Return on Energy. #NAAEDU17 Breakout Sessions Sponsored by. Green Certifications for Your Business and Community. Friday, June 23, 9:00 am 10:00 am

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2 Return on Energy Green Certifications for Your Business and Community Friday, June 23, 9:00 am 10:00 am Breakout Sessions Sponsored by

3 Meet the Experts Peter Zadoretzky Director of Sustainability Bozzuto Management Company Lisa M. Stephens, LEED-Green Associate President Saigebrook Development Kelly Vickers, LEED-Green Associate, GGP VP of Corporate Social Responsibility Alliance Residential Company Moderator

4 Learning Objectives Explore various green building certifications Identify costs and requirements Learn about advantages Q & A

5 Importance of Building Certifications Promote energy efficiency Mandatory for Affordable Housing Cost Savings Marketability Appraised value for buildings

6 Which certification is right for you?

7 LEED (Leadership in Energy & Environmental Design) LEED-H LEED-NC LEED Core & Shell LEED Building Operations & Maintenance

8 LEED-H V4 includes homes, multifamily low-rise and multifamily high-rise More tailored to address multifamily construction Flat registration fee Certification fees based on project rating system & size

9 LEED Arc Measures, monitors & scores a building s performance across 5 categories: Energy Water Transportation Human Experience

10 NGBS Multifamily Green Home Certification 2012 NEW CONSTRUCTION 2012 REMODELING 2012 LAND DEVELOPMENT 2012 SMALL PROJECT 2015 NEW CONSTRUCTION 2015 LAND DEVELOPMENT ICC NGBS CERTIFYING REMODEL OFFERS TWO OPTIONS WHOLE-HOUSE OR WHOLE-BUILDING RENOVATIONS BRONZE SILVER GOLD EMERALD SMALL REMODEL PROJECTS CERTIFIED AS COMPLIANT KITCHENS BATHROOMS BASEMENTS SMALL ADDITIONS (LESS THAN 400 S.F.) ALLOWS YOU TO EXPLORE THE OPTIONS AND EVALUATE WHICH BEST MEETS YOUR NEEDS FROM THE FEATURES, PERFORMANCE, AND COST PERSPECTIVES.

11 NGBS CERTIFICATION COSTS 4+ STORIES $600/BUILDING $30/UNIT Note: Third party verifiers are accredited through a rigorous training process administered by NGBS. UP TO 3 STORIES $200/BUILDING $30/UNIT VOLUME DISCOUNT BLDGS. $150/BLDG. 50+ BLDGS. $125/BLDG.

12 COSTS OF THIRD PARTY VERIFIER Third Party Consultant Costs Phase I: Design Consulting $6,000 $47.62 /Unit Review concept, specifications, track development, analyze for rebate programs for enrollment Phase II: Energy Modeling Analysis 10, Conduct a preliminary energy modeling analysis to determine anticipated level of energy performance for the proposed worstperforming unit. 3, Inspection, duct testing and envelope tightness Phase IIa: Comprehensive Energy Audit Phase III: Field Training 1, Educate the construction superintendent and appropriate field personnel on the testing standards and protocols Phase IV: Inspections & Testing 22, Insulation Inspection, Duct Blaster Test, Blower Door Test, Ventilation System Inspection, Verify compliance Phase V: Verification & Final Certification 6, Completed and signed Performance Checklists Capture results from Phase IV. Work with relevant agency to provide final certification. $48,500 $ NAHB Certification Fees ($200 X 16 Buildings) +($20 X 126 Units) $5,720 $45.40

13 FINANCING INCENTIVES GREEN INITIATIVE Three green financing products are available for NGBS Green projects: 1. Green Rewards: Preferential pricing (10 bps discount) and up to 5% additional loan proceeds available for properties ready to make improvements and repairs after loan close. Available for refinance, acquisition, supplemental, and second supplemental. 2. Green Certification Pricing Break: Preferential pricing available for properties with NGBS Green certification awarded prior to loan lock. Available for refinance, acquisition, and supplemental. 3. Green Preservation Plus: Preferential pricing (up to 5 bps discount) and up to 5% additional loan proceeds available for affordable properties that are 10+ years old and ready to make improvements and repairs after loan close. Available for refinance and acquisition loans.

14 FINANCING INCENTIVES MULTIFAMILY GREEN ADVANTAGE Multifamily buildings with at least one affordable rental unit that either have or are seeking NGBS Green certification will qualify for the better pricing on existing green buildings under Green Advantage. Borrowers have two financing options: 1. Green Up enables borrowers with qualifying properties to increase the amount of their eligible Freddie Mac Multifamily loan by up to 50 percent of projected energy and water savings. 2. Green Up Plus enables borrowers to increase the loan amount by up to 75% of the projected savings.

