A Blueprint to Decarbonize Affordable Housing
With three projects underway, Allston Brighton Community Development Corporation offers a model to fund retrofits in Massachusetts
Allston Brighton Community Development Corporation (CDC), a nonprofit, mission-driven, affordable housing owner in Boston, has emerged as an early champion of building decarbonization, driven by its mission to “build a stronger, more stable community” through the implementation of deep energy retrofits (DER). On top of their base project funding sources, they are expecting $8 million in local and federal support. Allston Brighton CDC is poised to cut energy consumption by an impressive average of 55 percent across 103 residential units in Boston. What’s more, its team members have generously shared their insights with us, offering a helpful guide for similar building owners and projects on how to go after various funding sources for retrofit success.
What is a deep energy retrofit (DER)?
DERs are not your standard building renovation: these projects aim to eliminate on-site fossil fuel combustion and significantly reduce on-site energy use through all-electric mechanical systems, high performance envelope interventions, and on-site solar when feasible. According to a forthcoming report by the Advanced Building Construction Collaborative, an estimated 75 million housing units across the United States are expected to need whole-building retrofits to meet climate goals. On a national level, DERs offer a solution to slashing emissions across the existing building stock. And for residents and owners alike, clean upgrades — from electrified appliances and heating to better insulation — offer not only dramatic energy and carbon savings but also valuable non-energy benefits, including better thermal comfort, a healthier environment for residents, and less pollution overall.
Despite the many benefits these projects bring, retrofitting remains complex and costly. The predevelopment phase can be a particular challenge when owners must assemble project teams, conduct feasibility studies, and navigate eligibility criteria and extensive application processes for funding. Allston Brighton CDC’s story of simultaneously undertaking deep energy retrofits at three different properties drives home the idea that, with the right guidance, support, and proactive planning, building owners can enhance their assets, improve tenant well-being, and reduce their carbon footprint.
So, how is Allston Brighton CDC doing it?
Momentum for building retrofits is creating opportunities for change
Massachusetts is establishing itself as a prominent national leader in building decarbonization policies, regulations, and initiatives. The state boasts a range of retrofit funding opportunities specifically tailored for affordable multifamily projects like Allston Brighton CDC’s (see list below). Newly available funding streams are designed to incentivize decarbonization and ease the alignment of Massachusetts’ existing housing stock with emissions targets set by the Massachusetts Clean Energy and Climate Plan and emissions standards set by Boston’s Building Energy Reduction and Disclosure Ordinance (BERDO). To reach these climate targets, many existing buildings will require a pathway to all-electric operation combined with envelope improvements that significantly reduce energy loads. Given that this level of intervention could cost more than traditional rehabs, state, local, and utility-based funding programs offer energy performance targets and the funding to help close the gap. Allston Brighton CDC emphasizes that this targeted funding has been pivotal to making the scope of its projects a realistic option.
Initiating three deep energy retrofits demands a proactive and holistic approach
It is critical that building owners approach upcoming rehabs with an eye toward decarbonization. We were driven towards deep energy retrofits for our properties because of the immediate impact for various stakeholders, facilitated by available funding streams.
As a community-focused organization, Allston Brighton CDC is integrating decarbonization into its mission by striving to eliminate reliance on fossil fuels, enhance long-term climate resilience, and improve residents’ living conditions. Rather than focusing on just one building, its journey started by undergoing a comprehensive review of its entire 10-property, 520-unit portfolio.
The process began by conducting Capital Needs Assessments (CNAs) while closely working with Allston Brighton CDC’s highly experienced property management firm, Maloney Properties, to gain a better understanding of the scope and severity of work needed at each property. Allston Brighton CDC also reviewed the financials at each property to determine which ones could be refinanced, including properties nearing the end of their 15-year Low-Income Housing Tax Credit (LIHTC) compliance period and those with a low first mortgage balance.
One of nine buildings at Brian J Honan Apartments, prior to renovations
Brian J. Honan Apartments Funding Announcement
From this assessment emerged a starting point. Three properties, representing more than 100 units, were deemed prime candidates: Hano Homes, Brian J. Honan Apartments, and Carol Avenue Apartments. Unique conditions at each property motivated considerations to broaden the scope of work to a DER. For example, Hano Homes presented an opportunity for solar installation due to the need for a roof replacement. At Brian J. Honan, a failing exterior façade inspired discussions on improving envelope thermal performance, resilience, and air sealing. Upcoming mechanical system replacements at Carol Ave prompted discussions on the risks of hotter weather and considering the addition of central air conditioning.
