Leveraging Funds for Green Affordable Housing

Size: px

Start display at page:

Download "Leveraging Funds for Green Affordable Housing"

Samson Bishop
6 years ago
Views:

1 Leveraging Funds for Green Affordable Housing The Federal Home Loan Bank of Pittsburgh s Affordable Housing Program Marc Mondor, AIA Green Building Alliance Pittsburgh, PA John Bendel Federal Home Loan Bank Pittsburgh, PA

2 Seattle Chicago Indianapolis Boston San Francisco Des Moines Topeka Cincinnati Pittsburgh New York Dallas Atlanta The 12 districts in the FHLB System

3 About the FHLBanks 12 FHLBanks exist nationwide Created by Congress in 1932 Serve nearly 8,000 member financial institutions Each is a cooperative whose member institutions own the capital stock and receive dividends on their investments Offer a variety of special community products Affordable Housing Program

4 The Affordable Housing Program (AHP) Since 1990, the FHLBank annually sets aside approximately 10% of its net income to be awarded through the AHP Projects provide affordable housing to individuals and families with low income (51-80% of area median) or very low (50% and below of area median) The AHP has emerged as America s largest private grant funder for the construction of affordable housing

5 America s Private Affordable Housing Foundations Top 50 Foundations $165 million FHLBank System $246 million

6 FHLBank of Pittsburgh s Affordable Housing Program Since the AHP program began in 1990: Over $100 million committed for housing projects in PA, DE, MD, NJ and WV in grants and low interest loans Over 700 projects approved, comprising over 21,000 affordable housing units Leveraged over $1.6 billion in development

7 Grants Available from the FHLBank of Pittsburgh s AHP Offers grant funds typically totaling between $5 million and $20 million per year for affordable housing projects As many as 100 applications are submitted for each funding round Typically less than half of the applicants win funding in each round

8 Eligibility for AHP Funds Grants and loans can be used for: single- and multi-family housing new construction and rehabilitation rental and owner-occupied occupied homes scattered-site site housing development projects transitional and single-room-occupancy occupancy housing

9 FHLBank AHP Scoring System Program varies by district Scoring system is out of 100 points There are NINE scoring categories, EIGHT of which are prescribed by FHFB: Nonprofit sponsorship Demographic targeting Providing housing for the homeless Promotion of empowerment Use of donated government-owned owned or other properties Community stability Amount of AHP subsidy needed per unit

10 The AHP s Operating Efficiency (OE) Category Low-income households spend 21.8% of their income on their household energy bills, over four times the percentage (5.1%) spent by median households In 1998, the FHLBank of Pittsburgh created the Operating Efficiency (OE) category, recognizing the synergistic effects of energy efficiency 8 POINTS In 2003, the Design and Construction Efficiency Category was introduced, examining larger planning issues and construction methods 5 POINTS

11 Operating Efficiency Category of the AHP Need for third party evaluation of the OE criterion Conservation Consultants, Inc The Green Building Alliance Compliance standards Pennsylvania s Building Energy Conservation Act 222 for envelope integrity Energy Star for appliances and HVAC CTG Energetics created a comprehensive rating system

12 Components of the Operating Efficiency Category Envelope Appliances Hot Water Space Conditioning Lighting Water Efficiency Subjective Categories (not on form) Scored in absolute points, then curved

13 Operating Efficiency Trends 300 FHLB AHP Trends Online Application # of Apps Average Score # Over 200 High Score A B A B A 5

14 Affordable Housing Case Study: 2,030 SF - 4 Bedroom Units Clarion Commons, Pittsburgh, PA Susquehanna Valley Development Group Inc. Heating Costs Unit Total Annual Heating Cost Lot. Address SF Heating Cost PSF / Month # Centreline Ave $ $ # 3 5 Foresman Drive 1152 $ $ # 5 9 Foresman Drive 1152 $ $ #7 13 Foresman Drive 1152 $ $ #13 8 Foresman Drive 1100 $ $ Average Heating Cost PSF Per Month - $ Four Bedroom 2030 SF X.0348 = $70.57 X 1.3 = $92/mo

15 Affordable Housing Case Study: 2,030 SF - 4 Bedroom Units Wall Framing 264 Ft. of 2x4 Wall framing = $ Ft. of 2x6 Wall framing = $1,500 Wall Insulation ADDITIONAL COST - $ SF /SF = $ SF /SF = $939 ADDITIONAL COST - $147 Super Insulation - 6 mil 0.25/SF, 0.08/SF and Seal = ADDITIONAL COST - $369

