portfolio manager and beyond: benchmarking multifamily … · 2014-04-22 · completed per...

California Multi-Family New Homes A Third-Party Program of the Pacific

Gas and Electric Company (PG&E)

Shannon Todd 2014 Housing California

Portfolio Manager and Beyond:

Benchmarking Multifamily Properties

Introductions 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 ft2

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Program Description

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

What is Benchmarking? Comparison of a building’s energy use against the

use of other similar buildings. A comparison pool can range from portfolio-wide to

nationwide.

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Benefits 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® 1-100 multifamily score to

assess your portfolio and to apply for an ENERGY STAR rating (expected Fall 2014)

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Benchmarking Steps 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 1-100 score)

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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)

Data Collection 7

Navigating Portfolio Manager 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.

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Meter Authorization 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 https://www.pge.com/BenchmarkingDataRelease)

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.

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Analyzing your Data 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

1-100 multifamily score

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ENERGY STAR 1-100 Score 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

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Better Buildings Challenge 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

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Benchmarking Resources 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

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Program Contact Information Toll Free: 866-352-7457 Email: info@cmfnh.com Website: http://www.cmfnh.com Access this presentation on the CMFNH trainings page.

Program Manager: Sophia Hartkopf, shartkopf@trcsolutions.com

Plan Review and HERS Verification Manager: Keith Sage, ksage@trcsolutions.com

Program Outreach and Participation Coordinator: Shannon Todd, stodd@trcsolutions.com

Building Sustainable Organizations Through Portfolio Initiatives 2014 Housing California Conference Enterprise Community Partners’ Capacity-Building Programs

April 16, 2014

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Agenda

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

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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

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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

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Strategic, Salient Information: Portfolio Dashboards & Benchmarking

• Early Warning Systems & Executive Level Dashboards

• Portfolio Dashboards & Operating Budget Benchmarking

• Utility Cost & Energy Benchmarking

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Early Warning Systems & Executive Level Dashboards

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Portfolio Dashboards: Selecting Measures to Benchmark

Rating

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

A - Good No Findings >=95% Occupancy <5% per year

>98% of all work orders completed per management performance standard

Good condition. No deferred mainenance. No major repairs needs.

Full funding of asset management and bookkeeping fees.

Fully funding

Dollar Amount > 6 months Revenues

Dollar Amount > 6 times Capital Needs

Current on all hard debt payments

B - Watch List

Findings to be address

90-95% Occupancy

5-10% per year

76-98% of work orders completed per management performance standard

Some deferred maintenance. Major repairs manageable using operating cash and replacement reserves.

Funding of fees, but not to full levels.

Partially funding

Dollar Amount = 4-6 months Revenues

Dollar Amount = 4-6 times Capital Needs N/A

C - Warning

Unresolved findings >= 90 days, recapture, tax credit loss or Notice of Default

<=89% Occupancy

>10% per year

>75% of work order not completed per management performance standard

Significant deferred maintenance. Major repairs cannot be managed using operating cash and replacement reserves. Operations dependent on reserve withdrawals.

No funding of fees. Not funding

Dollar Amount <= 3 months Revenues

Dollar Amount <= 3 times Capital Needs

Not current on all hard debt payments or late in the past 12 months

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Portfolio Dashboards: Targeting Problem Properties

Quarterly Dashboard Period: Q2 2014

Com

plia

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epor

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nd T

enan

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Occ

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ate

Turn

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etio

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Phys

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Org

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ees

Res

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Fun

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Ope

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eser

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Bal

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Rep

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alan

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Deb

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Property # Units Yr 15 Tax Credit

Partnerships

Property J 40 2014 N/A Property H 24 2015 Property X 10 2016 Property Y 10 2016 N/A Property I 24 2019 N/A Property K 42 2025 N/A Property Z 32 2026 N/A Property L 48 2027 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 390

Energy or Utility Benchmarking: One Piece of the Larger Picture

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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

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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

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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 2014

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Enterprise Program Resources

Grants Apply for capacity-building grants, due May 7th www.enterprisecommunity.com/financing-and-development/grants Online Tools • www.enterprisecommunity.com/solutions-and-

innovation/building-sustainable-organizations • www.enterprisecommunity.com/solutions-and-

innovation/enterprise-green-communities/resources/multifamily-retrofit

• www.enterprisecommunity.com/solutions-and-innovation/enterprise-green-communities/resources/operations-and-maintenance-toolkit

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Enterprise Program Supportive Partners

• Better Buildings Challenge www.energy.gov/better-buildings

• LA Better Buildings Challenge www.la-bbc.com • Abode Communities www.abodecommunities.org • Partner Energy www.ptrenergy.com • California Housing Partnership Corporation

www.chpc.net • WegoWise www.wegowise.com • Energy Score Cards www.energyscorecards.com

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Enterprise Program Contacts

Northern California - GreenPASS William Ho, who@enterprisecommunity.org 415-395-4752 Southern California - Portfolio Initiative Felicia Brown, fbrown@enterprisecommunity.org 213-787-8231

www.EnterpriseCommunity.org | www.EnterpriseCommunity.com

Benchmarking your Portfolio, Why?

