2017 Multifamily Green Building Primer Webinar

Maximizing building efficiency, sustainability, and profitability for clients nationwide.
2017 Multifamily
Green Building Primer
How new energy codes, green policies, and programs may
impact your properties
February 21, 2017 www.ptrenergy.com | 888.826.1216

Who we are
February 21, 2017 www.ptrenergy.com | 888.826.1216 2
o Partner Energy is a nationwide provider of energy efficiency engineering and
sustainability consulting services
o We work with building owners, managers, and users to identify, capitalize, and
implement energy efficiency and sustainability projects that meet their capital return
criteria
New Construction Services Existing Building Services
Green Certifications Benchmarking
Energy Modeling Energy & water Audits
HERS Verification Green Physical Needs Assessments
Commissioning Retro-Commissioning
Performance Specs / Bid Documents / Submittal Reviews
Green Certification

Presentation Topics
o Introduction
o 2016 Title 24 California Energy Code
o 2016 California Green Buildings Standards
o 2020 California Net-Zero Energy Target
o 2017 TCAC Regulations
o Agency Program Requirements
o Additional Funding Sources & Requirements
o Certification Choices
o Q&A

Presentation Goals
1. Provide an overview of California code changes that took effect on January 1, 2017
and how they impact building design and construction
2. Identify future requirements that may impact your development pipeline and asset
management procedures
3. Review changes to “green” finance / lending requirements for affordable and market
rate housing based on agency programs
4. Discuss alternate sources of funding and their associated “green” requirements and
potential rebates and incentives to offset costs
5. Provide guidance in selecting the most suitable Green Rating system to certify your
property

2016 California Title 24 Energy Code
Residential requirements (low rise up to 3 stories) & Non-Residential requirements (4 stories and up)
o 2016 T24 code is effective for all projects permitted after 1/1/17
o 2016 T24 residential code requirements are approximately 25-30% more stringent than previous
code
o Non-residential requirements have been updated to better align with ASHRAE 90.1 national
standards
o HERS is not mandatory for high-rise residential (may be needed for performance based compliance)
o Commissioning is required for non-residential spaces in high-rise residential if they exceed 10,000 sf
o Next code cycle is 2019 (effective January 2020) that will require ZNE for all residential low rise
projects. 2030 code will require ZNE for all commercial buildings and residential 4 stories and up

2016 California Title 24 Energy Code
o In order to comply with the 2016 T24 code (or go beyond), the new measures are likely needed for
projects:
• High Performance Walls: Rigid insulation on the exterior walls of buildings (R-21+R4, 2x6 @16oc) or R19+R5, 2x6 @ 16oc)
• High Performance Attics: Insulation in roof rafters and attic beams (R30 @ attic + R13 under roof deck)
• High Performance Windows (U Factor = 0.032 & SHGC = 0.25)
• Minimum SEER 14 AC units
• Locating HVAC ducts in conditioned spaces
• Solar Photovoltaics (in climate zones 1-5 and 8-16)
• High efficacy light for all spaces (pin-type CFL or LED)
• Light controls for indoors and outdoors (occupancy sensors, timers, photo controls, etc)
• Tankless Hot water heaters are the baseline (less than 55 gallons). Penalized for using tank DHW
• Mandatory HERS Verification (Duct leakage, Refrigerant Charge, Verified Airflow, or Fan Watt Draw (depending on climate
zone), for low-rise only.

What Does the Future Hold: 2020 Net-Zero
In California, the 2019 Title 24 energy code, to be released in January 2020, will require
that all single family and low-rise multifamily new construction projects be “Net Zero”
Projects will be required to have an EDR (Energy Design Rating) of less than 20, on a scale
from 0 to 100, to be permitted. “100” = reference home and “0” = Zero Net Energy
Possible code requirements include:
o Solar PV will no longer count towards compliance credit for permitting
o Quality Insulation Inspection (QII) will be mandatory
o Rigid insulation will be required for building exteriors
o High performance windows will be required
o High performance attics will be recommended
o Credit will be given for battery storage

2016 CALGreen Code Requirements
Residential Mandatory Measures
o Must have storm water management plan for construction phase
o Provide for future installation of EV chargers (3% of total parking space on site). Provide conduit only and 40 amp capacity
o Plumbing Fixture requirements
• Toilets = 1.28 gallons per flush
• Urinals = 0.125 gallons per flush
• Showerheads = 2.0 gallons per minute
• Residential lavatory faucets = 1.2 gallons per minute
• Public lavatory faucets = 0.5 gallons per minute
• Kitchen faucets = 1.8 gallons per minute
o Outdoor landscape water requirements: Comply with Model Water Efficient Landscape Ordinance (MWELO)
o Divert at least 65% of construction and demolition debris from site
o Provide O+M Manuals for building operator

