2011 I M HOME Retreat Knoxville, TN
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1 2011 I M HOME Retreat Knoxville, TN
2 2011 I M HOME Retreat Knoxville, TN
3 2011 I M HOME Retreat Knoxville, TN
4 Why is it Important to ROC USA? Energy Efficiency Means Greater Affordability for Homeowners I M HOME KEY STRATEGIC GOAL: Advancing MH within Mainstream Affordable Housing Industry.
5 Energy Efficiency in Resident-Owned Communities Why is it Important to ROC USA? ROC USA Board Adopted Greening ROCs as a 5-Year Strategic Goal in 2010 ROCs are generally financed without subsidy Today s Affordable Housing World demands Efficiency. The MH Process Offers Efficiency
6 Energy Efficiency in Resident-Owned Communities ROC USA s Green Strategic Goals Retrofit Existing Homes in ROCs in Cost- Effective Manner Replace Older Homes in ROCs when more cost-effective than retrofit Provide Energy-Efficient In-Fill Home Option Educate Homeowners Use Energy and Water-Efficient Infrastructure
7 Energy Efficiency in Resident-Owned Communities Where are we Today? In the middle of research w/ctg Energetics & Enterprise to develop White Paper on Greening ROCs; Working with Next Step to develop In Community Specifications for Cost-Effective EnergyStar Home Continuing to Learn from CTAP Network on In- Fill and Retrofit Experience
8 Energy Efficiency in Resident-Owned Communities Where Will We Be in 2012? Sharing Key Findings and Strategies from White Paper; Raising Funding around Key Strategies; Finalizing w/next Step In Community New Home Product
9 2011 I M HOME Retreat Energy Efficiency and Manufactured Homes Emanuel Levy, Executive Director Systems Building Research Alliance
10 Key Points Reducing energy use to make homes affordable: promising, practical, pressing What buyers can afford is less than they ought to buy. There are ways to help The next generation of manufactured homes will lead the nation in energy performance
11 Defining characteristics
12 Defining characteristics One code: Single, federal building code, under the auspices of US HUD Distinctive business model: Homes built indoors in a climate controlled setting, finished at the site by certified home installers A few, large companies: 123 manufacturing facilities operated by 45 corporations (July 2011) The three most important things about manufactured housing... affordable, affordable, affordable
13 Advantages of building in a controlled environment
14 Advantages of building in a controlled environment Precision built: Manufactured homes are tighter, stronger, and built with greater dimensional accuracy than site built homes Quality: QC oversight is continuous, every home is inspected through process administered by HUD Efficient use of skills/resources: High volume, skills integrated production and volume materials purchasing results in an efficient use of resources Green: Optimal material use, minimal waste and recycling makes factory building inherently green.
15 Profile of the buyer
16 Profile of the buyer Median household income (2009): manufactured = $29,900 vs. all housing = $47,600 Area Median Income (AMI): nearly half (45%) of manufactured homeowners earn 80% or less of AMI Average sales price wo/land (2009): manufactured = $64,900 vs. site-built = $203,000 Home cost: 60% of the homes sold in the nation priced under $125,000 were manufactured
17 Economics of Energy Investments LCC ($) A Lower $ B Lower energy Level of Energy Efficiency
18 Economics of Energy Investments LCC ($) Higher $ D C Lower energy Level of Energy Efficiency
19 Economics of Energy Investments LCC ($) Optimum homeowner investment Level of Energy Efficiency
20 Economics of Energy Investments LCC ($) Level of Energy Efficiency
21 Economics of Energy Investments LCC ($) Drivers: innovation, improved financing, incentives, etc. Level of Energy Efficiency
22 Drivers: HUD Standards Energy standards last updated by HUD in 1994 DOE is updating the standards. Changes will go into effect in late 2012 or early 2013 New standards are likely to be based on the IECC 2009 or It s estimated that the additional cost of compliance will vary from less than $1,000 to more than $7,000.