15 NGBS Case Study - The Roxton 1970 Denton, Texas 16 Buildings 126 Units Awarded 2013

16 Extent of Rehab HVAC COOLING EQUIPMENT 10 EER CHILLER 14.5 SEER HVAC MMBTU HEATING EQUIPMENT 78% BOILER 8.3 HSPF 68.4% SAVINGS SHELL EXTERIOR WALL R-11 (GRADE 3) R-13 (GRADE 3) INTERIOR WALL R-11 (GRADE 3) R-13 (GRADE 3) OPERABLE WINDOW 1.20/.80.35/.22 FIXED WINDOW 1.20/.80.35/.20 DOOR R-VALUE R R-2.8 FRENCH DOOR 1.20/.80.37/.36 FRAMED FLOOR R-0 (GRADE 3) R-0 (GRADE 3) CEILING R-11 (GRADE 3) R-19 (GRADE 3) OTHER WATER HEATER 78% BOILER 0.92 EF 38 GALLON DUCT LEAKAGE 83.1 CFM/100SF 7 CFM/100SF INFILTRATION 13.4 ACH ACH 50 APPLIANCES REFRIGERATOR 691 KWH/YR 378 KWH/YR DISHWASHER 0.46 EF 282 KWH/YR CFL 0% 100% WASHER DEFAULT 2.47 MEF, 154 KWH/YR CEILING FANS 70.4 CFM/WATT 122 CFM/WATT TOTAL MMBTU 42.1% SAVINGS

17 BEFORE & AFTER EXTERIOR

18 BEFORE & AFTER INSULATION CEILING WALLS Third party verification process: visual inspections duct testing blower door tests insulation installation inspections air sealing Compile documentation via on site photos and progress tracking. Submission to NGBS for certification.

19 BEFORE AND AFTER - HVAC NGBS Remodel requirement: Establish a baseline of energy and water use 12 months of data for comparison purposes. 78% BOILER 8.3 HSPF

20 BEFORE AND AFTER - KITCHEN

21 OVERALL ENERGY SAVINGS ORIGINAL 63% SAVINGS AFTER REHAB

22 OVERALL WATER SAVINGS ORIGINAL 53% SAVINGS AFTER REHAB

23 Water Fixture Savings ORIGINAL REHAB TOILET SHOWER BATH SINK DISHWASHER CLOTHES WASHER

24 FIRST COST VS LIFE CYCLE ANALYSIS CARPET TO LVT TRADITIONAL TO LED PLAM TO QUARTZ

25 ENERGY STAR Certification Portfolio Manager Score of Need score of 75 or higher (top 25%) 12 Months of: Stabilized Whole Building ALL Energy Source Data! Age of Data Third Party Verification

26 ENERGY STAR Certification Timing is key Jurisdictional benchmarking How long does it take to get the data? Zero in on top performers Set baseline for refresh Update data periodically Be prepared to MOVE! Selling the process

27 ENERGY STAR Certification Third Party Verification In house? If not shop around! Major learning curves year 1 Ask questions seek referrals $ Pro bono Everyone needs to be on board with the deadline Check your work

28 ENERGY STAR Certification Brand Recognition & Association Major Benefits Available HUD MIP Fannie Mae Freddie Mac LEED Local Green Building Incentive Program The power of ESPM Identify & highlight Educate and engage Competitive advantage

29 ENERGY STAR Case Study Bozzuto JV w/ Frequent Partner 369 Units Completed Summer 2013 Original Financing: HUD MIP Refi began Fall Month Process No different than standard HUD Whole Building data surprise! Savings: $320k/annually

30 EarthCraft Case Study Union on Queen Arlington, VA 193 Units 78 Affordable First hi-rise multifamily certified in VA Typ. Mid-rise/garden style Combined w/ LEED Silver: Increased competitiveness of tax credit application (MAX!) Critical to financial feasibility of project Must report whole building energy data

31 Share Your Thoughts on this Session How are we doing?

32 Session/Speaker Survey

33 Green Globes

34 Green Globes- Existing Buildings STEPS TO GREEN GLOBES CERTIFICATION: Purchase and complete Green Globes selfevaluation. Request a quote and purchase your assessment Work with a Green Globes Assessor to complete third-party assessments. Receive a final report containing your Green Globes score and rating. Request your Green Globes certificate and optional plaque.

35 Green Globes- New Construction

36 Green Globes- Case Study Arizona Property -Achieved 1 Green Globes November 2016 Fannie Mae s Multifamily Green Financing. Qualified for Green Globes NC path. Took less than 1 ½ month s start to finish. Real and tangible savings.

37 IREM Certified Sustainable Property Multifamily Prerequisites At least 50 units At least 18 months after substantial completion or repositioning At least 75% occupancy Smoke-free interior common areas In compliance with all environmental laws Commitment to respond to annual IREM survey Application Fee $400 for IREM Members and AMO Firms $800 for Non-Member Individuals and Companies

38 IREM CSP- Case Study Sunset Vine Tower Achieved IREM CSP August 2016 Certification ready property Retrofits completed Owner motivation sustainability, savings, GRESB Passionate onsite team LED lighting retrofit in 2015 aided in certification Almost 10% MONTHLY drop in electricity usage 14% MONTHLY cost savings.

39 Key Takeaways It s possible to find a meaningful green certification for your building There are green certifications that fit your budget and project scope Green certifications add a marketing opportunity for to your property

40 Contact Info Peter Zadoretzky Lisa M. Stephens Kelly Vickers