16 Affordable Housing Case Study: 2,030 SF - 4 Bedroom Units Window Extension Jambs: $12 per unit ADDITIONAL COST = $180 Ceiling 1015 SF Standard R38 Glass Batts = $ SF Better R60 = $598 Heating System SAVINGS $233 With Super Insulation - 28,000 BTU Furnace w/ AC $525 Standard - 50,000 BTU Furnace w/ AC $1,445 SAVINGS $920 SUPER INSULATION PACKAGE NET ADDL. COST: $117

17 Affordable Housing Case Study: 2,030 SF - 4 Bedroom Units SAVINGS FROM ENERGY EFFICIENCY 2030 SF - 4 BEDROOM UNIT Monthly Operating Cost: Heating, Cooking, Hot Water for 2,030 SF $ 92 City of Pittsburgh Section 8 Utility Allowance $180 SAVINGS PER MONTH $88 TOTAL ADDITIONAL COST $ MONTH PAYBACK due to increasing envelope integrity and downsizing HVAC systems

18 AHP Funded Project: CCI Center Weatherization Green Neighborhood Initiative 1890 three-story, ten-room house in Pittsburgh s North Side 1910 two-story, six-room row house in Pittsburgh s North Side 1910 House in Pittsburgh s South Hills Actions Air sealing: Electric outlet gaskets, window plastics, door jamb kits installed Insulation: Attic, wall, water heater, pipes Compact fluorescent lights High performance showerheads

19 AHP Funded Project: CCI Center Weatherization Energy savings: 95 MCF of natural gas annually (44% of annual usage) 39 MCF of natural gas annually (20% of annual usage) 70 MCF of natural gas annually (43% of annual usage) Money savings: $950 annually (44% of annual cost) $390 annually (20% of annual cost) $700 annually (43% of annual cost)

20 Future of the AHP s Operating Efficiency Criteria Drafting of a green building Operating Efficiency informational booklet Desire to sample completed AHP projects and compare usage patterns to their applications The International Energy Conservation Code and other national standards are being considered for replacement of the more regional standard of Pennsylvania BECA Act 222

21 Future of the AHP s Operating Efficiency Criteria The FHLBank of Pittsburgh s OE requirement and Design & Construction Efficiency categories are the only specific criteria to date among all the AHPs in the FHLBank System that reward green building measures The AHP application is relatively unburdened by the OE category. The FHLBank of Pittsburgh hopes that this model can be replicated by other affordable housing funders With the AHP leveraging over $1.6 billion of construction in the FHLBank of Pittsburgh s region alone, utilizing this AHP as a model could have a tremendous impact

22 Federal Home Loan Bank of Pittsburgh s Affordable Housing Program Thank you Marc Mondor, AIA Green Building Alliance Pittsburgh, PA John Bendel Federal Home Loan Bank Pittsburgh, PA

24 Purpose: For applicant teams to better understand how to perform well in the OE category and build better projects in their practices Contents: facts, diagrams, case studies, relevant links and resources Availability: To be completed in late 2003; Will be available in hard copy print and for free access from the FHLBank of Pittsburgh s web site

25 As a result of the introduction of the OE category, GBA has noticed a marked and steady increase in green building knowledge on the part of applying development teams Since the introduction of the revised application in early 2001, overall OE scores have increased from an average score of 127 in the 2001A round to 159 in the 2003 round (Figure 3.) Projects have displayed an increased adherence to green building criteria such as the U.S. Green Building Council s LEED rating system or various model energy codes

26 AHP Criterion OPERATING COST EFFICIENCY Design and construction efficiency* Is sponsored by nonprofit, local government, local authority Exhibits low subsidy per unit Provides housing for the homeless Uses donated properties Generates empowerment Promotes community stability Targets the very-low-income Addresses first-time homebuyers/special needs/economic diversity/rural TOTAL Maximum Points * Operating efficiency comprises 8 of the 13 points in this section. Table 1. The FHLB of Pittsburgh s AHP Scoring Criteria

27 AHP 2003A ROUND [SAMPLE PROJECT SCORE SHEET] OPERATING EFFICIENCY ANALYSIS ACTION OR TECHNIQUE POSSIBLE BONUS POINTS STANDARD ENVELOPE Ceilings below exposed attic 8 8 R-30 Access hatch 1 1 R-30 Walls 5 R-16 Exterior doors (including sliding glass doors) 1 R-4 Windows R-1.6 Foundation wall above frostline 1 1 R-10 Conditioned basement walls above/below grade 1 1 R-10 Slab (if slab on grade)/basement floor 1 R-6 Floor (over an unconditioned space) 2 R-11 Insulate ductwork in an unheated space 2 R-5 Around hot water delivery pipes 2 2 R>0 Insulation around boiler hot water delivery lines 2 2 R>0 Air sealing 8 8 Blower door test 4 4 Table 2a. Sample AHP Operating Efficiency application score sheet from the 2003A round

