Energy Retrofits for Energy Retrofits for Affordable Multi-Affordable Multi-family Housing family Housing

July 27, 2010July 27, 2010NHC WebinarNHC Webinar

AgendaAgenda

1. Introduction of CNT and CNT Energy Savers

2. How does it work from the building owners point of view?

3. How does it work from the implementing agencies point of view?

4. Energy Audits and Retrofits

5. Challenges

Energy SaversEnergy Savers

Goal: Reduce operating costs in multi family affordable rental housing in the Chicago metro region

• Started in 2008• Came out of Preservation Compact• Building Owners identified energy costs as

a threat• Based on old program• Built on existing partnerships

Why an Energy Audit?-Regional Concerns

•70% of Chicago’s CO2 comes from buildings, •50% from residential buildings•Midwest imports 90% of its natural gas•Natural gas bills in Midwest four times US average

Cost of heating in a 38-Cost of heating in a 38-unit buildingunit building

$37,956

$22,133

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

1998-99 2006-2007

(23% of Operating Budget)

(30% of Operating Budget)

• Combines technical services including energy audits, construction management and financing low-interest revolving loan fund (2.5%)

• Targets multi-family building owners in both the private & subsidized markets

• Current annual productivity is 3,500 units, in the process of scale-up, 13,000 units of housing audited

• Measures the impact of energy efficiency on affordability and housing preservation

ProgressProgress

The Owner’s Point of The Owner’s Point of ViewView

Energy Savers ProgramEnergy Savers Program

Eligibility for rental buildings with 5 or more units1. Building energy assessments (at no cost to

owner)2. Financing options: low-interest loans and some

grants 3. Construction oversight and bid package review4. Annual energy performance reports

Energy AuditEnergy Audit

Fig. Natural gas EUI of your building and other Energy Savers participants

50

60

70

80

90

100

110

120

130

140

150

160

170

180

190

200

Natural gas EUI (kBTU/ft2/yr)

# b

uild

ing

s

136▼

1. Analyze fuel bills-Patterns and Energy Use Intensity (EUI): energy usage/square footage

2. Interview occupants/operators3. Visual inspection4. Instrumented Analysis: infrared thermography, thermometer, blower door 5. Modeling/common sense6. Final report w/ recommendations7. Follow up…

Construction ManagementConstruction Management

• High quality installation makes a difference

Assemble Financing PackageAssemble Financing Package

• About 50% of owners self-finance

• About 50% take advantage of low-interest loan

• Standard second mortgage, underwriting takes energy savings into account

• 2.5 – 3% loan, variable term, average of 7 years.

Monitor Building PerformanceMonitor Building Performance

26%

• Financial Institution– Establish a revolving

loan fund – Can combine with

grant sources– Can combine with

rehab– Can combine with

acquisition– Creates a more

flexible program

• Technical Assistance– Provides information

that allows owners to make smart investments

– Assures quality installation

– Monitors the building post retrofit to assure savings, and encourage additional investment and/or maintenance

How do you fund thisHow do you fund this

• Utility energy efficiency programs over the long term

• Housing preservation funds

• Foundation support for start-up

• EECBG opportunities for capitalizing loan fund

• Weatherization funds

Some ChallengesSome Challenges

• High cost of transaction as compared to the investment

• High Quality Customer Service to reduce owner’s time investment

• Subsidize transaction costs

• Aligning the goals of cost-effective energy efficiency and housing preservation and rehab

Infrared Infrared ThermographyThermography

• Tells you what the surface temperature is: applicable to assess existing insulation, pipes in chases, air leakage in tandem with blower door test, etc. Quantitative value limited.

Post retrofit pt. IPost retrofit pt. I

Cost of Improvements: Air Sealing and Insulation Roof Cavity :$12,400

Replace old converted coal Boiler: $26,000

Savings: $8,890/year (30% reduction in gas bills)

Payback 4.5 years

Post-retrofit pt. IIPost-retrofit pt. II

Outdoor reset control: • Cost: $2,500• Yearly savings: $9,000…?• Payback: 3 Months…

Very old basement doorVery old basement door

Extremely Variable Field Extremely Variable Field ConditionsConditions

Contact InformationContact Information

Peter LudwigEnergy Efficiency Programs Manager

CNT Energy2125 W North Avenue,

Chicago 60647Phone 773/269-4048peter@cntenergy.org