The Arlington Partnership for Affordable Housing

Presentation at Virginia Housing Credit Conference

Tuesday, Sept. 3, 2014

Nina Janopaul, President/CEO

.

• Founded in 1989 – 25th Anniversary• Arlington County -- inner DC Metro area• Own 1,218 rental homes at 14 properties in

Arlington• Long term ownership• Funding with Low Income Housing Tax

Credits• Multiple recognitions for innovation, impact

and achievement – latest: Housing Association of Nonprofit Developers (HAND) named APAH Developer of the Year in 2014, their highest award

Who is APAH?

Resident Profile

• Low income families and individuals• Working and persons with disabilities• Diverse ethnic/national backgrounds• Budget-minded – cook at home• High concern about utility bills• High occupancy– two per bedroom

Real Estate Portfolio• Building types

o New construction, mid-rise and high-riseo Older, renovated garden apartments

• 80% of units are family sized (2 or 3 Bedrooms) • Extensive local design review for zoning and permitting• Pipeline includes: Concrete; Mixed-use; Mixed-income

2007, 1st LEED Silver 1949; 20122009, 1st EarthCraft 2015+

Developer’s/Owner’s Constraints

• Long term owner with flat income: need to control lifecycle costs

• VHDA Development Cost limits: need to control upfront costs

• Utility allowance schedules do not capture energy saving investments

• Earthcraft standards impact energy use, design• Challenge of synthesizing complex, individual building

design issues with “one size fits all” LIHTC/Earthcraft standards

Buchanan Gardens story• 1949 garden style, brick construction• 111 units• Acquired by APAH in 2009• Gut rehab in 2011/2012 included enlarging some smaller

units via bump-outs and all new systems and finishes• Extensive local zoning and permit conditions• LIHTC financing• EarthCraft certification

Buchanan Gardens – moisture problems

• Conflict between conditioned, and unconditioned spaces

• Mechanical closets are un-conditioned• Moisture condensing around duct work carrying

colder air• Some residents elect not to use A/C

RESULT Mold in newly renovated buildings

Inside Utility Closets

Outside Utility Closets

Buchanan Gardens -- remediation

1. Test all HVAC installations with commissioning agent2. Repair faulty installations in many units3. Introduce conditioned air into utility closets4. Enforce lease provisions that require residents to use A/C

during summer5. Change bathroom exhaust from continuous to 20 minute

timer

Impact: many hours of meetings with MEP, architect, contractor to identify and resolve moisture issues. Approx. $100,000 to owner to remediate.

Potential impact: litigation potential for mold exposure to residents.

Lessons Learned • Need to analyze both high first cost, life cycle costs and hidden

costs• Simpler, proven systems with accessible parts and common

labor needs (not high cost specialized labor) are cheaper over the lifecycle

• Build it right the first time: significant costs and time to test, redo, replace

• Involve professional MEP engineers from around the state when establishing new standards

• Recognize individual complexities of each property• Eg. New Dehumification requirement – could conflict with

DOAS (Dedicated Outdoor Air System) and central systems in elevator served, new buildings

Other Tales from the “Bleeding Edge”

Unproven systems and solutions can be risky and costlyo Especially for affordable housing -- limited financial resources

1. Tankless, gas-fired hot water heaters and heating systemso 11 failures in 111 units in two years (10% failure rate)o Replacement cost $2,000/unit, not repairable due to electronics

2. Aquatherm system chosen (2001) instead of conventional electric heat pump and electric hot water tank

o Years 10+ typical lifecycle failures. Replacement cost $2,000/unit—four times conventional hot water heaters

3. Grey water system Parc Rosslyn. Landscape irrigation use insufficient to keep clean, requires sanitizing/flushing extra expense

SummaryQ: “How Tight is Too Tight: Moisture Issues Threaten Green Building Standards…or Do They?”

A1: Unfortunately, green building standards can contribute to prospective threat of moisture related issues, including physical, financial and management challenges

A2: Assessment of complex real world design issues (rehab/new, HVAC system, envelope system) and collaboration with multidisciplinary engineering team, are required to prevent unintended consequences that hamper the valuable goals of green building standards and upgraded codes

Nina JanopaulPresident/CEO, APAH njanopaul@apah.org

Our Mission

To develop, preserve, own and advocate for quality affordable housing in Arlington, and to promote

opportunity for our residents through partnerships and programs