Green Multifamily Retrofit

Noni Ramos

September 26, 2011

2

Target Markets

3

Green Communities Criteria is Framework for Green Affordable Housing

IntegratedDesign

Energy Efficiency

Location and Neighborhood

Fabric

Materials Beneficial to the Environment

Health

Water Conservation

4

Green Communities: The Next Generation

U.S. Department of Housing and Urban Development Secretary Shaun Donovan helped launch the next generation of Enterprise Green Communities:

Green all affordable housing within a decade

$4 billion commitment

75,000 homes and facilities over the next five years

Enterprise Goal: 100% green by 2013

5

Existing Multifamily Properties are in Need of Retrofitting

Multifamily buildings house our nation’s poorest residents who bear double the energy burden

Residential buildings account for more than half of the built environment and 21% of all U.S. carbon emissions

Energy reductions of only 20% in federally subsidized buildings could generate $1 billion in savings

6

Benefits of Green Retrofit

Property owners

Residents

Lenders and investors

7

Challenges to Green Retrofit

Imperfect information

Multiple energy audit tools

Lack of a comprehensive protocol

Limited technical capacity

Inadequate financing

Disaggregated benefits

Split incentives

8

Enterprise’s Approach

Capacity Building

Green Capital Needs Assessments

Energy and Water Conservation Audit

Audit provider capacity building

Best practices and protocols for owners

9

Enterprise’s Approach

Financing

Retrofit mortgage refinance

Bridge loan leading to permanent refinance

Add-on financing

10

Add-On Financing Pilots

San Francisco BAM Fund

OH Green Communities

Winn Development (Boston)

11

San Francisco BAM Fund

$4MM Retrofit Loan Fund (BAM Fund)

$2MM Credit Enhancement through the State Energy Program (SEP)

$2MM Senior Capital

12

OH Green Communities

$1MM Green Communities Retrofit Loan Fund

$500k top loss provided by the Ohio Housing Finance Agency (OHFA)

$500k Senior Capital

13

Village at Brookline – Winn Development

Owner: Winn DevelopmentLocation: 77 Village Way, Brookline, MAUnits: 307 Affordable, Section 42, HFA

Property description: Three mid-rise buildings 7-9 stories high, 2-3 story townhomes, parking garage, significant green space, one senior building, family housing

Utility structure: All utilities paid by owner

Financing:

$1MM Entity Level Line of Credit

The first sub-loan for $874,464 will retrofit 307 units in Brookline, Mass.

14

Village at Brookline: Challenges

Selecting the right property for the retrofit took nearly a year.

Winn completed preliminary energy audits on approximately 10 properties and analyzed properties needing improvement for loan eligibility.

Estimated energy savings had to be sufficient to be able to repay the Enterprise loan.

Master meter properties therefore only were considered.

15

We have made great progress!

Completed assessments on over 100 buildings totaling 8,000 units

Closed on $1.35MM in loans

Leveraging $30MM in retrofit financing

Pilots in several geographies

Creating web-based one-stop toolkit for retrofits

Publishing white paper on best practices