Balancing Cost and Quality in Affordable Housing ANTHONY ZETO, DEPUTY DIRECTOR | CALIFORNIA TAX CREDIT ALLOCATION COMMITTEE (MODERATOR) NICK ANDERSON, DEVELOPER | DOMINIUM JEFFREY KITTLE, PRESIDENT AND CHIEF EXECUTIVE OFFICER | HERMAN & KITTLE PROPERTIES, INC. CADY SCOTT SEABAUGH, VICE PRESIDENT, COMMUNICATIONS AND SUSTAINABILITY| MCCORMACK BARON SALAZAR, INC. MICHAEL SPOTTS, SENIOR ANALYST, PROJECT MANAGER | ENTERPRISE COMMUNITY PARTNERS, INC.

Utility Cost Savings (resident and/or owner) Lifecycle Savings* Cost/Benefit of thoughtful sustainable building practices Environmental Utility Cost Savings (resident and/or owner) Lifecycle Savings* More efficient heating and cooling Mold and water intrusion prevention Pest prevention Durable materials Obvious benefits are environmental and tenant cost savings

Plumbing and light fixtures Stormwater Lifecycle analysis of materials Some lessons on sustainable features Roofing Plumbing and light fixtures Stormwater Lifecycle analysis of materials Flat roofs (TPO) = 30 year warranty, green is affordable Shingles = 30 year warranty, green is costly Plumbing and light fixtures = green is cost effective Major cost increases in stormwater control mandated by sewer districts and consent decrees Lifecycle analysis of materials gives great insight – durability, quality, looks

Lifecycle cost analysis Initial Cost $/sq.ft 20-year cost $/sq ft Carpet Sheet (including pad) $2.75 $23.17 Vinyl Plank $3.75 $9.35 Linoleum Sheet $4.25 $10.57 Carpet Square $6.00 $50.33 Wood (Engineered laminate) $10.48 Ceramic/Porcelain Tile $6.50 $12.32 Linoleum Tile $16.13 Wood (Solid, prefinished) $8.00 $15.16 Bamboo $9.00 $17.04

Evaluation methods: incentives and context matter

NHT Analysis: Opportunity indicators in QAPs by state (August 2015) Source: research, chart by National Housing Trust

MN Housing Finance Agency’s multifaceted approach Process, policy, and innovation: Comprehensive approach needed MN Housing Finance Agency’s multifaceted approach Data, evaluation and reporting Consolidated funding application Multifamily Remodel Project Predictive cost model, “blind bid approach” MN Challenge to Lower the Cost of Affordable Housing

Balancing Cost and Quality in Affordable Housing ANTHONY ZETO, DEPUTY DIRECTOR | CALIFORNIA TAX CREDIT ALLOCATION COMMITTEE (MODERATOR) NICK ANDERSON, DEVELOPER | DOMINIUM JEFFREY KITTLE, PRESIDENT AND CHIEF EXECUTIVE OFFICER | HERMAN & KITTLE PROPERTIES, INC. CADY SCOTT SEABAUGH, VICE PRESIDENT, COMMUNICATIONS AND SUSTAINABILITY| MCCORMACK BARON SALAZAR, INC. MICHAEL SPOTTS, SENIOR ANALYST, PROJECT MANAGER | ENTERPRISE COMMUNITY PARTNERS, INC.