Portfolio Manager and Beyond: Benchmarking Multifamily Properties

Transcription

1 Portfolio Manager and Beyond: Benchmarking Multifamily Properties California Multi-Family New Homes A Third-Party Program of the Pacific Gas and Electric Company (PG&E) Shannon Todd 2014 Housing California

2 Introductions 2 TRC Energy Services Consulting on energy efficiency for buildings Program Implementation Codes and Standards Emerging Technologies Evaluation Expertise in multifamily energy efficiency program implementation throughout the United States Benchmarking conducted for over 500 buildings, with over 8 million ft 2

3 Program Description 3 Public service program: Cash incentives Energy design assistance Project roundtable Educational opportunities Program coordination Facilitate energy efficient design and construction in new multi-family housing through cash incentives and design assistance

4 What is Benchmarking? 4 Comparison of a building s energy use against the use of other similar buildings. A comparison pool can range from portfolio-wide to nationwide.

5 Benefits 5 Inform capital improvement planning Identify malfunctioning systems and leaks Set goals for energy and water use and greenhouse gas emission reduction Confirm expected energy performance Use the ENERGY STAR multifamily score to assess your portfolio and to apply for an ENERGY STAR rating (expected Fall 2014)

6 Benchmarking Steps 6 1. Data collection Building data Energy use data either manual or automated 2. Data organization Spreadsheet or benchmarking tool (i.e., Portfolio Manager, WeGo Wise, Compass, Energy Scorecards) 3. Data comparison Internal benchmarking Regional comparison National ranking (i.e., ENERGY STAR score)

7 7 Data Collection Building Name Year built Location (street, city, state) Gross floor area (SF) Common area Unit type dimensions and number of each unit type Appliances and building systems number of laundry hook-ups in each unit and in common area Percent of floor area that is heated and cooled Heating and cooling systems Energy Use Knowledge of which meter corresponds to which space (SF) Resident authorization, if sub metered Actual energy use Manual: 24 months of utility bills for all building meters Automated: Utility identifier for each meter (i.e., Service ID # for PG&E)

8 Navigating Portfolio Manager 8 Account: a free service from the EPA Properties: multiple properties under one account Meters: designate metered spaces (i.e. lobby, unit 101) Web Services (Automated Benchmarking Service): Share properties with Contacts (your utility) to initiate automatic, ongoing data uploads from your utility TIP: Refer to PG&E s Benchmarking How-to Guide for a step by step guide to setting up your account. The process is relatively similar in each utility territory.

9 Meter Authorization 9 Master-metered projects: easiest to benchmark No tenant meter authorization is required Sub-metered projects: more challenging Residents will need to authorize sharing of their meters (for PG&E, visit Mix of master- and sub-metered projects: Begin with common areas TIP: A sample of sub-metered units can still provide insight into your property s energy use.

10 Analyzing your Data 10 Compare the building with itself Year over year Baseline versus seasonal use Compare the building within your portfolio Prioritize improvements for buildings with poor performance Compare the building nationally using ENERGY STAR s multifamily score

11 ENERGY STAR Score 11 Planned for launch in Fall 2014 The ENERGY STAR score allows everyone to quickly understand how a building is performing. A score of 50 represents median energy performance A score of 75 or better indicates your building is a top performer and may be eligible for ENERGY STAR certification. EPA

12 Better Buildings Challenge 12 Launched by President Obama in 2011 to improve the efficiency of American commercial, institutional, and multifamily buildings and industrial plants by 20 percent or more over ten years. Better Buildings Overview Participating organizations commit to conduct an energy assessment, develop and energy management plan, and report energy savings. Over 50 multifamily organizations have taken the pledge (at least 10 in California) TIP: Read on at Better Buildings Challenge Multifamily

13 Benchmarking Resources 13 Benchmarking guidance for utilities statewide Pacific Gas and Electric San Diego Gas and Electric Sacramento Municipal Utility District Southern California Edison Southern California Gas Company Portfolio Manager website

