Energy Use as a Fundamental Financial Metric

In a first of its kind in the US report called Recognizing the Benefits of Energy Efficiency in Multifamily Underwriting, released January 10th, and commissioned by Deutsche Bank Americas Foundation and Living Cities, the economic case is clearly made for showing lenders that potential financial savings of energy efficiency upgrades can and should be considered in the underwriting of loans - allowing for larger loans to cover the efficiency upgrade.

Deutsche Bank & Living Cities

The report, produced by HR&A Advisors and Steven Winter Associates, with assists by Michael Blasnik & Associates and the Northern Manhattan Improvement Corporation,  analyzed pre- and post- energy use of 231 retrofit projects, totaling over 21,000 units of affordable housing, that had completed the NYSERDA Assisted Multifamily Program.

The average gains measured for building owners were modest,  with heating fuel reduction of 19% and electric reduction of 7%, yet financially significant and compelling.

Other key findings include:

• Fuel measures save [much, much] more than electric measures.
• The worse the performance of the building, the bigger the potential savings upside.
• Handicapping performance goals based on overall market data enhances the likelihood of any individual building hitting projected performance.
• Risk factors are understood and there are effective and clear measures to mitigate them.

I encourage you to chew through this wonderful report here (pdf).

BUT I think this report is more important than showing a clear methodology toward financing energy efficiency retrofits and it is this:

The report infers that a building's energy consumption is a fundamental financial liabilty in the ownership of the building.   Like property taxes and operations staffing, energy consumption is a big number on the balance sheet.  Yet unlike property taxes and operations, the financial liability of energy consumption is within the power of the building owner to  significantly reduce.  (If they can just get the financing.)

I can't help but imagine what the possibilities could be if deep-energy and Passive House level retrofits were made part of the equation.   With 90% reduction in heating demand, the building owner and financial lender would be crazy, IMHO, not to consider the huge financial upside of a Passive House retrofit.   One step at a time, I guess....

(This is a repost by Ken Levenson from 475 Blog.)

Manhattan Community Board 5 approves Zone Green

On February 12, 2012 Manhattan Community Board 5 approved by unanimous vote, "Zone Green", a text amendment to the New York City Zoning Code . The CB5 resolution states that New York City needs to be a leader in green building design and encourages the Department of City Planning to be bold.  CB5 recommends setting high performance building design standards such as the Passive House Standard and sustainability standards such as LEED.

 

 

INSULATION

PROPOSAL FOR NEW BUILDINGS

Up to 8 inches of wall thickness may project into a required yard, open space or setback area and not count toward floor area or lot coverage

 

 

Allow up to 8 inches of external roof insulation above the roof

􀀱􀁓􀁐􀁎􀁐􀁕􀁆􀀁􀁊􀁏􀁔􀁖􀁍􀁂􀁕􀁊􀁐􀁏􀀁􀁐􀁇􀀁􀁆􀁙􀁊􀁔􀁕􀁊􀁏􀁈􀀁􀁃􀁖􀁊􀁍􀁅􀁊􀁏􀁈􀁔

 

INSULATION

PROPOSAL FOR NEW BUILDINGS

 

Up 

to 8 inches  

 

of additional wall thickness may be exempted from floor area

 

 

 􀀦􀁏􀁄􀁐􀁖􀁓􀁂􀁈􀁆􀀁􀁏􀁆􀁘􀀁􀁃􀁖􀁊􀁍􀁅􀁊􀁏􀁈􀁔􀀁􀁘􀁊􀁕􀁉􀀁􀁆􀁏􀁗􀁆􀁍􀁐􀁑􀁆􀀁􀁕􀁉􀁂

 

AIR-CONDITIONERS

PROPOSAL

For one- or two-family homes, air-condensing units shall be permitted in rear and  

 

 

 

side yards, provided that such units do not obstruct driveways

 

 

 

􀀢􀁍􀁍􀁐􀁘􀀁􀁂􀁅􀁆􀁒􀁖􀁂􀁕􀁆􀀁􀁔􀁑􀁂􀁄􀁆􀀁􀁂􀁏􀁅􀀁􀁇􀁍􀁆􀁙􀁊􀁃􀁊􀁍􀁊􀁕􀁚􀀁􀁊􀁏􀀁􀁍

􀁐􀁄􀁂􀁕􀁊􀁐􀁏􀀁􀁐􀁇􀀁􀁆􀁇􀁇􀁊􀁄􀁊􀁆􀁏􀁕􀀁􀀢􀀤􀀁􀁆􀁒􀁖􀁊􀁑􀁎􀁆􀁏􀁕

 

 

SUN CONTROL DEVICES

PROPOSAL FOR PROJECTION

Above ground floor, allow awnings & sun control to project  

 

 

 

2’-6” in to required setbacks, yards and open space.

 

 

 

 

 

 

 

 

 

 

􀀢􀁍􀁍􀁐􀁘􀀁􀁔􀁉􀁂􀁅􀁊􀁏􀁈􀀁􀁐􀁇􀀁􀁘􀁊􀁏􀁅􀁐􀁘􀁔􀀁􀁕􀁐􀀁􀁓􀁆􀁅􀁖􀁄􀁆􀀁􀁔􀁖􀁎􀁎􀁆􀁓􀀁􀁄􀁐􀁐􀁍􀁊􀁏􀁈􀀁􀁏􀁆􀁆􀁅􀁔

 

 

 

 

 

 

Passive House Academy trainings in NYC in February 2012

Passive House Academy - just announced a series of trainings in NYC in February, detailed info and sign up at http://www.passivehouseacademy.com/ .

 

Half day Passive House intro course on Feb 1st

Certified Passive House Consultant Course, starting Feb 2nd

Thermal Bridge Calculation course on Feb 13th and 14th

Passive House (PHI) exam prep March 6th and 7th

 

Greenpoint open house - talking PH on sunday on a construction site

Andrew Bulger opened his retrofit Passive House project on Greenpoint ave - the views from the roof are amazing - at the same time on the interior there was much to discuss regarding the challanges of making a brick building airtight.....although bricks and mortar are pretty solid and hard, they leak air like there is no tomorrow (by PH standards) and thus need to be sealed to get anywhere near 1.0ACH.

At Greenpoint this is done with a liquid applied WRB - Henry airbloc. The airsealing connections that remained and where visible, were the connections to the plywood window boxes to this brick - a 2" gap still needed to be insulated and sealed - discussions how to do that with tape and membrane after the insulation is installed. The window boxes themselves were the tightest I had ever seen, installation gap of less than 1/8", very impressive.

 

Remaining unknown is the connection of the brick walls to the roof/ceiling........ The lessons learned was that all first are dificult, and specifically creating a continuous airitightlayer in a gut rehab. It was great to have an open house, to see and share ideas so retrofit passive houses will get tighter and tighter in NYC in the near future.

 

More info regarding the greenpoint project will be posted here: http://21greenpoint.tumblr.com/