This document discusses sustainable and affordable housing options in the Midwest. It finds that while over 180,000 energy star certified and 130,000 LEED certified multi-family units have been built in the US, the Heartland region of Nebraska and Iowa have fewer such units relative to population. Developing energy efficient housing through standards like Energy Star, LEED, and Passive House can provide financial benefits to developers and tenants through incentives, higher property values, and reduced energy costs, but many in the region are not taking advantage of these opportunities.

1. Yes Virginia, You can have
Affordability & Sustainability in
Nebraska & Iowa
David Holtzclaw
Transduction Technologies
Heartland 2050 USGBC Nebraska Flatwater Chapter
February 24, 2016

2. Sustainable & Affordable Housing
• Across the U.S. more environmentally
sustainable public housing has come online
in the last 2 years
• Over 180,000 Energy Star certified multi-
family units.
• Over 130,000 LEED multi-family units
• Over 331 Passive House multi-family units

5. Commissioning: HERS Index
• Reference is 2006 code
built house (100)
• Each point = 1% annual
energy consumption gain
or lose
• 0 = net zero energy house
• Advantage: scores the
structure not the
occupants
• Disadvantage: doesn’t
score the occupants.

6. Energy Star Homes
https://www.energystar.gov/index.cfm?c=new_homes.hm_index
• Best building standard
widely available
• 4 checklists : HVAC,
Thermal Enclosure,
Water Management
• HERS Rating better
than code

7. 2014 Total % Market
U.S 74,102 627,969 11.81 %
Texas 19,845 98,617 20.12 %
Colorado 2,688 16,909 15.9 %
Iowa 1,086 6,913 15.71 %
NE 63 3,804 1.34 %
Kansas 24 4,821 0.50%
South Dakota 9 2,768 0.33 %
www.energystar.gov/
Energy Star By the Numbers (2014)

8. “How Much Does It Cost to Build an Energy Star Home?,
2013 ACEEE Summer Study on Energy Efficiency in Buildings
Cost for Energy Star Building (2012)

9. Current
Code
Energy Star Dwelling
Energy
Cost
($/yr)1
Energy
Cost
($/yr)
Savings
($/yr)
Premium
Costs
($)
SPB
(Yrs)
Savings
($/mo)
Premium
Costs
($/mo) 2
Net Cash
Flow
($/mo)
Single
Family
(2425
ft2)
$2,089 $1,674 $ 415
(20%)
$2,350 5.66 $35 $13 $22
Multi-
family
(1504
ft2)
$1,075 $946 $ 129
(12%)
$1,286 9.9 $11 $6 $5
Cost for Energy Star Building for
utility payer
1. Climate zone 5, data from Omaha and Indianapolis for Energy Star Certified Homes, Version 3, 2013
2. Assumes 90% down, 4% loan, 30 year fixed rate

10. NE IA
Single
Family
Multi-family Single
Family
Multi-family
Size (ft2) 2,425 1,504 2,425 1,504
Premium
($/ft2)
$2,350
($0.97/ft2)
$1,286
($0.86/ft2)
$6,417
($2.65/ft2)
$4,246
($2.82/ft2)
Cert. Charge $650 $400 $650 $400
Utility Rebates $500 - $3,000 $1504
($1/ft2)
HVAC Rebate $400 $200 $1,575 $350-$675
Equipment
Rebate
- - $125 $125
45L Tax Credit - - $2000 $2000
Total Cost $2,100 $686 $367 $342
Utility Savings $415 $129 $673 $232
SPB (Yr) 5.1 5.3 0.5 1.5
Energy Star Certified Homes, Version 3, 2013 (rebate data from 2016)
Cost for Energy Star Builder

11. Cost for Energy Star Builder
Cost Benefit
1. $350-$2100
2. Construction schedule
logistics
3. Qualified contractors
1. Better product
2. Improved indoor air
quality
3. Improved & more
efficient HVAC system
4. Improved comfort
5. 3rd party verification and
commissioning
6. Better appliances
7. Decreased maintenance
cost
8. Marketing benefit