28 AHP 2003A ROUND [SAMPLE PROJECT SCORE SHEET] OPERATING EFFICIENCY ANALYSIS ACTION OR TECHNIQUE POSSIBLE BONUS POINTS STANDARD APPLIANCES Washer (Energy Star-rated) 7 7 Dryer (Energy Star-rated or gas-operated?) 5 5 Stove (Energy Star/ gas-operated?) 7 7 Refrigerator (Energy Star-rated?) Dishwasher (Energy Star-rated?) 8 8 Garbage disposal -1-1 HOT WATER Water heater (Eff.: >0.9 electric, >0.7 for gas) Must be min.: 0.9/0.7 Gas-fired 7 7 Award if natural gas Insulating blanket (over steel tank) 5 5 Any external blanket=1 pt. Instantaneous gas-fired system 6 Award if Yes Gas-fired central boiler/shared space heating 6 6 Award if Yes Waste heat recovery off of drain pipes 7 Award if Yes Table 2b. Sample AHP Operating Efficiency application score sheet from the 2003A round

29 AHP 2003A ROUND [SAMPLE PROJECT SCORE SHEET] OPERATING EFFICIENCY ANALYSIS ACTION OR TECHNIQUE POSSIBLE BONUS POINTS STANDARD SPACE CONDITIONING Electric resistance heat -5 Subtract if Yes Heating system eff. - 90% AFUE or Energy Star Must exceed standard Cooling system efficiency Energy Star-rated Award if Yes Air to air heat pump 7 7 Award if Yes Super insulate structure, eliminate furnace and use hot water heater as source 12 Award if Yes Use of setback thermostat 5 5 Award if Yes Install paddle fans in bedrooms & common rooms 2 Award if Yes Heat recovery unit for mechanical ventilation 5 Award if Yes Award if Yes LIGHTING Award if Yes Compact fluorescents - including common areas Award if Yes Light pipes (tubular skylights) in high use areas 17 Award if Yes Occupant sensors 7 Award if Yes Light shelves to reflect light deeper into space Award if Yes Table 2c. Sample AHP Operating Efficiency application score sheet from the 2003A round

30 AHP 2003A ROUND [SAMPLE PROJECT SCORE SHEET] OPERATING EFFICIENCY ANALYSIS ACTION OR TECHNIQUE POSSIBLE BONUS POINTS STANDARD Award if Yes WATER Award if Yes Use of pressurized toilets 7 7 Award if Yes Use of lo-flow toilets (per 1992 Energy Policy Act) 7 7 Award if Yes Use of aerators on all faucets 5 Award if Yes SUBJECTIVE CATEGORIES: Site & Structure Geometry (not on form) Use of native vegetation 5 Stormwater collection and distribution system 5 Building Ratio (lxw) 1.1:1, south facing 50 Midslope location (no hilltops or frost pockets) 12 Unit should not exceed 600/sq. ft. per bedroom 1 Describe others: PSE&G STANDARD 7 10 Table 2d. Sample AHP Operating Efficiency application score sheet from the 2003A round

31 AHP 2003A ROUND [SAMPLE PROJECT SCORE SHEET] OPERATING EFFICIENCY ANALYSIS ACTION OR TECHNIQUE POSSIBLE BONUS POINTS STANDARD SUBJECTIVE CATEGORIES: Construction Techniques (not on form) Shared walls Varies Overhangs fully shade windows in summer 25 Operable windows 5 Reflective curved blinds 2 Geothermal ground source heat pump 35 Whole-building fan 2 Natural insulation (cellulose) 12 Strategic deciduous plantings 12 Strategic evergreen plantings 12 Framing 24" on center 12 Structural insulated panels 12 Engineered composite framing 7 Describe others: 5 Table 2e. Sample AHP Operating Efficiency application score sheet from the 2003A round

32 AHP 2003A ROUND [SAMPLE PROJECT SCORE SHEET] OPERATING EFFICIENCY ANALYSIS ACTION OR TECHNIQUE POSSIBLE BONUS POINTS STANDARD SUBJECTIVE CATEGORIES: Misc. integration features (not on form) Provide owner-education materials 15 Other innovative project features 25 Use of energy management system 12 Commission building by a third-party evaluator 50 Use of existing building structure 15 Statement of a comprehensive green building approach 20 Bonus: Regular: Final Score: Table 2f. Sample AHP Operating Efficiency application score sheet from the 2003A round

33 Round 2001A 2001B 2002A 2002B 2003A Data (Zero-Score Applications Included) Number of Applications Low OE Score 51 0 (25) 37 0 (26) 0 (1) High OE Score Average OE Score Number OE Scores Over Table 3. Number of applicants and Operating Efficiency scores Note: Zero-score applications imply applicant omission of the Operating Efficiency category.

