Developing Greener Affordable Housing. September 12, 2018

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1 Developing Greener Affordable Housing September 12, 2018

2 AGENDA Introductions Green Building Act requirements (DCRA) Alternative green building compliance paths (DCRA) DHCD RFP preference points for green building (DOEE) Resources to support green building (DOEE) Enterprise Green Communities Criteria requirements and processes (Enterprise) Case study (Flywheel Development) Q&A

3 Developing Greener Affordable Housing ASHLEY DELGADO, ENERGY PLANS REVIEWER

4 AGENDA Green Building Division s Objective Laws & Regulations Affordable Housing Enforcement Process

5 Objective Support the District of Columbia s vision of a sustainable city by developing and administering green building policies. We directly engage the building industry to cultivate a more livable, healthy, and efficient built environment for all.

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7 DCRA s Green Building Division Regulations Energy Conservation Code Green Construction Code Green Construction Code Green Building Act Law Green Building Act Energy Conservation Code

8 Effective March 8 th, 2007 GREEN BUILDING ACT Establishes high-performance green building standards for public and private construction projects.

9 Publicly Financed New construction or substantial improvement projects Publicly financed 15% of the project s total cost is publicly financed GREEN BUILDING ACT APPLICABILITY Privately Financed New construction or substantial improvement projects Privately owned and financed Non-residential 50,000 ft 2 or more Substantial Improvement: Any improvement of a building or structure, the cost of which equals 50% of the market value of the structure

10 GREEN BUILDING ACT COMPLIANCE PATHS Publicly Financed Residential (affordable housing) Commercial Public Schools and PCS Enterprise Green Communities LEED for Homes/Midrise at the Silver level LEED at the Silver Level Certify at the Gold level Privately Financed LEED at the Certified Level Must certify within 2 years of certificate of occupancy issuance!

11 PERMITTING GREEN BUILDING ACT Enterprise Green Communities 1. Register with Enterprise 2. Obtain Pre-build Approval Enterprise will review the application within 30 days 3. Grant DCRA Access Complete Disclaimer and Authorization of Information Sharing Waiver to and request access for Link to waiver 4. Submit Permit Application Upload Pre-Build Approval Notification Form in Supporting Documents folder of ProjectDocx

12 PERMITTING GREEN BUILDING ACT LEED for Homes 1. Register on LEED online 2. Grant DCRA Access a) Add to the LEED Online project s account to allow DCRA access to the project. 3. Submit Permit Application a) Include LEED ID on coversheet of plans

13 CERTIFICATE OF OCCUPANCY Verify LEED is active and current. Verify EGC is active and in progress for the final approval. EGC requires 60 days after the sign of the certificate of occupancy to achieve Step 2: Post- Build approval.

14 POST CERTIFICATE OF OCCUPANCY Enterprise Green Communities Complete Post-Build approval LEED for Homes Achieve certification at the Silver level.

15 RECAP 1. Laws & Regulations - Affordable Housing a. Applicability and Compliance Paths i. Green Building Act applies to all affordable housing projects 2. Enforcement Process a. Design b. Permitting c. Enforcement d. Certificate of Occupancy e. Post Certificate of Occupancy

16 CONTACTS Ashley Delgado Energy Code Plan Reviewer

17 What s Next?

18 Deep Green Compliance Paths - Living Building Challenge - Living Building Challenge Zero Energy In Combination with Enterprise Green Communities: - Passive House International - Passive House Institute US (PHIUS) - DOE Net Zero

19 Developing Greener Affordable Housing Casey Studhalter

20 BUILD GREEN Make your application for funding more competitive BUILD

21 THRESHOLD ELIGIBILITY REQUIREMENTS Green buildings can be built for little/no cost premium - Construction cost formula $240/ft maximum for mid-rise residential - Can request waiver if green features drive cost over maximum Green Building Act - 10,000 ft 2 + residential must meet 2015 Enterprise Green Communities Criteria - Goal Setting and Integrated Design Charrette

22 PRIORITY SCORING POINTS Operating cost guidelines (5 points) - Efficiency gains can help reduce operating expenses Living Building Challenge (5 points) - Either full or petal certification Nearing Net Zero (3 points) - Three compliance paths: Passive House Institute US, Living Building Challenge Net Zero Energy, or DOE Zero Energy Ready Home - Maximize solar PV