12. LEED In Motion,
Residential, 2014
Fastest Growing LEED Certification

13. LEED-H By the Numbers (2014)
• 29,259 LEED-H Projects (34% all LEED
Projects)
• >200,000 units certified
• 74% Multifamily
• 44% Affordable Housing
• 65% of certified units were certified since 2012
LEED In Motion, Residential, 2014

14. 3
4
3
6

15. HERS Rater
Energy Star

18. LEED-H Requirements
• HERS Rating <70 (local code dependent)
• EPA Energy Star Certified
• EPS Water Sense Certified (v4)
• Simulated Energy model
• Door Blower test
• Duct Leakage Test
• Thermal Barrier Verification
• Thermal Bridging Verification
• HVAC Performance Testing & Balance
• Mechanical Ventilation Testing & Verification
• Water Efficiency Verification
• Other LEED verifications (low VOC paint, etc.)
• Provider Reviews Green Rater & HERS Rater
(4th Party Review)

19. What Does LEED-H Cost?
1.HERS/Energy Star Rater: $500 - $750 (Single Family)
2. Green Rater: $400 - $500
3. Provider Fee: $400- $600
4. Total: $1,500 - $3,000
- Decreased for volume or multifamily (sampling)
Hard Costs
1.-3% to 10% more
2.Less with Green Building Experience

20. Urban Green Building Rating System Cost Comparison, March 2012

21. Urban Green Building Rating System
Cost Comparison, March 2011
LEED-H Registration, verification, and certification: $2,776
NGBS Registration, verification, and certification: $1,350

22. 3
4
3
6

23. Local Incentives
1. Property Tax Abatement – Most common
2. LIHTC – Low Income Housing Tax Credit
Many local municipals require or offer
additional points for green certification for
LIHTC developers
3. Local market driven (Portland, Seattle)
4. Nonprofit Driven (Habitat for Humanity)
5. Stick vs carrot - local municipals demand it

24. Example: Cincinnati, OH
1. Offers residential property tax abatement
for units that meet LEED certification:
- Max abatement of $275,000 for up to 15
years
- Unlimited property tax abatement for up
to 15 years for LEED Platinum.

25. LIHTC Example: Virginia
1. Allows LIHTC investors to reduce their
federal income tax by $1 for every $1 of tax
credit they received. Limited to $1.75/state
resident.
2. Provide additional “credits” for green
housing (LEED-H, EarthCraft, Passive
House, etc.)
3. Offer additional “credits” for energy efficient
housing (lower HERS score).

26. NE (6pts) IA (20 pts)
1. 6 Points Max
2. All Energy Star
Equipment HVAC (1 pt)
3. Geothermal (2 pts)
4. All exterior lighting on
photocell or timer (1 pt)
5. Low VOC interior paints
(1 pt)
6. Ongoing recycling (1 pt)
7. Washer & dryer in each
unit (1 pt)
8. Community garden w/
water source (1 pt)
9. Storage area (1 pt)
1. Environmental: 12 Pts
-radon (2 pts)
-Low flow faucets (2 pts)
-Low VOC interior paints
(2 pt)
-High efficiency DHW (2
pts)
-No smoking policy in
common areas (2 pts)
-Low VOC adhesives and
sealants (2 pts)
2. Energy Efficiency (8 pts)
- HERs < 62 (8 pts)
LIHTC Green Standards

27. Passive House By the Numbers
• 4 multi-family complexes have been
certified to meet the Passive House
standard of the Passive House Institute of
the U.S. (PHIUS)
• 17 more multi-family complexes have been
submitted to PHIUS for certification
• 331 units total.

28. Summary
1. Heartland multi-family housing units are not
as sustainable or as energy efficient as their
peers across the region or country.
2. Many Heartland developers and builders
are leaving financial incentives “on the table”
by not developing more sustainable housing
units.

29. Summary
3. Next generation housing tenants will expect
more energy efficient and sustainable housing
options.
4. Greater emphasis on energy efficiency or
sustainability by the LIHTC and tax abatement
policies and utilities could greatly impact the
market place as it has in other markets.