Set goals for energy and water use and greenhouse gas
emission reduction Confirm expected energy performance Use the ENERGY STAR® 1-100 multifamily score to
assess your portfolio and to apply for an ENERGY STAR rating (expected Fall 2014)
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Benchmarking Steps 1. Data collection Building data Energy use data – either manual or automated
2. Data organization Spreadsheet or benchmarking tool (i.e., Portfolio
Manager, WeGo Wise, Compass, Energy Scorecards) 3. Data comparison Internal benchmarking Regional comparison National ranking (i.e., ENERGY STAR 1-100 score)
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Building Name Year built Location (street, city, state) Gross floor area (SF) Common area Unit type dimensions and number
of each unit type Appliances and building systems number of laundry hook-ups in
each unit and in common area Percent of floor area that is
heated and cooled Heating and cooling systems
Energy Use Knowledge of which meter
corresponds to which space (SF) Resident authorization, if sub
metered Actual energy use Manual: 24 months of utility bills for all
building meters Automated: Utility identifier for each
meter (i.e., Service ID # for PG&E)
Data Collection 7
Navigating Portfolio Manager Account: a free service from the EPA Properties: multiple properties under one account Meters: designate metered spaces (i.e. lobby, unit 101) Web Services (Automated Benchmarking Service): Share properties with Contacts (your utility) to initiate
automatic, ongoing data uploads from your utility
TIP: Refer to PG&E’s Benchmarking How-to Guide for a step by step guide to setting up your account. The process is relatively similar in each utility territory.
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Meter Authorization Master-metered projects: easiest to benchmark No tenant meter authorization is required
Sub-metered projects: more challenging Residents will need to authorize sharing of their meters
(for PG&E, visit https://www.pge.com/BenchmarkingDataRelease)
Mix of master- and sub-metered projects: Begin with common areas
TIP: A sample of sub-metered units can still provide
insight into your property’s energy use.
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Analyzing your Data Compare the building with itself Year over year Baseline versus seasonal use
Compare the building within your portfolio Prioritize improvements for buildings with poor
performance Compare the building nationally using ENERGY STAR’s
1-100 multifamily score
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ENERGY STAR 1-100 Score Planned for launch in Fall 2014 “The ENERGY STAR score allows everyone to quickly
understand how a building is performing. A score of 50 represents median energy performance A score of 75 or better indicates your building is a top
performer — and may be eligible for ENERGY STAR certification.” EPA
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Better Buildings Challenge Launched by President Obama in 2011 to “improve the efficiency of American commercial,
institutional, and multifamily buildings and industrial plants by 20 percent or more over ten years.” – Better Buildings Overview
Participating organizations commit to conduct an energy assessment, develop and energy management plan, and report energy savings. Over 50 multifamily organizations have taken the pledge
(at least 10 in California) TIP: Read on at Better Buildings Challenge Multifamily
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Benchmarking Resources Benchmarking guidance for utilities statewide Pacific Gas and Electric San Diego Gas and Electric Sacramento Municipal Utility District Southern California Edison Southern California Gas Company
Portfolio Manager website
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Program Contact Information Toll Free: 866-352-7457 Email: [email protected] Website: http://www.cmfnh.com Access this presentation on the CMFNH trainings page.
