New England Developer Uses Systematic Approach to Green Retrofits of Properties
By Caitlin Jones & A. J. Johnson
6 min read
A New England developer is using a systematic, data-driven approach to make cost-effective green retrofits to its existing affordable rental housing properties.
Part of this involves a strategic analysis of the existing capital needs assessment budget and reserve replacement schedule of each property, to prioritize the order in which properties are upgraded, to determine the optimum energy-efficiency improvements for each property, and to find ways to help pay for improvements.
Heather Clark, Director of Green Building for Boston-based WinnDevelopment, described her firm’s activities and strategies at recent conferences of the National Council of Affordable Housing Analysts and of the National Housing & Rehabilitation Association.
Clark said Winn – an affordable and market-rate rental housing developer that owns 12,000 units and manages another 60,000 units – has adjusted its business to routinely identify and implement steps to reduce operating costs in projects, in order to counter rising energy costs. She suggested going “green” is not only a way for multifamily developers and owners to reduce energy and water costs in their properties, but also to reduce greenhouse gas emissions in preparation for a possible future day when buildings may be taxed on their carbon output. Clark said the construction of operation of buildings account for 38% of all greenhouse gas emissions and 48% of all energy use.
Effective Strategies
Clark offered recommendations on how developers and owners can most effectively “green” their affordable multifamily rental properties:
- Start simply. Clark said basic water conservation improvements and replacement of inefficient light fixtures are the two simplest, largest cost-saving upgrades that owners can make. She noted Winn in 17 affordable properties containing 1,700 units replaced the existing lighting with energy-efficient Energy Star lighting. “It always pays for itself,” Clark said. In addition, she noted Winn made simple water conservation improvements like changing out faucet aerators and showerheads (“not to those low-flow showerheads, but to great showerheads people actually like more”), and by changing the flappers in the existing toilets and installing a modulator in the toilet bowls to optimize flow.
- Get the biggest bang for the buck. Clark advised sponsors to first make the green improvements that will reap the greatest savings and have the shortest payback period. She noted the lighting and water retrofit improvements Winn made at its 17 properties cost only $346,000 but save $1 million annually. Winn didn’t even pay for the improvements. A third-party company installed and financed the improvements and will recover its outlay from a share of future water and energy cost savings at the properties. Another effective improvement Clark cited is “air sealing” – filling all of the cracks and gaps in a building that facilitate airflow and heat loss, such as at the tops of walls, around pipes where they pass through walls, etc. Clark said air sealing makes existing insulation work better.
- Develop and use a systematic approach. Clark said Winn compiled data on actual energy and water usage at each of its properties, and “normalized” this data by square footage and heating degree days to allow an “apples to apples” comparison across all properties. “Now I can compare and start to see my worst offending properties,” she said. “The ones that are really high [in energy usage] I start to target for energy improvements. The ones that are really low – those start to become my benchmarks of what I want all of my buildings to achieve.” Clark indicated this also makes it easier to determine the best order for upgrading properties.
- Review each property’s energy capital needs assessment and replacement reserve schedule, to plan and execute improvements and to find dollars to help pay for the costs. Clark indicated she tries to make energy efficiency upgrades at a property at the same time as scheduled work identified in the replacement reserve schedule, and tries to move around funds in the capital needs assessment budget to help pay for energy efficiency improvements. For example, if a property’s current boilers are scheduled to be replaced soon, she noted she’ll plan to replace them not with a similar model, but rather with new, more energy-efficient boilers. If air sealing, improved insulation, and other improvements are made at the same time, the building’s future energy “load” will be reduced, permitting replacement with smaller boilers. Clark said if less money is spent for the new boilers than was budgeted, there may be leftover funds to help pay for, say, the insulation work, which itself may qualify for a rebate. “That’s how you can see paybacks,” Clark said.
Fresh Approach
Clark said “super-insulating” a building, installing more energy-efficient windows, and similar steps can reduce a building’s energy usage and allow use of smaller, less costly mechanical system and fewer distribution pipes.
Clark also advocated looking at potential new development projects in different, less traditional ways.
As an example, Clark cited Castle Square Apartments, a 1960s, 500-unit affordable property in Boston that Winn has owned for 20 years. She noted Winn is planning a $26.6 million renovation of the property using low-income housing tax credits. As part of this, Clark said Winn is considering whether to install a new shell on the building, rather than spend $1.5 million – as originally budgeted – to make repairs to the building’s current exterior and related work. She noted flashing around windows has deteriorated and caused water leaks, prompting pieces of the building to fall off. Installation of a new shell could be paid for partially with the $1.5 million originally budgeted for exterior work. At the same time, Clark noted, installation of a new building envelope would drastically reduce the size of the new boilers and distribution system needed, creating additional budget savings that could help pay for super insulating the building.
Other Comments
In other comments, Clark:
- Lauded a European building design standard called passivhaus (German for passive house). Buildings constructed or rehabilitated to this standard are super-insulated, well-ventilated, very energy-efficient, use less water, and require minimal mechanical systems. Clark said passivhaus buildings use only 5% of the energy of a typical new building. She noted Winn is considering development of a new apartment building designed to the passivhaus standard in Wilmington, MA.
- Recommended that developers and owners first make their properties as energy-efficient as possible before considering renewable energy improvements, such as installation of solar photovoltaic panels. Clark said renewable energy improvements generally are costly, but added that the required size and cost of a solar energy system decreases significantly if a building is very energy efficient.
- Advised owners to integrate green practices and procedures into their day-to-day operations. For example, Winn has adopted a policy requiring the use of no- or low-VOC (volatile organic compounds) paints for all interior paint jobs in its buildings, such as unit turnovers. This benefits both residents and workers.