RetrofitNY Design Workshop Revolutionizing Building Renovations in - PowerPoint PPT Presentation

RetrofitNY Design Workshop Revolutionizing Building Renovations in New York State 11.02.17

2 10:00 – 10:10am Welcome & Session Overview ▪ 10:10 – 10:20am RetrofitNY Introduction ▪ 10:20 – 11:10am Guest Speakers and Q&A Panel ▪ 11:10 – 11:50am RFP Overview + Participation ▪ Agenda 11:50 – 12:10pm Break + Working Lunch ▪ 12:10 – 12:55pm Cross-Cutting Team Networking Exercise ▪ 12:55 – 1:00pm Closing/Next Steps ▪ 1:00 – 2:00pm Informal Networking ▪

3 What is RetrofitNY?

4 Creating a large scale, self-sustaining market for high performance retrofit solutions Industry-designed, cost-effective retrofit solutions for tenanted buildings reaching or approaching net-zero energy. Implement solutions on a large scale to drive industrialization and reduce costs.

5 Net-Zero Energy Retrofits… or close to it Benefits ▪ Residents ▪ Health & Comfort ▪ Quality of Life ▪ Building Owners ▪ City & State ▪ Environmental Impact ▪ Affordable Housing Preservation ▪ $1+ Billion Annual Market

6 Woodrow Wilson Apartments Amsterdam, NY Circa 2014

7 Woodrow Wilson Apartments Amsterdam, NY Circa 2016 Courtesy: Beacon Communities, LLC

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9 Revolutionizing the way multifamily Funds Products buildings are Finance renovated, keeping residents in their Housing Concepts Authorities homes. Business Demand Supply Model Private Components Regulation Nyserda.ny.gov/RetrofitNY Local State Utilities

10 A successful model to show market potential Cost per Unit & Performance of Retrofits By reaching scale, this solution will become the standard. This is where the market is headed, and you can be ahead of the curve.

11 Guest Speaker Presentations and Q&A

12 Sadie McKeown Executive Vice President & COO, Community Preservation Corporation

13 About CPC The Community Preservation Corporation (CPC) believes housing is central to transforming underserved neighborhoods into thriving, vibrant communities.

14 About CPC ▪ CPC is a nonprofit affordable ▪ Our goal is to be more than just housing and community a lender. At CPC, we work as a revitalization finance company partner to provide technical providing flexible capital expertise, support and flexible solutions, fresh thinking and a solutions that help meet the collaborative approach to the capital needs and broader complex issues facing community revitalization goals of communities. our customers, local stakeholders and the communities we serve.

15 CPC Approach CPC’s financing methodology integrates energy efficiency and water conservation (EEWC) measures into a traditional multifamily mortgage. ID EEWC Lower Increased Measures Expenses Income Proceeds Additional Larger Loan Cover EEWC Debt Service

16 High Performance & Operation Savings Data and Lessons 2015 Utility Expense Comparison $500 $450 $400 $350 $325 $300 $250 $231 $200 $78 $150 $86 $100 $140 $132 $99 $50 $90 $- CPC M&O Standard Traditional Green Passive House #1 Passive House #2 Electric Gas

17 Monetizing the Benefits Investing in energy efficiency and renewables reduces utility bills and operating expenses. When expenses decrease, net operating income (NOI) will increase. A higher NOI means a building can support additional private debt. When mortgage lenders monetize energy savings, borrowers can utilize low-cost, long-term capital to finance energy investments.

18 Monetizing the Benefits TRADITIONAL TRADITIONAL GREEN PASSIVE HOUSE Private Debt Construction Cost Monetizing projected energy savings allow a building to support additional private debt. Now, loan proceeds can be used to fund deeper retrofits and larger energy investments.

19 Monetizing the Benefits TRADITIONAL TRADITIONAL GREEN PASSIVE HOUSE Private Debt Public Subsidy Construction Cost In affordable housing, if construction costs remain the same, additional debt can be used to offset the need for public subsidy.