23 @DOEE_DC DC GREEN BUILDING INCENTIVES SPECIAL TAX ASSESSMENT CASH-FLOW POSITIVE REBATES PAY FOR PERFORMANCE COMMUNITY SOLAR LMI BENEFITS CREDIT ENHANCEMENTS LOANS AND INVESTMENTS

24 DC Property Assessed Clean Energy (PACE) Program DC PACE is the District s only clean energy financing program for building upgrades Urban Ingenuity is the program administrator, under contract to the DC Department of Energy & Environment How does PACE work? The property owner repays the cost of upgrades through a special assessment placed on the building Repayment of the obligation transfers with the title to any new ownership Why PACE? No money out of pocket Cash-flow positive on day one Long terms low annual payments Extends owner s capital

25 PROPOSED This legislation to make the District of Columbia the first city in the United States to establish a Green Bank. The DC Green Bank would utilize an initial investment of public funds and leverage private capital to: Create jobs and spur economic growth; Meet the city s sustainability goals; and Position DC as a national leader in meeting the commitments of the Paris Agreement. CREDIT ENHANCEMENTS LOANS AND INVESTMENTS INFRASTRUCTURE

26 Giuls Kunkel DCSEU.com

27 SOLAR FOR ALL Solar for All is intended to expand solar capacity in the District and to provide the benefits of locally-generated solar energy to small businesses, nonprofits, seniors, and low-income households. Short-term actions to help achieve Solar for All goals include grants, strategic partnerships, zoning and building code improvements, real estate mapping, public engagement and education, enrollment in community solar projects, and establishment of a District Green

28 CONTACT: Casey Studhalter, LEED GA DESIGN FOR THE FUTURE.

29 Developing Green Affordable Housing Shelby O Neill Enterprise Green Communities

30 Introduction to Enterprise & Green Communities Highlights of 2015 Enterprise Green Communities Criteria The Certification Process Green Communities News

31 Who We Are Enterprise Community Partners is a national nonprofit that makes well-designed homes affordable and strengthens communities.

32 Enterprise Green Communities Enterprise Green Communities is transforming the way America thinks about, designs, builds, and rehabilitates affordable housing. Green building integrates materials and methods that promote environmental quality, economic vitality, and social benefits through design, construction and operations of the built environment.

33 Where we re Making an Impact Enterprise Green Communities certified projects are underway in 43 states + the District of Columbia. We have policy relationships in 26 states.

34 Enterprise Green Communities Criteria Integrative Design Operations, Maintenance + Resident Engagement Healthy Living Environment Materials A holistic approach to building a green community Location + Neighborhood Fabric Site Improvements Water Conservation Energy Efficiency

35 Programmatic Requirements meet mandatory criteria + 35 optional points NEW CONSTRUCTION 30 optional points SUBSTANTIAL & MODERATE REHABILITATIONS

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37 1. Integrative Design 1.1a Goal Setting 1.1b Criteria Documentation 1.1c Designing for Project Performance 1.2a Resident Health and Wellbeing: Design for Health 1.2b Resident Health and Wellbeing: Health Action Plan 1.3a Resilient Communities: Design for Resilience 1.3b Resilient Communities: Multi-Hazard Risk / Vulnerability Assessment

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39 2. Location + Neighborhood Fabric 2.1 Sensitive Site Protection 2.3 Compact Development 2.5 Proximity to Services 2.8 Access to Transportation 2.10 Passive Solar Heating/Cooling 2.12 Access to Fresh, Local Foods 2.14 Local Economic Development and Community Wealth Creation

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41 3. Site Improvements 3.1 Environmental Remediation 3.2 Erosion and Sedimentation Control 3.3 Low-Impact Development 3.4 Landscaping 3.5a/b Efficient Irrigation and Water Reuse 3.6 Surface Stormwater Management 3.7 Reducing Heat-Island Effect: Paving

42 4. Water Conservation 4.1 Water-Conserving Fixtures* 4.2 Advanced Water Conservation * 4.3 Leaks & Water Metering 4.4 Efficient Plumbing Layout and Design 4.5 Water Reuse 4.6 Access to Potable Water during Emergencies * 2015 Criteria Addenda