23 Drivers: Financial Incentives Market movers Getting to ENERGY STAR $1,000 per home federal tax credit for manufacturers State tax breaks and incentives (SC, NM) State and regional rebate and incentive programs (including: TVA area, NC, CA, NV) For a complete list of incentives:
24 Financial Incentives Home manufacturers selling homes to TVA customers receive $1,450 per home HVAC distributors receive $500 toward a heat pump purchase
25 ENERGY STAR Changes Provision Current program Future program (2012) Plant certification Yes Yes Envelope 2009 or 2012 IECC Equipment and controls 20% to 30% above 2004 IECC Heat pump + higher AFUE, SEER and HSPF Hot water heating Higher EF for all energy types Duct/house leakage testing Small sample (1 in 50) Larger sample (1 in7?) QC visual inspection rate 100% plant and field 100% plant and field Additional quality control inspection measures Field checklist with a few high importance items Five comprehensive checklists for plant and field HVAC testing None HVAC checklist Mandatory measures Quality duct installation, tight Programmable thermostats, duct and pipe envelope construction insulation, 50% CFLs Added hard costs ($/home)* $300 to $3,000 $500 to $7,000 Added soft costs ($/home)* ~$50/home $200 to $1,000 + Total marginal cost increase ($/home)* <$400 to >$3,000 <$1,000 to >$8,000 Impact on energy cost* Variable, generally cost-effective Variable, generally not cost-effective * Costs relative to current average construction
26 The Appraisal Conundrum The appraisers need to recognize the value of ENERGY STAR, but, Higher appraised value can increase monthly costs for buyers. EEMs have, thus far, failed to gain interest from the lending community.
27 2011 I M HOME Retreat Knoxville, TN
28 Weatherization Innovation Pilot Program New Hampshire resident-owned manufactured-housing communities
29 ROC-NH and NH CAPs You can t weatherize a trailah (trailer) 29
30 30 Really?
31 Belknap Merrimack County CAP No, not really Completed hundreds of them Some CAPs more experienced than others 31
32 Why we misunderstood Traditionally not done Stigma Regulations scoring Lack of expertise Depreciating asset not worth it Land tenure 32
33 How we can change that? Develop broad interest in energy savings Social networks New enrollees Loan program 33
34 How we can change that? Develop more expertise among CAP crews Training Knowledge transfer 34
35 How we can change that? 35 Prove increased efficiency for weatherization crews Similar construction type Dense communities Bulk buying
36 How we can change that? Prove highreturn energy savings 36
37 Community Loan Fund new program guides Lending Loan support Sector change Potential for all three = green light 37
38 Funding U.S. Dept. of Energy W.I.P.P. $600, applicants, 16 awards. $600,000 Greenhouse Gas Emissions Reduction Fund at NH Public Utilities Commission $2M Northeast Regional Cap and Trade Regional Greenhouse Gas Initiative (RGGI) 38
39 Program model Partner with CAP agency for intake process and actual weatherization Recruit and train energy-efficiency advocates in each community Cross-train crews to develop more depth and breadth of expertise 39
40 5 CAP agencies 10 counties 20 co-ops 50 roofs 425 homes 40
41 Early observations Developing broad interest Yes, but with drawbacks Lack of lending infrastructure Intensity of TA required to explain energy economics 41
42 Early observations High-return energy savings Can t wait for wintah (winter) 42
43 Early observations Developing more expertise 43
44 Early observations Providing increased efficiency of CAP crews Yes, with time and distribution of materials But not with bulk-buying 44
45 New partnerships USDOE Better Building Program Habitat for Humanity Municipal Energy Committees 45
46 New policy ideas Wx funding for replacement homes Wx funding abandoned homes 46
47 Increased savings and comfort for homeowners
48 48
49 2011 I M HOME Retreat Knoxville, TN
50 What do Next Step Homes offer? Energy Efficiency and Next Step Homes
51 Next Step Homes Next Step worked with Clayton Homes to develop a special line of homes, sold exclusively to Network Members at wholesale prices. We now offer homes from additional manufacturers serving different markets and providing a wide range of home models. While maintaining the efficiencies of construction in a home building facility, we provide flexibility by with both manufactured and modular versions of most homes and customization for thermal, snow and wind requirements. Floor plans and exterior styles that fit lifestyles across the US are available.