2016 CALGreen Code Requirements
Residential Mandatory Measures
o Provide dedicated area for recycling
o Protect all ducts during construction until start-up
o Adhesives, sealants, caulks, paints, and coatings shall comply with SCAQMD requirements for VOC content
o Carpets and cushion should be CRI Green Label Plus (or equivalent)
o Resilient Flooring shall have a FloorScore rating (or equivalent)
o All plywood, particleboard, OSB, and composite wood products shall have formaldehyde levels per ARB requirements
o Provide vapor retarder for concrete slab foundations and a capillary break
o Bathrooms shall have Energy Star fan, ducted to the outside with humidistat controls
o All HVAC systems shall be properly sized per anticipated loads via the ACCA Manual J, D, and S requirements

Development Impacts
Rigid Insulation High Performance Attic High Performance Glazing Tankless Hot Water Heater
Lighting Controls Solar Photovoltaics Solar Thermal Battery Storage

Development Impacts
From CEC / ACEEE Summer Study on Energy Efficiency in Buildings,
“Achieving Zero Net in California – Balancing Energy Efficiency and On-Site Renewable Generation” - June 2016

2017 TCAC Requirements
Sustainable Building Methods (9% projects)
o Path A & Path C – Green Certification (New & Rehab): No application phase materials required, only Owner commitment
• Achieve either LEED, Green Communities, PHIUS, Living Building Challenge, National Green Building Standard, or
GreenPoint Rated certification = 5 points. WELL Building certification = 1 point.
o Path B1 – Beyond Title 24: Must provide Energy Report and Sustainable Building Method Workbook showing strategies to
exceed code minimums
• Exceed 2016 Title 24 requirements by 7% = 3 points
• Exceed 2016 Title 24 requirements by 12% = 5 points
o Path B2 – Renewable Energy: Must provide Sustainable Building Method Workbook, a CUAC analysis of energy loads, and
a copy of the CEC PV Calculator for system sizing
• Offset Tenant load by 20% = 3 points for low-rise & 4 points for high-rise
• Offset Tenant load by 30% = 4 points for low-rise & 5 points for high-rise
• Offset tenant Load by 40% = 5 points for low-rise

Sustainable Building Methods (9% projects)
o Path D – Improvement of Current (Rehab Projects): Must provide Sustainable Building method Workbook Audit showing
existing and proposed conditions
• 15% improvement = 3 points
• 20 % improvement = 5 points
o Path E – Additional Rehab Measures: In addition to the requirements of Path D …..
• Solar Photovoltaics that offset 30% of tenant loads = 2 points
• Solar Photovoltaics that offset 50% of common area loads = 2 points
• Solar Thermal hot water for all tenants who have individual water meters = 2 points
• Developing a project specific maintenance manual = 2 points
• Building systems commissioning or retro-commissioning = 2 points
• Individually meter or sub-meter currently master-metered gas, electricity, or water for tenants = 2 points
o Path F – Water Efficiency: No application phase materials are required
• Use no irrigation, or irrigate with reclaimed or greywater or rainwater = 3 points

Minimum Construction Standards (4% projects)
o New Construction to demonstrate compliance with 2016 Title 24 requirements
• Conduct design team meeting to preliminary building energy model
• Submit Energy Report with application materials
• Submit Sustainable Building Method Workbook
o Rehab projects must show at least a 10% improvement over existing conditions
• Provide Energy Report showing existing and proposed conditions
• Submit Sustainable Building Methods Workbook, unless pursuing Green Certification

Development Impacts
o At application phase, teams need to weigh the cost benefits of exceeding Title 24
requirements & associated construction cost increases vs. costs related to Green
Certification vs. Cost for Renewable Energy.
• Hard costs for higher performing systems and/or renewable energy
• Upfront costs for energy modeling at application phase
• Soft costs for consulting and fees related to certification
o Teams need to consider if there are other funding source or jurisdictional/agency
requirements that my require exceed code energy requirements or achieving Green
Certifications.
• CDLAC requirements
• Additional “booster” points needed
• Zoning ordinances
• Climate Action plans
Develop a preliminary energy report
to identify strategies for compliance

Agency Green Lending Requirements
HUD Mortgage Insurance Premium (MIP) Reduction
o To qualify for the HUD MIP reduction, properties must commit to achieving a Green Certification AND an Energy Star score
of 75 or Higher
• Must provide a Statement of Energy Design Intent (SEDI) score at design/application phase
• Provide Statement of Energy Performance (SEP) after occupancy stabilization
• Achieve certification via either:
• LEED
• GreenPoint Rated
• Energy Star
• National Green Building Standard
• Earthcraft Homes
o For properties that meet these requirements, the annual MIP will change from between 45 and 70 basis points to 25 basis
points for all multifamily FHA-insured loan types

