Housing Oregon Conference Panel Discussion: FIND THE MONEY
Big news!
What do you call it when a low-income developer, an incentive outreach manager, the VP of a nationally known green building certification program, and a green building consultant walk into a Doubletree Hotel?
Wait for it* A lucky four-leaf clover leading through the rainbow to a pot of gold?!
NW Energy Collaborative was invited to facilitate a panel discussion workshop at the 2023 Housing Oregon Conference. We had an all-star panel of industry experts: Trisha Paul, Outreach Manager for Amarna Energy, Mai Huynh-Carnes, Senior Development Manager for Community Development Partners, Michelle Foster, Vice President of Sustainability for Home Innovation Labs (NGBS); and our very own William Castrillión, Director of Certifications for Northwest Energy Collaborative. They presented a dynamic discussion about using high-value green building certifications to unlock multiple state and federal energy efficiency incentive programs for multi-family housing projects.
The presentation was titled “Find the Money: Stacking Incentives Using the Inflation Reduction Act, Energy Trust of Oregon, and More.” “Find the Money,” which started as a kitschy Podcast chant, has now become a company mantra.
The Challenge
We wanted our discussion to be impactful and relevant to Oregon's current state of affairs. With widespread homelessness, childhood poverty, and a decrease in socioeconomic advancement, how can we help increase low-income housing in Oregon?
So, we asked the audience,” What makes increasing affordable housing difficult?” The response was not surprising: the increasing cost of construction, high interest rates, inflation, land acquisition, lack of trained workforce, and obtaining capital funding echoed through the room of 60+ attendees. We interjected a few other challenges: difficulty navigating incentive programs, competitive LIHTC, grants, and PCEF funding, and limited local green building certification programs. Any way you slice it, the overwhelming issue revolves around capital. With Governor Kotek’s goal of increasing affordable housing to 36,000 units per year, demystifying the path to finding the money is timely.
“Find the Money” is about finding solutions to ensure these housing development projects will be built well, are profitable, and make it to the finish line. It’s all about providing developers, architects, & project teams a clear path to optimize tax incentives, rebates, and funding options available through green building certifications. We want to provide a logical roadmap to acquiring funding from the many national and local energy efficiency incentive programs. And it all begins with the “right” green building certification.
What are Green Building Certifications?
There is a cornucopia of green building certification programs out in the cosmos. LEED, Fitwell, Earth Advantage, Earthcraft, NGBS, Enterprise Green Communities, etc… There is no doubt that all these certification programs help improve buildings and reduce energy consumption or make occupants healthier and comfortable, but some are more distinguished, ANSI-approved, and more effective than others. Until a few months ago, options for green building certifications for a low-income project were limited to LEED, Enterprise Green Communities (EGC), and Earth Advantage. According to the CDM for Oregon Housing Community Services (OHCS), a developer must use one of these certifications to apply for the state’s Low-income Housing Tax Credit. With LEED being cost-prohibitive and EGC a promising program but a bit aloof, there was only one option developers used in Oregon: Earth Advantage.
This autocracy is finally ending. The precedent is set with the first official state-approved variance for NGBS, and developers now have options.
The “Right” Recipe
Some certifications offer a lower cost, are more comprehensive, and provide the keys to improving unlocking incentives. We want to break down this complex green building recipe into simple ingredients and steps. Here it is:
National Green Building Standard (NGBS) and Energy Star certifications are as fresh as the organic tomatoes from your garden. Mix these two certification programs with a green building consultant, sprinkle in the incentives from the Energy Trust of Oregon, and if you want a little extra kick, spice it up with the USDOE Zero Energy Ready Homes (ZERH). And voila, you can stack many incentives to find the money.
The “Right” Green Building Certifications to Find the Money
The Process
So, how does it work? This route to finding the money. Is there a Jedi involved? Ensuring eligibility for federal, state, and local incentive programs is a relatively straightforward process.
Engage a Green Building Consultant as early as possible.
Identify Potential Incentive Programs and select the “Right” Green Building Certifications that Unlock Incentives.
Complete Design Review to ensure eligibility.
Verify the work with a third-party building consultant.
Incentive Programs and Questions
This is the way! No Jedi is necessary. Maybe just a Mandalorian. We asked our expert panel about this process and to help break down the stacking of these incentive programs. The energy-efficient building incentives can be broken down into a few categories.
Federal: The Inflation Reduction Act Tax Incentives and Rebates - Section 45L, 179D, 48C, The Green and Resilient Retrofit Program (GRRP), Home Energy Performance Based Whole House Rebates (HOMES)
State and Utility Incentives and Rebates: Energy Trust of Oregon Cash Incentives (ETO), OHCS Multifamily Energy Program (OR-MEP), Low-income Housing Tax Credit (LIHTC)
Grants: Portland Clean Energy Fund (PCEF) Grants, Housing Development Grant Program (“Trust Fund”)
Financing Options: Commercial Property-Assessed Clean Energy Loan Program (CPACE), Fannie Mae and Freddie Mac Green MIP Loan Program
NW Energy Collaborative led the discussion and first round of questions with Jonathan Wrobel (Me) as the moderator, and we soon opened it up to the audience.
How does a green building certification help you finance a project? Who needs a green building certification? Why?
How does the Energy Trust of Oregon incentive program align with Green Certifications and the Inflation Reduction Act of 2023?
How does a green certification like NGBS help meet investor requirements for ESG?
Can one of our panelists explain how you have incorporated ETO, OR-MEP, NGBS, and Energy Star to claim these incentive programs?
What are the different buckets of financing options & what do they mean for your organization?
If you want the answer to these questions, go to Incentives for Developers or Contact us. The transcripts and FAQs will be posted, along with the panel discussion video once available. Stacking these Incentives starts with a green building consultant. We are here to help.
The Housing Oregon Conference was a fantastic success. Thank you to our panelists for volunteering their time and knowledge and all the attendees for this informative discussion. We appreciated the opportunity to debut our services and capabilities for the low-income housing industry. We hope to connect with all the folks we met at the conference, and we look forward to working with you to “FIND THE MONEY!”
With love and care in my heart,
Jonathan Wrobel