14 Program Contact Information 14 Toll Free: Website: Access this presentation on the CMFNH trainings page. Program Manager: Sophia Hartkopf, Plan Review and HERS Verification Manager: Keith Sage, Program Outreach and Participation Coordinator: Shannon Todd,

15 Building Sustainable Organizations Through Portfolio Initiatives 2014 Housing California Conference Enterprise Community Partners Capacity-Building Programs April 16, 2014

16 Agenda Enterprise Portfolio Initiative Goals How Change Occurs Portfolio Dashboards & Benchmarking Enterprise Capacity-Building Program Successes Enterprise Program Resources 16

17 Enterprise Portfolio Initiative Goals Strong, proactive asset managers Long term financial viability and physical quality of affordable housing real estate assets Affordable and healthy units for residents Environmental stewardship and resilience Strategic, salient information to support organization-wide and site level programs for systematic portfolio improvement not data for data s sake 17

18 How Change Occurs Staff Action Driven by: Reacting to Crisis Proactive Strategies with Measurable Impact Organizational Mission Property-level Information + Organizational Assessments + Incentives to Overcome Barriers Portfolio-level Actions 18

19 Strategic, Salient Information: Portfolio Dashboards & Benchmarking Early Warning Systems & Executive Level Dashboards Portfolio Dashboards & Operating Budget Benchmarking Utility Cost & Energy Benchmarking 19

20 Early Warning Systems & Executive Level Dashboards 20

21 Portfolio Dashboards: Selecting Measures to Benchmark Rating A - Good B - Watch List C - Warning Compliance - Reports and Occupancy Tenant Files Rate No Findings >=95% Occupancy Findings to be 90-95% address Occupancy Unresolved findings >= 90 days, recapture, tax credit loss or Notice of Default <=89% Occupancy Turnover Rate <5% per year 5-10% per year >10% per year Work Order Completion >98% of all work orders completed per management performance standard 76-98% of work orders completed per management performance standard >75% of work order not completed per management performance standard Physical Condition Good condition. No deferred mainenance. No major repairs needs. Some deferred maintenance. Major repairs manageable using operating cash and replacement reserves. Significant deferred maintenance. Major repairs cannot be managed using operating cash and replacement reserves. Operations dependent on reserve withdrawals. Organizational Fees Full funding of asset management and bookkeeping fees. Reserve Funding Fully funding Funding of fees, but not to full Partially levels. funding No funding of fees. Not funding Operating Reserve Balance Dollar Amount > 6 months Revenues Replacement Reserve Balance Debt Service Dollar Amount Current on all > 6 times hard debt Capital Needs payments Dollar Amount Dollar Amount = 4-6 months = 4-6 times Revenues Capital Needs N/A Not current on all hard debt payments or Dollar Amount Dollar Amount late in the <= 3 months <= 3 times past 12 Revenues Capital Needs months 21

22 Portfolio Dashboards: Targeting Problem Properties Quarterly Dashboard Period: Q Property # Units Yr 15 Tax Credit Partnerships Compliance - Reports and Tenant Files Occupancy Rate Turnover Rate Work Order Completion Physical Condition Organizational Fees Reserve Funding Operating Reserve Balance Replacement Reserve Balance Debt Service Property J N/A Property H Property X Property Y N/A Property I N/A Property K N/A Property Z N/A Property L N/A Post-Year 15 Partnerships Property D 22 N/A N/A Property E 17 N/A Property C 27 N/A Property F 42 N/A Non- Partnerships Property B 20 N/A N/A Property A 8 N/A N/A Property G 24 N/A N/A Total Units in Portfolio

23 Energy or Utility Benchmarking: One Piece of the Larger Picture 23

24 Enterprise Capacity-Building Program Successes Assisted affordable housing owners in developing portfolio improvement plans based on a range of financial and physical performance data, addressing barriers specific to our industry Developed programs to leverage government stimulus and utility incentives and initiated framework for evaluating impact Advanced portfolio improvement work with financial planning advice even when incentives not sufficent to motivate action 24

