1. Framing the Challenge & Opportunity: Residential Buildings National Housing Conference September 26, 2011 Lori Bamberger Seeding Markets, Sustaining Communities

3. Local and National InnovationsInformation Perfecting (Labels, Disclosures) Marketing Financing

4. Residential buildings make up a large chunk of the nation’s emissions Buildings account for 43 percent of U.S. CO2 emissions Residential buildings account for almost half of the built environment’s emissions So, residential buildings account for 21 percent of all U.S. CO2emissions And, the vast majority of CO2 emissions come from single family, owned homes that will still exist in 2050… Source: Pew Center on Global Climate Change and Nehemiah Stone

5. Residential emissions have increased substantially in the last 18 years CO2 emissions from residential buildings increased much faster than all sectors except commercial operations between 1990 and 2008 and surpassed the overall average increase by over 10 percentage points All sectors, 15.9% Source: Energy Information Administration

6. The Multifamily Opportunity 35 Million Families In all U.S. Multifamily Approximately 1/3 of all Californian households (~4.2 million) Federally Subsidized Subset: Big, Old Buildings 34,614 HUD subsidized buildings 5 million HUD and LIHTC subsidized, affordable housing units Enormous Federal Energy Cost Outlay $6.8 billion in federal HUD expenditures: 15–20% of HUD’s budget More billions in LIHTC, USDA, and VA subsidized housing 29% ($9 billion) in Energy Savings estimated from MF alone $1.9 billion in savings estimated from HUD’s MF potential Large Aggregation Opportunity due to fewer owners

7. Older MF buildings increase the Energy CCC’s: Consumption, Costs, & Carbon Emissions

8. The Single Family Opportunity Approximately 75 million households Approximately 8.3 million single family units in California Nearly 1/3 are low- or moderate-income Many don’t qualify for energy assistance Homes are the least efficient, most costly to operate Energy Costs are Rising Average national energy costs: $1997/household In some parts of the US, some energy spikes approached levels close to the subprime ARM spike Saving Energy can build family savings & stabilize neighborhoods Modest investments ($3,000 to $15,000) can yield 20-40% energy and financial savings The average single family savings estimated at approximately $650/year. Foreclosure stabilization loan/mod efforts seek savings of $50-$100/month

9. The California single family home example Approximately 2/3 of California Residents Live in SF homes (~8.3 Million homes) Source: California Long Term Energy Efficiency Strategic Plan (2008); IEPR (2007)

10. The costs of energy inefficiency exacerbate existing financial challenges faced by middle income families The lowest income groups pay the highest proportions of their income on home energy Share of household income spent on home energy Household Income

11. Financial and Other Barriers Inhibit Scaling Perception Utility Costs Not disclosed at sale Asset Labels typically apply to new homes Privacy laws Financing Challenges in both single family and multifamily First cost hurdles & lack of affordable financing Data Early, patient and innovative capital Regulatory Silos Multifamily: misaligned incentives; prohibitions on project reserves/receipts Single Family: Enormous Fragmentation (75 million different owners), mortgage crisis Workforce Issues

12. Local innovations are scalable, replicable, and point the way forward Information Perfecting & State and Local Policy Disclosure: Green MLS, Utility Bill, Asset Ratings Code enhancements Financing Innovations Standalone Energy Retrofit Lending Multifamily Energy Retrofit Funds PPAs and ESAs Onbill Financing (Enterprise Cascadia, Blue Tree, and Lori Bamberger Consulting) Tax-Lien Financing (for commercial and multifamily) Public Housing and Freezing the Base Embedded Financing Workforce Initiatives Utility Initiatives & Incentives