©2014 Elevate Energy Affordable Multifamily Efficiency Program Trends November 2015

Estimated Housing Units in Virginia All Housing Units 80% 24% Market-Rate Multifamily Affordable Multifamily Multifamily (5+ units) Single Family (1-4 units) Multifamily Division 20% of housing units are in multifamily buildings... Affordable multifamily buildings are often underserved by efficiency programs, leaving a large number of low-income families without access to the benefits of energy efficiency. *Low-income is defined as households earning up to 80% of area median income. 388,000 units 58% …and more than half of those units are affordable to low-income families. 20% 282,000 units 42%

Affordable Multifamily Units by MSA Arlington – Alexandria: 130,000 Charlottesville: 10,000 Richmond: 69,000 Virginia Beach: 100,000 Harrisonburg: 5,000 Staunton- Waynesboro: 4,000 These numbers include subsidized, naturally-occurring affordable, and public housing in the MSA. Numbers are based on the National Housing Preservation Database and the American Community Survey. (Numbers may not sum to previous total due to rounding).

Types of Affordable Multifamily Housing Naturally-occurring affordable: Units that receive no subsidy but are located in low and moderate income areas and typically serve households up to 80% area median income 241,000 units in Virginia Subsidized: Units that receive federal or state housing subsidies such as HUD, LIHTC, USDA Rural, HOME, FHA. These can be owned by for-profits (about 66%), non profits (about 30%), government, or a combination 128,000 units in Virginia Publicly owned: Units owned or managed by a public housing authority 19,000 units in Virginia

Affordable Multifamily Savings Opportunity Total Energy Use (Btu per Square Foot) Public Housing Non-Public Affordable Market Rate Green Certified Data shows that affordable multifamily buildings utilize more energy than market rate buildings Highest energy users

Efficiency Benefits Lower energy costs help low-income families avoid: Health Problems Unstable Housing Food Insecurity When the burden of utility bills is reduced, infants and toddlers are 23% less likely to be at nutritional risk for growth problems 3 and adults experience an 18% decrease in hypertension rates. 4 For a very low-income family, the average savings due to energy upgrades is 3% of their income – helping to reduce housing costs and the impact of rising energy costs. 1 When families spend less of their income on housing and utility costs, they can spend more on food, healthcare, child enrichment, 2 and other household needs. 1. U.S. Bureau of Labor Statistics, Consumer Expenditure Report 2. Newman, S. and Holupka, C.S. Housing Affordability and Child Well-Being. Housing Policy Debate, Frank, et al. “Heat or Eat,” Pediatrics Meyers, et al. “Subsidized Housing and LIHEAP: Improved Outcomes in Children of Color” Presentation at Annual Conference of the American Public Health Association Wilson, et al. Watts-to-Wellbeing: does residential energy conservation improve health? Energy Efficiency, February 2014, Volume 7, Issue 1, pp WilsonEnergy EfficiencyIssue 1

Trends in efficiency programs that are addressing these challenges Comprehensive/one-stop-shop program designs Virginia, Chicago, Austin, Washington DC Greater emphasis on water efficiency Most multifamily building are master metered for water Shared savings models are beginning to dominate the market Incorporation of energy and water efficiency assessments as part of the Physical Needs Assessment Most state QAPs include some requirements for energy efficiency Fannie Mae Green PNA Financing models that incorporate multifamily buildings On-bill financing Property Assessed Clean Energy (PACE) programs Energy and water benchmarking Municipal ordinances increasingly include multifamily buildings Energy Star Score for multifamily buildings 7

Thank You Louise Sharrow Elevate Energy