Housing California 2014 Annual Conference Benchmarking Multifamily Properties – Portfolio Manager and Beyond

Sacramento, California April 16, 2014,

Informed decisions to improve your portfolio one step at a time

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.

Abode Communities:

At Abode Communities our mission is to open new doors in people’s lives through creative and responsible design, development and operation of service-enhanced affordable housing.

Our Mission:

To Benchmark or Not to Benchmark?

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…

Buildings Science and Systems

Data Gathering:

The proof was in the pudding.

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…

Buildings Science and Systems

Buildings Science and Systems

Online tools:

WegoWise Building Dashboard (2008)

Lucid Building Dashboard (2010)

Success Stories!

Ivy Terrace, Van Nuys, CA

Success Stories!

Success Stories!

Grand Avenue Apts. Los Angeles, CA

Portfolio Initiative

Understanding your buildings, understanding your Portfolio:

Wouldn’t it be great if we could share the performance data of all the affordable housing stock?

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.

Benchmarking Strategies

The Abbey Apartments (SRHT) Paseo del Sol (ELACC)

The Project:

“The achievements of an organization are the results of the combined effort of each individual.” Vince ,Lombardi

Portfolio wide approach to retrofit:

Portfolio Details: • 4 developer/ Owners joined this effort • 33 of the properties are part of the

process

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.

Portfolio wide approach to retrofit: First Step:

Portfolio wide approach to retrofit:

• 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.

Utility Based Assessment:

Portfolio wide approach to retrofit:

Identifying the issues:

• building type • construction

type • year built • Envelope details • MEP Systems • Who Pays for

Utilities • Population • orientation

Building Assessment:

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

Portfolio Wide Protocol :

Don’t forget to set up improvement milestones to insure the collection of the data for future developments

• 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

In Conclusion:

• Rene Rodriguez, Associate, Abode Communities, Architecture

rrodriguez@abodecommunities.org

BETTER HOUSING THROUGH BENCHMARKING

Measure and Verify Retrofits

Choosing a Platform

Compare to a Baseline

Natural Gas Use at Three Buildings (avg BTU/sq ft/day)

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50

100

150

200

250

300

350

400

450

May-09 May-10 May-11 May-12 May-13

ClaytonConsorciaSwiss

Getting Set Up

Collecting Building Data

Year built Type of construction Building square footage:

Total Residential Basement

Type of heating/cooling system Meter configuration Utility account numbers

Cleaning the Utility Data

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

9th Ave

201 Turk

Understanding the Data

Natural Gas Use at Six Buildings (avg BTU/sf/day)

19.9K

20.2K

20.7K

21.1K

24.2K

24.7K

26.1K

29.3K

47.1K

Tenderloin Family9th AveNamiki

Crescent Cove1370 CABaysideI-HotelTower

St. Claire22.1K

46K

68.8K

71.9K

84.2K

91.6K

105K

Larkin PineBroadway Family

Swiss AmericanThe ConsorciaClayton Hotel

Notre DameWilliam Penn

Understanding the Data

Both heating and hot water use natural gas

Only hot water uses natural gas (heating is electric)

Larkin Pine Solar Thermal System

Using the Benchmarking Data

Measure and Verify Retrofits

St. Claire natural gas use (avg Btu/sf/day)

1370 California natural gas use (avg Btu/sf/day)

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20

40

60

80

100

120

Jun Sep Dec Mar

2012-20132011-20122010-2011

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50

100

150

200

250

Jun Sep Dec Mar

2012-20132011-20122010-2011

Year 1 savings: $1,600 Year 1 savings: $2,000

Measure and Verify Retrofits

Results of Consorcia DHW Heater Retrofit (avg BTU/sf/day)

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50

100

150

200

250

300

350

400

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

2012-20132011-20122010-2011

19.9K

20.2K

20.7K

21.1K

24.2K

24.7K

26.1K

29.3K

47.1K

Tenderloin Family9th AveNamiki

Crescent Cove1370 CABaysideI-HotelTower

St. Claire22.1K

46K

68.8K

71.9K

84.2K

91.6K

105K

Larkin PineBroadway Family

Swiss AmericanThe ConsorciaClayton Hotel

Notre DameWilliam Penn

Identify Capital Improvements

Benchmarking for O&M

International Hotel Water Use (avg gal/bedroom/day)

Share Data with Residents

Results of St. Claire Water Retrofit (avg gal/bedroom/day)

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20

40

60

80

100

120

140

160

Aug Sep Oct Nov Dec Jan Feb Mar Apr May

2012-20132011-20122010-2011

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.