Preservation of Affordable Housing Case Study
Building for Insurability, Resilience, Energy Efficiency, and Housing Affordability: Addressing the True Cost of Housing
Preservation of Affordable Housing (POAH) is a nonprofit organization that develops, owns, and manages affordable housing in across 13 states and D.C., building highly efficient large, affordable multifamily housing at costs equal to or slightly above buildings that meet code and back up power during power outages for critical devices and refrigeration. For example, the Kenzi at Bartlett station, affordable housing for older adults, is Passive House Institute of the U.S. (PHIUS) certified and all electric which provides backup emergency power through battery storage and solar power. Total project costs only exceeded costs of standard code buildings by 1%. Often, the first time a team builds to the PHIUS standard, the costs can be higher, as it takes more time for the project team to learn the techniques needed for performance, but costs go down with more experience. Internal data is consistent with reports that costs are regularly brought down to 0-2% of the total project cost, as materials like efficient windows that help make the outside of the building more efficient are more widely available. Better insulation can also reduce the size and cost of the mechanical systems needed for heating, cooling, and ventilation. Benefits include lower bills and enhanced safety— better insulation ensures homes remain livable and comfortable even during extended power outages in extreme weather. Some markets provide incentives for achieving Passive House and allow owners to capture utility or grid operator payments for demand response services using on-site batteries.
Actions state and local governments can take to accelerate similar housing projects include:
- Provide a utility program incentive for multifamily Passive House developments;
- Provide utility or grid operator payments for battery storage and demand response services; and
- Prioritize the allocation of low income housing tax credits (LIHTC) to projects which incorporate energy and building efficiency.