Program Manager: Sophia Hartkopf, [email protected]
Plan Review and HERS Verification Manager: Keith Sage, [email protected]
Program Outreach and Participation Coordinator: Shannon Todd, [email protected]
Building Sustainable Organizations Through Portfolio Initiatives 2014 Housing California Conference Enterprise Community Partners’ Capacity-Building Programs
April 16, 2014
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Agenda
• Enterprise Portfolio Initiative Goals • How Change Occurs • Portfolio Dashboards & Benchmarking • Enterprise Capacity-Building Program Successes • Enterprise Program Resources
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Enterprise Portfolio Initiative Goals
• Strong, proactive asset managers • Long term financial viability and physical quality of
affordable housing real estate assets • Affordable and healthy units for residents • Environmental stewardship and resilience • Strategic, salient information to support
organization-wide and site level programs for systematic portfolio improvement…
not data for data’s sake
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How Change Occurs
• Staff Action Driven by: • Reacting to Crisis • Proactive Strategies with Measurable Impact • Organizational Mission
Property-level Information + Organizational Assessments + Incentives to Overcome Barriers Portfolio-level Actions
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Strategic, Salient Information: Portfolio Dashboards & Benchmarking
• Early Warning Systems & Executive Level Dashboards
• Portfolio Dashboards & Operating Budget Benchmarking
• Utility Cost & Energy Benchmarking
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Early Warning Systems & Executive Level Dashboards
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Portfolio Dashboards: Selecting Measures to Benchmark
Rating
Compliance - Reports and Tenant Files
Occupancy Rate
Turnover Rate
Work Order Completion
Physical Condition
Organizational Fees
Reserve Funding
Operating Reserve Balance
Replacement Reserve Balance Debt Service
A - Good No Findings >=95% Occupancy <5% per year
>98% of all work orders completed per management performance standard
Good condition. No deferred mainenance. No major repairs needs.
Full funding of asset management and bookkeeping fees.
Fully funding
Dollar Amount > 6 months Revenues
Dollar Amount > 6 times Capital Needs
Current on all hard debt payments
B - Watch List
Findings to be address
90-95% Occupancy
5-10% per year
76-98% of work orders completed per management performance standard
Some deferred maintenance. Major repairs manageable using operating cash and replacement reserves.
Funding of fees, but not to full levels.
Partially funding
Dollar Amount = 4-6 months Revenues
Dollar Amount = 4-6 times Capital Needs N/A
C - Warning
Unresolved findings >= 90 days, recapture, tax credit loss or Notice of Default
<=89% Occupancy
>10% per year
>75% of work order not completed per management performance standard
Significant deferred maintenance. Major repairs cannot be managed using operating cash and replacement reserves. Operations dependent on reserve withdrawals.
No funding of fees. Not funding
Dollar Amount <= 3 months Revenues
Dollar Amount <= 3 times Capital Needs
Not current on all hard debt payments or late in the past 12 months
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Portfolio Dashboards: Targeting Problem Properties
Quarterly Dashboard Period: Q2 2014
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Property # Units Yr 15 Tax Credit
Partnerships
Property J 40 2014 N/A Property H 24 2015 Property X 10 2016 Property Y 10 2016 N/A Property I 24 2019 N/A Property K 42 2025 N/A Property Z 32 2026 N/A Property L 48 2027 N/A
Post-Year 15 Partnerships
Property D 22 N/A N/A Property E 17 N/A Property C 27 N/A Property F 42 N/A
Non-Partnerships
Property B 20 N/A N/A Property A 8 N/A N/A Property G 24 N/A N/A Total Units in Portfolio 390
Energy or Utility Benchmarking: One Piece of the Larger Picture
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Enterprise Capacity-Building Program Successes
• Assisted affordable housing owners in developing portfolio improvement plans based on a range of financial and physical performance data, addressing barriers specific to our industry
• Developed programs to leverage government stimulus and utility incentives and initiated framework for evaluating impact
• Advanced portfolio improvement work with financial planning advice even when incentives not sufficent to motivate action
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Measures of Success in 2013 – Organizational Capacity Building
• 14 partners supported in California statewide • Grants ranging from $10,000 to $75,000 • 70% have a single lead staff dedicated to strong, green asset
management • 50% developed portfolio-wide monitoring and management
systems • Numerous staff trainings for asset managers, property
managers, facilities managers, resident service providers • 4 partners supported in strategic collaboration to develop