25 Measures of Success in 2013 Organizational Capacity Building 14 partners supported in California statewide Grants ranging from $10,000 to $75,000 70% have a single lead staff dedicated to strong, green asset management 50% developed portfolio-wide monitoring and management systems Numerous staff trainings for asset managers, property managers, facilities managers, resident service providers 4 partners supported in strategic collaboration to develop shared systems 2 partners supported to provide support services to others in the industry 25

26 Measures of Success in 2013 Physical Improvements Supported the completion of audits for 400 units and full physical needs assessments for 150 units 4 partners current on 3 year cycle of capital needs assessments Over 500 units were rehabbed to achieve performance improvements 8500 units utility benchmarked and continually monitored 900 units reviewed for utility performance improvement opportunities 2000 units reviewed for recapitaliation financial plan 26 property financial and upgrade plans developed and ready to implement in

27 Enterprise Program Resources Grants Apply for capacity-building grants, due May 7th Online Tools

28 Enterprise Program Supportive Partners Better Buildings Challenge LA Better Buildings Challenge Abode Communities Partner Energy California Housing Partnership Corporation WegoWise Energy Score Cards 28

29 Enterprise Program Contacts Northern California - GreenPASS William Ho, who@enterprisecommunity.org Southern California - Portfolio Initiative Felicia Brown, fbrown@enterprisecommunity.org

30

31 Benchmarking your Portfolio, Why? Informed decisions to improve your portfolio one step at a time Housing California 2014 Annual Conference Benchmarking Multifamily Properties Portfolio Manager and Beyond Sacramento, California April 16, 2014,

32 Abode Communities: Founded in 1968 as a volunteer organization of architects, Abode Communities has provided comprehensive architectural services and technical assistance to more than 500 community groups on projects including permanent, sustainable affordable housing, homeless shelters, child care centers, health clinics and senior centers.

33 Our Mission: At Abode Communities our mission is to open new doors in people s lives through creative and responsible design, development and operation of serviceenhanced affordable housing.

34 To Benchmark or Not to Benchmark?

35 Buildings Science and Systems A little History We ve always believed that affordable housing is at the junction of environmental sustainability and social justice and this belief led us to design building were we at each step we attempted to reduce the cost of utilities for the residents. How much does this cost and what is the real impact of these decisions

36 Buildings Science and Systems Data Gathering: The proof was in the pudding.

37 Buildings Science and Systems Data Gathering: The proof was in the pudding. we had to either go into the building and connect some monitors to the meters or request and tabulate a bunch of utility bills

38 Buildings Science and Systems WegoWise Building Dashboard (2008) Lucid Building Dashboard (2010) Online tools:

39 Ivy Terrace, Van Nuys, CA Success Stories!

40 Success Stories!

41 Grand Avenue Apts. Los Angeles, CA Success Stories!

42 Portfolio Initiative

43 Benchmarking Strategies Understanding your buildings, understanding your Portfolio: Wouldn t it be great if we could share the performance data of all the affordable housing stock?

44 Benchmarking Strategies Understanding your buildings, understanding your Portfolio: 10 Affordable Housing Developer/Owners and 202 properties became part of this effort There is a large variety of building within the portfolio The amount of data can be overwhelming and difficult to understand and more data might be better but not always easier, finally the data might not be right. Paseo del Sol (ELACC) The Abbey Apartments (SRHT)

45 The Project:

46 Portfolio wide approach to retrofit: The achievements of an organization are the results of the combined effort of each individual. Vince,Lombardi Portfolio Details: 4 developer/ Owners joined this effort 33 of the properties are part of the process

47 Portfolio wide approach to retrofit: First Step: make sure the data is accurate, (garbage in, garbage out) Building size, systems properly identified utility data uploading, etc., this take some time but if the data is not accurate it s useless.

