INNOVATIVE FINANCE: 300-level
SESSION 28
DATE // START TIME // ROOM NUMBER:
Thursday, September 30, 2010 – 11:00am – Altman B
ABSTRACT:
A panel of experts discusses a new Deutsche Bank Americas Foundation and Living Cities study, examining the relationship between pre-retrofit savings projections and actual results, and aiming to develop principles for recognizing energy efficiency in multifamily underwriting guidelines.
MODERATOR:
Candace Damon, Vice-Chairman, HR&A Advisors
SPEAKERS:
Joshua S. Eisenberg, General Counsel, Urban America
Sadie McKeown, Senior Vice President, Director of CPC’s Hudson Valley Camp
Sam Marks, Vice President, Deutsche Bank Americas Foundation
Marc Zuluaga, Energy Analyst, Steven Winters Associates
DESCRIPTION:
Despite significant investment in energy efficiency over the past 35 years, many cite the paucity of good data demonstrating the reliability of savings as a critical factor limiting investment. To address these challenges, The Deutsche Bank Americas Foundation and Living Cities enlisted Steven Winters Associates and HR&A Advisors to examine the relationship between pre-retrofit savings projections and actual results, to develop principles for recognizing energy efficiency in multifamily underwriting guidelines. This panel will provide a preview of that study, and bring together lenders, owners, and energy and policy experts to diagnose the challenges of incorporating efficiency projections in underwriting guidelines and discuss principles for addressing those hurdles.
As a nation, we have been experimenting with various policy responses to the desire for greater energy efficiency in buildings for some 35 years. Multifamily buildings, particularly affordable multifamily housing, have been a major focus of those efforts for that entire time period. The vigor of these efforts has waxed and waned with changes in fuel prices, administrations, and, more recently, with growing awareness of the perils of climate change. Yet over that time period, very little data regarding the relative efficacy of different installations and changes in operating procedure have been collected, analyzed or disseminated. Lack of data impedes owners and managers’ willingness to advance sustainability programs, lenders’ interest in financing such programs, and governments’ ability to effectively support those programs. Indeed, many cite the paucity of good data demonstrating the reality and reliability of savings as a critical factor in limiting investment.
To address these challenges, Steven Winters Associates and HR&A Advisors undertook a study that examines the relationship between pre-retrofit savings projections and actual results, in order to develop principles for recognizing energy efficiency in multifamily underwriting guidelines. The study combines the engagement of a wide variety of interdisciplinary perspectives with the analysis of more than 300 building retrofit projects, and is expected be completed in fall 2011.
The discussion will be divided into three parts, followed by 15 minutes of audience question-and-answer:
- A detailed diagnosis of the challenge of incorporating energy efficiency in underwriting guidelines, from the diverse perspectives of the panel members with specific focus on the prevalence of and reasons for divergence between predicted and actual results of investment in energy efficiency in multifamily buildings.
- A discussion of principles for overcoming hurdles, recognizing best practices being undertaken across the globe.
- A preview of the Deutsche Bank/ Living Cities study currently underway, and how the work will address the issues discussed above.