shared systems • 2 partners supported to provide support services to others in
the industry
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Measures of Success in 2013 – Physical Improvements
• Supported the completion of audits for 400 units and full physical needs assessments for 150 units
• 4 partners current on 3 year cycle of capital needs assessments
• Over 500 units were rehabbed to achieve performance improvements
• 8500 units utility benchmarked and continually monitored • 900 units reviewed for utility performance improvement
opportunities • 2000 units reviewed for recapitaliation financial plan • 26 property financial and upgrade plans developed and
ready to implement in 2014
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Enterprise Program Resources
Grants Apply for capacity-building grants, due May 7th www.enterprisecommunity.com/financing-and-development/grants Online Tools • www.enterprisecommunity.com/solutions-and-
innovation/building-sustainable-organizations • www.enterprisecommunity.com/solutions-and-
innovation/enterprise-green-communities/resources/multifamily-retrofit
• www.enterprisecommunity.com/solutions-and-innovation/enterprise-green-communities/resources/operations-and-maintenance-toolkit
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Enterprise Program Supportive Partners
• Better Buildings Challenge www.energy.gov/better-buildings
• LA Better Buildings Challenge www.la-bbc.com • Abode Communities www.abodecommunities.org • Partner Energy www.ptrenergy.com • California Housing Partnership Corporation
www.chpc.net • WegoWise www.wegowise.com • Energy Score Cards www.energyscorecards.com
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Enterprise Program Contacts
Northern California - GreenPASS William Ho, [email protected] 415-395-4752 Southern California - Portfolio Initiative Felicia Brown, [email protected] 213-787-8231
www.EnterpriseCommunity.org | www.EnterpriseCommunity.com
Benchmarking your Portfolio, Why?
Housing California 2014 Annual Conference Benchmarking Multifamily Properties – Portfolio Manager and Beyond
Sacramento, California April 16, 2014,
Informed decisions to improve your portfolio one step at a time
Founded in 1968 as a volunteer organization of architects, Abode Communities has provided comprehensive architectural services and technical assistance to more than 500 community groups on projects including permanent, sustainable affordable housing, homeless shelters , child care centers, health clinics and senior centers.
Abode Communities:
At Abode Communities our mission is to open new doors in people’s lives through creative and responsible design, development and operation of service-enhanced affordable housing.
Our Mission:
To Benchmark or Not to Benchmark?
A little History…
We’ve always believed that affordable housing is at the junction of environmental sustainability and social justice and this belief led us to design building were we at each step we attempted to reduce the cost of utilities for the residents.
How much does this cost and what is the “real” impact of these decisions…
Buildings Science and Systems
Data Gathering:
The proof was in the pudding.
Buildings Science and Systems
Data Gathering:
The proof was in the pudding.
we had to either go into the building and connect some monitors to the meters or request and tabulate a bunch of utility bills…
Buildings Science and Systems
Buildings Science and Systems
Online tools:
WegoWise Building Dashboard (2008)
Lucid Building Dashboard (2010)
Success Stories!
Ivy Terrace, Van Nuys, CA
Success Stories!
Success Stories!
Grand Avenue Apts. Los Angeles, CA
Portfolio Initiative
Understanding your buildings, understanding your Portfolio:
Wouldn’t it be great if we could share the performance data of all the affordable housing stock?
Benchmarking Strategies
Understanding your buildings, understanding your Portfolio: • 10 Affordable Housing Developer/Owners and 202
properties became part of this effort • There is a large variety of building within the portfolio • The amount of data can be overwhelming and difficult
to understand and • more data might be better but not always easier, • finally the data might not be right.
Benchmarking Strategies
The Abbey Apartments (SRHT) Paseo del Sol (ELACC)
The Project:
“The achievements of an organization are the results of the combined effort of each individual.” Vince ,Lombardi
Portfolio wide approach to retrofit:
Portfolio Details: • 4 developer/ Owners joined this effort • 33 of the properties are part of the
process
make sure the data is accurate, (garbage in, garbage out) Building size, systems properly identified utility data uploading, etc., this take some time but if the data is not accurate it’s useless.
Portfolio wide approach to retrofit: First Step:
Portfolio wide approach to retrofit:
• analyze data received from benchmarking
• establish a series of filters to parse the data:
• Building Size • Number of Units • Mechanical Systems • Population • Year built • Etc.