20 Case Study Passive House 123 1 st ST 24 Units 24,000 sq ft

21 Case Study Underwriting Passive House – Nassau County

22 ▪ Start a conversation ▪ Listen, process, roll up your sleeves ▪ Underwriting to savings Recommendations ▪ Strong partnerships & collaboration ▪ Be creative

23 Scott Short Chief Executive Officer, RiseBoro Community Partnership

24 Opportunities through the RFP ▪ Embracing innovative solutions ▪ Decreasing operating costs in to improve the quality of life affordable housing and comfort of residents ▪ Reducing the carbon footprint ▪ Enabling minimal disruption to of affordable housing residents, as they can remain in the building during retrofits

25 RiseBoro Passive House Developments In Operation Knickerbocker Mennonite United Commons Revival Apartments

26 RiseBoro Passive House Developments In Construction Our Lady of Lourdes Apartments

27 RiseBoro Passive House Developments In Predevelopment Harry T. Nance Apartments

28 Benefits of Passive House ▪ Quality of Life ▪ Economic ▪ Innovation ▪ Health ▪ Environmental

29 A Comparison of Typical Annual Maintenance & Operational Expenses Market Rate Housing Affordable Housing 10% 25% 5% 35% 50% 15% 50% 10%

30 Impact on funding of 50% reduction in gas and electric costs … Uses of Funds Passive House Construction Traditional Construction OperatingCost DevelopmentCost Acquisition Cost $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000

31 Impact on funding of 50% reduction in gas and electric costs … Sources of Funds Passive House Construction Traditional Construction BankLoan Equity Subsidy $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000

32 How Are We Doing?

33 Passive House – Performance ▪ July 2016 - July 2017 data ▪ All buildings hydronic heat ▪ All buildings less than 15 years old ▪ Passive House less than half of energy index

34 What’s Next?

35 Passive House Retrofits

36 Property Portfolio

37 Project Highlights ▪ Typical YR15 Financing ▪ Gap financing by NYSERDA Methods ▪ Meet Passive House (PHIUS) ▪ Moderate Rehab/Tenant Standard in Place ▪ Bonus: Renewables/Solar ▪ Underwrite to Savings

38 Triple Bottom Line of Deep Energy Retrofits

39 Stas Zakrzewski Principal, ZH Architects

40 Opportunities through the RFP ▪ Creating unique, energy- ▪ Providing an opportunity for efficient solutions for retrofits architects to be at the that pay for themselves over forefront of innovation time ▪ Offering a huge potential for ▪ Collaborating on a new, retrofit solutions to be applied forward-looking way of doing to a larger scale business

41 Stratford Road EnerPHit Before After 2014 2017

42 Stratford Road EnerPHit Exterior Insulation

43 Next Steps Multifamily Buildings

44 Suitability XS | S | M | L | XL

45 Long Term Savings

46 Trends on Re-skinning Paris ▪ Aesthetics ▪ Gain Space ▪ Modernize LAN Architects - Lormont Project Bordeaux

47 Trends on Refurbishment London ▪ Opportunity to do better ▪ Re-clad with better performing material

48 Trends on Re- skinning/Refurbishment Local law ▪ Reactive not proactive work ▪ Millions of dollars spent every year ▪ doing restoration work that does not improve energy efficiency This is an opportunity to do better ▪ and re-clad our buildings so our older building stock can meet energy code Let’s do better! ▪

49 Over-cladding vs. Re-skinning Germany Leader in incorporating energy ▪ strategies Clever use of modern materials ▪ such as polycarbonate Rethinking building envelope to be ▪ both modern and sustainable

50 ZH on Re-skinning Crown Heights, NY New addition and façade to an ▪ existing 3 story masonry is made energy efficient by factor 3X Opportunity to clean up the façade ▪ EnerPHit renovation possible in ▪ difficult site conditions ZHA: Transforming Existing Stock

51 New approach to design process – automation, pre-fabrication Fears Creativity will be lost ▪ Buildings will look similar ▪

52 New approach to design process – automation, pre-fabrication Reality Architects are innovative and ▪ imaginative The architectural process now ▪ engages the design from a different perspective and scale It’s time to catch up – many ▪ construction methods have not changed in years, despite new materials, technologies, and environmental challenges

53 Forward Thinking New York State We can be the ones that lead this ▪ initiative and recognize the design opportunity we have, layering energy efficiency to an already burgeoning market Begin with the components and build up ▪ Integrate ventilation ▪ Problem solve with mock-ups ▪ End up with a major reduction in future ▪ operating costs, thereby funding the renovation

54 Paul Bertram President, PRB Connect