34 Since 1998, green building measures have been included in the AHP application under the Operating Efficiency (OE) category Insulation levels HVAC systems Appliances Lighting efficiency Water efficiency Use of progressive and integrated design and construction techniques

35 Since the adoption of the green standards: FHLBank has noted: Applicant pool enlarged; some projects attracted that might not have otherwise applied. The Green Building Alliance (GBA), the category s third-party evaluator, has noted: General increase in green building intent and sophistication on the part of applicant teams.

36 About the FHLBanks Driven by private capital Public sponsorship (not public money) Regulated by Federal Housing Finance Board (FHFB) The only wholesale source of community building funds for neighborhood banks

37 FHLBank of Pittsburgh s AHP Scoring Criteria 13 points: Operating Cost Efficiency 8 points for Operating Efficiency and 5 points for Design and Construction Efficiency 5 points: Is sponsored by nonprofit, local government, local authority 5 points: Exhibits low subsidy per unit 5 points: Provides housing for the homeless 5 points: Uses donated properties 10 Points: Generates empowerment 10 points: Promotes Community Stability 20 points: Targets the very-low-income 27 points: Addresses first-time time home buyers/special needs/economic diversity/rural

38 Affordable Housing Case Study Clarion Commons, by Robert Yoder Sr. Heating Cost Comparables Unit Total Annual Heating Cost Lot. Address SF Heating PSF Per Month # Centreline Ave $ $ # 3 5 Foresman Drive 1152 $ $ # 5 9 Foresman Drive 1152 $ $ #7 13 Foresman Drive 1152 $ $ #13 8 Foresman Drive 1100 $ $ Average Per Square Foot Per Month $ Three Bedroom 1900 SF X.0348 = $66.05 X 1.30% = $88.20 Four Bedroom 2030 SF X.0348 = $70.57 X 1.30% = $91.75

39 Affordable Housing Case Study: 2030 SF - 4 BEDROOM UNIT Wall Framing 264 Ft. of - 2 X 4 X 8 Wall = $ Ft. of - 2 X 6 X 8 Wall = $1, Wall Framing Additional Difference - $ Wall Insulation 2112 SF - 2 X 4 X /Sq. Ft. = $ SF - 2 X 6 X /Sq. Ft. = $ Wall Insulation Additional Difference - $ Super Insulation: 6 mill 0.25/SF, House 0.08/SF and Super Seal = $ Total Additional - $1,091.40

40 Affordable Housing Case Study Ceiling 1015 SF Standard R38 - Glass Batt Ft. = $ Sq. Ft. Cellouse Ft. = $ SAVINGS $ Window Extension Jamb $12.00 per unit X 15 = $ Net Additional for Super Insulation Package $1, Heating System With Super Insulation - 28,000 BTU Furnace w/ AC $ Standard - 50,000 BTU Furnace w/ AC $1, SAVINGS $ NET ADDITIONAL COST W/ SUPER INSULATION PACKAGE: $117.95

41 Project Featured: Clarion Commons, Robert Yoder Sr., Susquehanna Valley Development Group Inc., Turbotville, PA (570) Affordable Housing Case Study SAVINGS FROM ENERGY EFFICIENCY 2030 SF - 4 BEDROOM UNIT Monthly Operating Cost: Heating, Cooking, Hot Water for 2,030 SF $ City of Pittsburgh Section 8 Utility Allowance $ SAVINGS PER MONTH $88.25 TOTAL ADDITIONAL COST $ /2 Month Payback

Date Rater Verified. Rater Verified. Slab / Pre-Drywall / Thermal Inspection

Date Rater Verified. Rater Verified. Slab / Pre-Drywall / Thermal Inspection Slab on Grade & Basements: A capillary break is installed on top of all footings Slab / Pre-Drywall / Thermal Inspection A minimum of 4" of clean or washed gravel (0.5" diameter or greater) is placed over