Fannie Mae Green Rewards / Green Certification Pricing Break
o Properties that obtain green certifications or implement energy/water savings measures are rewarded with preferred
pricing.
o Green Rewards
• Obtain PCA Report
• Benchmark energy and water consumption with 12 months of data
• Receive Energy Star Statement of Energy Performance
• Commit to reducing energy or water by 20%
o Green Building Certification Pricing Break
• Possess Green Certification prior to loan close (LEED, GreenPoint Rated, Green Globes, Energy Star, Green Communities, NGBS, Earthcraft)

Freddie Mac Multifamily Green Advantage
o Providing rewards for borrowers who improve their properties by saving energy/water, or who already have “green certified”
properties with better pricing
o Green Certified
• Possess Green Building certification (LEED, Energy Star, Green Globes, NGBS, Earthcraft, GreenPoint Rated)
o Green Assessment / Green Assessment Plus
• Obtain assessment property analysis / ASHRAE Level II energy audit
• Commit to making improvements and save 15% energy or water usage
• Underwrite 50% or 75% of projected energy savings
• Receive better pricing
• Higher loan proceeds
• Increase underwritten net operating income

Additional Funding Sources
Affordable Housing and Sustainable Communities Program (AHSC)
o The AHSC program provides grants and affordable housing loans for compact transit oriented development and related infrastructure
and programs that reduce greenhouse gas (GHG) emissions.
o AHSC awarded $289 million to 25 projects in 2015-2016.
o Must commit to GHG reduction strategies
• Quantified emissions reductions (through CalEEMod calculations)
• Active Transportation Improvements – installation or expansion of transportation infrastructure
• Sidewalks, bikeways, trails, paths, or crossing
• Water, Energy, and Greening
• Incorporate urban green (native plants, trees, bioswales, parks)
• Meeting or exceeding “Model Water Efficient Landscape Ordinance”
• Exceeding Title 24 Energy Efficiency Standards
• Achieve LEED or GreenPoint Rated certification
• Incorporate sustainable materials (permeable paving, native vegetation, cool roofs, resilient flooring, recycled content, etc.)
• Incorporate on-site renewable energy generation

USDA 514 Farm Labor Housing Direct Loan and Grants
o The program is designed to provide financing and grants to develop housing for year-round and migrant or seasonal
domestic farm laborers. Homes may be constructed in urban or rural areas, as long as there is a demonstrated need.
o Approximately $31 million in funds awarded in 2016.
o Sustainability Requirements:
• Must participate in Energy Star Homes, Enterprise Green Communities, LEED-Homes, or National Green Building Standards
• Participate in DOE Zero Energy Ready program
• Generate at least 10% of energy on-site via renewables
• Have at least 5% of the on-site renewable generation be “off-grid”
• Include engineered recycled water systems (gray water or storm water) for 50% of the site’s landscape needs
• Include property management with “green” credentials

o LA CDC NOFA
• Meet T24 requirements for new construction or 20% reduction for rehab projects
• 18 mandatory sustainable building method measures, including achieving Green Certification.
• 14 voluntary sustainable buildings method measures for up to 40 points
• 6 voluntary Healthy Design Elements for 20 points
o California Advanced Homes Program
• For residential projects. Multi-family projects must achieve a CAHP score of 84 or lower to be eligible.
• Rebate is $150 per unit for score of 84. $50 for each point reduction down to a score of 75. $100 per point extra for each
point thereafter.
o Savings By Design
• For commercial projects (or non-residential portions of multi-family projects).
• Minimum performance of 10% better than Title 24 to be eligible
• Whole building rebates:
• Owner = $0.10 per kwh saved up to $150k + $1.00 per therm saved.
• Design Team = $0.033/kwh saved and $0.33/therm saved.

Development Impacts
o Consider overlapping requirements of various funding sources to define the scope for
your project.
o Weigh cost benefits of achieving Green Certification or exceeding code requirements
vs potential rebates and other financial incentives.
o Assess upfront costs (soft costs & construction costs) vs lifecycle costs:
• energy/water savings
• differed maintenance
• lower interest payments
• increased rents
• decreased vacancy
Conduct feasibility studies to assess
the best path to proceed given the
mix of funding sources and program
requirements

Approved Green Certifications by Program
CTCAC AHSC LA CDC NOFA USDA 514 HUD Fannie / Freddie
LEED LEED LEED LEED LEED LEED
GreenPoint Rated GreenPoint Rated GreenPoint Rated Enterprise Green
Communities
GreenPoint Rated GreenPoint Rated
Enterprise Green
Communities
Enterprise Green
Communities
Energy Star National Green
Building Standard
Enterprise Green
Communities
Passive House
Institute US
National Green
Building Standard
Energy Star New
Home
Green Globes
Living Building
Challenge
DOE Zero Energy
Ready Home
Energy Star High-Rise
Multifamily
Energy Star
National Green
Building Standard
Earthcraft Homes National Green
Building Standard
WELL Building