43 5. Energy Efficiency 5.1 Building Performance Standard a. New Construction, single family & low-rise MF b. New Construction, mid-rise & high-rise MF c. Sub & Mod Rehab, single family & low-rise MF d. Sub & Mod Rehab, mid-rise & high-rise MF **partner with HERS Rater / energy professional prior to, and throughout, construction

44 5. Energy Efficiency 5.2a Additional Reductions in Energy Use 5.2b Advanced Certification: Nearing Net Zero PHIUS Living Building Challenge DOE Zero Energy Ready Home

45 6. Materials 6.1 Low / No VOC Paints, Coatings, and Primers 6.2 Low / No VOC Adhesives and Sealants 6.6 Composite Woods (Low / No Formaldehyde) 6.7a Environmentally Preferable Flooring 6.7b Environmentally Preferable Flooring Throughout Building 6.10 Asthmagen-free Materials 6.11 Reduced Heat-Island Effect: Roofing 6.12 Construction Waste Management 6.13 Recycling Storage

46 7. Healthy Living Environments 7.1 Ventilation 7.10 Integrated Pest Management 7.11 Beyond ADA: Universal Design 7.12 Active Design: Promoting Physical Activity within the Building 7.13 Active Design: Staircases and Building Circulation 7.16 Smoke-Free Building

47 8. Operations, Maintenance and Resident Engagement 8.1 Building Maintenance Manual (all MF projects) 8.2 Emergency Maintenance Manual 8.3 Resident Manual 8.4 Resident and Property Manager Orientation 8.5 / 8.6 Project Data Collection and Monitoring System

48 Tools Tools

49 Criteria & Certification

50 Criteria & Certification

51 Certification Process Prebuild (prior to construction) Project & Building Overview Criteria Compliance Upload: site plan, context map, energy modeling form, Category 8 outlines, other supplemental documents as necessary Postbuild (within 60 days of construction completion) Update information Upload: project photos & release, Category 8 documents, utility access, other supplemental documents as necessary Meet the requirements Create accountability Show your homework All submissions reviewed within 30 days

52 What s New? The Green Communities Portal Update New features & efficiency! October 12 th -15 th Same user name & login information Slightly different process; easier to use Orientation will be provided

53 Q + A

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55 Perry Street Townhomes Green Affordable Housing Flywheel Development September 12,

56 Climate Change Action 70 Percentage of Total Carbon Emissions from Building Sector US Chicago Dallas Minneapolis New York City Philadelphia Salt Lake City Washington, DC Energy use in buildings costs Americans roughly $500 Billion annually and accounts for almost 10% of global carbon emissions. Building energy use is 40% of domestic U.S. energy consumption 56 Copyright 2017 by Flywheel Development, LLC. All rights reserved.

57 Disaster Resilience Passivhaus buildings can stay comfortable for days after a power outage due to super-insulation. Net zero buildings with back-up power can operate off-grid Resilience takes on new significance in light of increasingly frequent extreme weather events Copyright 2017 by Flywheel Development, LLC. All rights reserved. 57

58 Build Household Wealth for Residents Money not spent on utility bills can be saved by tenants and homeowners to build household wealth, and is more likely to be spent in local community Copyright 2017 by Flywheel Development, LLC. All rights reserved. 58

59 Quality and Reputation Achieving Net Zero or Passivhaus has a practical effect on quality: Construction details are worked out in design rather than in construction Project is better thought-out instead of merely figured out as cheaply as possible by the GC Testing protocols validate design and construction, provides quality control More satisfied customers/tenants: Occupant comfort Indoor air quality Reputational opportunity Copyright 2017 by Flywheel Development, LLC. All rights reserved. 59

60 Underwriting and Asset Value Lease-up Marketing Tenant retention Increase in NOI and asset value (rental) or a superior product vs. competition (for sale scenario) Future-proofing/cap rate protection Copyright 2017 by Flywheel Development, LLC. All rights reserved. 60

61 Consumer and Local Government Trends Consumers are moving towards high-tech, environmental responsibility States and local governments proposing net zero codes start building green now to stay with consumers and ahead of regulation Copyright 2017 by Flywheel Development, LLC. All rights reserved. 61

62 Questions?

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