Utility Based Assessment:
Portfolio wide approach to retrofit:
Identifying the issues:
• building type • construction
type • year built • Envelope details • MEP Systems • Who Pays for
Utilities • Population • orientation
Building Assessment:
The last step is to identify the tools to develop the standards and goals for a retrofit process that incorporates healthy building principles and sustainable strategies to be used for standardized delivery and quality assurance of both the audit and retrofit work
Portfolio Wide Protocol :
Don’t forget to set up improvement milestones to insure the collection of the data for future developments
• Benchmarking for new Buildings: 1. Smart buildings strategy 2. Great for educating staff and
residents 3. Providing Data for recomendations
in future developments
• Benchmarking for existing Buildings: 1. Expected result is a more efficient
management of the portfolio by: 2. Controlling Expenses 3. Maximizing Revenue 4. Managing Capital Needs 5. Provides data for replacement
decisions 6. Reduces the expense for studying
properties within the portfolio, AKA Cost of PNA’s
In Conclusion:
BETTER HOUSING THROUGH BENCHMARKING
Measure and Verify Retrofits
Choosing a Platform
Compare to a Baseline
Natural Gas Use at Three Buildings (avg BTU/sq ft/day)
0
50
100
150
200
250
300
350
400
450
May-09 May-10 May-11 May-12 May-13
ClaytonConsorciaSwiss
Getting Set Up
Collecting Building Data
Year built Type of construction Building square footage:
Total Residential Basement
Type of heating/cooling system Meter configuration Utility account numbers
Cleaning the Utility Data
Understanding the Data William Penn
Notre Dame
Clayton
Consorcia
Swiss American
B’way Family
St. Claire
Tower
I-Hotel
Bayside
1370 CA
Larkin Pine
Crescent Cove
Namiki
9th Ave
201 Turk
Understanding the Data
Natural Gas Use at Six Buildings (avg BTU/sf/day)
19.9K
20.2K
20.7K
21.1K
24.2K
24.7K
26.1K
29.3K
47.1K
Tenderloin Family9th AveNamiki
Crescent Cove1370 CABaysideI-HotelTower
St. Claire22.1K
46K
68.8K
71.9K
84.2K
91.6K
105K
Larkin PineBroadway Family
Swiss AmericanThe ConsorciaClayton Hotel
Notre DameWilliam Penn
Understanding the Data
Both heating and hot water use natural gas
Only hot water uses natural gas (heating is electric)
Larkin Pine Solar Thermal System
Using the Benchmarking Data
Measure and Verify Retrofits
St. Claire natural gas use (avg Btu/sf/day)
1370 California natural gas use (avg Btu/sf/day)
0
20
40
60
80
100
120
Jun Sep Dec Mar
2012-20132011-20122010-2011
0
50
100
150
200
250
Jun Sep Dec Mar
2012-20132011-20122010-2011
Year 1 savings: $1,600 Year 1 savings: $2,000
Measure and Verify Retrofits
Results of Consorcia DHW Heater Retrofit (avg BTU/sf/day)
0
50
100
150
200
250
300
350
400
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
2012-20132011-20122010-2011
19.9K
20.2K
20.7K
21.1K
24.2K
24.7K
26.1K
29.3K
47.1K
Tenderloin Family9th AveNamiki
Crescent Cove1370 CABaysideI-HotelTower
St. Claire22.1K
46K
68.8K
71.9K
84.2K
91.6K
105K
Larkin PineBroadway Family
Swiss AmericanThe ConsorciaClayton Hotel
Notre DameWilliam Penn
Identify Capital Improvements
Benchmarking for O&M
International Hotel Water Use (avg gal/bedroom/day)
Share Data with Residents
Results of St. Claire Water Retrofit (avg gal/bedroom/day)
0
20
40
60
80
100
120
140
160
Aug Sep Oct Nov Dec Jan Feb Mar Apr May
2012-20132011-20122010-2011
Better Housing
1. Measure and verify retrofits 2. Be strategic about capital improvements 3. Improve building operations and maintenance 4. Motivate residents to join our efforts
Benchmarking is a mindset.
