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Making Affordable Housing Truly Affordable




       Matt Petersen President & CEO Global Green USA   04.14.2010
GLOBAL GREEN USA


Foster a
global value
shift toward a
sustainable
and secure
future by
reconnecting
humanity with
the
environment
GLOBAL GREEN & GREEN AFFORDABLE HOUSING




                                 2005
       1995
Why Green Affordable Housing?
       Long-Term Ownership Supports Life Cycle Approach Projects
       are typically owned and operated by the same
       organization for 15-55 years – justifying medium- to long-term
       payback periods.




  $
       Dollar Savings Help Low-Income Families Most Utility costs
       can be 25% of expenses after rent. Low-income families
       spend more on utilities than on education or health care.

       Housing Should be Safe, Decent, Affordable & Healthy
       Indoor toxins impact children's nervous and respiratory
       systems and can be a trigger for asthma.

       Affordable Housing is a Public Asset Approximately $500
       million annually in Federal tax credits are allocated to
       housing. It is critical that these assets are well-designed, do
       not create an operation burden, and are long-lasting.
OUR APPROACH
Los Vecinos
Los Vecinos




        •Opened Spring 2009
        •42 units- including community room
        •3-story naturally-cooled, a/c community room
        •LEED platinum – 42% better than CA energy code
        •93kW of Photovoltaic
LOS VECINOS

 •Annually—the average unit PV system
 is producing 30% more electricity than
 the average apartment is using, making
 the entire project a net electricity
 exporter


 • Electricity bills are an average of 62%
 lower than they are at a nearby
 affordable housing development
“…low-income groups
have additional
vulnerability to climate
change.”
                 -EPA
REBUILDING A GREEN NEW ORLEANS
“No
 organization
is doing more
   to green
 New Orleans
 than Global
    Green
 USA…”- TIME
POLICY: LOW INCOME HOUSING TAX CREDIT

 •   GG launched advocacy in 2000 to “green” the Qualified
     Allocation Plan in CA

 •   Success in CA led to greening QAP in LA after Katrina

 •   GG launched analysis of all states QAPs in 2005

 •   GG used this analysis to identify additional states that
     needed assistance
     - In 2007 we selected NY and TX when they received a “C”
     - In 2009, TX received a “B+” and NY received an “A-”
                                                      “A-
QAP Analysis – 5 year trends
Number of States
     Ex
       ist
          in
            g
                  Ho
                    us
                      in




                                              0
                                                  5
                                                      10
                                                           15
                                                                20
                                                                     25
                                                                          30
                                                                               35
                                                                                    40
                                                                                         45
                                                                                              50
                        g
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               vi                    ha
                  ta
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                         at
                            io
        Pr                     n
            ox                    Pl
                im                   an
Sp                  ity                  s
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      ifi
         ed                   Se
              Ef                  rv
                  fic                ic
                      ie                es
                         nt
                             Pr
           Pr                    od
              ox                     uc
                  im                    ts
                       ity
     En                     to
         er                     Tr
             gy                     an
                 St                    sit
                     ar
                          Ap
           W                  pl
                                 ia
              at                    nc
                 er                    es
                      Co
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          In                  er
            su                    va
                la                   tio
En                 tio                   n
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      ro                n
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         nm                   an
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            Ha                   Co
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                                                                                                   Top 15 Strategies in QAPs
QAP Analysis Summary

•   Steady increase in incorporating green in QAPs.
•   Increased emphasis on resources and health.
•   Increased emphasis on specific green certifications.
•   States that make an effort are see big jumps in scoring.
•   Most efforts are focused on creating better requirements.
•   Only a few states are providing additional funding for green
    projects.
POLICY: ENERGY POLICY ACT 2005


 Corzine amendment championed by Global Green:

 •   Directs HUD to allow Public Housing Authorities to
     integrate their Capital Budgets with their O&M Budgets
 •   Requires PHAs to purchase Energy Star appliances
 •   Requires all housing constructed or rehabbed with HUD $
     to meet the 2000 Internatl Energy & Conservation Code
 •   Requires HUD to draft energy strategy to reduce utility
     expenses in public and Indian housing
HOW DOES THIS
  RELATE TO
 AFFORDABLE
   HOUSING
PRESERVATION?
HOW DOES THIS RELATE TO AFFORDABLE HOUSING
PRESERVATION?



                The greenest building
              is the one that already exists...
             and there are millions of existing
               multi-family buildings in the US
HUD spends $5 billion
 on utilities
Asthma is at FOR US TO BElevels
NOW IS THE TIME
                epidemic BOLD
 in many US inner city
   neighborhoods




         The incidence of asthma linked directly to
         housing-related hazards costs the U.S. economy
         approximately $3.5 billion each year.
THE LINKAGE BETWEEN GREEN AH &PRESERVATION


    If preservation and rehabilitation of these
    properties occurs, green building practices
    can provide a variety of benefits including
    healthier,
    healthier, more habitable housing through
    the use of more durable, non-toxic
                               non-
    materials.
    materials. Affordability can be maintained
    through the use of energy efficiency and
    renewable energy.
NOW IS THE TIME FOR US TO BE BOLD
-   Show deep green
    retrofits are
    possible in existing
    buildings

