1. Cost effective smart rehab FOR multifamily
12/31/2017
Cost effective smart rehab
FOR multifamily

2. Multifamily Housing 20%-30% of residential market
Subsidized Affordable – HUD, LIHTC, USDA-RD
Non-Subsidized Affordable / Market Rate
Underserved and difficult market segment
Commercial Property but Residential Use
Complex Ownership / Management Structure
Split-Incentive hurdle
Utility Rebate programs driven by Meter/Utility Account Holders

3. Why Smart Rehab? Reduce operating costs => Increase NOI
Reduce Energy, Water, and O&M costs for the next 20 years
Increase Revenues from:
Increased occupancy*
Lower turn-over rate**
Higher Rent***
Increase value of property due to Rehab
Increase comfort, health and safety for occupants
Social and Environmental benefits
Reduced Emissions, Creation of Local Jobs, Economic Development

4. By the Numbers Current Annual Utility Cost: $100,000
Potential Avg. Annual Savings from Smart Rehab (eliminate waste)
$25,000
Potential Annual Reduction in O&M Costs from Smart Rehab
$5,000
Total Savings/Yr. i.e. Increase in NOI/Cash Flow
$30,000
Likely Life Cycle of Smart Rehab (in years) 15
Total Savings from Smart Rehab
$450,000
If Cost of Capital is: 5%
Potential Increase in Value of Property
$600,000

5. Multifamily Housing Why MF Owners are not signing up? Time Constraint
Complex Process
Knowledge
Regulatory Requirements
Optimal Solutions
Pace of Technology Change
Financing
Does not meet ROI threshold
Lack of Reserves

6. Fix Issues if Project did not Pan Out
Decide to Explore Smart Rehab Options
Select Vendor & Schedule PCNA + Energy Audit
Compile options into a plan that best fits your needs
Finalize Scope of Work and Budget
Hire A&E firm to Develop Specifications for bids
Find the Money: Long term debt? Equity? Utility Rebates? Grants?
Obtain Approval(s) from pertinent agencies, owners, etc.
Follow Procurement Process to Select contractor(s)
Regular Inspection to ensure quality, schedule & budget
Close-Out: Pay Invoices, complete reports, Rebate paperwork, etc.
Track Results to make sure rehab met expectations
Fix Issues if Project did not Pan Out

7. Successful Programs Free to MF owner One-Stop-Shop
Utility Direct Install - Quick and Hassle-Free
Grant Funded – WAP, State, Foundation, etc.
One-Stop-Shop
Make it hassle-free
Oversees entire rehab
Provide relevant information
Cost effective ECMs
Access to financing options
Rebates, Incentives, Grants
Debt, EPC, PACE, etc.

8. One-Stop-Shop Portfolio & Property Assessments Design and Development
Access to Financing
Smart Retrofit:
Energy Efficiency and DSM
Renewable Energy
Water Conservation
Traditional Rehab
O&M Training

9. Whole is Greater than Sum of Parts
Lessons Learned
Service Providers Perspective:
Financial viability of Smart Retrofit is important
But take a Holistic approach
Leverage utility rebates, grants and incentives
But owner “buy-in” is essential for sustainability
Offer a comprehensive, hassle-free, and cost-effective program
Keep it simple and Make it easy, for the owner/manager
Whole is Greater than Sum of Parts

10. Case Study I Green Retrofit : Funding: Attic Insulation Loan - $500K
12/31/2017
Case Study I
Funding:
Loan - $500K
Rebates & Grants - $100K
Green Retrofit :
Attic Insulation
Lighting
Furnaces
Water Conservation
Evap. Coolers
Appliances
Rehab :
Roof replacement
Repave Parking Lot
Rehab Stairs
Replace Flooring and Subflooring
ADA compliance
20 unit Cibola Apts, Socorro, NM

11. Case Study II Green Retrofit : Funding: Insulation Loan - $356K
12/31/2017
Case Study II
Funding:
Loan - $356K
Rebates & Grants - $74K
Green Retrofit :
Insulation
Lighting
HVAC
Water Conservation
Window replacement
Appliances
Rehab :
Roof replacement
Children’s Playground
Exterior Doors
Gutters
Flooring and Subflooring
4-story 55 unit low-income property

12. Thanks Mattn@icastusa.org 505-
12/31/2017
Questions?
Thanks
505-