Digested From "Green Building Saves $$$"
Affordable Housing Finance (04/08) by Bendix Anderson
Nationwide, the first generation of green affordable housing developments finished over the last five years are receiving high marks for their energy savings. Developers and investors report utility cost savings of 20 percent to 40 percent to both owners and residents. For example, the New York State Energy Research and Development Authority has helped finance energy improvements at nearly 100,000 apartments statewide, bringing both new construction and existing buildings up to the federal Energy Star standards and cutting their energy costs by 25 percent on average. Affordable housing managers have found similar savings ratios in the West, where winters are not nearly as harsh. Because of green-related energy savings, the reserve accounts of the 600 or so green affordable apartments in Homestead Capital's portfolio are an average 36 percent larger than the rest of Homestead's affordable portfolio. Meanwhile, Enterprise Community Partners Inc.'s green portfolio shows energy savings of up to 40 percent, compared to apartment communities built to local standards. Developers add that residents have been less likely to move out of green affordable housing communities. The average occupancy in Homestead's portfolio of affordable apartments was 97 percent as of January--a full percentage point higher than the rest of the company's portfolio. Residents stay longer because green buildings provide benefits to their residents that do not appear on the monthly bills. Many residents, especially those dealing with asthma and allergies, appreciate the improved air quality at green buildings in particular.
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