The Arlington Partnership for Affordable Housing Presentation at Virginia Housing Credit Conference Tuesday, Sept. 3, 2014 Nina Janopaul, President/CEO.

Founded in 1989 – 25 th Anniversary Arlington County -- inner DC Metro area Own 1,218 rental homes at 14 properties in Arlington Long term ownership Funding with Low Income Housing Tax Credits Multiple recognitions for innovation, impact and achievement – latest: Housing Association of Nonprofit Developers (HAND) named APAH Developer of the Year in 2014, their highest award Who is APAH?

Resident Profile Low income families and individuals Working and persons with disabilities Diverse ethnic/national backgrounds Budget-minded – cook at home High concern about utility bills High occupancy– two per bedroom

Real Estate Portfolio Building types o New construction, mid-rise and high-rise o Older, renovated garden apartments 80% of units are family sized (2 or 3 Bedrooms) Extensive local design review for zoning and permitting Pipeline includes: Concrete; Mixed-use; Mixed-income 2007, 1 st LEED Silver1949; , 1 st EarthCraft2015+

Developer’s/Owner’s Constraints Long term owner with flat income: need to control lifecycle costs VHDA Development Cost limits: need to control upfront costs Utility allowance schedules do not capture energy saving investments Earthcraft standards impact energy use, design Challenge of synthesizing complex, individual building design issues with “one size fits all” LIHTC/Earthcraft standards

Buchanan Gardens story 1949 garden style, brick construction 111 units Acquired by APAH in 2009 Gut rehab in 2011/2012 included enlarging some smaller units via bump-outs and all new systems and finishes Extensive local zoning and permit conditions LIHTC financing EarthCraft certification

Buchanan Gardens – moisture problems Conflict between conditioned, and unconditioned spaces Mechanical closets are un-conditioned Moisture condensing around duct work carrying colder air Some residents elect not to use A/C RESULT  Mold in newly renovated buildings

Inside Utility Closets

Outside Utility Closets

Buchanan Gardens -- remediation 1.Test all HVAC installations with commissioning agent 2.Repair faulty installations in many units 3.Introduce conditioned air into utility closets 4.Enforce lease provisions that require residents to use A/C during summer 5.Change bathroom exhaust from continuous to 20 minute timer Impact: many hours of meetings with MEP, architect, contractor to identify and resolve moisture issues. Approx. $100,000 to owner to remediate. Potential impact: litigation potential for mold exposure to residents.

Lessons Learned Need to analyze both high first cost, life cycle costs and hidden costs Simpler, proven systems with accessible parts and common labor needs (not high cost specialized labor) are cheaper over the lifecycle Build it right the first time: significant costs and time to test, redo, replace Involve professional MEP engineers from around the state when establishing new standards Recognize individual complexities of each property Eg. New Dehumification requirement – could conflict with DOAS (Dedicated Outdoor Air System) and central systems in elevator served, new buildings

Other Tales from the “Bleeding Edge” Unproven systems and solutions can be risky and costly o Especially for affordable housing -- limited financial resources 1. Tankless, gas-fired hot water heaters and heating systems o 11 failures in 111 units in two years (10% failure rate) o Replacement cost $2,000/unit, not repairable due to electronics 2. Aquatherm system chosen (2001) instead of conventional electric heat pump and electric hot water tank o Years 10+ typical lifecycle failures. Replacement cost $2,000/unit— four times conventional hot water heaters 3. Grey water system Parc Rosslyn. Landscape irrigation use insufficient to keep clean, requires sanitizing/flushing extra expense

Summary Q: “How Tight is Too Tight: Moisture Issues Threaten Green Building Standards…or Do They?” A1: Unfortunately, green building standards can contribute to prospective threat of moisture related issues, including physical, financial and management challenges A2: Assessment of complex real world design issues (rehab/new, HVAC system, envelope system) and collaboration with multidisciplinary engineering team, are required to prevent unintended consequences that hamper the valuable goals of green building standards and upgraded codes

Nina Janopaul President/CEO, APAH Our Mission To develop, preserve, own and advocate for quality affordable housing in Arlington, and to promote opportunity for our residents through partnerships and programs