48 Portfolio wide approach to retrofit: Utility Based Assessment: analyze data received from benchmarking establish a series of filters to parse the data: Building Size Number of Units Mechanical Systems Population Year built Etc.

49 Portfolio wide approach to retrofit:

50 Identifying the issues: Building Assessment: building type construction type year built Envelope details MEP Systems Who Pays for Utilities Population orientation

51 Portfolio Wide Protocol : The last step is to identify the tools to develop the standards and goals for a retrofit process that incorporates healthy building principles and sustainable strategies to be used for standardized delivery and quality assurance of both the audit and retrofit work Don t forget to set up improvement milestones to insure the collection of the data for future developments

52 In Conclusion: Benchmarking for new Buildings: 1. Smart buildings strategy 2. Great for educating staff and residents 3. Providing Data for recomendations in future developments Benchmarking for existing Buildings: 1. Expected result is a more efficient management of the portfolio by: 2. Controlling Expenses 3. Maximizing Revenue 4. Managing Capital Needs 5. Provides data for replacement decisions 6. Reduces the expense for studying properties within the portfolio, AKA Cost of PNA s

53 Rene Rodriguez, Associate, Abode Communities, Architecture

54 BETTER HOUSING THROUGH BENCHMARKING

55 Measure and Verify Retrofits

56 Choosing a Platform

57 Compare to a Baseline Natural Gas Use at Three Buildings (avg BTU/sq ft/day) Clayton Consorcia Swiss May-09 May-10 May-11 May-12 May-13

58 Getting Set Up

59 Collecting Building Data Year built Type of construction Building square footage: Total Residential Basement Type of heating/cooling system Meter configuration Utility account numbers

60 Cleaning the Utility Data

61 Understanding the Data William Penn Notre Dame Clayton Consorcia Swiss American B way Family St. Claire Tower I-Hotel Bayside 1370 CA Larkin Pine Crescent Cove Namiki 9 th Ave 201 Turk

62 Understanding the Data Natural Gas Use at Six Buildings (avg BTU/sf/day)

63 Understanding the Data William Penn Notre Dame Clayton Hotel The Consorcia Swiss American Broadway Family Larkin Pine St. Claire Tower I-Hotel Bayside 1370 CA Crescent Cove Namiki 9th Ave Tenderloin Family 46K 22.1K 47.1K 29.3K 26.1K 24.7K 24.2K 21.1K 20.7K 20.2K 19.9K 71.9K 68.8K 91.6K 84.2K 105K Both heating and hot water use natural gas Only hot water uses natural gas (heating is electric)

64 Larkin Pine Solar Thermal System

65 Using the Benchmarking Data

66 Measure and Verify Retrofits St. Claire natural gas use Btu/sf/day) 250 (avg 1370 California natural gas use (avg Btu/sf/day) Jun Sep Dec Mar 0 Jun Sep Dec Mar Year 1 savings: $1,600 Year 1 savings: $2,000

67 Measure and Verify Retrofits Results of Consorcia DHW Heater Retrofit (avg BTU/sf/day) Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

68 Identify Capital Improvements William Penn Notre Dame Clayton Hotel The Consorcia Swiss American Broadway Family Larkin Pine St. Claire Tower I-Hotel Bayside 1370 CA Crescent Cove Namiki 9th Ave Tenderloin Family 46K 22.1K 47.1K 29.3K 26.1K 24.7K 24.2K 21.1K 20.7K 20.2K 19.9K 105K 91.6K 84.2K 71.9K 68.8K

69 Benchmarking for O&M International Hotel Water Use (avg gal/bedroom/day)

70 Share Data with Residents Results of St. Claire Water Retrofit (avg gal/bedroom/day) Aug Sep Oct Nov Dec Jan Feb Mar Apr May

71 Better Housing 1. Measure and verify retrofits 2. Be strategic about capital improvements 3. Improve building operations and maintenance 4. Motivate residents to join our efforts Benchmarking is a mindset.