What We Do Orientation to my perspective- Our NASCAR of programs we work with. Focused on energy efficiency and sustainability. Work with mostly new construction, with a few, existing renovation work.

Our Services Design Review Energy Modeling Utility Analysis Insulation Inspections Air sealing inspections Diagnostic Testing; Blower door and duct leakage Partnering with Developers, Architects and GC’s Making sure our predictions are showing up in the performance

Overview EE has real Financial Incentives to Developers EE drives kWh Savings Financial benefits to residents Increased durability/quality of construction Leading to higher quality asset

HERO Code $750 per unit HERO WHOLE-HOUSE REQUIREMENTS INCENTIVE Meet 2012 NCECC HERO standards (or the equivalent in South Carolina) while making use of the code’s “visual infiltration inspection” allowance (no blower door test). Minimum 699 heated square footage for homes meeting HERO standards but not achieving a full HERS rating. $300 per unit INCENTIVE EQUIPMENT REQUIREMENT INCENTIVE Install an air conditioner or a heat pump with SEER 15 or higher. Install an ENERGY STAR® heat pump water heater with a minimum energy factor of 2.0 or higher. ($350)

Financial Incentives Green Rewards Preferential Pricing; (10 bps discount) up to 5% loan proceeds for energy improvements and repairs after loan closes. Green Certification Pricing Break Requires Green Program Certification. Better pricing than non-green loans. Disclosure of the loan as a "Green MBS" to the bond market. Green Preservation Plus Preferential pricing (up to 5 bps) and 5% additional long proceeds 10+ year property making improvement and repairs. Refinance and acquisition loans. Initiatives The Why? Recognizing these building benefit from lower expenses, reduced operation and maintenance costs and result in a higher quality asset. Building efficiency into loans Fanniemae.com/multifamily/green-initiative Fanniemae.com/multifamily/lender-partners

Financial Incentives Green Up Increased loan amount up to 50% of projected energy/water savings Green Up Plus Increased loan amount up to 75% of projected energy/water savings Freddiemac.com/multifamily/product/green-advantage.html

Financial Incentives HUD MIP Annual MIP will change from current rates generally between 45 and 70 basis points,[6] to 25 basis points for all multifamily FHA-insured loan types. Projects will access this rate to encourage owners to adopt higher standards for construction, rehabilitation, repairs, maintenance, and property operations that are more energy efficient and sustainable than traditional approaches to such activities. The lower rate will incentivize owners to implement measures that result in projects with greater energy and water efficiency, reduced operating costs, improved indoor air quality and resident comfort, and reduced overall impact on the environment. It is anticipated that mortgage proceeds will be used to retrofit properties to meet the stringent efficiency standards required to access this lower MIP premium.

HUD MIP In Short Benchmark Energy use Green Program Certification Monitoring to show efficiency over time

Top Energy Influencers Ducts/HVAC equipment in conditioned space Slab insulation 100% Efficient Lighting Energy Efficient Appliances The what? Apartments are by nature more energy efficient than homes due to low exterior wall area, where the delta T is. What we edit when we are looking to model reduction in energy.

Top Energy Influencers-Retrofit Air Sealing Ducts/HVAC equipment air sealed Energy Efficient Lighting Energy Efficient Appliances Resident Education Retrofit is hard, every unit/project is starting from a different place. Not a one size fits all situation.

NCHFA QAP includes ENERGY STAR V2.0 Qualification

ENERGY STAR V 2.0 717 kWh saved $123; 15% 717 kWh Savings $123/year savings 717 kWh saved $123; 15%

Ducts in the Attic 3 Bedroom All HVAC in Attic Middle Floor Ground Floor $/year $1,214 $1,141 $1,130 kWh/year 10,850 10,118 10,008 Savings $73 $84 Current (new) ENERGY STAR V2.0 LIHTC project in NC. So we are duct testing and doing insulation and air sealing inspections. $84/year; 842 kWh/year

New NC 2018 Code Residential Code Total duct leakage; 5 cfm Leakage to the outside; 4cfm Insulation values changing Go to a Code Update Workshop Commercial: http://buildingnc.org/resources/2018-commercial-energy-code-workshops/ Residential: http://buildingnc.org/resources/2018-residential-energy-code-workshops/

NC 2018 Code

Insulation R-13 R-15 R-19 2x4 2x6 $/year $1,219 $1,198 $1,189 kWh/year 10,912 10,692 10,605 Savings $0 $21 $30 Same project with different wall types. $30 savings to resident to go to 2x6. 2x6 and HVAC in conditioned space, looking at $114/year

Multifamily Projects in NC Additional 542 kWh Savings Additional $77/year Tax credit project taking advantage of HERO, close to 50k

HERO To Date

Summary Financial Incentives to Developers kWh Savings Real financial benefits to residents Increased Durability/quality of construction

Questions

Contact Us! Dana Bartolomei Alfred Ripley ​Laurie Colwander Regional Director of Energy Efficiency Policy, Southeast National Housing Trust 1101 30th St. NW, Suite 100A Washington, D.C. 20007 Dbartolomei@nhtinc.org 202-333-8931 ext. 140  www.ee4nc.org  Alfred Ripley Director of Consumer and Housing Affairs North Carolina Justice Center PO Box 28068 224 S. Dawson St. Raleigh NC 27611-8068 al@ncjustice.org (919) 856-2573 ​Laurie Colwander Director of Multifamily Services   Southern Energy Management 5908 Triangle Drive Raleigh NC 27617 laurie@southern-energy.com   919-538-7837