-   Demonstrate there
    are benefits to low-
    income residents
    and
    neighborhoods

-   See preservation as
    an entry point for      Action now on energy
    collaborative
    policy making and       and GHG regulations
    Integrated problem
    solving
Where there is the will
                There is the way




Global Green USA 2218 Main Street Santa Monica, CA 90405 (310) 581-2700
                                                               581-
www.globalgreen.org

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Matt Petersen, Global Green USA

  • 1. Making Affordable Housing Truly Affordable Matt Petersen President & CEO Global Green USA 04.14.2010
  • 2. GLOBAL GREEN USA Foster a global value shift toward a sustainable and secure future by reconnecting humanity with the environment
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  • 4. GLOBAL GREEN & GREEN AFFORDABLE HOUSING 2005 1995
  • 5. Why Green Affordable Housing? Long-Term Ownership Supports Life Cycle Approach Projects are typically owned and operated by the same organization for 15-55 years – justifying medium- to long-term payback periods. $ Dollar Savings Help Low-Income Families Most Utility costs can be 25% of expenses after rent. Low-income families spend more on utilities than on education or health care. Housing Should be Safe, Decent, Affordable & Healthy Indoor toxins impact children's nervous and respiratory systems and can be a trigger for asthma. Affordable Housing is a Public Asset Approximately $500 million annually in Federal tax credits are allocated to housing. It is critical that these assets are well-designed, do not create an operation burden, and are long-lasting.
  • 7. Los Vecinos Los Vecinos •Opened Spring 2009 •42 units- including community room •3-story naturally-cooled, a/c community room •LEED platinum – 42% better than CA energy code •93kW of Photovoltaic
  • 8. LOS VECINOS •Annually—the average unit PV system is producing 30% more electricity than the average apartment is using, making the entire project a net electricity exporter • Electricity bills are an average of 62% lower than they are at a nearby affordable housing development
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  • 11. REBUILDING A GREEN NEW ORLEANS
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  • 22. “No organization is doing more to green New Orleans than Global Green USA…”- TIME
  • 23. POLICY: LOW INCOME HOUSING TAX CREDIT • GG launched advocacy in 2000 to “green” the Qualified Allocation Plan in CA • Success in CA led to greening QAP in LA after Katrina • GG launched analysis of all states QAPs in 2005 • GG used this analysis to identify additional states that needed assistance - In 2007 we selected NY and TX when they received a “C” - In 2009, TX received a “B+” and NY received an “A-” “A-
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  • 26. QAP Analysis – 5 year trends
  • 27. Number of States Ex ist in g Ho us in 0 5 10 15 20 25 30 35 40 45 50 g Re Re vi ha ta liz b at io Pr n ox Pl im an Sp ity s ec to ifi ed Se Ef rv fic ic ie es nt Pr Pr od ox uc im ts ity En to er Tr gy an St sit ar Ap W pl ia at nc er es Co ns In er su va la tio En tio n vi ro n St nm an en da ta rd lA s ss es HV sm AC en Pe t rfo rm an ce En er gy Ha Co za de rd s Ab at em Ad en ap t W tiv et e la Re nd us sP e Fl re oo se dp rv at la io in n Pr es er va tio n Top 15 Strategies in QAPs
  • 28. QAP Analysis Summary • Steady increase in incorporating green in QAPs. • Increased emphasis on resources and health. • Increased emphasis on specific green certifications. • States that make an effort are see big jumps in scoring. • Most efforts are focused on creating better requirements. • Only a few states are providing additional funding for green projects.
  • 29. POLICY: ENERGY POLICY ACT 2005 Corzine amendment championed by Global Green: • Directs HUD to allow Public Housing Authorities to integrate their Capital Budgets with their O&M Budgets • Requires PHAs to purchase Energy Star appliances • Requires all housing constructed or rehabbed with HUD $ to meet the 2000 Internatl Energy & Conservation Code • Requires HUD to draft energy strategy to reduce utility expenses in public and Indian housing
  • 30. HOW DOES THIS RELATE TO AFFORDABLE HOUSING PRESERVATION?
  • 31. HOW DOES THIS RELATE TO AFFORDABLE HOUSING PRESERVATION? The greenest building is the one that already exists... and there are millions of existing multi-family buildings in the US
  • 32. HUD spends $5 billion on utilities
  • 33. Asthma is at FOR US TO BElevels NOW IS THE TIME epidemic BOLD in many US inner city neighborhoods The incidence of asthma linked directly to housing-related hazards costs the U.S. economy approximately $3.5 billion each year.
  • 34. THE LINKAGE BETWEEN GREEN AH &PRESERVATION If preservation and rehabilitation of these properties occurs, green building practices can provide a variety of benefits including healthier, healthier, more habitable housing through the use of more durable, non-toxic non- materials. materials. Affordability can be maintained through the use of energy efficiency and renewable energy.
  • 35. NOW IS THE TIME FOR US TO BE BOLD - Show deep green retrofits are possible in existing buildings - Demonstrate there are benefits to low- income residents and neighborhoods - See preservation as an entry point for Action now on energy collaborative policy making and and GHG regulations Integrated problem solving
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  • 37. Where there is the will There is the way Global Green USA 2218 Main Street Santa Monica, CA 90405 (310) 581-2700 581- www.globalgreen.org