Streetview of Hano Homes pre-renovation
With this data, Allston Brighton CDC reached out to RMI’s REALIZE-MA initiative for guidance to understand each project’s suitability for a DER and expected energy and emissions savings that would trigger eligibility of incentive funds. Allston Brighton CDC joined REALIZE-MA and LISC’s 1000 Apartment Challenge for consultation on decarbonization pathways and connections to a broader knowledge-sharing network. Through this partnership, they found a sustainability consultant to conduct feasibility studies and pulled together project teams that initiated the careful planning process with a staggered schedule, enabling them to juggle the three projects in concert. While the technical DER approach varied at each property (see case studies below), these projects underscore the importance of pursuing decarbonization and incorporating innovative construction methods to become leading examples for similar building typologies in cold climates.
As we undergo these three projects, we’re confident that this experience will streamline and facilitate our future projects immensely — it was just a matter of getting started.
Historic brick facade at Carol Avenue Apartments that will be preserved during upcoming renovations.
Carol Avenue Apartments Case Study
Thanks to Allston Brighton CDC’s unwavering commitment, persistence, and due diligence, the DER project at Carol Avenue Apartments is now underway, with the other two properties set to follow within the next year. These achievements anticipate using a diverse stack of traditional and non-traditional funding sources, including potential incentive grant funding from the City of Boston Mayor’s Office of Housing (MOH), the Massachusetts Department of Energy Resources (MA DOER), the Climate Ready Housing Program, and the Low-Income Energy Affordability Network (LEAN) Multifamily DER Pathway which recognize the high-performance outcomes expected from of these retrofits.
Allston Brighton CDC’s Guide for Building Owners – Download Here
Building owners can align their portfolios for success, informed by the approach taken by Allston Brighton CDC to secure project funding from available sources, with the following tips and guidance:
- Connect with the right people — early. Research the network of key players involved in decarbonizing affordable housing and engage with experts on project scopes, teams, and available funding as early in the project as possible. In Massachusetts, consider RMI’s REALIZE-MA initiative, in partnership with LISC, which currently supports the 1,000 Apartment Challenge. This initiative offers consultation, guidance on decarbonization pathways, knowledge-sharing networks, and project development technical assistance.
- Be proactive about modeling and planning. Timing is crucial to securing funding. Funding opportunities often have competitive rounds, extensive application requirements, and limited application submission windows. Ensure that all the preliminary work, such as energy auditing and feasibility studies, is completed well in advance or as soon as possible.
- Strengthen your funding applications. Presenting a compelling and clear case for your project to funding agencies can be pivotal to making your deep energy retrofit a reality. See the table below for various funding sources that can support you in that process in Massachusetts.
- Insider’s Tips on Applications: Advice from Kristen Simmons (a FUSE Executive Fellow) and Joe Backer, both reviewers from the City of Boston MOH, provide insight on what makes a strong application:
- Demonstrate clear alignment and capacity. Highlight how each goal and requirement of the funding opportunity is met, ensuring information is easily accessible and understood. Provide details on how the project will be successfully executed using a combination of funding sources and through strong applicant management.
- Meet with a representative of the funding agency before applying. Early conversations can help applicants gain a better understanding of the funding opportunity, identify potential application gaps before submitting, and provide valuable insights to reviewers regarding project factors, such as pre-development challenges, construction costs, schedule impacts, etc.
- Make it meaningful. Letters of support from tenants, tenant organizations, or other stakeholders that testify to the applicant’s capacity or the project’s value can make a big difference.
A Call to Action for Building Owners: Scaling the Market
Deep energy retrofits are significant investments that serve not just the longevity of building infrastructure, but the well-being of tenants and health of our environment. Allston Brighton CDC continues to demonstrate the urgency of these projects through the rate at which it is moving forward with retrofitting its portfolio, but more building owners need to follow to push the needle of progress.
The more building owners that engage in these discussions and undergo these renovations, the more streamlined this process will become. The benefits extend beyond a single building. A viable pipeline of retrofit projects will build market capacity and enable the scaling of many more retrofits with replicable, and potentially lower-cost designs, technologies, and methods. Additionally, while some current decarbonization funding sources are finite, a robust market will demonstrate demand and may prompt more future funding availability.
Want to learn more how deep energy retrofits can benefit your affordable multifamily housing property? Please reach out to the REALIZE team (realize@rmi.org).
Interested in plugging into a broader community focused on innovative solutions for buildings? Connect with the Advanced Building Construction Collaborative! The Collaborative brings together a diverse network of incumbent and emergent buildings sector actors to accelerate the development and deployment of building decarbonization approaches leveraging modernized, streamlined technologies and methods. Reach out to the Collaborative at advancedbuildingconstruction@rmi.org or via its contact form.