Yes Virginia, You can have Affordability & Sustainability in

Nebraska & Iowa

David Holtzclaw Transduction Technologies

Heartland 2050 USGBC Nebraska Flatwater Chapter February 24, 2016

Sustainable & Affordable Housing• Across the U.S. more environmentally

sustainable public housing has come online in the last 2 years

• Over 180,000 Energy Star certified multi-family units.

• Over 130,000 LEED multi-family units

• Over 331 Passive House multi-family units

Commissioning: HERS Index• Reference is 2006 code

built house (100) • Each point = 1% annual

energy consumption gain or lose

• 0 = net zero energy house• Advantage: scores the

structure not the occupants

• Disadvantage: doesn’t score the occupants.

Energy Star Homes

https://www.energystar.gov/index.cfm?c=new_homes.hm_index

• Best building standard widely available

• 4 checklists : HVAC, Thermal Enclosure, Water Management

• HERS Rating better than code

2014 Total % MarketU.S 74,102 627,969 11.81 %Texas 19,845 98,617 20.12 %Colorado 2,688 16,909 15.9 %Iowa 1,086 6,913 15.71 %NE 63 3,804 1.34 %Kansas 24 4,821 0.50%South Dakota 9 2,768 0.33 %

www.energystar.gov/

Energy Star By the Numbers (2014)

“How Much Does It Cost to Build an Energy Star Home?, 2013 ACEEE Summer Study on Energy Efficiency in Buildings

Cost for Energy Star Building (2012)

Current Code

Energy Star Dwelling

Energy Cost

($/yr)1

Energy Cost ($/yr)

Savings ($/yr)

Premium Costs

($)

SPB(Yrs)

Savings ($/mo)

Premium Costs ($/mo) 2

Net Cash Flow

($/mo)

Single Family(2425 ft2)

$2,089 $1,674 $ 415 (20%)

$2,350 5.66 $35 $13 $22

Multi-family (1504 ft2)

$1,075 $946 $ 129 (12%)

$1,286 9.9 $11 $6 $5

Cost for Energy Star Building for utility payer

1. Climate zone 5, data from Omaha and Indianapolis for Energy Star Certified Homes, Version 3, 2013 2. Assumes 90% down, 4% loan, 30 year fixed rate

NE IASingle Family

Multi-family Single Family

Multi-family

Size (ft2) 2,425 1,504 2,425 1,504

Premium($/ft2)

$2,350 ($0.97/ft2)

$1,286 ($0.86/ft2)

$6,417 ($2.65/ft2)

$4,246 ($2.82/ft2)

Cert. Charge $650 $400 $650 $400

Utility Rebates $500 - $3,000 $1504 ($1/ft2)

HVAC Rebate $400 $200 $1,575 $350-$675

Equipment Rebate

- - $125 $125

45L Tax Credit - - $2000 $2000

Total Cost $2,100 $686 $367 $342

Utility Savings $415 $129 $673 $232

SPB (Yr) 5.1 5.3 0.5 1.5

Energy Star Certified Homes, Version 3, 2013 (rebate data from 2016)

Cost for Energy Star Builder

Cost for Energy Star BuilderCost Benefit

1. $350-$21002. Construction schedule

logistics 3. Qualified contractors

1. Better product2. Improved indoor air

quality 3. Improved & more

efficient HVAC system4. Improved comfort5. 3rd party verification and

commissioning6. Better appliances 7. Decreased maintenance

cost 8. Marketing benefit

LEED In Motion, Residential, 2014

Fastest Growing LEED Certification

LEED-H By the Numbers (2014)• 29,259 LEED-H Projects (34% all LEED

Projects)

• >200,000 units certified

• 74% Multifamily

• 44% Affordable Housing

• 65% of certified units were certified since 2012

LEED In Motion, Residential, 2014

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HERS RaterEnergy Star

LEED-H Requirements • HERS Rating <70 (local code dependent) • EPA Energy Star Certified • EPS Water Sense Certified (v4) • Simulated Energy model • Door Blower test • Duct Leakage Test• Thermal Barrier Verification • Thermal Bridging Verification • HVAC Performance Testing & Balance • Mechanical Ventilation Testing & Verification• Water Efficiency Verification • Other LEED verifications (low VOC paint, etc.)• Provider Reviews Green Rater & HERS Rater

(4th Party Review)

What Does LEED-H Cost?

1.HERS/Energy Star Rater: $500 - $750 (Single Family)2. Green Rater: $400 - $5003. Provider Fee: $400- $6004. Total: $1,500 - $3,000- Decreased for volume or multifamily (sampling)

Hard Costs 1. -3% to 10% more 2.Less with Green Building Experience

Urban Green Building Rating System Cost Comparison, March 2012

Urban Green Building Rating System Cost Comparison, March 2011

LEED-H Registration, verification, and certification: $2,776 NGBS Registration, verification, and certification: $1,350

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Local Incentives 1. Property Tax Abatement – Most common

2. LIHTC – Low Income Housing Tax Credit Many local municipals require or offer additional points for green certification for LIHTC developers

3. Local market driven (Portland, Seattle)

4. Nonprofit Driven (Habitat for Humanity)

5. Stick vs carrot - local municipals demand it

Example: Cincinnati, OH

1. Offers residential property tax abatement for units that meet LEED certification:

- Max abatement of $275,000 for up to 15 years

- Unlimited property tax abatement for up to 15 years for LEED Platinum.

LIHTC Example: Virginia 1. Allows LIHTC investors to reduce their

federal income tax by $1 for every $1 of tax credit they received. Limited to $1.75/state resident.

2. Provide additional “credits” for green housing (LEED-H, EarthCraft, Passive House, etc.)

3. Offer additional “credits” for energy efficient housing (lower HERS score).

NE (6pts) IA (20 pts)1. 6 Points Max2. All Energy Star Equipment HVAC (1 pt) 3. Geothermal (2 pts) 4. All exterior lighting on photocell or timer (1 pt) 5. Low VOC interior paints (1 pt) 6. Ongoing recycling (1 pt) 7. Washer & dryer in each unit (1 pt) 8. Community garden w/ water source (1 pt) 9. Storage area (1 pt)

1. Environmental: 12 Pts-radon (2 pts)-Low flow faucets (2 pts)-Low VOC interior paints (2 pt) -High efficiency DHW (2 pts)-No smoking policy in common areas (2 pts)-Low VOC adhesives and sealants (2 pts) 2. Energy Efficiency (8 pts) - HERs < 62 (8 pts)

LIHTC Green Standards

Passive House By the Numbers• 4 multi-family complexes have been

certified to meet the Passive House standard of the Passive House Institute of the U.S. (PHIUS)

• 17 more multi-family complexes have been submitted to PHIUS for certification

• 331 units total.

Summary1. Heartland multi-family housing units are not as sustainable or as energy efficient as their peers across the region or country.

2. Many Heartland developers and builders are leaving financial incentives “on the table” by not developing more sustainable housing units.

Summary3. Next generation housing tenants will expect more energy efficient and sustainable housing options.

4. Greater emphasis on energy efficiency or sustainability by the LIHTC and tax abatement policies and utilities could greatly impact the market place as it has in other markets.