52 Next Step Homes These homes have specific design specifications that exceed ENERGY STAR standards and meet the criteria of the following: U.S. Department of Housing and Urban Development; U.S. Department of Agriculture Rural Development; and Fannie Mae MH Select
53 Factory Built Homes Next Step Offers Both Manufactured and Modular Homes ENERGY STAR Qualified High Quality Construction Affordable Price Points Wholesale & Transparent Pricing
54 ENERGY STAR Features Effective insulation High-performance windows Tight construction and ducts Efficient heating and cooling equipment Efficient products Third-party verification Benefits Added confidence Lower ownership cost Better performance Smart investment Environmental protection
55 Standard Features Base Options - 2 x 6 Exterior Walls-2 x 4 Interior Walls R-22 Floor Insulation R-19 Wall Insulation R-40 Ceiling Insulation ENERGY STAR Rated Homes in some regions will require upgrades for thermal, snow or wind loads.
56 Important Details
57 ENERGY STAR How does the ENERGY STAR process compare to site built? Site Built ENERGY STAR requires two inspections: 1. Thermo-bypass checklist 2. Third-party Home Energy Rating System inspections Factory Built Home building facility is responsible for overall qualification 100% of home is checked in facility First inspection is based on software (in factory) that provides computercalculated analysis to project qualification for ENERGY STAR Checklist is reviewed onsite to ensure ENERGY STAR compliance Systems Building Research Alliance, the research arm of the factory built housing industry. has developed a booklet titled ENERGY STAR Qualified Manufactured Homes: Guide for Retailers to describe the roles and responsibilities of retailers, installers, and HVAC contractors and lists marketing and sales tools available to retailers.
58 Existing Efforts NeighborWorks Montana received $350,000 to fund a pilot program for the decommissioning and replacement of older mobile homes. The study identified nearly 30,000 pre-hud Code mobile homes in Montana, for which the costs of weatherization often exceeded the value of the home. Maine s State Housing Authority operates a mobile home replacement program that incorporates an ENERGY STAR mortgage product. Maine s program will track energy savings created by replacement efforts. Affordable Housing Alliance, New Jersey is replacing pre-hud Code units in Eatontown with ENERGY STAR homes as part of the state s affordable housing initiative. New York recently created a program that commits $5 million to replace pre-hud Code homes with ENERGY STAR-rated manufactured homes.
59 Nationwide Impacts By replacing pre-hud Code mobile homes nationwide: Households can save an average of $1,800 per year in energy costs, savings that could be better applied to offsetting the new home monthly mortgage costs and therefore building equity. Create demand for new jobs. By replacing 60,000 pre-hud Code mobile homes over 30 years: Nationwide savings of more than $240 million a year in reduced energy costs. Reduction in greenhouse gasses of 1.4 million tons.
60 Next Step Homes
61 The Discovery 3BR, 2Bath, 960 sq. ft. Next Step Homes
62 Next Step Goes Greener Next Step is developing new Greener Lines of Manufactured and Modular Homes For resident owned communities we are expanding our line of manufactured, energy efficient, small homes. Here s how Next Step s new modular offerings are measuring up -
63 The Home Energy Rating System (HERS) What is it? The HERS Index is the industry standard by which a home's energy efficiency is measured. It provides an easily understandable means to compare the relative energy efficiency of different homes. What do the numbers mean? A standard new home is awarded a rating of 100 on the HERS Index. The lower a home rates the more energy efficient it is. Therefore, a home rating of 70 on the HERS Index is 30% more efficient than the standard new home and a rating of 130 is 30% less efficient than a standard new home.
64 The Home Energy Rating System (HERS) Next Step manufactured homes have a rating between 70 and 75, making them 10 to 15% more energy efficient than many ENERGY STAR homes. The new Green Modular homes are projected to have a rating between 48 and 52, which would make them over 30% more efficient than many ENERGY STAR homes.
65 Coming Soon The Next Step Green Line of Modular Homes Conceptual Rendering
66 2011 I M HOME Retreat Knoxville, TN
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