DHA Portfolio Strategies and Solutions

Ismael Guerrero

Denver Housing Authority

Denver, CO

5,116 housing units in 30 properties

3,706 Traditional Public Housing

628 Subsidized Units

782 Mixed Income

Administer over 6,700 tenant based voucher

7+ LEED Certified Buildings

2,500 Energy Efficient Unit Upgrades

Denver Housing Authority Housing Portfolio:

$16 Million in solar panels installed on 750 units.

HUD Energy Performance

Contracts

$18 Million in new energy conservation measures in public housing units.

DHA PPA

Power Purchase

Agreement

LEED Certified New Multi-Family

Properties

Approximately $150 Million invested in 7 LEED certified properties.

DHA Energy Efficiency and Sustainability Strategies

What is a Solar PPA?

• Power Purchase Agreement – means of structuring on site solar projects.

• 3rd Party Solar Developer Owns System – sells power at 20 year contracted rate

• Site Host – buys power and may enter into roof lease.

• Why? – Allows 3rd Party Developer to monetize Tax Credits

– Sites hosts that are public or 501c3 cannot take advantage of these

– Tax Credits (ITC, MACRS) are 55%- 60% of the total return

Solar PPA Benefits

• $16 Million in solar panels installed on 750 units at no cost to DHA.

• Option to purchase panels at 75% discount once 6 years have past, or to maintain lease at no cost

• Long-term, predictable energy costs for DHA • Reduces CO2 output associated with DHA systems

by 5 million pounds annually • Supports HUD’s interest in sustainability and

DHA’s reputation as a green builder

DHA LEED Certified New Construction

• Since 1998, HUD’s EPC program has generated millions

of dollars in Capital Improvements for PHAs.

• With interest rates at historic lows, in some instances,

this program has generated more than $8,000 per

Public Housing unit.

• DHA leveraged utility savings to raise over $18 million

for Energy Conservation Measures.

• Phase I with Honeywell as ESCO

• Phase II with DHA managed Self-Implementation

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HUD Energy Performance Contracting

• $11.5 Million in ECM’s

• 2,500 Units at 12 Properties

• 14+ Months to full implementation

• ECM’s Included: – 850 Refrigerators

– 1,300 Furnaces

– 4 Smart Irrigation Sys

– 1,300 Attics

– 4 Central Plant Upgrades

– Unit Lighting

– Ceiling Fans

– Window Replacements

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DHA’s Energy Conservation Measures:

Phase II Scope of Work

2013 Measurement & Verification Report by

Group 14

Denver Housing Authority – April 2014

Water & Sewer Savings

$1.4 million

46% reduction from baseline year

Natural Gas Savings

$816,000

34% reduction from baseline year

Electric Savings

$309,000

10% reduction from baseline year

Total Savings - $2,526,000

ECM’s Environmental Impact

Water Savings

294 Olympic size swimming pools

or

27 million kegs of beer

Green house gas emission

reductions

1,469 Passenger vehicles

or

2,502 tons of waste sent to the landfill

CO2 omission reductions

960 homes of electricity

or

785,417 gallons of gasoline consumed

Next: Resident Education Program

• RFQ issued in February 2014

• Cost: under $100,000

• Funded through EPC II Xcel Energy rebates

• Includes 2 properties (row type and mid rise)

• Efforts include: – Education campaigns

– Resident engagement strategies

– Prompts to action

– Pledges

– Feedback devices

• DHA joined the DOE’s Better Buildings

Challenge Multifamily Sector in 2013

• Committed to a 20% reduction in energy

intensity portfolio wide in 10 years

• Committed to benchmarking utility data on the

EPA’s Portfolio Manager

• Committed to share success stories with other

peer groups

DHA plans to reach a 20% reduction in

energy intensity in 10 years by initiating

the following strategies across our existing

portfolio and new developments.

– Energy and water conservation measures:

– Renewables

– Operations and Maintenance best practices

– Resident engagement programs

Ismael Guerrero Executive Director 720-932-3106 iguerr@denverhousing.org www.denverhousing.org

Delivering for Denver