Green Rating System Choices
LEED-Homes v4
o Effective for all projects registered after 10/31/16.
o LEED-Homes for low-rise up to 3 stories, LEED-Home Midrise for projects 4-8 stories. Projects between 9-12 stories can use
either LEED-Homes midrise or LEED-NC. Projects over 12 stories must use LEED-NC
o Point system has been reorganized to better coordinate with other LEED rating systems. 110 possible points.
o 17 prerequisites for mandatory measures
o 40 points needed for certification. 50 points for Silver. 60 points for Gold, and 80 points for Platinum
o Scope includes document collection, energy modeling, and HERS testing
o SOW to be started during the design phase and then verified during construction by the Green Rater
o HERS Compartmentalization (Blower Door) Testing is now mandatory for all projects
o Commissioning of central HVAC, DHW, and lighting systems is required for all mid-rise projects
o Certification fees are based on number of buildings & project gross square footage.

GreenPoint Rated v7.0
o Version 7.0 effective January 1, 2017
o Rating system applicable to all low-rise and high-rise multi-family properties
o Pilot version now available for use to certify properties outside of California
o Rating system includes 275 possible points.
o 5 Prerequisites
o Projects must achieve at least 50 points to be certified.
o Scope includes document collection, energy modeling
o SOW to be started during the design phase and then verified during construction by the GreenPoint Rater
o HERS testing is optional (based on energy compliance path chosen)
o Certification fees are based on number of units

Green Globes
o Rating system applicable for all property types (multifamily, commercial, community space, etc.)
o Properties up to 18 months post-construction can use new construction rating system
o There are no prerequisites
o Projects must achieve at least 350 points to be certified.
o Scope includes document collection, and on-site assessment
o SOW can be started during design, construction, or post occupancy phases
o Certification fees are based on number of units and types of uses at property

Energy Star New Home (v3.1) / High-Rise Multifamily
o ESNH applicable for multifamily up to 3 stories or 4-5 stories with individual systems for all units
o ESMFHR applicable to multifamily building 6 stories and higher
o Property must be modeled in RESNET to show HERS index target relative to reference home
o In California, properties must be at least 10% better than current T24 code to be eligible for ESNH. Properties must be
+15% better than T24 requirements for ESMFHR
o Mandatory measures only that must be implemented on all projects (air sealing, system sizing, appliances, etc.)
o All as-built conditions must be field verified by an Energy Star Rater
o Scope includes plan review, modeling, and field verification
o SOW to be started during the design phase

National Green Building Standard
o Version 2012 effective until June 2017. Version 2015 is mandatory on 6/1/17
o Planned land developments, new multi-family, and existing multifamily properties can be certified
o Properties must achieve at least 231 points to be certified
o Scope includes document collection, energy modeling, and HERS Testing
o SOW to be started during the design phase and then verified during construction by the NGBS Verifier
o Certification fees are based on number of units

o Other Options
• WELL Building:
• Only qualifies for 1 point in CTCAC.
• Current multifamily rating system is in pilot stage for implementation.
• Living Building Challenge
• Rating system has no points, only prerequisites.
• Certification is not awarded until 12 months of actual data is available
• DOE Zero Energy Ready Home
• Projects must be at least +25% better than Title 24 energy code by be eligible
• US EPA Watersense
• Irrigation system must be design or installed by a certified professional
• Install WaterSense labeled fixtures
• Field verification required for award of certification
• US EPA IndoorAir Plus
• Properties must earn Energy Star New Home certification to be eligible
• Additional mandatory measures for moisture, HVAC, materials, and finishes

Timeline for Decision Making
Pre-Construction/Pre-
Design
• Any Certification
• Consider Brand, Cost, and Timing
Construction
• Green Globes
12 Months Post –
Stabilization
• Consider Energy Star
• Any Existing Building Certification
• Considered Brand, Cost and
Timing
Asset Management
• Any Existing Building Certification
• Considered Brand, Cost and
Timing

Certification Costs
Rating System LEED GreenPoint Rated Energy Star Green Globes NGBS Enterprise Green Communities
Certification
Documentation
$$$ $$ $ $ $$$$ $
Energy Modeling $ $ $ $ $ $
HERS Testing $$$$ $ $$$$ - $$ $$$
Commissioning $ - $ - - -
Third Party Fees $$ $ - $$$$ $$ $

Questions
o Who?
o What?
o When?
o Where?
o Why?

Thank You!
Please feel free to contact us for a copy of this presentation or with any follow-up /
project specific questions!
Partner Energy
2154 Torrance Blvd
Suite 100
Torrance, CA. 90501
888-826-1216
sales@ptrenergy.com
www.ptrenergy.com

2017 Multifamily Green Building Primer Webinar

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